Sell the four closed sugar estates to DDL for a symbolic $1

Aug 12, 2020 Letters

Dear Editor,

I note the sugar union GAWU is calling for reopening of the closed sugar estates. One must recall that the government-owned GuySuCo had dominated the news when the Coalition took power following the 2015 elections. The company had needed a huge bailout to cover its operational expenses. A commission had been set up. We learned that world market price of sugar was 17 cents a pound, but average cost of production was 38 cents. Later, we learned that government had hired McKinsey to conduct a study to figure out the value of the assets and to find international investors to purchase some or all the sugar estates.
Well none was sold. A new government has been elected and assumed office two weeks ago. And, again GuySuCo needs another multi-billion-dollar bailout. How many times shall the government go around the mulberry bush – once, twice? And for what purpose?
Spending money to perennially bail out GuySuCo is not a good idea. It is throwing good money down a black hole. It makes good sense to sell the four closed sugar estates for a symbolic $1 to DDL. Be done with sugar. Get government out of the sugar business. No more billion-dollar bailouts.
DDL is an iconic Guyanese-owned company. Unlike foreign investors, there will be no repatriation of profits; all profits will be reinvested in Guyana. DDL had bid for one or several estates, then withdrew its bid (No one knows why – this matter needs to be investigated). DDL would continue to grow sugarcane and keep most or all the laid-off workers employed. DDL would also maintain the estates’ physical infrastructure – irrigation canals, dams, bridges, factory buildings housing the sugar processing machinery – and equally important, put an end to the social blight that swept over the villages since the closure.
Where can you get a better deal than this? Where can you get a better company than DDL? They will even pay corporation taxes on its profits (ExxonMobil pays no taxes on its profits to the Government of Guyana).
I urge the Irfaan Ali government to put an end to this merry go-round. Sell those closed estates to GuySuCo for a symbolic $1 today.
Yours truly,
Mike Persaud

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