Undisclosed bailout for Guysuco

Last Updated on Friday, 5 June 2015, 20:12 by GxMedia

The Guyana government on Friday announced that it has released a cash injection for the ailing Guyana Sugar Corporation (Guysuco) but did not disclose the amount.

However, a well-placed source told Demerara Waves Online News on condition of anonymity that the money is far below the GUY$16 billion that has been requested by the company. Instead, the amount is expected to cover basic operational costs such as salaries and keep the factories grinding.

The source said the comparatively small amount of cash is expected to last Guysuco until the 2015 Budget is tabled and approved by the National Assembly. The source added that the money released by government is also intended to assist the industry up to the point of the findings and recommendations of a Commission of Inquiry into the sugar industry.

That probe is expected to be announced soon. 

Government the monies are to ensure that operations at the sugar corporation return to normalcy. “The Ministry of Agriculture therefore wishes to assure the sugar workers and the public at large that all measures are being taken to ensure the sustenance of the industry.”

Government said that notwithstanding the recent change in GuySuCo’s management workers can rest assure that the Industry is here to stay. In addition, all sugar factories will remain operable.

To ensure that the Corporation continues to survive, an Interim Management Committee has also been put in place and is presently working and have already been meeting with management on the way for forward for sugar in Guyana. The Committee will oversee the work of the Corporation for at least six months, government said.

 A Commission of Inquiry (COI) will also be launched shortly by the New Administration into the affairs of the Sugar Corporation.

The Government wishes to assure workers that investing in sugar is investing in Guyana and as such all necessary action will be taken to ensure its sustenance.