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FM
Former Member

The main agitators in the sugar industry, the AFC, have shown once again their real agenda as they slam the PPP/C government’s budget for “bailing out” the sugar industry. Self-proclaimed champions of the sugar workers, Khemraj Ramjattan and Moses Nagamootoo, are objecting to the government’s $4 billion allocation to the sugar industry that was recently disclosed in Parliament during Finance Minister, Dr. Ashni Singh’s Budget presentation on Friday last, which is in keeping with the doublespeak with which they have become synonymous.

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I am in Guyana and heard what Moses and Khemraj said. They are not against the bailout. They are merely pointing out that the bad planning of Jagdeo and Ramotar is now requiring them to prop up an industry Jagdeo/Ramotar is killing. These are monies that could be better spent on social services and other industries. Bad planning has consequences. This money will not solve the industry's crisis. 

FM

GuySuCo is bleeding from self-inflicted wounds

 

Posted By Stabroek staff On April 2, 2012 @ 5:03 am In Letters 


Dear Editor,

 

A lot has been penned about incidences of mismanagement at GuySuCo and I feel inclined to share my bit being a worker of the company, thus someone who would lose a great deal should the company collapse.

I am raising a few issues which I find most disturbing:

 

1.  The factory at Skeldon is currently producing sugar at approximately twenty TC/TS which is more than double what it was designed to produce at.
The weekly target at Skeldon is around 2000 tonnes of sugar, which means that the estate has to grind double the tonnage of canes normally ground. If the old factory were rehabilitated, it would almost certainly be more efficient (it was before closure).  Therefore it is virtually impossible for workers to achieve the Weekly Production Incentive (WPI).

 

2. With the current situation, when the estate makes 2000 tonnes of sugar, it will lose 2000 tonnes because of the factory’s inability to efficiently recover sugar. This translates to about $200M lost per week. I am quite sure that $200M is close to the wage bill of the company for any week. Can one imagine the weekly wage bill of the entire company lost in molasses at one factory each week of the crop? The company though, is incessantly clamouring about its cash flow problems.

 

3.  The company is claiming that it was in a cash deficit of around $8B at the end of last year. Of that total, nearly $3B in revenue was lost because of the inefficiency of the recovery at the Skeldon factory. How can the company accept this situation?

 

4.  The workers’ Annual Production Incentive (API) has been delayed this year and has been reducing dramatically over the years whilst the company has been offering a litany of excuses. It would be interesting to know how much of the $3B lost would have been spent on paying the API across the industry. I am sure that it would have been paid at the right time with a huge excess for the company. The strikes would surely have been averted.

 

5.  A few years ago workers were receiving in excess of twenty days pay as API. This has now reduced to seven for this year. The sugar lost at Skeldon because of the factory inefficiency would surely have resulted in an additional three days‘ pay for 2011 and the money would have been available to pay it. Unfortunately, the situation as happened last year seems to be continuing apace this year.

 

6.  One would have to sympathise with the farmers growing canes for that factory. It would be interesting to know how/if the farmers are compensated for the factory’s inefficiency. The farmers should demand that they be paid based on the sugar present in the cane sent to the factory rather than the sugar recovered by the factory. Surely they should not be made to suffer because of the inability of the factory to recover sugar.

 

7. The company has brought numerous tractors which we are now told have no warranty and therefore have to be repaired by the company with no compensation. How could something like this happen? What action has been taken in relation to the person/s responsible for procuring these machines? Is this how the company plans to invest money to make it viable? Only the reverse can happen with this practice, I am afraid. It seems to me that persons at the upper levels of management feel that the corporation would not be required to pay for those pieces of machinery. If the opposite were true than surely better would have been done or at least better expected. Was thought given to bringing a small number of tractors on test first (since these were new types) to ascertain their durability for the local conditions?

 

8. After the fiasco with the tillage tractors the company seemed to have learnt nothing. It proceeded to procure a quantity of Bell loaders which required major modification in order to work effectively. How long those modifications would work is another matter.

 

9. The substantial area which could not have been harvested at Enmore Estate because of lack of infrastructure leaves a lot to be desired. One would think that the company would require that adequate infrastructure is in place when doing expansion since the canes thus grown have to be transported for processing. It is simply poor planning by the company to get caught in such a situation. This represents a total waste of scarce cash which the company claims to have.

 

10. Managers are telling us workers that they are making certain decisions in order to achieve the European Union parameters. Certainly decisions should not be made which contradict sound agriculture principles and business strategy. In the long term the company would not survive without the two.

Editor, the above represents but a sample of the issues the company has done very little to address. The company has been turning a blind eye to person/s responsible for these mistakes and this can no longer be condoned by workers of the company and neither should they. It is more than an opportune time for the company to start holding persons accountable for these costly transgressions. The company certainly deserves to be managed far more competently than is presently the case or it faces the risk of going down.

 

Everyone in the company stands to lose greatly from the current extremes of mismanagement, even the managers themselves.

GuySuCo is bleeding profusely not from external sources but from self inflicted wounds.  Editor this should be stopped forthwith.


Yours faithfully,


(Name and address provided)

FM

Political grandstanding by APNUAFC is unrealistic with the challenges that confronts the Sugar Industry, regardless if they consider government subsidy as a ''bail out'' suggests that the opposition gang rather see the "drowning" of this vital industry that thousands of families directly and indirectly depends on the goods and services offered. The fact of the matter is that the Sugar Industry is simply too big to fail and government intervention is certainly warranted and is necessary for the recovery of this Agricultural giant.

FM

non of these people in the ppp crime ever had a bussiness,so what the hell they know.all they doing is waste the tax payers money.and what they are not wasting they thiefing,the only thing that can save guyana from being distroy,the ppp have to go and the new government  have to bring in expert to review all these industries

FM

A bail out is not an every day issue, but when a major industiry like (GUYSUCO) fell in a state of financial emergency that's when the Government need to step in and revive the the industry. The sugar industry is vital to Guyana's economy, workers and families to stay afloat. Any objection by the oppositions will only do more harm than good. This is a time when you have to put politics aside and work for what's best for the country. There is a power struggle in play and it's not surprising of the AFC's intention.

FM

The AFC boys are behaving like the Republicans candidates. They have a problem with gov't bailing out major industries with taxpayers money. I guess, in the minds of the Ashni Singhs, Guysuco, like Citibank, is too big to fail. Too many jobs with an entire industry are at stake. Can America afford to allow Citibank, Bank of America, and Chrysler to fail??? Most economists and political scientists said no. Why must the gov't of Guyana allow the sugar industry which employs the most workers to fail?? We are talking about the collapse of entire industry that would reverberate through the land. Is this what the opposition wants?? 

Billy Ram Balgobin
Originally Posted by Billy Ram Balgobin:

The AFC boys are behaving like the Republicans candidates. They have a problem with gov't bailing out major industries with taxpayers money. I guess, in the minds of the Ashni Singhs, Guysuco, like Citibank, is too big to fail. Too many jobs with an entire industry are at stake. Can America afford to allow Citibank, Bank of America, and Chrysler to fail??? Most economists and political scientists said no. Why must the gov't of Guyana allow the sugar industry which employs the most workers to fail?? We are talking about the collapse of entire industry that would reverberate through the land. Is this what the opposition wants?? 

============

 

For what purpose is the money given to Guysuco? What is Guysuco expected to do? 

FM

Rather  than castigating Nagamottoo,  Ramjattan and the  AFC and   seeking scape goat elsewhere,  heed the warning   of   the  letter writer  above who  itemized a  litany  of  ills that  is self  inflicted by chronic inefficiency, poor  management and entrenched  corruption,  all within  GUYSUCO and  Government  bureaucracy. Can  someone  remind  me when  was  the  last  time any   Minister or  senior  Public  Servant has  been  sanctioned  for  any short comings or  wrong  doing?     

FM

The new factory at Skeldon was supposed to produce sugar at a fraction of cost. That's the main reason for the investment of 200 million.  I can't believe this new factory is inefficient compared to the old ones. Is this for real??  If this is so then we ought to sue the Chinese and Germans. 

Billy Ram Balgobin
Originally Posted by Sharon Storm:

The main agitators in the sugar industry, the AFC, have shown once again their real agenda as they slam the PPP/C government’s budget for “bailing out” the sugar industry. Self-proclaimed champions of the sugar workers, Khemraj Ramjattan and Moses Nagamootoo, are objecting to the government’s $4 billion allocation to the sugar industry that was recently disclosed in Parliament during Finance Minister, Dr. Ashni Singh’s Budget presentation on Friday last, which is in keeping with the doublespeak with which they have become synonymous.

In the US, the bailout of the banks was problematic. Many still say that when a business fails you let the chips fall where they may. Some insist it was the upper crust bailing out friends and many of these people should be in jail instead of being bailed out.At least the justice department is beginning to put a few of them in jail and the reason more of them are not in the pen as yet  is they have plausible deniability.

 

In Guyana we knew who ruined the sugar industry. Unfortunately, you seemed overly concerned with being nasty to those who question the bailing out of this industry  than why the industry is in crisis. We know who ruined it.

 

Try Ramotar who squatted on the sugar  board filling his pocket as the industry was dying. Try the Agri minister who lost us money for not filing the necessary requirements with the EU in time loosing us millions. Try Jagdeo who hired the Chinese to build a plant in the wrong location and  who failed in his oversight capacity that left us with a 250 million white elephant that may never ever be able to be rehabilitated.

 

 

Now what are we bailing out? Is there a plan or is it throwing good money after bad?

 

 

Instead of yapping your silly mouth against those who want some answers you should find the moral fiber to reflect on your capacity for rational judgements. Criticism of Ramjattan et al is  is not mere doublespeak but plainly offensive.

 

FM
Last edited by Former Member
Originally Posted by Mara:

Rather  than castigating Nagamottoo,  Ramjattan and the  AFC and   seeking scape goat elsewhere,  heed the warning   of   the  letter writer  above who  itemized a  litany  of  ills that  is self  inflicted by chronic inefficiency, poor  management and entrenched  corruption,  all within  GUYSUCO and  Government  bureaucracy. Can  someone  remind  me when  was  the  last  time any   Minister or  senior  Public  Servant has  been  sanctioned  for  any short comings or  wrong  doing?     

Thank  you sir; some of these people have lost their moral center.

FM
Originally Posted by Billy Ram Balgobin:

The new factory at Skeldon was supposed to produce sugar at a fraction of cost. That's the main reason for the investment of 200 million.  I can't believe this new factory is inefficient compared to the old ones. Is this for real??  If this is so then we ought to sue the Chinese and Germans. 

=============================

 

I want to believe you are not merely shedding crocodile tears. So to convince me, tell us what must the electorate do to the PPP government which offered the contract to the Chinese? Since when the Chinese make cane sugar? Many believe this contract should have gone to the Brazilians or Indians. Tell us what must we do with President Ramoutar who sat on the Guysuco board throughout the industry's decline? Do you see a pattern in the PPP's awarding of contracts and choice of projects? Dubious contractors (Fip Motilall for example) and dubious projects (a new airport terminal and Marriott hotel). If you Mr Billy can give us some insights into these questions you will be able to convince us that your concerns/questions/tears are genuine and not merely of the caiman variety. Thank you. 

FM

Sugar production in the three biggest Caribbean Community (CARICOM) producing nations continues to face severe challenges.

 

The once dominant industry has faced an uncertain future since the price of cane sugar in the European Union market was cut by 36 percent in 2008.

The reduction marked the end of a long running sugar protocol, which guaranteed much higher than world market prices, but which was ruled by the World Trade Organisation (WTO) to be contrary to global free trade rules.

In Guyana, the Caribbean's leading producer, workers have been staging industrial action to support higher salaries; Jamaican growers have had their own pay dispute while the ailing Belize industry was recently rescued by a government bailout.

 

Dr. Leslie Ramsammy:

 “In case people forget the times, it was pre-election and the same voices I hear criticizing the $4B into Guysuco were the ones out there quoting the support of the sugar workers by saying the government should invest more in the industry. If I’m lying let lightening strike me right now because I have on tape leaders of the AFC and APNU when they were talking in the sugar belt that we need to provide that support.”

 

 

FM

It is not about [producing sugar but about producing it  as a profitible enterprise. This is something the PPP is yet to do. They have yet to bootstrap any of our traditional industries into successful entities.

FM

Ms. Stormborn,

 

The main reason for the decline of the sugar industry in Guyana is the lost of preferential market in Europe. The gov't knew from a long time ago that this subsidy on sugar export would end. This prompted them to invest in a factory that would produce sugar at $.10 per lb. The technology is German and the Financing came from the Chinese. With China's economic and political clout today it has become almost a rule that once you borrow from them to build any major project a Chinese co. must get the contract to build. This is how they bring most of the money back into their pockets. Unfortunately, many countries desperate for developmental aid have conceded to the Chinese demands.

 

The Factory is not a white elephant. It is going through a phase facing many difficulties, but in time the problems will be fixed. Nobody can predict the future with absolute certainty. Think about the billion dollar shuttle NY invested at JFK. With all the planning, money, and techonology invested the results have been far from what we were promised. The opposition is exploiting anything they can find to build their political base. That's a normal thing in politics.

 

Billy Ram Balgobin

What  the PPP did was offered support to thousands of employees and their families of Guysuco, especially at a times of global financial uncertainty the Sugar Industry is pivotal to our domestic economy.

FM

Offering support to families by continuing the same hapless policies that give the nation a failed industry is not defensible. Supporting the industry with policies that come with a difference from the past inefficiencies is the necessity. It may be normal for the PPP to waste money on failed schemes and call it a "good" done in the people's interest  but that is only  a "good" to PPP sycophants. It does not make sense to normal people who think in industry is helpful only if it is productive or on its way to profitability. As it exists, the sugar industry is a money pit.

FM

Ajh tell you, well close down the Sugar Industry KFC then we can sell finger licking Chicken to keep our people going. Laad Ah Mercy. These FOOLS would have let Detroit go down the drain because they are simply BRAINLESS.

Nehru
Originally Posted by Stormborn:

Offering support to families by continuing the same hapless policies that give the nation a failed industry is not defensible. Supporting the industry with policies that come with a difference from the past inefficiencies is the necessity. It may be normal for the PPP to waste money on failed schemes and call it a "good" done in the people's interest  but that is only  a "good" to PPP sycophants. It does not make sense to normal people who think in industry is helpful only if it is productive or on its way to profitability. As it exists, the sugar industry is a money pit.

 

Hmmm, Guyana’s economy under the PPP has consistently been evolving to record significant achievements due to its prudent macro and micro economic policy, the domestic economy achieved real growth averaging 4.4 percent over the past five years. I admit that the challenges encountered by the Sugar Industry is regrettably but now is not the time to engage in scandal mongering, the fact of the matter is this Agricultural giant plays a pivotal role in our economy the least the government can do is offer a lifeline when its necessary. Its time to be realistic and pragmatic.

FM

The PPP needs to get the Skeldon Factory operating at maximum sooner rather than later. The previous leadership of the PPP is to blame for not getting things right the first time.

 

Guysuco needs an injection of funds since thousands of Guyanese depend on jobs at Guysuco. It would be reckless to dismiss the fact that the injection of funds will not help Guysuco. The AFC is acting reckless here by not supporting Guysuco funding and yet claiming that they support sugar workers. This is political disaster if they let down sugar workers by not supporting funding.

 

The old saying in Berbice that you cannot chew sugar cane and blow whistle at the same time applies to the AFC in this case. They must remember that their role is to remain fair and objective in parliament and act in the interest of all Guyanese. They are acting reckless here and this will anger sugar workers, especially the AFC supporters in Berbice. Many Berbicians depend on the sugar industry and it's survival.

 

On a recent visit to Guyana I made a few observations since I still own a house about 20 mins. from Skeldon Estate. The first observation is that Guysuco has a hard time attracting cane cutters since a segment of the community is now enjoying a higher standard of living and have other types of income and in addition, we send money from overseas to loved ones. This is one of the factors that is affecting the workforce. In fact, when I was there, Guysuco had a jeep with loud speakers appealing for workers to turn out to harvest sugar cane. 

 

Modernisation of harvesting sugar cane must become a priority for Guysuco.

 

Workers have commented that Skeldon needs better management since mis-management has not helped the estate and relations between management and workers are at an all time low. They contend the the government must become more involved with Skeldon for it to succeed since mismanagement and has been harmful to Skeldon estate. 

 

Workers are angry that the government allowed a foreign company that seems clueless on how to get the factory running smoothly to still be fiddling around at Skeldon. The government must step in here. The politicians in Georgetown seems far removed from the reality in Berbice. This cost the PPP many votes in the last election and will cost them more if they do not pay close attention to the issues affecting Berbicians.

 

Dr Jagan, was a strong supporter of rice and sugar workers but the new PPP leadership is living in a different world and needs a reality check. Sugar and Rice have markets and prices are at an all time high. It would be wise for the PPP to inject the funds into Guysuco but clean up mismanagement in order for this industry to survive. This is where the AFC can prove effective in supporting the funding but keeping a close eye on Guysuco management as they have done recently.

 

Obama, supported massive bailouts in the USA, we need not forget this and I must admit that it has helped the economy despite my earlier criticism of his administration, he is right. It would be unwise for the AFC not to support the funding of Guysuco. We need not play politics with the lives of thousand of Guyanese.

 

I noticed that the AFC have been active in Linden recently and rightfully so,  since the PNC is now absent from Linden after the election is over (they got their votes and forgot about their supporters) , but how about your support base ? As an old Berbician man once told me, you cannot chew sugar cane and blow whistle at the same time.

 

There is a lot of mistrust with the PPP and the funding of large projects but if the opposition perform their duty and keep them honest Guysuco can be revived. An independent commission consisting of the Government and the Opposition can work together in saving this industry. This is the new Guyana we need to build.

 

Then again... they are drilling for oil in Berbice and if oil is found, I can see the sugar industry in Berbice dying a slow death if harvesting is not modernized. But we must not forget the rest of the sugar industry in Guyana. 

 

And how about jobs creation in Linden ? Is the government listening ? Hello ?

 

Let us call a spade a spade.

FM

Yuji, I totally agree with you that INCOMPETENT Managers MUST go. There is no place for INCOMPETENCE, a Sugar Industry Commissioner should be appointed to direct the everyday operation of the Industry. The Board MUST be reformed and be made accountable.

Nehru
Originally Posted by Nehru:

Yuji, I totally agree with you that INCOMPETENT Managers MUST go. There is no place for INCOMPETENCE, a Sugar Industry Commissioner should be appointed to direct the everyday operation of the Industry. The Board MUST be reformed and be made accountable.

===========================

 

Yes I agree. But what about the President who sat on the Guysuco board for 19 years?

FM
Originally Posted by Conscience:
Originally Posted by Stormborn:

Offering support to families by continuing the same hapless policies that give the nation a failed industry is not defensible. Supporting the industry with policies that come with a difference from the past inefficiencies is the necessity. It may be normal for the PPP to waste money on failed schemes and call it a "good" done in the people's interest  but that is only  a "good" to PPP sycophants. It does not make sense to normal people who think in industry is helpful only if it is productive or on its way to profitability. As it exists, the sugar industry is a money pit.

 

Hmmm, Guyana’s economy under the PPP has consistently been evolving to record significant achievements due to its prudent macro and micro economic policy, the domestic economy achieved real growth averaging 4.4 percent over the past five years. I admit that the challenges encountered by the Sugar Industry is regrettably but now is not the time to engage in scandal mongering, the fact of the matter is this Agricultural giant plays a pivotal role in our economy the least the government can do is offer a lifeline when its necessary. Its time to be realistic and pragmatic.

Its micro and macro economic expression is as a beggar bowl society.

FM

This is a tough situation for Guyana. While the rest of the Caribbean were closing their sugar industry, Booker Tate, the alleged experts, advised the then Govt of which Ramjattan was part and parcel, into investing in a doomed industry. Now govt is stuck propping up the ailing industry that is inherently unprofitable. 

 

FM
Originally Posted by Sharon Storm:

Its ironic the two co-called person(Ramjattan and Nagamootoo) who wanna calm they are representing the sugar workers are against the gov't bailout of Guysuco

The irony here is the people responsible for mismanagement and loss of viability of the industry are the ones trying to engineer a bailout!  Were these scoundrels not "representing" the sugar workers when they ruined their job security?

FM
Originally Posted by Nehru:

No it is NOT ironic, thay are being themselves: bitter, jealous and clueless.

It is a moron that presumes jealousy motivates questioning poor administrators as to what they intend with pumping money into an industry they ruined.

FM
Originally Posted by Sharon Storm:

The sugar workers should chase out Ramjattan and Nagamootoo, when they attempt to visit them again!!!!!!!!!!!!!!!!!!

How about the scoundrels who ruined the industry like Ramotar who sat on the board for 2 decades and participated in its decline?

FM

To its credit, the PPP/C administration, recognizing the terrible consequences that either majorly scaling down or closing the sector would have had on the over 100,000 persons who earn their livelihood from the industry have been battling to sustain the industry, including to date, the largest single investment in Guyana – the modern hi-tech sugar factory in Skeldon.
Rather than being supported in its struggles to keep the industry alive, many sugar workers have been largely unappreciative that these short-term trials would ultimately result in long-term benefits and have been, through the ugly rhetoric and the agitation by opposition elements, especially PPP/C defector Moses Nagamootoo, acting in ways inimical to the interest of the industry, especially through constant strikes that have caused massive losses to the industry and threats to Guyana’s sugar markets.

FM

First, there are about 29 thousand who are directly dependent on the industry who suffer because of the PPP mismanagement. Secondly, the factory is not an example of the PPP efficient management of the industry but a monument to their failure. The factory has been on line for over 6 years and it is yet to function within moderate expectations.

 

The PPP need to admit failure, present a new plan and convince the workers and the opposition it is a viable one. One cannot simply throw money at the industry and hope the problems will resolve themselves. That is magical thinking.

FM

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