– claims it has best interest of sugar workers at heart
Observers have raised concerns regarding the work of the Special Purpose Unit (SPU) charged with divesting the assets of the Guyana Sugar Corporation (GuySuCo); but Government has come out in defence of the SPU’s work.
At a post-cabinet press briefing on Thursday, Minister of State, Joseph Harmon, adamant that Government has the interest of sugar workers at heart, said the head of the SPU has been appointed, and has started work in regard to the unit’s mandate.
GuySuCo is one of the largest land owners in Guyana
“There are certain things which have to be done, like valuation of property and so on… He (head of unit) is also receiving expressions of interest from various companies… The key element in all these proposals — and what we have always asked for — is consideration of the workers and their families. That is critical, and we put the lives and livelihoods of the Guyanese workers above any other interest.”
It has recently been announced that Colvin Keith-London would head this Special Purpose Unit (SPU).
The Unit has been tasked with the divestment of GuySuCo’s assets, inclusive of its lands; and it is understood that Keith-London would be based at the Kingston Headquarters of the National Industrial and Commercial Investments Limited (NICIL).
The Unit was first announced by the Agriculture Minister when he presented to the National Assembly a policy paper on the future of the sugar industry. The announcement had come at a time when Government was actively engaged in downsizing GuySuCo, with workers being made redundant if they fail to comply with the merge to other estates.
It is understood that, on November 11, 2017, some 250 sugar workers attached to the East Demerara Sugar Estate (Enmore) will be officially made redundant. GuySuCo only recently announced plans to retrench 2,500 more workers by the end of this year.
These will add to those hundreds from the Wales estate who were made redundant last year. According to reports, this will be the single largest planned layoff in decades.
Vehicle for corruption
At a recent news conference, Opposition Leader Bharrat Jagdeo made it clear that established procedures for the divestment of State assets are being ignored. More worrying, according to him, is the absence of valuations of the assets put on the chopping block by the Special Purpose Unit.
He explained that the structure included a unit staffed by technical personnel who reported to the Privatisation Board, comprised of representatives of the labour movement, the Private Sector and consumers – who then made recommendations to the Cabinet on privatisation undertakings.
“Deals will be made there with no valuation of the assets, and one day we wake up and all of it is gone… This means (the assets) will go from the Special Purpose Unit to a few ministers, and then to a buyer, without valuation… How can you sell an asset without doing a valuation? This Special Purpose Unit is a vehicle for corruption,” Jagdeo said.
Conducted under the ‘Sugar Industry Privatisation and Diversification,’ the outfit has been soliciting proposals from companies or persons, either individually or as part of a joint venture or consortium, “with an interest in the privatisation and/or diversification of Skeldon, Rose Hall, Wales and East Demerara (Enmore) factories.”
The Special Purpose Unit’s request for letters of interest is identified as the first step in the process of finding and shortlisting buyers or investors.
The entity has noted, too, that in order to increase transparency, it is partnering with a suitably qualified international financial services firm ‘to provide technical and financial advisory support in the process leading to a successful privatisation and diversification of the sugar industry.’
Jagdeo, however, observed that the special purpose company was moving ahead with sale of the assets, and drew reference to the special purpose company that was established to construct the $1.4 billion Durban Park project – a project for which the Auditor General is now unable to find its records.
He recalled that when the People’s Progressive Party (PPP) took office, there was a conscious decision taken to revamp the privatisation process at the time.
The former President noted that in the privatisation white paper that was prepared and taken to the National Assembly, “we created a structure for privatisation of State assets.”
