Latest update January 23rd, 2025 7:40 AM
Local sugar quotas… Despite malfeasance and dereliction of duty, GuySuCo failed to take action – Internal Report
There are more indications that at the state-owned Guyana Sugar Corporation (GuySuCo), little attention was paid to wrongdoing and breaches of procedures.
GuySuCo’s Deputy Chief, Paul Bhim
For example, with sugar a high demand commodity locally, and amid falling production, Guyana had to ensure it met commitments to its overseas markets. That meant that local distributors have been clamouring for a piece of the pie.
According to a number of internal documents of GuySuCo now coming to light, there were several red flags in the quota system for local distributors.
For example, consecutive audit reports had found that at least one of the distributors did not even have a storage bond, one of the requirements.
The audit report stressed that this and other instances clearly demonstrated “a pattern of malfeasance and dereliction of duty” by Paul Bhim, the current deputy chief of GuySuCo.
The report would only underline what has been known for years…that much attention to systems and procedures were not followed at the state-owned sugar company.
It had been demanding billions of dollars in bailouts annually from consecutive governments.
The Coalition Government has closed four estates – Skeldon, Rose Hall, Enmore and Wales and placed them up for sale and divestment.
However, Bhim and a number of other senior management who have been around with the industry, are still there.
The audit reported was said to have been prepared last year.
It said that audits of the system of quotas, its management and awards are conducted by the company’s audit department every two to three years.
These audits are typically sample audits.
Since the award of sugar quotas to Bhir and Sons Distribution Services, a De Willem, West Demerara located business, and Boodram Basdeo in 2011, three audit cycles were completed in 2011, 2013 and 2016.
In the 2011 audit, the auditors visited the premises of Bhir and Sons Distribution Services and classified it as non-existent and not operating in the line of grocery or food business.
This business and four others were categorised as such in 2011.
Following the audit findings, the sugar quota was withdrawn for all others in 2011 with the exception of Bhir and Sons Distribution Services.
According to a 2013 report, the quota for Bhir and Sons Distribution Services was retained after GuySuCo’s Security Manager verified a bond existed and there was sugar stored in it.
However, in 2016, the audit findings categorised the businesses of both Bhir and Sons Distribution Services and Boodram Basdeo as non-existent and not operating in the line of food. The audit report in the conclusion called for the quota allocation to be reviewed to determine the continuation of the quotas.
“Notwithstanding multiple audit findings had negative reviews, to date, the two businesses remain as quota holders and are facilitated with the sale and purchase of sugars by the corporation.”
The audit report lamented that no action was instituted against the “architect of the breaches” since in years 2012 and 2013 he was the CEO (ag).
“In 2016, he was a member of the Interim Management Committee headed by Errol Hanoman, the CEO whose stewardship of the organisation was less than stellar and facilitated and accommodated wholeheartedly the reckless behaviour of Paul Bhim.”
According to the audit report, if a value of profit margin is to be determined, it can be argued that the two businesses combined would have earned a total of approximately $56M in a six-year period from 2012 to 2017 by selling a bag of sugar for $5,500 after buying for $4,900 from GuySuCo.
“The foregoing clearly demonstrates a pattern of malfeasance and dereliction of duty by the incumbent CEO (ag) (Bhim) and must be addressed swiftly by the authorities,” the report recommended.
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