Industrial
Teachers to strike February 5th – McDonald: The GTU last week announced that teachers will be taking industrial action come February 5 until a favourable response is obtained from the Ministry of Education (MoE) and the other relevant authorities, regarding salary increases and non-salary benefits, among other pending issues. Guyana Teachers’ Union (GTU) General Secretary Coretta McDonald last night expressed her frustration with the government’s handling of negotiations. According to her, in 2020 a proposal was submitted by the union to the government. This proposal, she explained was supposed to span from 2020 to 2023, but no response has been forthcoming on it, to date. “So that proposal is what we’ve been arguing all the time about… We wrote them… We wrote the Ministry of Labour, since GTU and the Ministry of Education… since the two parties could not sit and agree on the form of negotiations, on what the outcome is going to be, we wrote the Ministry of Labour and we asked the Chief Labour Officer if the two sides cannot sit, let the Ministry of Labour now act as the mediator,” McDonald told Stabroek News. The Member of Parliament (MP) continued that after 14 days had elapsed without a response to the GTU’s letter of appeal, they sent yet another letter, but received no response still. This then led to another letter being sent, this time with a request for an arbitrator, the ultimate stage in the process. She explained that the letter stated: “We are prepared to submit to you names of persons from which… you can elect one person to be the arbitrator”. However, McDonald noted that a response was still not forthcoming. As such, during the Christmas vacation the union held talks with members who expressed dissatisfaction and the decision was made to take things a step further. And so after the Christmas vacation, the GTU attempted to engage the MoE but said they were ignored again. They then decided to embark on industrial action and notified the Ministries of Labour and Education. In response to GTU’s decision to strike, McDonald stated that last week the Ministry of Labour reached out, asking the GTU to resend their letters, stating that they had been misplaced. The General Secretary noted that she agreed to resend them. “Anyhow, [I said] I’d be very happy to send you a copy of both letters and note, I’m going to place very, very large on those letters “COPY” and I will send you hard and soft copies. And mind you when we send the hard copies, kindly ensure that whoever’s receiving it, that they sign their name legibly so we can read the name of the person that is signing for that letter. The MP said that after receiving the letters the labour ministry corresponded with GTU, explaining that they did not respond to the letter because they recognize that the union was engaging with the MoE.
Investment
Gov’t still hopeful for US EXIM Bank gas $$ -Jagdeo: Government here does not believe that the United States will pause overseas funding on Liquefied Natural Gas (LNG) projects as it recently did internally, but nonetheless has alternative plans for financing if the US EXIM Bank funding isn’t approved, Vice President Bharrat Jagdeo has said. In the face of a delay to the US$660 million loan application to finance the Wales gas-to-energy project, coupled with the US’ recent pausing on new approvals of LNG exports which activists hope would extend globally, Jagdeo said that Guyana had no plans for immediate exports as the current project was domestic based. It is why he believes strongly that the loan here would be approved also. “I don’t want to speculate about the EXIM Bank funding because we anticipate that the funding will be available, and as I have said before, it would be retroactive funding. However, without disclosing the sources that we have, we have already been talking about a contingent line of credit that could easily supplant that,” he told a press conference held yesterday at Freedom House in Georgetown. “Secondly, from the Budget. We have already been financing, beyond the first US$100 million that we have put into the project, from budgetary sources. So that is the first year. We have been making payments to the company from the budget. So those are the two sources – [our] own revenue from the Budget and from a contingent line of credit that we are already discussing,” he added. The United States last week announced it would pause new approvals of LNG exports. The New York Times had reported that climate activists saw the move by the Biden administration as a win for the environment and had said that the government should also look at funding of similar projects overseas. Jagdeo however noted that US’ actions are “consistent with their domestic policy, where they made pledges to get closer to net zero,” putting the Biden administration under “a lot of pressure” after several LNG projects took off. “Often it is the policy suited to the purpose of the U.S,” he reasoned. He said that Guyana has a strong case for its loan, since “our gas production which is the gas to energy project, it is not for export, it is to supplant our supply which is bunker C, mainly which is very (polluting). The very fact that we are investing in a power plant that would produce gas now it would cut out emissions by more than 45 per cent, it is a cleaner form of fuel and would make a big difference here. We are not exporting we are utilizing,” he expressed. He said that Guyana is “a country that is carbon negative and will remain so. The circumstances are very different, therefore we don’t anticipate it will encounter any problems. We have had strong support, bipartisan support, from the U.S congress on this.”
Education
Ministry clamps down on unapproved access to schools: The Ministry of Education (MoE) has expressed concern at the prevalence of unauthorized persons accessing school buildings/compounds to conduct various activities involving students and the potential compromising of their safety. In a circular released by the ministry yesterday and addressed to education officers as well as head teachers and principals, the Chief Education Officer, Saddam Hussain, informed that numerous complaints have been received from concerned citizens, teachers, and parents, that persons and organisations are accessing school buildings/compounds and engaging minor children. And in many instances, students have been photographed and their photographs published as advertisements and promotions without the relevant permission. The circular stressed that “with immediate effect,” any person or organisation who wishes to enter a school building/ compound to engage learners in any discussion and/or to conduct activities such as donations or the distribution of gifts, must first obtain written approval from the Central Ministry (respective Assistant Chief Education Officers) through the respective Regional Department of Education. Recipients of the circular were reminded of the long-established protocols “which must be observed” when a guest speaker is desired to address the students. To hammer home this point, it quoted from Circular 1 of 1987; Memo by the DCEO Admin dated 14th November, 2018 which states: “In addition, where Heads may wish to invite a member of cabinet, or other government functionary, such invitation must be forwarded early enough through the normal channel to the appropriate Assistant Chief Education Officer at the Centre and approval must be given…” Further, it was stressed that “This is necessary to ensure the safety of minors and students while maintaining a secure, conducive environment and preventing disruption to the established order and discipline within schools.” As such, the circular warned that any head teacher who fails to observe the protocols will be recommended to the Teaching Service Commission (TSC) or School Boards Secretariat (SBS) for disciplinary action based on the Table of Charges, Offences and Penalties, Schedule 1 (Education Act, Chapter 39:01, Section 47). To ensure proper dissemination, recipients were directed to bring the contents of this circular to the attention of all members of staff, PTA, and School Board, and that they affix their signatures and the date thereon.
Oil & Gas
Exxon beats estimates, ends 2023 with US$36b profit: HOUSTON (Reuters) Exxon Mobil on February 2nd posted a better-than-expected US$36 billion profit for 2023 (more than seven times Guyana’s trillion-dollar budget this year), lifted by fuels trading and higher oil and gas production. Profits from oil majors have been down in 2023 by about a third from record levels in 2022, pressured as oil and gas prices retreated after spiking when Russia invaded Ukraine. Exxon Chief Executive Darren Woods said the industry “saw energy prices and refining margins start to normalize in 2023.” Exxon’s earnings in the latest quarter still beat estimates and Woods signaled optimism about the coming year. He raised Exxon’s spending target after boosting capital spending in the most recent quarter by 4% from a year ago. Full-year capital expenditures in 2023 were US$26.32 billion. Exxon, he said, “opportunistically accelerated drilling activity” in its two core oil production areas, the U.S. Permian Basin and Guyana, and kick-started lithium production to supply electric vehicle batteries. Exxon “closed 2023 on a strong note” and enters 2024 in a strong financial position, said Peter McNally, Global Sector Lead for Industrials Materials and Energy at Third Bridge. “But the big focus for investors will be the closing of the acquisition of Pioneer Natural Resources,” which will dramatically increase investments in the U.S. Exxon expects to close the deal in the second quarter. Shares were up by less than 1% in morning trading. Exxon results included a US$2.5 billion impairment charge for California properties that it has been trying to sell for more than a year. Excluding that charge, annual income fell 35% to US$38.57 billion. Top oil producers are writing off unwanted assets and cleaning up their balance sheets ahead of pending deals. Chevron has said it would take an about US$4 billion impairment in the fourth quarter, while Shell on Thursday took a US$5.5 billion writedown. Exxon agreed in October to buy rival Pioneer to bolster its U.S. shale oil production in the Permian Basin, and Chevron proposed to purchase Hess Corp to get a foothold in Guyana. Both deals are now expected to close mid-year.
Sugar
Plans in store to raise sugar workers’ pay, expand skills of harvesters –President: President Irfaan Ali last week in a Facebook livestream disclosed that efforts are in the works to increase the salaries of sugar workers and to improve the skillset of the cane harvesters so as to enhance their income within the industry as government continues along the path to optimize GuySuCo’s productivity. Contending that the APNU+AFC continues to show no remorse for closing sugar estates under their tenure, leaving thousands of workers jobless and unable to provide basic necessities for their families, Ali said, “the narrative that seeks to reset historical truths would not be allowed to flourish. We will correct those narratives.” In announcing that his government is working on a system to improve workers’ wages and skillsets to enhance their livelihood, the President stated, “We are aware that things are changing that is why we are working on a system and very soon we will be collaborating with the union and workers so that we can find a mechanism through which we can improve and increase the wages of these workers, not only did more than 25,000 people lose their livelihood during that period but since we came back 1,000 of jobs directly and indirectly have been created.” According to the President, to further add to this they are also working on a “plan to up the skill level of our cane harvesters so that they can be part of the mechanization project, operating the machines, but more importantly that we can now have a new form of operation.” He said that one of the things under examination is how best productivity can be optimized “by moving to a more contract form within the industry itself.” Ali stated that his government understands clearly that not only do they have to rebuild the sugar industry and make the right investments but that they also have to find the “formula” that will improve the skill level of the workers which will enhance their income and livelihood. “And that conversation is ongoing, we are not a government that would hide away from issues, we are not saying that sugar is not a challenge, this is a major challenge for us but we are committed to ensuring that we succeed.”
Finance
Gov’t to hike domestic debt limit by 100%, external ceiling by 66.7%: Commentator Christopher Ram last week pilloried the government’s plans for massive hikes in the domestic and external debt ceilings and a steep rise in extractions from the NRF even as the Ministry of Finance sought to defend the move. Ram in a letter in yesterday’s Stabroek News noted that Minister of Finance Dr Ashni Singh has kept his Budget Speech promise to come back to the National Assembly to a) raise the debt ceiling b) to revise upward the NRF withdrawal rule and c) saving an increasing share of the inflows into the Fund. Earlier on Friday, via the Fiscal Enactments (Amendment) Bill 2024 Ram said that the Minister delivered more than even his most ardent supporter would have expected. He said that the Minister proposes to increase the borrowing ceiling for Public (Domestic) Loans by 100% from G$750,000 Mn. to G$1,500,000 Mn. and the borrowing ceiling for External Loans by 66.7% from G$900,000 Mn. to G$1,500,000 Mn. “It means that since the PPP/C came to power in August 2020 they have increased the domestic debt ceiling by 900% and the external debt ceiling by 275%. By any measure, even for the fastest growing economy in the world, these are staggering increases, with obvious consequences. The domestic debt reported in the Budget Speech at December 2023 was $569,913 Mn. which means that he can borrow as much as $931,000 Mn. more on the domestic market. The 2024 Budget showed that the Government proposes to borrow in 2024 some $189,522 Mn. (net) from the domestic market and $206,394 Mn from external sources”, Ram said. He added that the Minister is giving himself massive borrowing space both from local and external sources and said that it would be interesting to see how the private sector responds to this proposal which can crowd out local borrowings and possibly carry up the cost of capital.
Parliamentary
Opposition chides gov’t for delays in pump stations construction: Shadow Minister of Agriculture, Vinceroy Jordan, last week requested an update on the number of pump stations completed but was told by Agriculture Minister Zulfikar Mustapha that this information would be provided shortly as the projects that have begun, are soon slated for completion. Mustapha was speaking as the Parliamentary Committee of Supply convened to consider the 2024 budget estimates for the Ministry of Agriculture. Jordan asked, “Mr Chair, I would like to find out from the Honourable Minister of Agricul-ture, a breakdown by numbers on the number of pump stations completed and the dates they were completed.” Mustapha responded, “Mr Chair, we have not met that programme yet, the pump station is not under that item of examination, I can provide the answer but procedurally we are currently at the item flood risk management.” But Chairman of the Committee of Supply Manzoor Nadir, who is also the Speaker of the National Assembly corrected him. “Honourable Minister, we are at programme 212, Agricultural Development.” Mustapha replied, “Yes agricultural development, so I will lay out all of that information to the honourable member as requested everything to do with the starting date and completion date.” Under the category Agricul-ture Development and Support Services, the National Drainage and Irrigation Authority (NDIA) received a total sum of $10 billion in capital expenditure which caters for the provision of drainage and irrigation structures, pump stations and payment of retention. Jordan noted that since $15.3 billion was spent last year under these items of examination, he would like to know an update on the number of pump stations completed since huge sums of dollars have been expended.
Business
City chamber calls for overhaul of stock exchange: The Georgetown Chamber of Commerce and Industry (GCCI) today noted with concern, reports of operations at the Guyana Stock Exchange (GSE), and its effect on the business community in Guyana. In a statement, it said that with access to financing being a leading hurdle for many businesses in Guyana, the GSE has a significant role to play in facilitating a transparent and efficient marketplace for companies to raise capital, invest, and grow. The statement said that the GCCI has been on public record, on multiple occasions, championing the reform of the capital markets and the stock exchange in Guyana. “The lack of necessary infrastructure, technological advancements, and regulatory framework at the GSE compromises the financial health of businesses, restricts their ability to attract investment, and ultimately hampers their growth potential. That the substandard functioning GSE is also resulting in the sale of stocks in breach of a company’s by-laws is also most worrying”, the Chamber said. With Guyana being on a “revolutionary growth trajectory”, the Chamber said that it is imperative that the GSE be revamped to keep pace with the rapid growth and development taking place all across the nation. “The GCCI therefore calls on the Guyana Association of Securities Companies and Intermediaries Inc., and Guyana Securities Council (GSC) to prioritise the modernization of GSE infrastructure, with a focus on the incorporation of technologically advanced best practices”, the statement said.
Fire
Springlands fire destroys upholstery business, hotel with bar: A fire last Monday ravaged two buildings in Springlands, Upper Corentyne ruining an upholstery business and a nearby hotel which housed a bar and mini restaurant. The fire reportedly started at a two-storey wooden building where businessman Mahendra Persaud also known as ‘Mahen’, 54, operated ‘Mahen and Sons Upholstery’ and then quickly spread to the Ritz Hotel and Bar located at Lot 171 Springlands, which is operated by businesswoman Kamaldeo Ootra, 62, According to information gathered, Persaud of Lot 13, Number 75 Village, Corentyne, was present sewing at the location when he saw smoke emanating from his storeroom. He and his neighbours immediately alerted the fire service and police. According to Persaud, he has operated his business at the rented location for over fifteen years now. “Me go this morning and paint out one chair foot and one man bring one thing for me to stitch am and about 9 o clock time deh stitch am pon the machine and me see smoke when me watch up and me tell the man a who light rubbish heap that them people get one dead over deh mussy them.” Persaud said that he decided to investigate where the smoke was coming from “and me get one room a side there and when me go open the door me see fire and was a lil fire so me go out am.” He said, at that stage the fire began to quickly spread to sponge and other items which were nearby “and me tell the man come help me let me take out my machine them and put it outside.” According to Persaud, his neighbours immediately phoned the fire service “but them fire reel take long to come and me try haul out the machine and wah me can get but nuff thing me couldn’t a manage because the fire take over the whole place.”
Fire razes Prison Service dorm in Kingston: Fire tore through the Guyana Prison Service living quarters on February 2nd in Kingston, completely gutting the building. The Guyana Fire Service (GFS) received reports of a fire on Parade Street, Georgetown at around 9:26 am. As such, Water Tenders #85, #105, Prison Bowser, Land Rover #7, and Hydraulic Platform #3, with crews from various fire stations, were dispatched promptly, arriving at the scene around 9:32 a.m. They then commenced the task of containing the fire and preserving the surrounding buildings. The dormitory which is said to have housed 30 prison officers, quickly disintegrated with the flames roaring through the entire building. Fire-fighters could be seen battling the flames from all angles, however, despite their best efforts, the raging flames quickly consumed the upper flat of the building. Regional Fire Officer, Haimchandra Persaud, told reporters at the scene that the water pressure was insufficient, forcing firefighters to seek open sources of water. Thank-fully, they were able to access the Cowan Street canal and this afforded them “copious” amounts of water which resulted in the fire being put out quickly. He also informed that a request was made to the Guyana Water Inc to increase the pressure. Persaud noted that the top priority for the GFS was the safe evacuation of the children in the neighbouring schools, namely Chase Academic Foundation, West Field Prep, Cherry Blossom Play School, and a Special Needs School. All the children from the various institutions were safely evacuated and assembled in front of the Chinese Pavilion at the Lamaha ‘Safe Space’ and at the Guyana Police Force ground, to be receiv-ed by anxious parents and guardians.
Cricket
Accolades pour in for Shamar Joseph on his mauling of Australia’s batting: There was an outpouring of support and slew of congratulations for local cricketer Shamar Joseph last Monday on the heels of his stellar West Indies Test cricket debut against Australia, with Guyana’s President Irfaan Ali saying his country and the region could not be prouder of him. Joseph’s performance, which saw him take seven wickets for 68 runs in the second Test against Australia, resulted in the West Indies winning their first Test match in 27 years in Australia. This has brought joy to the Caribbean and Guyana, but especially the residents of the small Canje River village Baracara from which he hails. It was Joseph’s second Test. What made the victory even sweeter was that he played with an injured, bloodied toe and as he took out the stumps of Josh Hazelwood , the young 24-year-old went running around the ground with his teammates behind him, some climbing on his back in jubilation. The family of Shamar Joseph rejoicing on Sunday morning at Baracara, Canje, Berbice. The incredible victory brought tears to the young team members, most of whom were written off as being inexperienced and no match for the Australian side, the best in test cricket. In addition, former players Brian Lara and Carl Hooper, who were both commentating on the match at the time, could not help but cry tears of joy. Joseph’s family said that they were most proud and “overwhelmed” with joy at the performance of the young 24-year-old, who, up to last year, was working as a security guard to help make ends meet for his family. “We are happy for his achievements. Our mother is in tears. Even though he was a security guard, he spent most of his time playing cricket. We had a group call with him this morning and everybody was so happy. We had our days of struggling, but he made it and we are so proud of him,” his sister Sarafina Joseph told the Stabroek News via mobile phone from Berbice.
