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Key sugar privatization expert at SPU, Shawn Persaud, “let go” –sale of closed estate lands to start soon
A key figure involved in the privatization and divestment process of four sugar estates that were separated from the Guyana Sug
“Let go”- SPU’s Privatisation Specialist, Shawn Persaud
ar Corporation (GuySuCo), was sent packing on Friday.
It would come at a time when Government is moving into a critical stage of selling sugar lands that will likely no longer be used for planting.
According to Government officials, Shawn Persaud, who held the title “Privatisation Expert”, at the Special Purpose Unit (SPU) was “let go” on Friday.
It appeared that the National Industrial and Commercial Investments Limited (NICIL), which had established the SPU to handle the transactions, was not too happy about what was transpiring at the unit.
SPU’s head, Colvin Heath-London, who is also performing duties as the head of NICIL now,
was tightlipped yesterday, stating that he has no comments.
He said that NICIL/SPU is planning a press conference and questions can be raised there.
There is significant attention on the sugar industry and entire privatization and divestment process.
The industry’s workers are predominantly supporters of the political opposition but in recent years had fallen on hard times after sugar lost its preferential market to Europe and faced a devastating price cut of more than 35 percent.
The Skeldon estate.
It was getting bailouts to the billions of dollars annually despite falling production. After coming to Government, the Coalition said that the bleeding must stop and ordered an inquiry.
As a result, four estates were closed. That action saw over 6,000 persons losing their jobs.
SPU had asked for Expressions of Interest with several coming in.
However, the valuation of the closed estates–Skeldon, Rose Hall, Enmore and Wales– by PricewaterhouseCooper, has halted the process.
While the remaining three estates under GuySuCo– Albion, Blairmont and Uitvlugt– are in operation, investors had become impatient of the process of valuation which the Coalition insisted must be carried out to ensure transparency.
NICIL had committed to borrow up to US$150M to help the three GuySuCo estates to become more efficient, already reportedly racking up more than $160M in interest.
On Friday, Director General of the Ministry of the Presidency, Joseph Harmon, made it clear that GuySuCo is a going concern with its three estates in operations and refuted that nothing is being done.
He explained that PWC, an independent auditor, has been hired to value the four estates and it has taken time.
In fact, the process was not simple as the estates were not separate. The lands had to be surveyed and inventories conducted before values could have been placed on the lands, buildings and equipment.
However, unfortunately, during the valuation stage, the interest of a number of investors had warned.
Harmon said that it is the intention to reengage the investors.
The sale of the sugar lands were supposed to raise money for three-estates, smaller-sized GuySuCo to become more viable.
Already, Harmon explained, a State Land Sale Committee has been established.
“That will ensure that there is transparency in the disposal of these assets because in our modern history, this can be the largest transfer of assets by the state to the private sector,” the Director General explained.
“…And so it is important that to ensure that all the processes are transparent and open and therefore there can be no fear that this person got something at one price and another person got something at another price. So that is being done right now.”
He said that the sale activities will start shortly.
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