$1 Billion Government bailout approved for GuySuCo to prevent workers from striking

Government has once again stepped in, to the rescue of the Guyana Sugar Corporation (GuySuCo) as the company finds it hard to meet the basic obligation of paying workers.

The sugar Corporation approached Government for a $1 Billion bailout to prevent workers from ‘dumping tools’ until they are paid.

It was Prime Minister, Moses Nagamootoo who made this disclosure during a public meeting to address the concerns of the 14% Value Added Tax (VAT) on private tuition today (April 07, 2017), at the National Cultural Centre.

According to Nagamootoo, the sugar company was hoping to pay the workers today (April 7, 2017) after approval was granted for the funds to be available to GuySuCo following this week’s Cabinet meeting on Tuesday, April 4, 2017.

Prime Minister Nagamootoo warned that the payment was not made and as such, he hopes there would not be a nationwide strike by GuySuCo workers at the weekend or in the coming week.

“Tuesday (April 4, 2017) they (GuySuCo) came we had no money to pay wages for sugar workers.so, we discussed it and we agreed that we would advance $1 Billion dollars to GuySuCo to pay wages to sugar workers but we understand that the arrangement had not been made to effect the payment,” he said.

The Prime Minister was also boastful about his administration’s decision to pump billions into the crumbling sugar industry.

According to him “within the first 20 months of coming into office we are now at $32 Billion to save the job of the livelihood of the sugar workers, subsidised the wages for GuySuCo to pay wages.”

Last November, Minister of Finance, Winston Jordan in his 2017 budget presentation announced that $9 Billion would have been allocated to continue the support of financing GuySuCo’s operations.

For the last three years, the losses incurred by the sugar industry is in the billions.