As it approaches five years since the Panamanian Government failed to pay Guyana $1,184,198,400 for a 2018 rice supply deal, the PPP/C administration has assured that the issue is still engaging its attention.
Speaking to this publication today, Minister of Agriculture, Zulfikar Mustapha stated that the government is working “very assiduously” to retrieve the payments through a technical team. Mustapha said he is aware of the inconvenience it has caused on the millers and farmers who would have already laboured, but are yet to reap their benefits. He said government is more than committed to ensuring the payment is received.
In 2018, a contract was inked between the David Granger administration and the Government of Panama for the supply of 200,000 quintals, equivalent to 9,075 tonnes of white rice between August 1, 2018, and November 7, 2018, with the Guyana Rice Development Board (GRDB) being the facilitator. Following the signing of the government-to-government agreement, the shipment was sent and a partial payment was made. However, efforts to recover the outstanding balance have been futile despite the country acknowledging its arrears.
Since taking office, the Irfaan Ali government would have already written to Panamanian authorities, and sought diplomatic assistance through the Ministry of Foreign Affairs, in hopes of having the North American nation honour its commitment. There was also heightened pressure on GRDB from millers and farmers to clear the outstanding balance. But with the board being a mere facilitator, there was not much that could have been done.
It was also reported last year that two Essequibo rice millers sought the assistance of the court to obtain payment of $63,807,036, which they said had been outstanding for nearly four years, at the time. The Agriculture Minister had also revealed that due to the lack of payments, GRDB developed a liability of $4.7 million which had adverse effects on its revenue stream.
Mustapha asserted that “the last government should have ensured that they engage the Panamanian authorities when they sent the first payment and it was not paid.” He said the former government simply failed to adequately represent the rice millers and farmers.
Nevertheless, he is hopeful that with the help of the technical team which will be engaging with counterparts from Panama, the rice millers and farmers will be able to get their payments that are long overdue.
