Latest update April 8th, 2025 6:13 AM
Mar 04, 2012 News
By Ralph Seeram
It takes a lie to cover a lie, and that is the predicament the PPP Administration has cornered itself into. Because of secrecy and lack of transparency in some of its past dealings, it (PPP) finds itself branded as corrupt in every transaction it negotiates , never mind that some of the projects are highly beneficial to Guyana.
The Guyanese media and to a large extent this newspaper are having a proverbial “field day” with the way the PPP Government handles some of those projects. Apparently the media feels that anytime the Government embarks on, or starts negotiations on a venture the public should know.
I strongly disagree with that view, it does not happen that way in the real world, or for that matter in the business world. The public does not have the right to know from the beginning the ‘whys’ and ‘whats’ of any negotiations the Government has started.
When the project comes to fruition yes; but while there are still negotiations secrecy is in order. I will start with the Ansa McAl Ethanol project. After all the “hoopla” has died down, it turns out that it is not even a done deal. For a project like this the Government and Ansa McAl have every right to keep it a secret until the final deal is complete.
The PPP Government should be given every credit for trying to bring such a huge project to Guyana. I really don’t care if the land involved was six times the size of Barbados, the more the merrier. What is the point of comparing it to Barbados anyway?
A project like this brings immense economic benefits to the Guyanese economy. I am not sure many in the Guyanese media and critics of the government comprehend the magnitude of this project and its boon to Guyana’s economy.
If the reports are accurate we are talking about eight times the current production of sugar. To a large extent Guyana has the necessary skills to rise to the challenge, since as the company noted we have been planting sugar for over 300 years.
Some years ago I visited Trinidad and met quite a few successful Guyanese businessmen there. In conversation, one individual told me that Guyanese and the Guyanese businessmen have a “me” mentality and cannot go past the “cake shop” and “salt goods” stage.
He was telling me that Guyanese do not see the big picture, that they think in small terms. This to my mind is the same mentality being shown here in the Ansa McAl deal. Instead of expressing some joy and excitement in the venture, the media has made out as if the company is not welcome. They may not have said so in many words, but I find it very embarrassing when a company has to come and explain itself why it wants to invest USD$60M.
Guyana is not the only country that has land available for large scale agriculture; there are many countries that would be willing to offer Ansa McAl land at better terms to get such a large project. That is why there must be secrecy on both sides.
From the Government perspective secrecy to fend off competition from other countries wooing the company with better terms, and from the Ansa McAl view point, as a private conglomerate, you really want to keep your competitors in the dark on your plans. That’s the way it works in the real world.
Here is a company willing to invest TT$17M in a feasibility study to determine if it is worth investing up to TT$300M. If it is not feasible the company stands to lose TT$17M. Guyana should be thankful. Now that the “cat is out the bag” don’t be surprised if Ansa McAl is approached by other countries with better offers.
For Guyana to move on to the “world stage” in agriculture it would have to move away from the “mom and pop” agriculture” to very large scale plantation type agriculture. The 15 acres to 100acres family farms can’t cut it. It has to be large scale commercial enterprises requiring large capital investment. When the Government succeeds in encouraging companies to make such investments, such companies must be made to feel welcome.
The people elected the Government to run its affairs, so it is within the province of the Government to keep such deals secret until they materialize. At that time it could be open for scrutiny.
Speaking about large scale agriculture let me digress about an experience I had some years ago. The American Midwest is known worldwide as a wheat basket. A few years ago I was driving from Kansas City to Omaha Nebraska to do some work for my then company.
Before I left Kansas I was warned to make sure my car was filled with gas and do not have a break down as you will see no one. I dismiss it as a joke until I started driving, it was miles and miles, hours and hours of driving and all I can see was wheat fields, I probably saw at least quarter the size of Guyana in wheat and cornfields.
Much also has been said about the new airport deal not open for bidding. If the Chinese want to build an airport and put up their money to do it, what is there to complain about? Our only concern should be whether we are getting value for our money.
The same goes for the land deal with the Indian company as well as the new specialty hospital. If other people want to come and invest their own money in Guyana we should welcome, not criticize. The media does not have the right to know if company A or John B is putting up his or her own money in a private enterprise.
You can question it but if I m investing my money. I don’t think I have the need to inform the media. In the United States, states compete fiercely to get large companies to invest in their respect states, special task forces are establish to develop the best incentives from tax breaks to free land to woo companies to their states.
Depending on the project, sometimes the State Governor and Mayor personally lead the negotiations, and they only tell taxpayers when the deal is successful. Bharrat Jagdeo has been accused of many things, and in some cases justifiability so, but the man had vision. He “looked at the forest instead of the trees”, together with a potential oil find, one can only imagine the economic juggernaut Guyana will be transformed into if all those major ventures materializes. Regardless of what his critics think of him, sometimes you “have to give Jack he jacket”.
The PPP need not tell a lie to cover a lie. If you never announce a deal don’t lie about it. Simply say that the negotiations are confidential and at a delicate stage, a public announcement will be made when thing are finalized”.
Ralph Seeram can be reached at email: [email protected]
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