Sugar Industry - Channel 5 Belize

Hugh O’Brien Says Sugar Industry Commission of Inquiry “Going Quite Well”

Commission of Inquiry Begins Investigation into Belize’s Sugar Industry

The Commission of Inquiry into Belize’s sugar cane industry, established by Prime Minister John Briceño on March 19, held its first meeting on May 29. The Commission, led by Chairman Wayne Piper and commissioners from Belize, Mauritius, South Africa, and the UK, aims to examine the industry’s entire value chain and provide recommendations to the government. The initial meeting outlined plans for visits to sugar mills and production sites across Belize, with commissioners arriving in early June. The Commission’s proceedings will not be public, but updates will be provided through the Lead Coordinator, Hugh O’Brien. The final report is expected by November 30, 2024.

BSI Expresses Concerns Over Commission’s Focus

In a press release dated June 4th, Belize Sugar Industries Limited (BSI) expressed support for the Commission’s role in advising on industry modernization. However, BSI also expressed concern. Its primary concern is sharing proprietary information due to competitive pressures. BSI stated it would not cooperate if the Commission’s focus shifts to negotiating a new commercial agreement, which they consider a private matter. BSI says it is open to discussing reforms to industry regulations and participating in efforts to improve mill efficiency and cane yields in northern Belize.

BSCFA Calls for Public Inquiry and Cooperation

The Belize Sugar Cane Farmers Association (BSCFA) later issued its press release on June 6th. BSCFA says that it welcomed the commencement of the Commission’s work, viewing it as long overdue since the last inquiry in 1969. The BSCFA emphasised the importance of this investigation for the sugar industry and urged the Commission to hold public meetings. The BSCFA expressed concern over BSI/ASR’s position on sharing sensitive information with the Commission.

Lead Coordinator, Hugh O’Brien, says Inquiry Going Quite Well

On June 13th, News Five’s Marion Ali caught up with Hugh O’Brien, the Lead Coordinator for the inquiry in Orange Walk Town. When asked how the inquiry is going, O’Brien said, “The inquiry to, in my view so far is going quite well. The ambience between the people that the commissioners have met, particularly, we’ve sat down. We spent a day and a half with BSI. That went extremely well. BSI was very, very open. They shared their information that they had with them and various components of the factory and how the factory operates and their overall program and their views for the industry in terms of what they see is needed for Belize from their perspective. And then the tour of the factory with BSI went extremely well. And then following that the second day they did a tour of field activities, BSI’s operations at the field level, their farms and the services that they are with a view from their perspective that they have in mind. That they can contribute towards helping to modernize the industry in Belize.”

When asked about the commissioners’ views, O’Brien said, “they are calling me because currently they are meeting with the Belize Sugar Cane Farmers Association at the SIRDI office in Buena Vista and the commissioners also yesterday did a complete, they receive a presentation from Santander which have a very different structure and they’ve toured the Santander factory and they also had a complete tour of the Santander fields of sugar cane. So, they’re getting a good view and a good handle of, of what is occurring in Belize? Previous to that, they had presentations from the staff at the Sugar Industrial Research and Development Institute. They had a presentation and discussion with the sugarcane production committee because the way sugar is delivered in the north is very different than the west and is a very intricate system in the north because of the large number of small farmers and people battling to try to get their sugar into the factory.”

When asked about the concerns raised by BSI, O’Brien said, “The commission has never changed its focus. The terms of reference of the commission of inquiry was drafted and there were concerns that BSI raised. That’s when I kind of got involved and the prime minister asked me to, and I said, we’ve had discussion with BSI. They sent back recommendations from their standpoint and we made adjustments to the terms of reference, but we never gave in to what BSI wanted.”

O’Brien said that the commissioners will now create a list of specific items that they want from the two factories.

BSI Expresses Concerns Regarding COI

The Belize Sugar Industries Limited is expressing concerns over what it describes as the Commission of Inquiry’s change of focus.

In a release, BSI says that “because it operates in a commodity business that is very competitive, it cannot share proprietary and confidential information.”

BSI says it cannot disclose proprietary and confidential information. The company has also informed the government that it will not cooperate with a COI if its focus shifts towards using the process to negotiate a new commercial agreement, as this is a “private commercial matter.”

Commission of Inquiry on Belize Sugar Industry Holds First Meeting

The Sugar Industry Commission of Inquiry held its inaugural meeting on Wednesday, May 29. The meeting was held virtually.

A government press release says it had the participation of Wayne Piper, Chairman, and the five commissioners: Robert Mariette and Vinod Ramharai from Mauritius, Jeffery Joseph from Belize, Andy Church from South Africa, and Simon Gibbons from the United Kingdom. Also in attendance were Lorena Posada, Secretary to the Commission; Hugh O’Brien, Lead Coordinator for the Government of Belize; Marcos Osorio, Chairman of the Sugar Industry Control Board (SICB); and Krity Neermul, Technical Coordinator for the Mauritius team.

According to the government, the meeting focused on discussing and agreeing upon the general plan for the first phase of work, along with associated logistics. This phase will include visits to the mills at BSI and Santander, as well as farm and field trips to sugar production sites in northern and western Belize. Commissioners are scheduled to begin arriving in Belize during the first week of June, with logistical support provided by the SICB.

This commission aims to examine the entire value chain of the sugar cane industry and provide recommendations to the Government of Belize.

The commissioners aim to complete their report(s) by the deadline of November 30, 2024.

BSI says COI is an assault on its business interests

Belize Sugar Industries Limited fired off a press release saying that it denounces a commission of inquiry into its private affairs. BSI says that Prime Minister John Briceño announced the Commission of Inquiry (COI) “with a mandate to delve into the private affairs of BSI, with the sole purpose of providing ammunition for one cane farmer association, the Belize Sugar Cane Farmers Association (BSCFA), to continue its relentless effort to coerce BSI to pay more for cane without any economic or business justification.”

BSI asserts that the three other cane farmers’ associations that represent “roughly half the cane do not support the COI.”

According to BSI, “This decision is politically driven and totally erodes ASR’s investor confidence as the largest US investor in Belize and undermines representations made by the Government of Belize to ASR in 2012 that it would receive fair treatment.”

BSI says that it will not be compelled to “produce proprietary and confidential commercial information, the rights over which are protected by law.”

“BSI sees this Commission of Inquiry as a further assault on its business interests and outright bad faith by the government.”

Commission of Inquiry into the Sugarcane Industry Set to Proceed

In a press release on Tuesday evening, the Briceño Administration said that the Commission of Inquiry into the sugarcane industry is set to proceed.” The statement came after the Belize Sugar Cane Farmers Association (BSCFA) called a press conference at its headquarters in Orange Walk Town regarding the promised Commission of Inquiry.

During the press conference, Alfredo Ortega, Vice-Chairman, B.S.C.F.A., said “As you can see we have reached March and the signing of the document was in January. Thirty days was in February. So we have long past due that. Now that we have reached this stage and we have listened, because first we were waiting for the government or the prime minister to declare, because he said in his interview on Friday that he is the one in charge to declare the commission of inquiry.”

He further stated that “We were waiting for that, but when we listened to what he said on Friday we can clearly say he lied to us, he lied to the cane farmers and that is why we are here. We want to clearly see how the prime minister behaves, lying to the cane farmers, lying to us, lying to the Belizean people in his statements, he said that we are not the only association.”

In its press release, the government said, “Today, Prime Minister Hon. John Briceño approved the terms of reference as well as the appointment of the commissioners to the inquiry into the sugarcane industry of Belize.”

It said “The commission is expected to review the entire value chain of the sugarcane industry to establish the benchmark costs, determine efficiencies and recommend measures to increase efficiencies. Specifically, the commission is to determine the cost of sugarcane farming, harvesting and transporting, as well as sugar manufacturing, operating, transportation and logistics costs.”