GuySuCo’s role in Guyana’s socio-political economic history cannot go unnoticed

DPI, Guyana, Tuesday, August 20, 2019

The Guyana Sugar Corporation (GuySuCo)’s contribution to the socio-economic growth and development of Guyana grants it pride of place on the list of national major economic entities. It sits comfortably alongside those major players like the once-thriving bauxite industry, and of course, the rice, gold and diamond industries.

It provided for thousands regardless of their ethnicity, giving them opportunities for self-development and the building and sustaining of families whilst simultaneously accruing material worth.

It was because of this importance and value of the sugar industry to many, that persons were taken by surprise when the government of the day announced that “Guysuco is broke”.

And so, a series of events unfolded as Coalition Government responded to the country’s worst industrial crises. It was a challenge to which it rose, without any assistance from the ones who were themselves culpable for the fall of this crucial sector.

The collapse of the industry under its crushing burden of financial debt was not a sudden event. It was as a result of those who had optimum control for two decades of its mismanagement utilising the sugar harvesters as political pawns.

Sugar harvesters of this once industrial gem were used to further the political agenda of the previous administration without due regard to the increasing burden that such reckless actions have on those innocent parties involved.

The burdens increased with the addition of the ‘White Elephant’ that is the Skeldon Estate. This estate was originally built to be the new flagship of the Corporation, destined to dig it out of the proverbial hole.

It was inevitable that sugar, with its high production costs, would have eventually been unable to compete with international market prices.

The industry was in dire need of urgent revamping or divestment. This was especially evident when the World Bank recommended the closing of the Wales estate in 2008

Despite this recommendation, the then administration continued to expend taxpayers’ dollars to keep the industry afloat, all for the political purposes of constituency support rather than doing the difficult but correct thing, which was a complete overhaul of the industry.

As such, to have expected the current administration to continue with GuySuCo and its management practices unchanged, which would have meant subsidisation of the industry without cessation.

GuySuCo, at this time, is in the process of restructuring, which has become an absolute necessity, if it is going to be salvaged, made to be competitive, and be able to continue to be an employer for the many thousands who are still in its employ while contributing to the national coffers.

It would be unreasonable to expect an overnight miracle, given the severe contraction of revenue earnings. And although this rebuilding has been slowed somewhat, because of the current political situation, there are still those who are seeking wage increases for sugar workers.

One thing remains clear, there is no ‘state of emergency’, as far as the current state of affairs at GuySuCo is concerned. The fact is that the Special Purposes Unit (SPU) is expected to continue its vital mission of removing the corporation from its archaic culture of administration into the light of modern best practices.

What is needed is a collaboration to recover the broken industry from the mismanagement it endured.