Opposition calls for new inquiry into loss-making, multi-billion dollar subsidised GuySuCo; corporation remains silent

Last Updated on Monday, 4 November 2024, 21:10 by Writer

Even as the state-owned Guyana Sugar Corporation (GuySuCo) on Monday continued its one-week long silence on its unprecedented dismal sugar output, the opposition assailed the government for pumping billions of dollars into the ailing loss-making industry and called for a new Commission of Inquiry aimed at finding a solution.

The corporation’s Chief Executive Officer, Paul Cheong, who is an executive member of the ruling People’s Progressive Party (PPP), on October 29, 2024, told Demerara Waves Online News that a GuySuCo statement would have been issued on that day. None was forthcoming and he has since refused to answer calls or messages. The corporation again on Monday said its statement was due to be issued later in the day or Tuesday.

The Guyana Agricultural and General Workers Union (GAWU) on October 28 said while GuySuCo’s overall production target was approximately 70,000 tonnes, as of October 26, 2024, GuySuCo produced 24,711 tonnes or just 39% of its second crop target of 63,276 tonnes. On top of that, the privately-owned Stabroek News newspaper on Monday reported that the corporation’s 2023 Annual Report, which was presented to the Office of the Auditor General, shows a GY$4.7 billion loss and a subsidy of GY$15 billion from government. Already, the corporation has recorded sagging losses of GY$7.8 billion in 2021 and GY$10.2 billion in 2022.

The Working People’s Alliance (WPA) said the future of the sugar industry, including whether “closure is an option” due to the current conditions, should be determined by a second Commission of Inquiry but ultimately the workers’ welfare must be the priority. “We supported a Commission of Inquiry a decade ago and we would not hesitate to support another Commission of Inquiry to see where the industry is at the moment and to make recommendations for the necessary changes,” WPA Co-Leader Dr David Hinds told a news conference.

WPA Executive Member, Tacuma Ogunseye said the corporation could not survive in its present structure but every effort must made to “right size” the industry with minimum hurt on the working people. He said that could only be done through political reconciliation and shared governance. The WPA had flayed the David Granger-led government for closing the estates and sending home at least 7,000 workers despite a recommendation by a Commission of Inquiry not to do so.

Dr Hinds said Guyana could not continue to unsustainably produce the sweetener at a high price and subsidise foreign buyers. “The solution is to make the industry a profit-making enterprise and not a burden on the government and, as we’ve often said, we have to be careful with an industry that is rooted in the culture and the politics of the country, and so there is no one solution,” he said. The WPA presidential candidate cautioned against injecting oil revenues into GuySuCo, saying that could lead to Dutch disease.

He believed that the Irfaan Ali-led government did not want to make GuySuCo an election campaign issue because a chunk of its support base is from the sugar belt, but intend to “ride out” the issue after the 2025 general elections after which drastic moves would be made.

The PPP continues to promise that GuySuCo would become viable, re-employ thousands of laid-off workers in keeping with its 2020 election promise and support coastal drainage and irrigation.

A Partnership for National Unity+Alliance For Change (APNU+AFC) Shadow Agriculture Minister, Vinceroy Jordan backed the WPA’s call for another Commission of Inquiry. At the same time, he believed that the APNU+AFC’s closure of the Wales, East Demerara, Rose Hall and Skeldon estates in 2016 and 2017 was the best option to turn around the industry.

Mr Jordan attributed the all-time slump in sugar production to poor land management including failure to rest the land to acquire nutrients, and bad mechanisation practices. He said all of those flaws were compounded by premature harvesting of canes, resulting in less sugar production.

He said the all-time low production has to be calculated from the initial target of 100,000 tonnes, rather than the revised and now unmet target of just over 60,000 tonnes.