Govt inks MoU with potential buyer of Skeldon Estate

Dec 31, 2016 News

Officials of the Guyana Sugar Corporation (GuySuCo) have confirmed that a Memorandum of Understanding (MoU) was signed between the government and a prospective investor who is interested in purchasing the Skeldon Estate.

GuySuCo confirms inking of MoU with potential buyer of Skeldon Estate.

The MoU, the officials explained, will last for a period of one year which will oversee further assessment by the buyer – whom they did not identify. The Guyana Office for Investment (Go-Invest) will subsequently conduct a Feasibility Study which will pave the way forward, the officials divulged.
Meanwhile, the Guyana Agricultural and General Workers’ Union (GAWU) is calling on the David Granger-led administration to be ‘forthright’ claiming that they have been left in the dark.
GAWU, through its General Secretary (GS), Seepaul Narine, told media operatives yesterday at the Union’s Headquarters that that they have been reliably informed by ‘credible’ sources about the MoU.
“We were informed that an examination of the Estate was done by the would-be owner and great interest is shown in the two lucrative co-generation units.” The GS stated.
He added also that the potential buyer is also interested in the Enmore Estate, eyeing the packaging plant as well.
GAWU President, Komal Chand, when quizzed on the identity of the potential buyer, said that based on the information he has received thus far, all fingers are pointing to a company operating out of the United States. He did not commit to naming the entity.
He said that his union does not find the ‘reasons’ advanced by the Guyana Sugar Corporation (GuySuCo) and the Government for the divestment of the estate, as credible.
Seepaul Narine said that with the estate coming under foreign ownership, it will result in a ‘big chunk’ of foreign exchange – which is much needed ‘now-a-days’ – being held outside of Guyana’s borders by the new owner(s).
“It is recalled that former President Forbes Burnham in nationalizing the industry 40 years ago, after centuries of private ownership, alluded to the non-repatriation of foreign exchange as a factor that influenced the decision,” Narine said.
Previous media reports have indicated that the deplorable state of the Skeldon Estate and the expenses incurred, might have given the GuySuCo Board the extra push needed to look at the options of either selling or diversifying it.
Contributing to the estate’s woes also, is the $200 Million Chinese-built factory – the brainchild of the Peoples’ Progressive Party/Civic (PPP/C). This factory was established to secure the future of the sugar industry which from all indications, is seemingly on its knees and panting.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

3 thoughts on “Govt inks MoU with potential buyer of Skeldon Estate”

Kassem_B December 31, 2016 at 8:09 am

‘Officials of the Guyana Sugar Corporation (GuySuCo) have confirmed that a Memorandum of Understanding (MoU) was signed between the government and a prospective investor who is interested in purchasing the Skeldon Estate.’
Is there any chance that investor is related to the Thomas’ or someone at PNC HQ?
1. rs dasai December 31, 2016 at 2:19 pm
  
  KB
  Most unluikely, since The Tom is mandated and is overseeing Sugah’s demise. The Lady shall rise again. Go local investors.
prakash12 December 31, 2016 at 12:31 pm

Every time the Skeldon Factory surfaces in the news I think of how the PPP has manipulated and swindled the resource of this country for personal gains. After 200 million plus US dollars, the Skeldon factory remains a “White Elephant”, much to the disbelief of the nation and the people Skeldon and surrounding areas.For these people the mill has been the main source of livelihood from generation to generation, Their faith and trust has been with the PPP government since 1953. With the purchase of this uncoordinated mill which was a discard some where in Africa, Bharrat Jagdeo has clearly indicated his personal concern(making money) as of that of the hard toiling people whose fore parents gave their sweat and blood in building an industry that has been the main sustenance of the poor.Some thing should be done to find out the real cost of this unproductive mill and those responsible must be placed before the justice system.