Lethem businesses feeling squeeze from Brazil’s economic downturn – Mayor

The officials of the Lethem Municipality are not to be blamed for the current economic instability facing businesses in the township, Mayor Carlton Beckles says.

Beckles, was at the time addressing assertions made by People’s Progressive Party General Secretary (PPP) Clement Rohee, who, in a recent press statement, accused both the municipality and Central Government of mismanagement that he says has resulted in a standstill in Lethem’s economic activities.

In the statement, Rohee alluded to Lethem having been reduced to a ghost town as businesses continue to fold in the light of the town’s current economic status.

“Many businesses have folded and hundreds have been thrown to the breadline… residents are up in arms demanding relief to the deplorable situation mismanaged by the Municipality and Central Government,” the statement said.

Carlton Beckles
Carlton Beckles

Responding to the assertions, Beckles was quick to note that the current economic situation in Lethem should not be attributed to the municipality or even the new administration, since he believes that Lethem’s “booming economy” was a farce played out under the former PPP/C government.

“Since the advent of GBTI in Lethem, it was known that the economic power of Lethem could not sustain a bank in here, yet, the PPP gave GBTI a concession,” he said.

Following on this development, Beckles said, the Rupununi Chamber of Commerce and Industry (RCCI) came up with the idea of a commercial area. He said while he agreed that it was a good idea, it was one that came at a bad time.

“At that point of time, loans were made available from GBTI and persons were encouraged to build; it was this that gave persons the impression that Lethem was booming when it was not since they were heavily dependent on Brazil for business and have been since then,” Beckles lamented.

But with Brazil having suffered an economic downfall itself, Beckles said, businesses in Lethem are also feeling the effect of the unstable Brazilian economy.

“The Real (Brazilian currency) has declined significantly; Brazilians are not coming to do business so those who would have targeted the Brazilian market are feeling the strain now. Persons have started to sublet and rent while others have even sold their business because they aren’t getting the sales,” he stated.

However, he went on to say that those who would have made locals their target market have maintained their businesses just fine.

In the PPP press statement, Rohee challenged the municipality to focus more on the establishment of agro-processing facilitates as a means of supporting economic development of the indigenous people and communities.

Commenting on this, Beckles, said, “I am happy to learn that that Rohee, after 23 years, would have finally learned about agro-processing since he has never used the word until we saw a change in government. Since 2011, President [David] Granger has been preaching about agro-processing and this will be our focus. As Mayor, I see agro-processing as being a main ingredient that can take Rupununi forward and more so, the township of Lethem.”

He added, “For Rohee to say that we mismanaged anything in Lethem is very dishonest of him. He is a stranger to the truth and is just seeking cheap political mileage with those claims. He needs to remember that Lethem now has a radio station that allows residents to be more informed; persons aren’t as easily fooled anymore.”

Additionally, Beckles highlighted several projects that have been undertaken by the municipality to improve the lives of residents of the township.

This, he said, includes the implementation of street lights, for which $1 million of the total budget has been allocated, and the proposed launch of a school bus service, expected in September, that would subsidise transportation fees that parents of students are often faced with.

Additionally, he stated that when he took office as Mayor of Lethem, the market occupancy was given as 43% but with ongoing rehabilitation, the occupancy rate has significantly increased as more market applications are being tendered.

Beckles also highlighted the work being done on several community centres and sports complexes in the township, including those at Culvert City and Tabatinga.