Edmond Campbell, Senior News Coordinator
LATIBEAUDIERE
GLOOM HANGS over the sugar industry as the authorities scramble to avert a total shutdown of the sector following the National Commercial Bank's withdrawal of financial support from the cash-strapped Sugar Company of Jamaica (SCJ).
SCJ Chairman Derick Latibeaudiere confirmed yesterday that the entity has been facing increasing debt overdraft at the NCB. However, he could not provide further details on how the matter was being resolved.
He said the issue has been referred to Finance and Planning Minister Dr. Omar Davies and Agriculture Minister Roger Clarke, who are expected to provide an update on how the concerns would be addressed.
CLARKE MUM
However, the Agriculture Minister was tight-lipped when contacted yesterday by The Gleaner. Acknowledging that the sector has been experiencing problems, Minister Clarke said he was not in a position to discuss the issue in the public domain.
"I cannot discuss the business of the SCJ in this manner ... It does jeopardise the company ... We don't operate like that on a day-to-day, blow-by-blow (basis)," said Minister Clarke. "I am not going to tell you that the bank is doing this and the bank is not doing that. How could we run a company like that?"
INTERVENTION
But Opposition Spokesman on Finance Audley Shaw, is demanding the Government's immediate intervention, declaring that the problems have exceeded crisis proportion.
He told The Gleaner/Power 106 News Centre that the Finance Ministry would have to find at least $2 billion from the Consolidated Fund to deal with the crisis.
Mr. Shaw said further that the Government has understated the recently-signed Memorandum of Understanding (MoU) and now has to find an additional $3 billion in the Budget to settle the deal.
"Between the MoU and the Sugar Company of Jamaica, he (Dr. Davies) clearly requires at least another $5 billion on the Budget which has not been projected for in the recent Budget estimates."
The Opposition Spokesman accused the Finance Minister of understating expenditure requirements in the Budget to make the Government's fiscal targets look good.
