There were good grounds for deviation from the tillage rate, GuySuCo will benefit

Dear Editor,

I wish to respond to a SN article captioned, ‘Rose Hall Estate overpaid close to $5m to two contractors last year’ dated 29th August. I must commend the journalist for presenting a well-balanced exposition of the facts as stated in the Audit Report.

However, there are certain aspects of this article which need to be responded to since they do not portray a true picture of what actually transpired and events which would have supported the deviation from the tillage rate.

Firstly, the change of the payment was from piece-rated to time-rated and not a wrong application of the rate per hour, that is from $7,500 to $8,500. The rate per hour of $8,500 is according the approved rate. This deviation of payment was necessary due to the inadequate and poor tillage machines, unsuitable type of tractors and implements, poor conditions and inexperienced operators (highlighted in the Audit Report).

The deviation is also supported in the Contracts wherein it clearly states, ‘that any deviation of payment must be by mutual consent by the Corporation’s Representative and the Contractor’. This is interpreted by the Estate to mean that the ‘Corporation’s Representative’ is the Estate Manager. This was only clarified by the CEO after the Internal Audit was completed, and after all the ‘overpayments’ were made (Audit Report).

However, it must be noted that the Corporation will gain over $140 million in four years since the 130 hectares were completed with the assistance of these two contractors, were planted and will be harvested by Albion this second crop 2022. It must be borne in mind that due to the questionable reduction of the size in Albion’s cultivation, this will be a boon to Albion and the entire Sugar Industry. At the same time, this hectarage will subsequently be available for Rose Hall’s Reopening in Second Crop 2023. This was not included in the Audit Report although it was in my response to the audit. (See picture above of the plant canes where the contractors worked. The yield is estimated at 85 tons cane per hectare). 

The Corporation subsequently realized that the contractors’ tillage rates were wholly inadequate and after November 2021 the rates were increased in December 2021, April 2022 and again in July 2022. These increases would have amounted to 42.3% and even then the Contractors are still not satisfied and the Corporation is now reaching out to the Private Sector to perform tillage operations.

In conclusion, monetary values are sometimes inadequate to give the true picture of events and this is the background which these events must be reflected. The continuation of the tillage operations by the use of private contractors greatly boosted the expectations of not only the employees but those who expected to be employed around the depressed areas in Canje. This resulted in more persons seeking employment at the Estate and this is in line with the Stakeholders’ expectations. There was already an air of despondency which permeated the environs and this negativity was also in the public domain.

Yours sincerely,

Aaron Dukhia

Estate Manager-Rose Hall Estate