The billion-dollar bailout for the Guyana Sugar Corporation (GuySuCo) announced by Prime Minister Moses Nagamootoo on Friday has already been allotted in the 2017 National Budget, and Government did not approve an additional billion dollars for the cash-strapped entity.
Agriculture Minister Noel Holder
This clarification came from Agriculture Minister Noel Holder even as Prime Minister Moses Nagamootoo declared on Friday that Cabinet, during its most recent sitting, approved a billion-dollar advance to pay workers of GuySuCo. Holder explained that the money approved is part of the $9 billion which have been allocated to the sugar company in the 2017 National Budget, and approval to disburse the $1 billion came in light of a request made by GuySuCo because of its inability to pay workers for the month.
Guyana Times understands that approximately $3 billion of this money have already been released to GuySuCo.
Government had allotted $9 billion for GuySuCo in the 2017 Budget
The APNU/AFC coalition Government had criticised past administrations for continuously bailing out the sugar industry, and had vowed to put an end to such practices. However, since its assumption to office about 22 months ago, it has injected some $32B into the sugar industry, much to the satisfaction of the workers’ union, the Guyana Agricultural and General Workers Union (GAWU).
GuySuCo is reportedly currently facing difficulty to achieve its first crop target of 74,172 tonnes of sugar, as there has reportedly been only a 59 per cent turnout of cane harvesters. Workers across the industry have downed tools and have gone up in arms over the direction the sugar sector is headed, as concerns grow over the future of their livelihood.
GuySuCo is currently preparing to submit to the Government a proposal aimed at obtaining its no-objection to sell off some of its land to private bidders. GuySuCo’s Chief Executive Officer, Errol Hanoman, has disclosed that quite a few persons have responded to the tenders, though he did not state the exact number of applicants who have vied for the chance to buy the tracts of land. He was hopeful the situation would quickly be resolved, considering that the corporation is in a cash-strapped state.
Notably, GuySuCo had asked for $12 billion in subvention for 2017,, but Government has allotted only $9 billion.
