Uncertainty over future of sugar divestment deal

Published: Wednesday | December 31, 2008



( L - R ) Tufton, Clarke

A cloud of uncertainty is hovering over the Government's efforts to privatise the Sugar Company of Jamaica with reports surfacing that the deal, which should have been completed today, has either been delayed or scrapped.

Telephone calls to Agriculture Minister Dr Christopher Tufton went unanswered, but Gleaner sources said they were unable to verify speculation that the deal had been scrapped.

One industry player told The Gleaner that the sale agreement should now be completed by the end of January, a month after today's expiration of a 90-day extension for the sale.

The Ministry of Agriculture said in a statement yesterday that negotiations between the Government and Brazilian firm Infinity Bio-Energy would continue. The ministry, however, did not explain why the deal had been postponed again or until when.

In its statement, the ministry also noted that transitional arrangements were being put in place for the commencement of the 2008-09 sugar crop.

Transitional arrangements

Provision has been made for operations to begin at Frome sugar factory in Westmoreland on January 7, and St Thomas Sugar Company to start a week later. This would mean some sugar workers would be back on the job before Infinity Bio-Energy takes over.

"After consultation with the Jamaica Sugar Cane Growers' Association and the trade unions, respectively, arrangements are currently being finalised with Wray and Nephew and Worthy Park Estates to accept and process some of the cane to be reaped by private cane farmers registered to Frome and Bernard Lodge estates, respectively," the statement read.

However, a livid Roger Clarke, opposition spokesman on agriculture and land and rural development, complained yesterday that the Government was handling the sugar divestment deal in an unprofessional manner.

Kept in the dark

Clarke, the minister of agriculture under the previous government, said Jamaica was being kept in the dark with regard to why the deal has not yet gone through.

"The Government should be clear and indicate to the country what is happening. It's like a cat-and-mouse game being played out with this deal," he argued.

Clarke said the Government had found itself in a bind and speculated that Infinity Bio-Energy might have been finding it difficult to complete the sale agreement.