Parliament clears $40.7b in supplementary financing: Just over $40.7b in supplementary financing was approved by Parliament after around 10 hours of debate last Friday and there were clashes over several of the items particularly for the sugar industry The two sides argued over contingency funds equalling $4.57 billion intended for the agriculture sector during the 85th Sitting of the National Assembly at the Arthur Chung Conference Centre. The Government requested that amount to cover expenses from April 1 to July 30, 2024, in a bid to stabilize the rice and sugar industries. Stabroek News on Wednesday reported that GuySuCo registered whopping losses of $7.8 billion in 2021 and $10.2 billion in 2022. Further, this year it had the worst-ever first crop. Despite setting an ambitious target of 100,000 tonnes for the year, insiders suggest that even a strong second crop may not suffice to meet this goal. Defending the request from the Contingency Fund, Agriculture Minister Zulfikar Mustapha also addressed concerns about the reopening of GuySuCo estates and financial management. He noted that the Albion estate has faced electrical issues, while the Rose Hall estate processed over 2,000 tonnes of sugar, generating revenue at the average price of US$750 per tonne. Despite ongoing financial difficulties, Rehabilitation efforts include a $600 million investment to repair the Albion factory powerhouse. The Guyana Rice Development Board, another crucial player in Guyana’s agricultural arena, has been plunged into financial difficulties due to a temporary 25% reduction in commission rates designed to aid millers during the COVID-19 pandemic. This move, intended to stabilize paddy prices, has instead led to a severe financial shortfall, with the GRDB having to forgo its commission entirely. Paddy prices surged from $4000 to $4500 per bag between April and August 2024, exacerbating the GRDB’s financial strain. As the GRDB scrambles to restore its finances, questions were raised by the opposition. “Why was $524 million suddenly needed and not in February’s budget?” Opposition MP Vinceroy Jordan demanded answers, questioning the unexpected financial strain and the GRDB’s ability to manage its growing staff of 250. Mustapha attributed the crisis to unforeseen challenges, including a new paddy bug threat and complications from El Niño. With rice production holding steady, up from 610,000 tonnes to 653,000 tonnes, the sector appears resilient despite mounting issues, according to Mustapha. Yet, rising prices for white and brown rice are fueling opposition concerns. Mustapha said that the increases are market-driven rather than supply-related, insisting that the government cannot enforce price controls on supermarkets.
Sugar
GuySuCo recorded losses of $7.8b in 2021, $10.2b in 2022 – Cheong: Even as GuySuCo’s audit for last year is still to be completed, projections are not bright as the corporation recorded back-to-back losses of $7.8 billion and $10.2 billion in 2021 and 2022 respectively and this year recorded the lowest first crop in its history. Newly appointed Chief Executive Officer Paul Cheong was asked by Stabroek News in an exclusive interview about losses for the period from 2021 to 2023. He provided the 2021 and 2022 figures, and disclosed that last year’s books were not yet audited. The extent of the losses in the wake of large state subventions to the industry will raise further questions about the government’s strategy. In its 2020 manifesto it had vowed to reopen three estates that were shuttered by the APNU+AFC administration. It has since reopened one, Rose Hall. In 2021, GuySuCo produced 57,995 tonnes of sugar and in 2022, 47,049 tonnes, while last year it was a little over the 60,000 tonne-target it had set at 60, 204 tonnes. The aim this year is an ambitious 100,000 tonnes, but with the first crop the lowest it has been in GuySuCo’s history, even if the second crop is strong, meeting the target seems impossible at this time. One source with knowledge of the industry and the corporation said that “even with an optimal second crop, meeting last year’s target doesn’t currently seem likely.” It is unclear what the corporation’s production cost per pound is currently but its new CEO said that it sells both packaged and bagged sugar to CARICOM and regional countries as well as North America and Europe. “Pricing is based on territory and is sensitive so we will not divulge such information,” he said when asked about costs. Production cost per pound of sugar has previously been a widely available statistic and had been the single most important metric in pursuing the failed Skeldon Sugar Modernisation Project (SSMP). In 2020, the production cost was US42.84 cents per pound at a time when the average global price was US28 cents. The SSMP had been aiming at around US10 cents. While not inclined to give the dismal numbers of the 2024 first crop production, Cheong said he wanted to focus on the positive as plans were forging ahead to make up and reach the set 2024 yearly target.
Oil & Gas
Gov’t needs to clarify ExxonMobil’s interest payments under 2016 PSA – PNCR: The People’s National Congress Reform (PNCR) has expressed worry about the inability or reluctance of the government to shed light on whether or not ExxonMobil is charging interest on its investments in the Stabroek Block and, if so, at what interest rate, and as such is calling on the administration to clarify this issue for the benefit of the Guyanese people. In a release last week, the PNCR stated its opinion that the reluctance of Vice President Bharrat Jagdeo to fully disclose information on this matter has gone beyond ‘eye pass’with it being more than likely that he himself is not on top of the situation and, worse, “does not care to be… his disdain for his responsibilities as the PPP’s oil autocrat thus represents an assault on the well-being of every Guyanese.” It also pointed out that the matter of interest payments can potentially amount to billions of US dollars in revenue leakages, bearing in mind that given the many tens of billions of US dollars involved in developing Guyana oil fields, an interest rate of even five per cent would result in a huge expense. Such monies, it contends, could instead be used to alleviate the cost-of-living crisis, raise salaries, eradicate poverty, and meet many other urgent needs. In an effort to explain the party’s concerns, the release made reference to Annex C of the 2016 Production Sharing Agreement (PSA), which states that interest expenses are recoverable without the approval of the minister, so long as they are “consistent with market rates.” However, it was pointed out, the first Exxon audit, commissioned by the Coalition Government, explicitly declares on Page 4 that the company did not recover any interest expenses. It read, “Interest and financing costs are recoverable under the 2016 PSA. However, EEPGL confirmed during the audit period that no interest or financing charges have been included in cost recovery- the audit team has confirmed that no interest or financing costs are included in the amount presented in the Q4 2017 cost recovery statement.” Such an explicit and direct statement, the release noted, is however missing in the second Exxon Audit, commissioned by the PPP to cover US$7.3 billion in the 2018-2020 period. It also highlighted that because the PSA allows interest expenses to be recoverable without the approval of the minister, any audit that lacks necessary thoroughness will not automatically flag them when they appear in the cost recovery bank. This in the PNCR’s view is what Jagdeo “seems not to grasp (or cares not to)” Explaining further, it noted that when the Stabroek Block operator says Guyana is not being charged interest on developments, therefore, an audit which follows the letter of the PSA may not directly reveal whether or not this is the case. As a result, it is, at minimum, incumbent upon the Government of Guyana to monitor quarterly expense reports to identify whether interest is being charged and to raise this issue with the operator if it are not living up to its word.
Press freedom
Guyana drops 17 spots on 2024 World Press Freedom Index: Guyana has dropped 17 spots in the press freedom rankings, moving to 77 out of a total of 180 countries listed on the 2024 World Press Freedom Index, which was compiled by Reporters without Borders (Reporters sans frontières-RSF). RSF is an international non-profit and non-governmental organisation focused on safeguarding the right to freedom of information. The recent report stated while Guyana protects freedom of speech and the right to information, “journalists who oppose the authorities face intimidation.” The report, however, later acknowledged that, “Guyana’s journalists are respected, generally protected, and allowed to do their jobs freely and independently.” And while in Guyana, journalists are rarely the target of physical acts of violence, it did point out that television investigative journalist Travis Chase’s car was shot at in December 2023. No one was charged in that incident. “Media professionals have also faced legal intimidation and suspensions. They are often bullied online by political actors and sometimes unknown persons,” the report added. It was noted that the country has a robust media landscape, with a diversity of national and regional media outlets. The report listed the main newspapers as Stabroek News, Kaieteur News, Guyana Times, and the Guyana Chronicle. It pointed out that the Guyana Chronicle is owned and controlled by the state, as is the broadcast service, the National Communications Network. Additionally, there are a number of private newscasts and online news services. According to the 2024 report, state-owned and controlled media in Guyana compete with several private radio stations, channels and publications. “Independent and opposition media outlets struggle to compete with the advertising revenues of pro-government media outlets, which threatens their economic viability.” It added, “While there were attempts in 2020 to improve regulation of the broadcast industry, the government failed to involve or consult with any broadcasters to strengthen the reform.”
Gold smuggling
AG: US DoJ has acknowledged request for info on Mohameds, Toussaint Jr. Thomas: Attorney General Anil Nandlall SC says that the U.S. Department of Justice (DoJ) has acknowledged Guyana’s request for information related to sanctions imposed on businessmen Nazar Mohamed, his son Azruddin, and Permanent Secretary Mae Toussaint Jr. Thomas. However, the Attorney General indicated that obtaining the requested details will take some time. In June, the government was advised by Washing-ton that any information concerning the sanctions against the Mohamed family and Toussaint Jr. Thomas would need to be obtained through the DoJ. Following the sanctions imposed by the Office of Foreign Assets Control (OFAC) on June 11, the Guyanese government contacted U.S. authorities to request information that would support its investigation into the affected individuals. These requests were sent by Minister of Finance Dr Ashni Singh and the Commissioner General of the Guyana Revenue Authority, Godfrey Statia under the Tax Information Exchange Agreement (TIEA) between Guyana and the U.S. The TIEA allows for the exchange of information to enforce tax laws, prevent fraud, and ensure accurate tax assessments. The government anticipates that both the mutual legal assistance process and the TIEA will enable timely and effective information sharing. Singh emphasized that the government will continue to work diligently with U.S. counterparts to resolve this matter swiftly. The sanctions under the US Magnitsky Act created a furore here and underlined that Washington was looking closely at major players allegedly involved in corruption. Use of the Magnitsky Act usually denotes very serious concerns about the targets. On June 11, the United States Department of The Treasury imposed sanctions on the Mohameds over the alleged massive smuggling of gold. Toussaint Jr Thomas, was cited for alleged corruption leading to her being immediately sent on leave by the government here. Allegations against the Mohameds include defrauding the government here of some US$50 million in taxes from smuggled gold, as well as bribing public officials. For Toussaint Jr Thomas’s part, it said that she used her office while serving at the Ministry of Home Affairs, to offer benefits to the Mohameds that included contracts, licences for weapons, and passports.
Gov’t doing little to address negative impacts of gold mining – GHRA: The Guyana Human Rights Association (GHRA) is taking the government to task for failing to insulate the environment and Indigenous communities from the negative effects of gold mining and makes the case that the many benefits it accords the sector do little to encourage responsible action. In a release last week, GHRA referenced the recent statement from the Ministry of Natural Resources (MoNR) which catalogued the extensive perks, concessions and privileges extended to the gold-mining sector, including tax reductions, duty-free concessions, simplified licensing arrangements, expansion of available mining properties in conflicted areas such as Marudi Mountains, and removal of protective regulations. All this, the Association added, without mentioning the “huge environmental and human cost” perpetrated by this industry. It was noted too that the ministry’s statement concluded with a reminder that this unwavering support was “in keeping with the ruling party Manifesto prior to the last elections.” Further, the GHRA bemoaned the fact that even road-building in interior regions has become mining-driven rather than influenced by community or environmental considerations. The release pointed out that since all mining has a significant effect on the environment, the Environmental Protection Act 1996, (Section 11) and Schedule 4, (item 9) mandates that Environmental Impact Assessments (EIA) and Environmental Permits (EP) are to be undertaken for each and every mining operation. However, according to the annual reports of the Guyana Extractive Industries Transparency Initiative (GY-EITI), the Guyana Geology & Mines Com-mission (GGMC) has not enforced such requirements for many years for the thousands of small-scale mining claims or medium-scale mining permits covering millions of hectares. GHRA lamented the fact that most of Guyana’s prized large rivers have been reduced to health and safety hazards by gold mining, with river banks and the actual course of rivers having been altered by illegal hydraulic mining. Added to this is the failures to apply the several GGMC Codes of Practice to the waste in mine tailings now spilling polluted sediment into the creeks and rivers. “No effort has been made to apply penalties for these transgressions despite the fact that River Navigation Act (cap. 50:01, 1998) and the State Lands Act 1903/1972 (Section 22) states ‘Everyone who willfully causes any impediment to the free use or navigation of any river or navigable creek, shall be liable to a fine of ninety-seven thousand five hundred dollars, unless he has previously obtained permission under this Act or the Forests Act to cause the impediment.’”
Trade
US Trade Representative underlines food safety on issue of catfish exports: A block on catfish exports from Guyana to the US remains in place and Washington’s Trade Representative Katherine Tai has emphasised the importance of food safety standards. In an exclusive interview with the Sunday Stabroek at the US Embassy, the US Trade Representative addressed several issues affecting trade relations between the United States and Guyana. One significant concern has been the inability of Guyanese farmers to export catfish to the United States since 2017, a situation attributed to new regulations. When questioned by this newspaper about whether this was not a case of a non-tariff barrier that discriminates against small countries like Guyana, Ambassador Tai addressed the nature of the regulations. “I appreciate the opportunity to explain this matter…The process we’re going through regarding the imports of catfish from Guyana is part of a food safety exercise. It should not be viewed as a non-tariff barrier aimed at excluding Guyanese catfish because of the country’s size. Instead, it reflects our legitimate regulatory responsibility to ensure that all imports meet our food safety standards”, she said. Tai elaborated on the importance of sanitary and phytosanitary policies, which are designed to ensure that food products are safe for consumption. “This is a critical aspect of trade policy, governed by evidence and science. I understand that the review process can be frustrating, especially for producers who are very good at producing their product. However, it’s vital for governments to guarantee that the food supplied to our citizens is safe. Establishing trust and confidence in the regulatory systems of different countries is crucial for maintaining food safety,” she explained. Efforts to lift the US export ban on Guyanese catfish, which has been in place since September 2017 have been ongoing and it is unclear why the Department of Fisheries and the Ministry of Agriculture have yet been unable to settle the issue. The ban has significantly impacted the local catfish industry, particularly the export of ‘gilbaka’.
Guysuco
Cheong confident he can make a success of GuySuCo: GuySuCo’s first crop for this year has been the lowest ever recorded but with a plan for maximising mechanisation and using technology, newly appointed Chief Executive Officer Paul Cheong said that it will reach this year’s 100,000 tonnes target. Cheong was adamant that sugar is profitable and will be a positive contributor to Guyana’s development. Not inclined to give the dismal numbers of the first crop production, Cheong said he wanted to focus on the positive as plans were forging ahead to make up and reach the set 2024 yearly target. “The first crop was bad because of El Niño… It was one of the worst crops in history,” Cheong told Stabroek News in an interview late last month. He said that the low figures were not because of poor management but mainly poor weather and the Albion estate not working. “Albion didn’t work last crop and it affected efficiency because we had to move the crop to Rose Hall… Cane deteriorates with time and you get poor recoveries,” he said. There was a major fire at the Albion Estate on February 3 this year, he recounted, as he pointed out that it resulted in extensive damage to the bus bar that housed the 4MW turbine alternator control panels. A 2.5MW control panel and interbus transformer panel and switch gears were also damaged. However, Cheong said that by the end of March they were rebuilt and testing showed no adverse effects. He informed that “full load testing with the entire factory operational will be done on the commencement of the crop. We don’t foresee any difficulty. Despite the fire, we were able to grind all of Albion’s cane at the Rose Hall Factory.” With 8,179 persons in the corporation’s employ, he said that “there are 5,368 field workers out of an establishment of 7,600.” Given the 2,232 persons deficit, he said that the corporation has intensified mechanisation to help mitigate this. And mechanisation, he underscored, was a big part of the future for GuySuCo as there are plans to adapt the industry so it can be developed to meet the changing global times. “GuySuCo has no choice but to have its cultivation, in keeping in line with other sugar producing countries,” he reasoned. “The appropriate machines and equipment are used and 40% of GuySuCo is mechanised. Not included in this 40% is Skeldon, with 5,000 hectares fully mechanised.” Given that President Irfaan Ali has spoken about cultivating more cane at Skeldon, Cheong was also asked a number of questions about that factory during the interview.
Infrastructure
Damaged Coldingen Bridge leads to traffic backup: Many commuters along the East Coast Demerara corridor were left stranded last Monday morning as bus owners cancelled work because of the damaged bridge at Coldingen Railway Embankment. This resulted in a huge traffic buildup on both the main road and railway embankment. While a traffic advisory was issued on Sunday indicating emergency work was being done on the bridge resulting in sections of the railway embankment being closed it appears as if many were caught by surprise. Some passengers who were stranded at Enmore, Estate Road, East Coast Demerara. Even before 7 am there was a long line from Coldingen on the embankment and even more chaos was created as some vehicles sought to turn around to escape the line and this created hardship for those who were travelling in the opposite direction. And as vehicles attempted to make it to the main road at various points the traffic came almost to a standstill. Workers gathered on the road from about 7 am and stood for hours while several drivers en route to Golden Grove, Victoria and Anns Grove emptied their buses and refused to travel back to Georgetown. The traffic buildup lasted for hours. While taxis seemed to be an alternative for others to make their way to work, they were forced to wait for hours in the traffic. After bus drivers signalled that they were not going to Georgetown, some people decided to call taxis but were told that none was available. People gathered at street corners as they waited in vain for a bus to arrive to be transported to Georgetown. Persons living along the railway embankment utilized the Enterprise Road to gain access to the public road but also came into contact with other drivers who diverted from the traffic at Enmore, Estate Road.
Electricity
Blackouts for Bartica as three engines down – GPL: The Guyana Power and Light (GPL) last week apologized to customers in Bartica, Region Seven for the recent service interruptions as a result of three engines being down. This latest generation problem will call into question the management of key infrastructure as a new power plant had been commissioned in Bartica in December 2019. In a statement yesterday, GPL said that the Bartica Power Plant has four engines: two are required to meet the demand, while two serve as a standby unit. “Unfortunately, we have only one operational engine in conjunction with the solar farm”, it said. The unavailability of the three critical units has resulted in a reduced generation at the Bartica Power Plant, prompting the need for scheduled service interruption in the township. It said that customers from Acatash North, Byderabo Front Road, 1st Avenue South, 1st to 9th Street and 1st to 3rd Avenue North were to experience an interruption in service from 15:00hrs – 23:00hrs. Customers from Acatash South, Dog Point, 1 to 5 Mile Potaro and West Indian Housing Scheme were to be repowered from approximately 15:00hrs to 19:00hrs Customers from Mongrippa Hill, Byderabo Back Road, Carribese Hill, Old Housing, Bamford Point 2nd, 3rd, and 4th, Avenue South, 4th to 7th Avenue North were to be repowered from approximately 19:00hrs – 23:00hrs.
Crime
Suspect in murder of lawyer dies after ingesting poison: Tony Sulker, the 29-year-old police sergeant who became a prime suspect in the murder of lawyer Richard Layne after CCTV footage was viewed last week, died last night at the GPHC after ingesting poison. On Wednesday, Layne was found dead in a locked car with a wound to his neck. Sulker, who lived with Layne in Century Palm Gardens, D’Urban Backlands had initially told police that he had found the body at around 10 pm. CCTV footage viewed by the police yesterday however contradicted this and it was after further questioning by the police that Sulker ingested poison and was rushed to the Georgetown Public Hospital (GPHC) where he died last night. A post-mortem examination conducted yesterday on the body of Layne revealed that he died from a stab wound to the neck. Dr Nehaul Singh, performed a post-mortem examination with dissection on the body of Layne, 35. The body was identified by a cousin, Michael Harding, and brother, Ryan Layne. Dr Singh stated the cause of death to be a stab wound to the neck going from left to right with a sharp instrument. It was at least 17 cm in length. On Thursday, the Guyana Police Force had reported that they were investigating the murder of the attorney. The killing occurred between 9.30 pm and 10.13 pm at the same address. According to a police statement issued last evening, Sulker was interviewed by detectives on Thursday, and in a written statement, he disclosed that he met Layne about four years ago at a function at the Marriott Hotel in Georgetown. After they became friends, Layne asked him to move in with him and he started living at the address about four years ago. Sulker said he and Layne never had any problems. Sulker went on to say that on the night in question, he was at home with Layne when Layne’s cousin, Michael Harding, visited the house and shortly after, Harding and Layne left.
Mocha man knifed to death during robbery: Ken Sukhdeo, a 33-year-old of Mocha, East Bank Demerara, was killed during a robbery on Wednesday night at Vreed-en-Rust, East Bank Demerara. Reports are that one suspect is in custody while police are looking for the other. According to the police, Sukhdeo was robbed of his black Toyota Allion, PWW 455, three cell phones including one Samsung Galaxy S24 Ultra, and a shoulder bag with a small amount of US and Guyana currency. Investigations revealed that Sukhdeo drove his car at about 8:10 pm to the Seven Eleven Chinese Supermarket located in Diamond. He was accompanied by his 23-year-old Venezuelan girlfriend, Feranda Perez. At the supermarket, he met the two suspects, 19-year-old Louie Angadle, and 19-year-old Jose Harrland, both of 19th Avenue, Diamond. Both teens, who are Venezuelan nationals, were known to Sukhdeo and his girlfriend as they would normally give Sukhdeo US currency to send to their respective families in Venezuela. The two suspects entered the back seat of the car, and Sukhdeo drove to Vreed-en-Rust, where Angadle allegedly pulled out a knife and proceeded to stab Sukhdeo about his head and body. Mean-while, the other suspect, Harrland, who was also armed with a knife, also stabbed the victim several times about his body. Sukhdeo managed to stop the car and ran out, leaving his girlfriend in the car where the two suspects turned their attack on her. She managed to escape. The two suspects then drove away in the car, eventually crashing it at Little Diamond New Hous-ing Scheme, East Bank Demerara, and made their escape on foot with the victim’s black shoulder bag containing documents and money. Both Perez and Sukhdeo were taken to the Diamond Diagnostics Centre where Perez was treated for wounds to her upper leg and breast. Sukhdeo succumbed to his injuries and was pronounced dead.
Fire
Disabled teen perishes in fire at Imbaimadai: A disabled teenage boy perished in a fire at Imbaimadai Village, Region Seven (Cuyuni- Mazaruni), on Augist 2nd. Region Seven Chairman Kenneth Williams told Stabroek News yesterday that the incident occurred on Friday evening. The boy was identified as 18-year-old Lendon Cornelius, who was left at home unattended. The Guyana Fire Service is expected to launch an investigation to determine the cause of the fire. Villagers are also clueless as to how the fire started.
