The cash-strapped Guyana Sugar Corporation (GuySuCo) has received another disbursement of funds through the Ministry of Finance that will enable it to pay its staff for this month.
Stabroek News was unable to determine the sum that was disbursed to GuySuCo but was told that the money was released to the company sometime between the end of last week and Monday.
This newspaper reported last week that the corporation was not in a financial position to meet its July payroll obligations and the company had requested a sum of $1.2 billion from government to offset its expenses and prepare for the second crop.
Meanwhile, GuySuCo yesterday announced that the Second Crop for 2020 will begin during the week of August 7th, 2020. Albion/Port Mourant Estate will start grinding on July 31st, 2020, while the factories at Blairmont and Uitvlugt estates would start operations by August 4th, 2020. A release from GuySuCo said that the budgeted target for the Second Crop is 69,480 tonnes of sugar. Operations at Albion and Blairmont will extend over seventeen weeks while Uitvlugt’s is projected to extend for ten weeks.
During the Second Crop, the release said that the Corporation will be shipping bulk sugar to markets in the Caribbean, North America and Europe, while both bulk and direct consumption sugars will be sold on the local market.
The corporation expressed appreciation to its customers, both locally and internationally.
“When our customers buy our sugars, they contribute towards; employment for 8,000 employees and their families or approximately 40,000 persons (family members), sustaining over 200 businesses (including suppliers), support over 6,000 pensioners; as well as, health care for employees, pensioners and residents in many communities.
“Also, our customers contribute towards our corporate social responsibility programme in aspects of community development in Regions 3, 5 and 6 where our estates – Albion, Blairmont and Uitvlugt are located. The corporation also provides training for residents in these communities; as well as emergency services, such as ambulance and fire tender services; and very importantly, maintenance of the drainage and irrigation systems from Skeldon in East Berbice to Boerasirie on the West Coast of Demerara”, the corporation said.
A source explained to Stabroek News that despite the corporation receiving the money, it is still unable to execute its turnaround plans since finances are still being released in a piecemeal fashion. This, the source noted, has hindered the company from planning and effectively executing maintenance on the grinding factories.
Through a previous disbursement of cash from the government holding company, the National Industrial and Commercial Investments Limited (NICIL), the sugar company was able to purchase some materials, such as fuel for the restart of the crop, and execute maintenance at its three factories. Wages were also paid from the sum.
The source had indicated that GuySuCo’s dire financial straits could have serious consequences for next year’s production as it would not be able to adequately prepare by beginning land preparation and the purchase of fertilizers.
A sum of $250 million was initially released to the corporation following a letter penned to caretaker President David Granger by Chairman of the Board of Directors for GuySuCo, John Dow, who highlighted the corporation’s financial dilemma.
In May, Dow appealed to Granger “… to use your good offices to arrange for funding to prevent the impending closure of the Industry.” In the letter, he also said that GuySuCo needed funds to be able to survive after the second week of June, 2020.
Dow had told the President that the current estates – Albion, Blairmont and Uitvlugt – in 2015 were in dire need of upgrades and that considerable sums of money were required to fix the deteriorated infrastructure in the field, in particular, bridges, dams, revetment repairs, and to provide for replacement equipment in field tractors, drain-digging equipment etc and factory pumps, motors etc. He explained that considerable sums were, and still are, required as a result of the neglect to provide the routine capital required for many years prior to 2015.
The current APNU+AFC administration, which assumed office in 2015, has been criticised for its handling of the industry, much like the former government.
