Dr Leslie Ramsammy
The life of the board of directors of the Guyana Sugar Corporation (GuySuCo) has been extended for another month, with plans being made to appoint a new body no later than January 2014. Agriculture Minister, Dr Leslie Ramsammy told Guyana Times International that the extension to the board’s life was done to facilitate its involvement in short-listing possible candidates for the new management team.
The agriculture minister said the board’s life will now end on December 31. He stated that several names are before the team looking to select the new board. This process is expected to end soon by the end of the year.
Not fired
He told this publication that the former GuySuCo Deputy Chief Executive Officer (CEO) Raj Singh was not fired but rather his contract was not renewed after November 30.
Singh has since been placed as deputy chief executive officer of the National Agriculture Research and Extension Institute (NAREI).
The minister believes by placing Singh at NAREI it will create an opportunity for others to move up, and move on to other positions or be filtered out of the corporation’s management system.
When asked about whether GuySuCo CEO Paul Bhim will remain in his post, Dr Ramsammy said that that has not yet been determined.
He, however, assured that the new team being considered will help to move the industry forward and place the corporation in a better financial position.
Dr Ramsammy said as part of a collaborative effort with the Indian government, an expert has already been recruited and is assisting the Enmore Sugar Estate.
The minister said the rumour being peddled by sections of the media that the expert is in Guyana to correct issues at the Enmore packaging plant is untrue.
He reiterated that the factory has never failed to perform, as it has not been getting the amount of sugar it was built to package.
Cash-flow problem
He added that this is as a result of most of Guyana’s sugar being exported in bulk. The sale of bulk sugar ensures that payments are made to government before shipment.
In contrast, it takes several months for payments to be made for packaged sugar.
He noted that it was a cash-flow issue and must be looked at from a business standpoint.
However, Dr Ramsammy said, that could change in the next year, as the corporation is currently looking at a different business plan.
He said all of these issues are expected to be addressed in the new year, with the appointment of a new board.
Amid all of its production and financial woes, GuySuCo has been functioning under the guidance of a board of directors whose term expired in October – one that seems not to be capable of turning around the industry.
GuySuCo faces a Gy$ 5.2 billion debt as stated in the 2013-2017 Strategic Plan.
The corporation has produced just over 94,000 tonnes of sugar during the second crop and just under 48,000 tonnes in the first crop.
GuySuCo has had to revise its original 240,000 tonne 2013 target to just about 203,000 after the first crop’s results and the poor start in the second crop. A 203,000 tonnes output target is a low figure for the industry.
The corporation is now heading for its worst production in 20 years, with several challenges causing its underperformance.
