With no sign of financial assistance from the Government despite pro-mises by caretaker President David Granger, the management of the Guyana Sugar Corporation (GuySuCo) is currently engaged in discussions to begin layoffs, a source close to the corporation told Stabroek News yesterday.
It has been over two weeks since Granger, at a media engagement with select reporters, announced that monies will be deposited into GuySuCo’s account. To date this promise is still to materialise.
“We have not received any money yet from the government. We do not have an understanding of what is happening but it seems as if there is some undermining by authorities at the Ministry of Finance or at (government holding company) NICIL to get the money into the bank,” the source said.
It was explained that while GuySuCo was able to meet its monthly payroll obligation for June, the corporation is not in a position to do so for July and will not be able to meet its wages requirement for this week.
“The corporation at the moment has no money. They will not be able to meet the wages requirement for this week because the crop is finished and we are not selling any sugar,” the source explained.
It was noted that because of the dire financial crisis, the corporation’s managers are already in talks on possible layoffs and the closing down of operations.
Stabroek News was told that the corporation does not have the finances to begin preparations for the second crop which is scheduled to begin by the end of July.
“There is no money to purchase chemicals and execute land preparation works and carry out all the other works in preparation for the second crop.”
The Guyana Agricultural and General Workers Union (GAWU) last Thursday said the sugar corporation requires at least one billion dollars to keep its doors open.
“With several more weeks before the second crop commences, the industry requires about $1 billion to meet wages and salaries expenditures while additional monies are required to meet other operational expenses,” GAWU said.
GuySuCo had said that due to the lack of adequate funding to procure needed spares for the upcoming out-of-crop season, it will pose a challenge to the maintenance programme.
“This is an ominous sign for grinding in the upcoming second crop 2020 which is typically longer in duration. At Uitvlugt factory for example, out-of-crop maintenance is in progress for many weeks now and workers have shared that they are instructed to re-use worn parts in areas that required complete replacements. This level of reckless engineering practice directed by the technical team will no doubt eventuate into frequent factory breakdowns during the upcoming grinding operations,” the union lamented in a statement released in mid-June, before adding that it remains disturbed by the laxity of the overall management of the sugar industry.
At the end of the first crop this year, the corporation fell short of its target of 46,476 tonnes by 9,462 tonnes from production at its three operable estates, Albion, Blairmont and Uitvlugt. Production had been extended at Albion and Blairmont by several weeks to reduce the shortfall.
Sugar production for the first crop amounted to only 37,013 tonnes of sugar, Albion produced 57.86 tonnes cane per hectare (TcH) against a target of 77.59 TcH; Blairmont produced 69.90 TcH versus a target of 82.59 TcH, and Uitvlugt produced 57.64 TcH compared to a target of 75.76, GAWU had reported.
GuySuCo over the years has been facing a financial crisis and back in 2015, at the time of the change in governments, the company had announced that it was in need of a bailout.
Even with this and a $30 billion bond of which GuySuCo has already accessed over $9 billion, the corporation is still in dire need of financial assistance.
Chairman of the Board of Directors John Dow, had written to the president seeking an urgent bailout to alleviate the crisis the corporation is in.
