… as SPU head tipped to lead new GuySuCo board

By Samuel Sukhnandan

Government has given its nod to the appointment of a new Board of Directors for the troubled and debt burdened Guyana Sugar Corporation (GuySuCo) after booting Economist Clive Thomas from its chairmanship and replacing him with newcomer and head of the Special Purpose Unit (SPU) of the National Industrial and Commercial Investments Limited’s (NICIL), Colvin Heath-London .
A source close to Guyana Times said Wednesday that the decision was taken by Cabinet recently and the names of the other new Board members could be released soon. According to the source, the decision was made as a means of

unifying the leadership of the sugar industry.
At present, NICIL has direct responsibility for GuySuCo and that agency falls under the Finance Ministry. NICIL’s takeover was made official by a publication contained in an extra-ordinary issue of the Official Gazette dated December 30, 2017, which has responsibility for the divested sugar estates.
However, it was made clear that the takeover does not include any assets, lands or property for the Berbice estates of Albion and Blairmont and the Uitvlugt Estate on the West Coast of Demerara, as those entities will remain under GuySuCo for the foreseeable future.
This newspaper was told that Professor Clive Thomas, who served as Chairman, has been booted after first being appointed to the position in 2015, a few months after the new coalition Government took office.
Heath-London was appointed head of the SPU back in October 2017, after a decision was made by the Government to process the selling of GuySuCo assets, including a number of estates.

No changes
When contacted on Wednesday for a comment, Professor Thomas was at first

hesitant to speak but later denied that there were any changes made to the GuySuCo Board.
He said, “I don’t know of any changes. I have not been officially informed. The only way the Board could be changed is if the Cabinet has deiced to change it. That’s a Cabinet decision.”
Guyana Times also spoke with Agriculture Minister Noel Holder on Wednesday who also denied that any such decision was taken. “Not as far as I am aware, I don’t know of any decision. There is no appointment that has been made, at least not at Cabinet’s approval.”
Already, international consultant, PricewaterhouseCoopers, has been hired to value the assets of the four estates, before the vetting of proposals of potential investors start.
Only recently, it was announced that a list for new directors was submitted to Government for approval. The idea was to have a 12-member Board constituted with diverse team members that will lead the industry in its new form and guide decisions going forward as it relates to sugar.
Government had previously expressed dissatisfaction with the old Board headed by Professor Thomas which oversaw the closure of the four estates in the last 14 months.
On Monday, SPU announced plans to obtain $30 billion in loans and investments to support GuySuCo. According to the Unit, the funding will cover a four-year period and will provide capital, support infrastructure maintenance and upgrades at Albion, Blairmont and Uitvlugt. The funds are also expected to go towards developing new cogeneration capacity for the estate operations and the electric grid.

GuySuCo has a history of debt; at the end of 2015, the Corporation owed $78.6 billion. In January of last year, the National Assembly’s Economic Services Committee was informed that the debt showed a marginal decrease to $77 billion. This money was owed to the National Insurance Scheme, the Guyana Revenue Authority, the Caribbean Development Bank and others.
One of NICIL’s first acts since assuming responsibility for GuySuCo has also been to abruptly end the life of the old Board of Directors. Coming out of a special Board meeting, a decision was taken to have a new Board installed as of February 14, 2018. The acting Finance Director and CEO was Paul Bhim.
NICIL Board has also handed down instructions to GuySuCo to freeze all hiring. In addition to that, a decision was taken not to renew any employee contracts that are in the process of expiring.
Government’s explanation for downsizing the industry has always been to cut costs. But there has been persistent criticism, however, that the decision is political in nature.
While the parliamentary Opposition had welcomed the move taken by Government to have at least two sugar estates reopened soon, the Opposition again argued that it is purely political.

https://guyanatimesgy.com/spu-...d-new-guysuco-board/