Guyana: Former Finance Minister Critiques Additional Funding for GuySuCo

Winston Jordan, the former Finance Minister of Guyana, has expressed strong criticism regarding the government’s recent request for an additional $3 billion in funding for the state-owned sugar company, GuySuCo. In an interview with HGP Nightly News, Jordan labeled the financial support as a “complete waste of money,” stating that the industry has not demonstrated the capability to produce results that warrant such substantial investments.

Jordan pointed out that when the coalition government took office in 2015, it inherited a sugar industry that was in dire financial straits, describing it as “completely bankrupt.” He noted that the APNU+AFC administration had to allocate $12 billion between May and December of that year just to keep the corporation operational. He emphasized that despite continued financial injections into GuySuCo, the coalition ultimately recognized the need for fundamental restructuring of the industry.

According to Jordan, the restructuring efforts included consolidating operations, mothballing certain estates, and reallocating resources to those operations that had a better chance of being efficient. He argued that the economic conditions that previously supported Guyana’s sugar industry have changed significantly, stating, “The days of sugar producing 300,000 tonnes are over, gone.” He also mentioned that the preferential pricing from the European Union had previously masked inefficiencies within the industry.

Jordan expressed concern that the current government is politically constrained and hesitant to implement necessary restructuring measures, fearing that such actions would validate decisions made by the previous administration. He believes this reluctance will result in taxpayers continuing to bear the financial burden. He highlighted that despite nearly $50 billion being spent since 2020, production levels have not met expectations, further complicating the situation for the government.

In his view, GuySuCo has become a political liability for the current administration, which he described as a “monkey on their back that they can’t throw off.” He also dismissed the notion that merely changing management would resolve the corporation’s ongoing challenges, calling it mere talk. His comments come as the government seeks approval for the additional funding as part of a larger $54.8 billion supplementary budget currently under consideration by the National Assembly.

Source: hgptv.com

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