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Original Venezuela oil for rice contract should be made public- RPA/AC
-says farmers, millers were duped for years about quality of rice required
There have been mounting calls for the government to release several contracts signed
RPA-AC Co- Chairman Dr. Turhane Doerga
by the previous administration but were shrouded in secrecy.
President David Granger recently made it clear that all contracts and concession agreements should be made public.
Co-Chairman of the Rice Producers Association- Action Committee (RPA-AC) Dr. Turhane Doerga, said that the original ‘oil for rice’ contract inked between the People’s Progressive Party (PPP) administration and the Venezuelan authorities is one such agreement that needs to be brought to light.
In an interview Tuesday, Doerga stated that releasing the contract will either confirm or put to bed accusations that the previous Guyana Rice Development Board (GRDB) stipulated that millers supply only A- grade quality rice, when the particulars of the contract required a lower grade.
The former Chief Executive Officer (CEO) of Alesie Group of Companies intimated that millers have been duped for years and that the situation was a recipe for corruption.
He noted that he received many complaints from millers, needlessly afraid of their rice being rejected when GRDB inspected the rice, about who paid bribes to get a passing grade.
He said that it was his view that millers were charged more than double the actual freight charges for the distance to Venezuela when shipping the rice.
Doerga stated that the contract would also shed some light on whether there was any mention of establishing a social fund (PetroCaribe fund).
He noted that requests had been made to the previous administration for the release of the contract, but to no avail.
The ‘oil for rice’ contract originated in 2009. While Venezuela has its own rice industry, it began experiencing problems of its own. Under the agreement, Guyana got oil from Venezuela at concessionary prices.
Former GRDB General Manager, Jagnarine Singh
Half the cost was paid up front, but to mitigate any debts Guyana exported its rice to the Spanish speaking country. Not only did this provide a stable market for rice farmers and millers, with Venezuela accounting for approximately 30 percent of all rice exports, but the agreement saw above average prices being paid for rice.
The PetroCaribe fund was established to hold the extra money. The previous administration had, however, admitted to dipping into the account to fund projects like the Hope Canal.
Under the arrangement, Guyana would also deduct monies from the fund to pay farmers and millers supplying Venezuela with rice.
Millions of dollars was supposed to be in the account but when the new Government came into power they said that the fund, which was held at Central Bank, was empty.
GRDB General Manager Jagnarine Singh also resigned under a storm a mere month after the coalition came into office.
The agreement came to an end last year, with hundreds of containers of rice left stranded on the local wharves.
The ‘oil for rice’ contract is one of several contracts and concessionary agreements that remain undisclosed.
Granger, during the weekly televised show ‘The Public Interest’ made it clear that he believes in full disclosure and has no intention of changing his mind.
He stated that this is what the National Industrial and Commercial Investments Limited (NICIL) and the other branches of government should do – make agreements public.
Granger said that there are exceptions. In this regard, he said that the procurement of defence equipment should be kept under wraps.
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