Hanoman is gone; foreign managers mulled for GuySuCo

Jan 07, 2018 News

Departed: Former CEO,
Errol Hanoman

The administration is examining a number of options for the management of a ‘right-size’ Guyana Sugar Corporation (GuySuCo). According to Agriculture Minister, Noel Holder, the options may even involve bringing in a management team to see the corporation through until its divestment and privatisation process for four closed estates is completed.
The comments came as the minister also confirmed that Chief Executive Officer, Errol Hanoman’s tenure has ended and he has opted not to renew his contract. Hanoman who has been hired time and again to head GuySuCo, was brought back by the new administration when it came to power in 2015.
However, Hanoman’s tenure was anything but easy.
The government was intent on entering office to halt the huge cash bailouts to GuySuCo especially as there was little evidence of a turnaround in sight for the state-owned entity.
Sugar met its target in the first year of 2015 but fell the following year and in 2017 barely made it to 140,000 tonnes, one of the worst performances in years.
The new Skeldon sugar factory had continued to suck the little cash of GuySuCo and since taking office, the administration has plugged an estimated $32B to pay salaries.
In 2016 and then last year, four estates- Skeldon, Rose Hall, Enmore and Wales- were closed with the intentions to divest and privatise them. Several offers from local and overseas investors have come in.
However, the Opposition, whose support was built on the backs of sugar workers, has been joining with the unions to object to the layoffs of 4,000 workers who have all been reportedly given letters.
GuySuCo has signaled intentions in a new ‘right-sized’ entity to bring the workforce down to 10,000.
The administration has signaled intentions to find the almost $5B to pay off the redundant workers as early as this month-end.
The sugar producing communities have been reeling from the layoffs. Although turnouts by workers at GuySuCo’s estates have been in the 50 percent, very few of them know little else. According to Holder yesterday, GuySuCo has been facing some “serious” middle management problems when it came to experience.
The situation was hastened by a number of “unfortunate changes” made by the People’s Progressive Party/Civic when it was in government.
While Hanoman is gone now, his deputy, Paul Bhim, is still around, and there is a functioning board in place headed by Professor Clive Thomas, the minister said.
The four estates are supposed to have been placed under the control of a Special Purpose Unit (SPU), under the state’s National Industrial and Commercial Investments Limited (NICIL).
The SPU will oversee the privatisation and divestment process of the estates while GuySuCo will hold on to Albion, Blairmont and Uitvlugt. The SPU and Government are reportedly toying with the idea of reopening the estates with staffers rehired until investors are found.
However, Government says there are no monies and there is no cane in the ground.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News