As the Guyana Sugar Corporation (GuySuCo) seeks to ascertain how its new Board will be constituted, it was announced on Thursday that the Special Purpose Unit (SPU), which falls under the National Industrial and Commercial Investments Limited (NICIL), will rehire 100 cane harvesters to work in the fields at the Rose Hall Estate.
This comes two months following the dismissal of some 4000 workers from Skeldon, East Demerara (Enmore) and Rose Hall Sugar Estates after Government, through GuySuCo, opted to downsize the industry. However, much criticism from industry stakeholders followed on the basis that viable cane was
Rose Hall Estate
abandoned in the fields.
In an official statement on Thursday, the SPU pointed out that the Rose Hall canes would be sent to the Albion factory, which still fell under GuySuCo’s management. The SPU noted that Rose Hall was one of the entities handed over to the Finance Ministry for privatisation and/or diversification.
According to the SPU, it conducted surveys which revealed that GuySuCo had left a sugarcane crop in the ground that was going to be ready for harvesting.
“The sugar cane in the ground at Rose Hall represented significant value that would be lost if not harvested. The sugar cane at Rose Hall also represented an opportunity for the SPU to produce molasses to help meet local demand in 2018,” the body pointed out.
It was late last year that a major beverage giant expressed concern that the country’s supply of molasses, a key ingredient in the manufacture of rum, was under threat owing to the closure of several Estates. The company even stated that it was interested in taking over the Enmore Estate, another entity under the SPU/NICIL. It was announced earlier this year that the Estates could be temporarily re-opened to attract private investors – both domestic and overseas.
The SPU noted on Thursday that it was continuing to collaborate with GuySuCo to take the sugar cane harvested at Rose Hall to Albion factory for crushing. It was further explained that the cane harvesters commenced work this week and they were expected to harvest some 2300 hectares. It was also highlighted that the Rose Hall Estate has 4300 hectares of sugar cane in the fields for the second crop in 2018. Commenting on the financial arrangements of the venture, the SPU claims that it will be paying the contracted harvesters and will recoup the funds from the molasses sales afterwards.
At present, NICIL has direct responsibility for all of the divested GuySuCo Estates and the process is being managed by the SPU. NICIL’s takeover was made official by the publication of an extra-ordinary issue of the Official Gazette dated December 30, 2017. However, it was made clear that the takeover did not include any assets, land or property of the Berbice Estates of Albion and Blairmont and the Uitvlugt Estate on the West Coast of Demerara, as those entities would remain under GuySuCo for the foreseeable future. However, in recent days, Agriculture Minister Noel Holder stressed that GuySuCo was now under the Finance Ministry, via NICIL.
While the divestment plans continue to take shape, it is unclear who will head the new GuySuCo Board. It was reported that Government has given its nod to the appointment of a new Board of Directors after the supposed removal of economist Dr Clive Thomas from the Chairmanship post and his replacement with SPU and NICIL Head Colvin Heath-London.
Despite reports of replacement, Professor Thomas and the Agriculture Minister both denied being aware of any changes made to the GuySuCo Board. On Monday, the SPU announced plans to obtain $30 billion in loans and investments to support GuySuCo. According to the Unit, the funding will cover a four-year period and will provide capital as well as support infrastructure maintenance and upgrades at Albion, Blairmont and Uitvlugt. The funds are also expected to go towards developing new cogeneration capacity for the estate operations and the electrical grid.
