Hill defends SCJ handling

Mark Titus, Gleaner Writer

WESTERN BUREAU:

As his critics focus on the millions of dollars in debt racked up by Sugar Company of Jamaica (SCJ) Holdings Limited over the four years of its existence, chief executive officer Aubyn Hill is celebrating the sale of the government-owned, haemorrhaging assets.

"Someone has lost something in their head, if they are going to say SCJ Holdings lost money. We didn't go in there to make money," he told The Gleaner on the weekend.

"We went in to divest, to stop losing money. That was our objective."

The accumulated loss at SCJ grew from $4 billion in 1998 when the Government repurchased the assets from the Wray and Nephew-led consortium for $1, to some J$18 billion at the end of 2007.

SCJ Holdings was charged with managing the remaining factories, after the successful negotiations and sale of Golden Grove Sugar Company in St Thomas for US$500,000 (J$44.5m).

It also pocketed some J$135.5 million for Long Pond and Hampden Estates in Trelawny, and despite being bolstered by pre-finance supply deals totalling US$41 million with Italy's Eridania SA and British firm Tate and Lyle in 2009/2010 and 2010/2011 crop years respectively, saw the state writing off an estimated J$2.3 billion in bad debts.

"The bottom line is that Frome and Monymusk operated in each crop, because if it had not, we would now be looking at what kind of funeral the industry should be having … now looking at curing the ill than burying the dead," commented Allan Rickards, chairman of the All-Island Jamaica Cane Farmers Association (AIJCFA).

"Having said that, however, there are many aspects of the operation within that period that can be questioned, and right now, we are reaping some of the whirlwind of some of the shortfalls in management for that period."

Stretched to make payment

Rickards said that due to the debt of the Aubyn Hill-led entity to the Jamaica Cane Product Sales (JCPS) of more than J$1 billion, the industry is "stretched to make second payment" to farmers who supply Worthy Park, Golden Grove and Monymusk estates.

"Right there is a massive problem because the funding is not yet in place to make those payments, and this is the first time it has happened in the history of the pooling arrangement."

An SCJ Holdings director, who spoke on condition of anonymity, also gave the former banker a failing grade.

"When the company was formed, Hill came to the table promising some of the best management the country as ever seen," the individual told this newspaper. "But in a year or two, we are seeing this public company, owned by the taxpayers, owing this significant portion and that makes us very concerned."

Karl James, head of JCPS, was said to be off the island when attempts were made to contact him.

However, Hill is adamant that all decisions taken were in the interest of divesting the assets.

"These are amazing criticisms because the last year before the divestment process began, the Government lost J$5.2 billion. We came in and we did our job," he said. "The only reason why they have sold the assets is because they are losing money."

Chinese firm Complant International, through its Jamaican subsidiary, Pan Caribbean Sugar Company, on Monday took control of Frome, Vernon Lodge and Monymusk factories, which it acquired for some US$9 million or more than J$700 million last July.

Also last year, the Office of the Contractor General recommended an exhaustive audit into the financial affairs of the SCJ and the SCJ Holdings Limited, however, they were cleared by the Director of Public Prosecutions.