After all estimates for the Ministry of Agriculture were approved yesterday in the National Assembly, the opposition and government clashed on a sum of $3 billion that was allocated to the Guyana Sugar Corporation (GuySuCo) under capital expenses for the remainder of the year.
The issue was brought up after parliament resolved itself into the Committee of Supply to discuss the estimates under this year’s budget. As they discussed the capital expenditure for Agriculture Deve-lopment and Support services, opposition Parliamentarian, Khemraj Ramjattan, questioned why there was no capital project profile for the $3 billion allocation and asked the Minister of Agriculture, Zulfikar Mustapha, to explain what the monies will be spent on.
“I did not see a capital project profile – 3 billion and no capital profile” Ramjattan stated. According to Minister Mustapha, the $3 billion will be spent on the opening of the Rose Hall, Skeldon, and Enmore, sugar estates and the remainder of the monies will be used for the “re-capitalization” of the other estates.
Ramjattan in response reminded that budgeting is not done like that and stated, “Whenever there is a capital expenditure of this massive sum you must have what is called a project profile. Reopening three estates… did the minister say how much capital of this $3 billion will be going to Skeldon or Rose Hall or whatever else he’s opening and whatever else. You just don’t put three billion blanket like that and don’t put no project profile – that is against the FMAA [Fiscal Management and Accountability Act]”.
To this end the minister explained that technical teams are currently on the various estates and are assessing the needs of the estates to be able to have them opened as early as possible even as he noted that a lot of work has to be done to a number of the estates as a number of pieces of equipment and other assets were sold. “I want to inform the honourable member that Enmore, there is an estimated cost so far of $778 million, at Rose Hall $710 million, at Skeldon $711 million, giving you a total of $2.2 billion and the balance will be going to the other estates”, he said while adding that the other estates have been operating at approximately 40% to 60% capacity as they were neglected over the last five years.
The opposition parliamentarian went on to question if any studies were done to show how much it would cost to reopen those estates that the minister mentioned. The Agriculture Minister replied that a number of studies were done by “economic organizations”, unions, and other organisations, which shows that at least $3 to $5 billion would be needed to start up the estates.
The former Public Security minister also inquired what the earliest date for the reopening of the estates would be. Mustapha told the committee, “I can’t give the member a specific date, the cultivations are destroyed. Cane is a thing you can’t go in overnight and get cane. You have to plant cane; you have to know about cane. So I’m hoping by first crop or second crop next year, we should have sugar coming out of these factories.”
