Indian company bids for full buyout

A possible battle looms over the takeover of the Guyana Sugar Corporation (GuySuCo) as another company officially proposes to Government its interest to invest in the cash-strapped estates.
The Indian firm, which was introduced to the Government by Prime Minister Moses Nagamootoo’s son-in-law, Tony Joseph, has formally proposed to buy over the sugar company.

In a letter to Agriculture Minister Noel Holder, dated January 27, 2017, Shrinath Ispat Limited said it wanted to take over the management and operations of the entire estate, including sugar manufacturing and co-generation of power divisions.
“We intend to put our equity as investment required for modernisation of the plant to operate smoothly and profitably and also for the working capital whereas the existing assets, including plant and machinery, would be as equity of GuySuCo,” the corporate entity outlined in the letter which was interestingly copied to the Prime Minister, but not to President David Granger, nor Minister of State Joseph Harmon.
The company expressed gratitude to the Government and the Sugar Corporation for giving its delegation an opportunity to visit all six of the sugar estates. The company promised to provide a more detailed plan for takeover if the proposal piques Government’s interest.

Nepotism
Despite immense criticisms and concerns of nepotism, the Prime Minister defended his son-in-law’s involvement in this sensitive arrangement.

According to Nagamootoo, his son-in-law is helping the Government out of the pureness of his heart.
“This issue is not about the Prime Minister’s son-in-law. This issue is about a businessman, a credible successful businessman who has decided that he will bring investors to Guyana wherever he can find them. He’s a Guyanese, he is a Berbician and he wants to help Guyana,” Nagamootoo had told this newspaper.
Joseph, a businessman, was encouraging investors to meet with Government officials to deliberate on possible plans for the local industry, however, the first known company to visit Guyana through him was the Indian firm.
Joseph became involved in this initiative after the suggestion was made by Nagamootoo.
“He just listened to the Prime Minister in India saying bring some investors to help the crippled sugar industry and he did… I met him in Delhi (India) where there was a Rotary club meeting, I met him with the High Commissioner, he went there on his own business and I met with all the business people. He asked me to go to a dinner and everyone wants to come to Guyana… they want to even form a Guyana/New Delhi Friendship Society and I said, ‘listen Tony, get a list of all who wants to invest in Guyana, coordinate with our High Commissioner and see if you can make contact (with Ministries)’,” the Prime Minister explained.

Conflict
However, a Trinidadian firm has already indicated its interest in investing in the Skeldon Estate.
The company, D Rampersad and Company Limited (DRCL), already signed a Memorandum of Understanding (MoU) with the Guyana Office for Investment (Go-Invest) on behalf of the Government for the undertaking of a feasibility study.

The feasibility study is proposed to commence on April 3 and will be completed in the second-quarter of the year.
The integrated sugarcane processing facility will include developing an integrated sugar-to-ethanol and electric power project. While sugar will not be produced, the Skeldon Factory will still have to process the sugar cane all the way to the molasses stage, but the diffuser for extracting the sugar will become redundant.The feasibility study will examine the cultivation and harvesting of sugar cane and sugarcane processing.
It will also look at the production of fuel-grade ethanol, and the production of bulk rum for local, regional and international markets.
The feasibility study will also focus on power production from bagasse, production of high-test molasses, the construction of a liquid bulk terminal and the development of a solar power generation facility.
The findings of the feasibility study will provide critical information and set the platform to make a definitive project proposal to the Government of Guyana.
Meanwhile, the MoU was signed without full disclosure to the Guyanese public and without any public notice or public tender. The company has no experience with any agricultural enterprise, and provides engineering services to the automotive and oil industries in T&T.
Notably, however, as witness to the signing was Noel Rupie Shewjattan, the owner of Auto Fashion Store on Garnett Street, Campbellville, Georgetown. Auto Fashion Store also has no experience in the agricultural sector.