The analogy between Obama’s bailout and GuySuco’s survival

Jun 20, 2017 Letters

Dear Editor,
The machinations which have occurred in this government provide some of the most striking examples of hypocrisy and deception seen in modern times. Earlier this year, the unions and the People’s Progressive Party (PPP) were invited to provide alternative plans to demonstrate how the industry can enjoy a turnaround in fortunes. This was followed up with a series of engagements between a team representing the Government and teams representing the PPP and the unions.
As far as I am aware, those engagements have not been brought to a halt. A White Paper and then a State Paper was subsequently laid in the National Assembly, for there to be a national debate on the way forward for the sugar industry. These initiatives held up great hope for the workers and their families. Everyone felt that the Government was acting in good faith and was really interested in a collaborative effort towards finding a solution.
Lo and behold, we accidentally stumbled upon a letter written by Mr. Joseph Harmon, Minister of State acting on behalf of the Government of Guyana, appointing Wesley Kirton, as a glorified real estate agent, to sell all of Guysuco, or any part thereof. This letter was written since November 2016.What this means therefore, that all the actions of the Government thereafter conveying the impression that they were engaging on Guysuco, were all a charade. Only a few days ago, I wrote a civil and balanced letter, querying a social event held in Florida last Saturday and the legality of funds raised there from. My queries were genuine and made in good faith as a Member of Parliament.
The very same Mr. Kirton responded. His response was as abusive as it was venomous. I refuse to descend to such level by dignifying his toxic rantings with a response. However, I was aghast and at loss to understand the nature of his response. Then I saw the correspondence and realized that he was singing for his supper. His commission fee for the sale may set him good for life.
The Government’s decision to sell Guysuco is not based on any economic analyses, or on the Commission of Inquiry’s Report or, upon any impact assessment done. Indeed, other than political considerations, no one knows on what basis is the Government acting. Guysuco is not simply a business and cannot be viewed from the perspective of profit and loss. It is an institution. The Obama Administration could not have afforded to allow certain huge companies to crash during the financial meltdown and therefore bailed-out these companies, the same way the Guyanese economy cannot afford Guysuco’s closure.
It still is the largest employer in Guyana, employing over 15,000 workers. It still is one of our largest foreign exchange earners and one of our major direct contributors to GDP. When one takes into account the fact that nearly 100,000 persons, directly or indirectly, depend upon Guysuco for their livelihood; the total amount of taxes, which they pay; their NIS contributions; the economic impact of their domestic consumption; the cost of finding alternative employment; the cost of maintaining the drainage and irrigation network in the backlands right across the coast; the cost of healthcare and other social services, which are provided by Guysuco to communities nationwide; the cost of provision of electricity for 90,000 households in Berbice by the Skeldon Co-Generation Plant (as per Dr. Clive Thomas), one will quickly see that the cost of closing the estates far exceeds the cost of keeping them functioning.
When one adds to this equation, the over 30 Billion dollars, which was disbursed to Guyana for the abolition of the subsidies and which was used as budgetary support for other sectors with only a small fraction going towards Guysuco, the case becomes even more unassailable. For the reasons I have adumbrated, I stand firmly in solidarity with the sugar workers and their families. Their cause is just, win we must, history and time are on our side. We will grind oppression into the dust.
Anil Nandlall

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