Dear Editor,
One week after the press conference held by National Industrial and Commercial Investments Limited (NICIL), the Guyana Sugar Corporation Inc. (GuySuCo) is still trying to determine two key things: what was the purpose of the press conference and what were the motives behind the tactics used by NICIL? The reports emanating from the media have been extremely sensational, dishonest and unprofessional to say the least. The Corporation is most disappointed that NICIL has chosen to conduct its business in the unprofessional manner in what has now become a norm for almost two years.
Firstly, GuySuCo manages a business and would like to state very clearly, that PricewaterhouseCoopers was recruited as the consulting firm by the Special Purpose Unit (SPU) to conduct the valuation of GuySuCo’s estates – Skeldon, Rose Hall, East Demerara (Enmore) and Wales. Mr. Wilfred Bhagaloo was legally contracted as the ‘lead’ Consultant; as such, it is outside of the remit for Mr. Bhagaloo or PricewaterhouseCoopers (PwC) to be discussing the Corporation’s business in public, moreso in the media, without its permission. The Corporation has observed that this has been occurring since early 2018 when the firm was recruited. Mr. Bhagaloo and PricewaterhouseCoopers were selected to conduct the valuation based on what was perceived to be the distinguished reputation; relative to professionalism and integrity with which they would have been expected to treat with information to which they have become privy, by their privileged position with companies and organisations.
It is alarming, that a reputable firm such as PwC would allow its name to be discredited, judging from its extraordinary enthusiasm to participate in activities along with NICIL-SPU, even though PWC is aware that the core of its business is hinged on its professionalism with which it conducts its business. It is with much interest that, the Corporation observed Mr. Bhagaloo’s eagerness to seemingly place his personal relationships above the professionalism of PWC, as well as to participate in acts which are injurious to GuySuCo and its business. Then again, it is no secret that Mr. Colvin Heath-London and the ‘lead’ Consultant knew each other very well in Jamaica, prior to PwC’s engagement by the SPU. Nonetheless, GuySuCo views the aforementioned disclosures as a gross breach of confidentiality and the standards of ethical conduct of the financial and investment industries by the Consultant PWC and which might incur serious consequences.
Contrary to NICIL-SPU and PwC’s statements about GuySuCo’s non-cooperation in providing information requested, the list below represents information which was provided by GuySuCo, to representatives of NICIL-SPU, along with dates and names of recipients.
Editor’s note: GuySuCo listed 97 instances of the transferral of information to NICIL/SPU including on the Fixed Asset Registers for the Enmore, Rose Hall and Skeldon estates; financial statements for 2012-2016; Memorandum & Articles of Association; procurement manual; minutes of board meetings; cane age by cycle; electronic maps of fly zones; status of harvesting equipment and a range of other areas. The transferrals occurred between November 20, 2017 and June 13, 2018.
On the point of NICIL’s professional connection to GuySuCo, the Corporation would like to remind the agency; there has been a confusion which started with the SPU and now has consumed NICIL, as to its role. NICIL established the SPU to divest the assets of Skeldon, Rose Hall, East Demerara (Enmore) and Wales estates, however, at some point, NICIL indecorously assumed the role of the Ministry of Agriculture, the Government agency with responsibility for GuySuCo; further, in an attempt to legitimise this position, NICIL had even speciously appointed its own Board of Directors in March of 2018, with Mr. Colvin Heath-London as its Chairman. This decision was quashed by the Government, however, NICIL has never abandoned the misconception that, GuySuCo, an independent corporate agency, by Law, according to the Company’s Act, is neither a department, unit or owned by NICIL. Nonetheless, the pre-occupation with this false perception continues to influence the behaviour of NICIL in its dealing with GuySuCo.
With regard to the G$30B, the NICIL/SPU’s single role, was to divest GuySuCo’s assets from the Skeldon, Rose Hall, East Demerara (Enmore) and Wales estate, however, due to its slothfulness and less than credible ‘divestment’ tactics it has now placed at risk the retooling and restructuring of GuySuCo as it is clearly outlined in the Government of Guyana (GOG) State Paper on the Future of the Sugar Industry. NICIL-SPU, having been unable to divest the assets in a timely manner, convinced its principals that the Bond was an appropriate alternative as an interim financial arrangement; the divestment process is now approaching its second year and NICIL/SPU has not executed one significant investment.
GuySuCo, therefore is of the view that NICIL/SPU used the opportunity of the press conference on Monday 3 June, 2019, as a detraction from the fact that it’s has not achieved even one of its mandates for which it was created. As a matter of fact, in an attempt to extend the life of the SPU, having been created for the specific purposes above and within a particular timeframe; the agency has now assumed the role and operates as a proprietor and landlord. This is totally inconsistent with its intended purposes.
The Guyana Sugar Corporation Inc. wishes to state clearly that NICIL/SPU are mere custodians of the Skeldon, Rose Hall, Enmore and Wales assets of GuySuCo for the specific purpose of facilitating divestments as envisaged in the State Paper on the Future of the Sugar Industry, the proceeds of which must be remitted to GuySuCo in order to fund its Strategic Plan, NICIL/SPU ought not to be the beneficiaries of the proceeds as currently obtains. Additionally, GuySuCo is still awaiting a full report from NICIL-SPU on all and any transaction(s) which were completed or are in progress in relation to its immoveable and moveable assets, including the scrap metals, machinery, plant and equipment. GuySuCo would also like to be informed by NICIL of the extent of the valuation done by PwC. Were all four estates including cultivations and other assets valuated?
With regard to the G$7 billion which NICIL claims is not being accounted for, the Corporation, is appalled by these statements, since NICIL is well aware that GuySuCo has several layers to ensure financial accountability. These include; the procurement process by use of a credible tender process and annual financial statements among others. NICIL/SPU is once again invited to review the company’s financial records within the legal requirements. Finally, the Corporation has indeed requested duty-free concessions to purchase appropriate vehicles to conduct its business, however, no SUV’s or luxury vehicles as reported in the press were requested, the vehicles include; double and single cab pickups for agricultural/farming use (to be use in the backdam/cultivations). Additionally, contrary to reports in the media, the funds from the bond were not used to purchase the said vehicles.
Yours faithfully,
Audreyanna Thomas
Corporate Communications Manager
Communications Department
Guyana Sugar Corporation Inc.
