GuySuCo under scrutiny over purchase of ‘unsuitable’ tractors

Jun 14, 2022 News

Kaieteur News – Questions are being raised over the purchase of six articulated agricultural tractors totaling more than $200M for the Guyana Sugar Corporation (GuySuCo) despite an order by the sugar company’s Board of Directors (BoDs) to have a special sub- committee convened in determining the efficiency of the machines against other brands.

GuySuCo’s CEO at Friday’s signing with one of the private contractors

The Kaieteur News understands that the GuySuCo’s BoDs ordered the subcommittee’s work after it received a follow up report from senior GuySuCo management showing that John Deere tractors, for instance, are cheaper and more efficient in conducting GuySuCo’s work in preparing the ground for the cultivation of sugar cane. GuySuCo’s Chief Executive Officer, Sasenarine Singh, on Friday last signed on behalf of GuySuCo to receive the tractors and other equipment, but according to information, the BoDs only found out about the transaction after the information was published in the media.
At the Agriculture Ministry’s office, GuySuCo signed nine contracts totaling $457 million for three new mill rollers for the Blairmont Estate, three more for the Rose Hall Estate. A mobile lighting tower, an arc welding generator, the rehabilitation of the boiler house roof at the Rose Hall factory, the rehabilitation of pre-milling and milling roofs and structures at the Rose Hall factory, the delivery of one refurbished high grade and low grade crystallizers and the supply and delivery of two re-tubing evaporators were also signed for. The six 195HP articulated agricultural tractors costing $226,368,000 were signed to be supplied and delivered by the contractor.
In the report seen by Kaieteur News it was noted that information from the previous reports on the tractors should be reviewed since some of it seemed misleading. The report spoke to the different types of tractors’ production and performance on the local soil type, beds and other ground preparation information. It said that an analysis of the test results revealed that the Fixed Frame and the articulated tractors achieved the same results. “However the Fixed Frame completed the operation in less time (11 percent) than the articulated tractor using 20 percent less fuel. Therefore the Fixed Frame is superior in performance than the articulated and this was not reflected in the productivity comparison.”
“The empirical data in the test results revealed that the John Deere is a better tractor than the articulated tractor when working under the same condition. Therefore the recommendation is to use John Deere tractor rather than articulated tractor since it is capable of carrying out all the operations in the tillage/mechanization process. It is also cheaper and more versatile than the articulated tractor,” the report continued.
“The recommendation to purchase articulated tractors were not based on the performance evaluation or test results, rather on the same information provided in 2020 and 2021 justifications. This is very misleading since it does not reflect the correct analysis and should be investigated.” The report insisted further that procurement of articulated tractors should be put on hold until further investigation is done. It continued that the corporation is on the verge of procuring Game X articulated tractors for leveling. “These are very costly and John Deere should be consulted before any procurement is done since the company also manufactures heavy duty horse power tractors.”
The BoDs decision to convene the subcommittee to assess the tractors was made some two to three months ago, so it came as a surprise to concerned individuals that the company was signing for the procurement of the said tractors. However, when Kaieteur News reached out to a senior GuySuCo official who asked not to be named, he said the items from last Friday were a gift from the government. He said that the government offers gifts in other areas and so GuySuCo would have accepted the items especially since it is needed.
Despite Friday’s event involved GuySuCo signing contracts to acquire the items mentioned, the official insisted that they were gifts, but opted not to say much more after indicating that businessmen were behind the presents. Concerned persons have stated nonetheless that while the six articulate tractors were purchased though unsuitable for the industry, twelve John Deere tractors could have been purchased with the same amount of money.