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GuySuCo denies deal with Indian, Chinese companies
The Guyana Sugar Corporation (GuySuCo) denied that it is seriously considering an Indian or a Chinese company to run the multi-million-dollar Skeldon factory. The company insists that it remains very much in charge.
As a matter of fact, the state-owned entity said it has been working since March with South African-based Bosch Engineers to bring the problem plagued factory to full operational capacity.
GuySuCo’s top officials made the disclosure late yesterday afternoon, hours after Alliance For Change (AFC) Presidential Candidate, Khemraj Ramjattan accused the entity and Minister of Agriculture, Robert Persaud, of “continuing negotiations behind closed doors” for a management contract between the “favoured Surendra Engineering Company of India.
According to GuySuCo’s Chief Executive Officer, there is no deal.
It will be recalled that the Minister has announced that GuySuCo was considering a number of proposals including from China and India for the management of the factory which was commissioned just over two years ago.
GuySuCo’s officials: From left is Deputy CEO, Raj Singh; CEO, Paul Bhim, General Manager of Technical Services, Yusuf Abdul and General Manager of Agri Services, Raymond Sangster.
It was built by the China National Technical Import and Export Corporation (CNTIC) to the tune of over US$181M.
Bhim told reporters at a press conference at the Corporation’s Ogle head office that several proposals to run the factory have been submitted by several overseas companies.
These include proposals to finance works and fix some of the problems. The Board of Directors and management have been studying the proposals and “we have not taken up many of these offers,” the official stressed.
There was even a proposal that came in yesterday, he said.
Regarding Bosch, Bhim revealed that it had commissioned that South African company, which has experience in similar setups, to conduct a study on the factory which has suffered one set back or the other since its commissioning.
Several recommendations made by Bosch have been implemented and it is expected this process will be completed by mid 2012.
“They were invited to tell us what they think. This is where we are now and GuySuCo continues to be managed by GuySuCo personnel.”
Also at the press conference were Bhim’s Deputy, Raj Singh; Raymond Sangster, General Manager of Agriculture Services and Yusuf Abdul, General Manager of Technical Services.
According to Bhim, the entity has continuously been making efforts to bring the factory to full capacity, with 12 Chinese engineers from CNTIC here until June next year to train local workers in a number of key, technical areas.
GuySuCo may consider retaining these Chinese engineers for a further six months if the need arises, the official said.
In all the arrangement, GuySuCo remains very much in charge.
Yesterday, AFC’s Ramjattan reading from a prepared statement, entitled “Let sunshine prevail on the Skeldon Factory deal”, said that Guyana’s sugar sector does not need either Surendra Engineering or CNTIC to be evaluated as prospective managers. Surendra Engineering was the contractor of the Enmore Sugar Packaging Plant.
“Rather, what is needed is a full-scale public inquiry to discover the credentials of these companies, and how they became fit and proper candidates for the contracts they won here in Guyana worth approx US$200M.
“Neither of the factories they built here has been optimally operational to this day.”
The AFC said that it has information that major companies which are very reputable and experienced in sugar out from India, did proffer detailed proposals which were “not even acknowledged by the Minister of Agriculture, nor the Chairman of GuySuCo nor the CEO.”
Another such company, with headquarters in England and with base in India, made a proposal to send at its own costs experts to carry out a diagnostic study and to thereafter submit a preliminary report for GuySuCo’s consideration.
“Surely such an offer of ‘try before you buy” ought not to have been refused by GuySuCo. Yet it was not even acknowledged.”
The AFC felt that something was “fishy” and that a deal is about to be made “which a number of officials at Guysuco, inclusive of the Minister, do not want sunshine to fall upon. Such sunshine may reveal them as rather ugly.”
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