The financial crisis facing the Guyana Sugar Corporation (GuySuCo) is likely to force the company to approach the caretaker government for aid in order to pay employees’ wages and salaries for May, a source on Tuesday told Stabroek News.
The source said that while April wages and salaries are being paid, it is likely that the company will face a challenge to pay wages and salaries for May and may have to seek assistance to meet its payroll requirements.
Corporate Communications Manager, Audreyanna Thomas, when contacted on Tues-day said such information has not been made available to her and therefore she was unable to comment on the issue at the time.
GuySuCo over the years has approached government for subventions at crisis points.
The production target for the first crop of this year is not likely to be reached and this will further contribute to the corporation’s poor financial standing.
To date, the industry-wide crop production figure stands at 24,715 tonnes from a target of 42,247 tonnes. With 17,352 tonnes still to be produced, it is unlikely that the producing estates will be able to reach their targets.
In 2019, the sugar corporation produced 92,255 tonnes of sugar from a target of 109,706 tonnes. In the first crop 33,531 tonnes was produced from a target of 33, 863 tonnes. Production in the second crop totalled 58,724 tonnes from a target of 75,843.
According to the source who is familiar with GuySuCo’s financial dilemma, the corporation could have been in a better position. It was explained that if the monies from the sale of GuySuCo’s assets and proceeds from the $30b sugar industry bond were released by the National Industrial and Commercial Investments Limited (NICIL), the company would be able to forge ahead with its strategic plan to make the sector profitable.
At the end of 2018, the APNU+AFC government announced the closure of three sugar estates Rose Hall, Skeldon and Enmore. The Wales Estate was closed at the end of 2017.
The source explained that the money from those estates could have impacted the industry positively and placed the operations on a sustainable path. However, with NICIL holding on to the bond financing and proceeds from the sale of assets, the corporation is unable to make the necessary investments in capital works and maintenance of factories.
With money invested into the industry, the factories will be able to increase output and operate with optimum efficiency to produce positive results.
The current crop season has approximately two to three weeks remaining before its conclusion. Stabroek News was told that sugar-producing operations at Uitvlugt are being wrapped up and are likely to come to a halt at the end of this month.
