Govt. took $643M from coffers to pay GuySuCo workers

Govt. took $643M from coffers to pay GuySuCo workers – Agri Minister

Dec 20, 2023 News

Kaieteur News – Minister of Agriculture, Zulfikar Mustapha on Tuesday disclosed in the National Assembly that the Government of Guyana (GoG) had tapped into the Contingency Fund for $643 Million to pay wages and salaries for Guyana Sugar Corporation (GuySuCo) employees.

Last week in Parliament, Senior Minister with responsibility for Finance, Dr. Ashni Singh laid over Financial Paper No. 4, which caters for $1,899,647,334 Contingency Fund advances for the period October 1, to December 31, 2023.

While responding to queries from APNU+AFC Member of Parliament, Vinceroy Jordan, Minister Mustapha on Tuesday detailed the breakdown of the allocation, specifying $383 million was taken out of the coffers for wages, $172 million for salaries, and $88 million for pensions within GuySuCo’s operational costs.

Minister of Agriculture, Mustapha Zulfikar

He continued, “This came about because of our program, remember we re-opened Rose Hall Estate, Rose Hall Estate is now producing sugar, we have employed a total of 543 new employees, and we employ these people because of the mechanization program we have started…”

When questioned about potential salary payment shortfalls in November, Mustapha reassured that all targets were met, affirming that no employee was denied his/her wages during that month, whether weekly or monthly payments.

APNU+AFC Member of Parliament, Vinceroy Jordan

“To my knowledge we have been meeting our targets and no employees were denied salary in the month of November, I know for a fact for weekly salary and monthly salary,” the Agriculture Minister said.

Elaborating on the government’s mechanization efforts within GuySuCo, Mustapha emphasized the shift toward less labour-intensive methods.

“We know for a fact that some of the people don’t wanna go back to cut cane with this labour intensive job and we are mechanizing…we are now bringing in machines that will cut the canes that will load the canes and we are looking now to make GuySuCo more modernised and mechanism,” he added.

Jordan reminded the House that in August, the National Assembly approved $1.5 billion for GuySuCo, specifically to revitalise various estates, and reopen the Rose Hall Estate. Querying the allocation’s utilization, he probed Mustapha on the expenditure for Rose Hall’s reopening

“Approximately 90% was spent at Rose Hall (estate) giving the state of the estate,” Mustapha said.

Jordan stated, “So after spending 90% of $1.5Billion, the Rose Hall Estate was reopened… they were major mechanical failure at the estate, the broilers were using steam, leaks on the steam pipes, overheating…could the minister say what really this 90% of the $1.5Billion did?”

In response to concerns raised about mechanical failures at the estate despite the substantial allocation, Mustapha distinguished that the allocated funds were primarily directed toward cultivation rather than factory improvements, citing separate funding for factory-related enhancements.

Additionally, a sum of $2 billion of the $24 billion supplemental funds approved in the National Assembly on Tuesday night was allocated for GuySuCo.

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APNU+AFC Member of Parliament, Minister of Agriculture, Mustapha Zulfikar, supplemental funds, Vinceroy Jordan

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