GuySuCo awaits word on fate of Skeldon Sugar Factory

Chairman of GuySuCo Board of Directors, Professor Clive Thomas
Chairman of GuySuCo Board of Directors, Professor Clive Thomas

There is growing opposition against the likely sale of the US$200 million Skeldon Sugar Factory, but according to Chairman of the Guyana Sugar Corporation (GuySuCo) Board of Directors, Professor Clive Thomas, no such decision has been made as yet.

Speaking with Guyana Times on Friday, Professor Thomas said that what currently obtains is there are options presented to Government for its consideration – options that had been submitted by the GuySuCo board in recent weeks.

He said the corporation has put forward its proposals to its shareholders – the Government of Guyana – in order for it to make a decision on the fate of the factory

According to Professor Thomas, the board of directors is expecting a formal response to its proposal imminently – a sentiment bolstered by the fact that the 2017 national Budget is slated to be presented on Monday.

Professor Thomas told Guyana Times during a brief phone interview that one of the options presented is for the status quo to remain, but this he said would lend to

FITUG General Secretary, Kenneth Joseph
FITUG General Secretary, Kenneth Joseph

the eventual collapse of the industry.

According to Professor Thomas, Government also has before it a proposal to privatise the Skeldon Facility, with a view of seeking an investor or investors that would pursue diversification.

This option he said, if pursued could lead to the development of other activities including areas of aquaculture, dairy, among other alternatives.

The representative union bodies for sugar workers on Friday all voiced concerns over the possible sale of the Skeldon Sugar Factory and have cautioned against this course of action.

Unions stand together

The Federation of Independent Trade Unions of Guyana (FITUG) on Friday endorsed the Guyana Agricultural and General Workers Union (GAWU), a major affiliate of the FITUG group, in its call to halt any consideration of a sale of the Skeldon Sugar Factory.

“FITUG notes the potential dire effect on the employees’ lives of this unnecessary plan to sell an important national asset… Any sale of the Skeldon facility at this time would certainly impact negatively on the entire industry, which can only aggravate the country’s economic plight. The factory and the estate’s extensive and rich land-holding have the potential to contribute to GuySuCo’s recovery and, indeed, the nation’s economy.” According to the trade union representative body, it sees much sense in the case made by GAWU for the retention, refurbishment and sustained technical maintenance of the Skeldon flagship estate:

“Recent praise about the factory’s excellent sustained improved production performance coming from GuySuCo’s Chairman and the Agriculture Minister (Noel Holder) need to be emphasised.”

FITUG pointed too to the corporation’s 2015 Annual Report, which also documented the factory’s improved performance and, “importantly, the constructive recommendations from the Government-appointed Commission of Inquiry must not be swept under the carpet as they present a sound case for the retention of Skeldon with all its potential, including its Co-Generation plant.”

FITUG also used the opportunity to raise concerns related to transparency in the proposed Government-Corporation ‘sale’ scheme.

“Firstly, as experienced when the Wales Estate closure was mooted early this year, there has been no consultation with the workers or their union. Credible information revealed that at the level of GuySuCo’s Board of Directors, the matter was not discussed and the relevant decision(s) seem to be limited to a select few, at least, up to this time.”

According to FITUG, “we are mindful of the fact that the industry, wholly or its many components, are the nation’s assets and the Administrations of GuySuCo and the Government should not forget this.”

FITUG said it considers it important to expose that no agency or auditor, except Wartsila, which examined only the power generation aspect of the factory, has been identified in the new and sudden critique of Skeldon made simultaneously when not so far-fetched rumours about a chosen buyer identified though no bidding has been announced.

“FITUG urges the Government to tread warily, re-think hasty decisions and consult every stakeholder, including the unions and the political Opposition on this ‘sale of Skeldon’ which, we firmly believe, will be disastrous.”