GuySuCo’s exorbitant packages to be reviewed

Dec 17, 2009 News

…CEO will not benefit from three per cent increase-Persaud

By Gary Eleazar

The exorbitant packages that are being offered by the Guyana Sugar Corporation (GuySuCo) such as the seemingly super-salaries with generous allowances and benefits that are being paid to persons such as an engineer who was inherited from the Booker Tate contract will all be subject to review.
This is according to the subject Minister Robert Persaud, who in an exclusive interview with this newspaper, yesterday, said that the Corporation is currently in a transition phase reeling out from the previous management and as such he has ordered the review of remunerations and cut back where there are excesses.
According to Persaud, the current Chief Executive Officer of GuySuCo will not be benefiting from the recent announcement of the three per cent increase despite the fact that it is across the board. His package will also be subject to review given that it will be across the board.
Persaud stressed that the situation must be taken into the context of what was inherited.
Ever since 1998, the government was paying Booker Tate some $500 million per annum. There has been a blueprint which is being implemented. Last year the money paid for management fees some $170 million, a drastic reduction.
Persaud said that this was one of the reasons for sacking Booker Tate, coupled with the fact that the British team was not performing to its contractual obligations. It was recognized that since in the early 90’s many believed that the Booker Tate price-tag was very high.
Persaud added that it was he who lobbied Cabinet to relinquish ties with Booker Tate but stressed that the company was still in a transition phase building a Guyanese management team.
“That is why we still have personnel being used that are getting packages that were inherited.”
Notwithstanding, Persaud said that he has instructed GuySuCo “that we need to constantly review specific remuneration packages.”
Losing Skills
The Agriculture Minister also pointed to the fact that the Corporation was losing critical staff to the private sector because of remuneration.
“This review will have to look at where there are excesses but ensure that at all level that we are competitive…That is mandate given to them… are ongoing activities some will see immediate impact others will follow.”
The Minister did emphasise, “We need to get the calibre of skill within the industry and getting those skills at a cheap price is not easy.”
In the case of the engineer, Henry Lung-Kit, Persaud said that his skill was one that was not readily available but pointed out that it “does not justify exorbitant salary…There is no justification for exorbitant salaries…That is the reason why we are doing review.”
The Minister said that the industry was currently looking at countries such as India, Cuba and Brazil where the skills could be procured at a competitive price.
“When you go to Europe and North America it’s a different pay scale…In other countries perhaps we could get the same skills at a price we could afford.”
This newspaper yesterday reported that an Engineer and expatriate GuySuCo executive are being paid salaries and allowances amounting to millions of dollars, in addition to what could be considered perks, thus taking his monthly earnings beyond $3 million per month.
The Engineer, Henry Lung-Kit, was retained from the previous management team, Booker Tate and outside of his salary he is also afforded many of the same privileges of the company’s Chief Executive Officer Errol Hanoman.
These include furnished residences, vehicles, medical expenses, return airfares for rthem and their spouses and free telephone, lights and water.
One of them also receives boarding school fees for a child in London, England and another child in Guyana who attends private school.
Lung-Kit has been employed with GuySuCo close to 10 years now.

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