Govt to facilitate GuySuCo with $2B bailout in exchange for lands
DPI, Guyana, Thursday, September 21, 2017
The Government of Guyana will be offering the Guyana Sugar Corporation Inc. (GuySuCo) a $2B bailout in exchange for lands, for the Central Housing and Planning Authority (CH&PA). This was announced by Minister of State, Joseph Harmon today.
On September 18, a meeting was held between GuySuCo, Acting President and Prime Minister, Moses Nagamootoo, Minister of Agriculture, Noel Holder, Chairman of the Board of Directors, Prof. Clive Thomas and Chief Executive Officer (CEO) of GuySuCo, Errol Hanoman, to discuss urgent cash flow relative to wages, salaries and other payments at the sugar corporation. It was agreed that the matter will be treated with urgency, given that employees are awaiting their remuneration.
During his weekly post-Cabinet press briefing, Minister Harmon explained that Cabinet was briefed on the financial situation at GuySuCo, by Minister within the Ministry of Finance, Jaipaul Sharma, who was at that time performing the duties of Finance Minister.
According to Minister Harmon, after considering the report, cabinet authorised the junior Minister to assist the management of GuySuCo, with their ongoing discussions with the CH&PA. This is to facilitate the swift sale of lands and payments for same.
The sale of land is part of the sugar corporation’s diversification process, and Minister Harmon explained that “What will happen is that these lands will now come under the CH&PA and will be available to the Guyanese public.”
Harmon further noted that, while GuySuCo requires more funds, this is an emergency intervention to cover some of the corporate expenses. The transaction between the Government and GuySuCo will be finalised today.
By: Synieka Thorne