MOCA on sugar trail - Cane processors hand over list of cheats to RPD, agri ministry
Published:Tuesday | December 24, 2019 | 12:00 AMMark Titus/Staff Reporter
A list of suspected sugar-based manufacturing cheats has been turned over to the Major Organised Crime and Anti-Corruption Agency (MOCA) and the Revenue Protection Division (RPD), The Gleaner has learnt.
That declaration was made yesterday by Allan Rickards, a member of the Sugar Industry Authority (SIA).
“Research was done by a group of security experts funded by the Jamaica Cane Products Sales in conjunction and the sugar manufacturers and that is now in the hands of MOCA, the RPD and the minister,” Rickards said.
“The authorities will now determine what they do with that information.”
According to Rickards, the problem is no longer a Jamaican phenomenon but is affecting interests across the Caribbean, adding that the matter has fallen on the radar of trade bloc CARICOM.
The SIA senior member said that the Jamaica Manufacturers’ and Exporters' Association (JMEA), which has bristled at the idea of the centralisation of sugar importation through a government authority, has refused to submit itself to research on the actual level of brown sugar consumption islandwide.
“They have not cooperated with the research that shows that 65,000 to 70,000 tonnes of sugar is being consumed in Jamaica annually, while we thought 40,000 tonnes would satisfy the market. So the question is, where is the added sugar coming from?” asked Rickards, who is also chairman of the All Island Cane Farmers’ Association.
Meanwhile, the JMEA yesterday reasserted its resistance to any attempt by the Government to establish the SIA as the sole monitor for the importation and distribution of refined sugar and other sweeteners.
The Government believes that move will stem the revenue leak under the current system, where duty-free imported sugar intended for the manufacturing sector finds its way into the retail trade.
However, JMEA President Richard Pandohie says the imposition of a monopolistic regime will impede the competitiveness of the sector, leading to higher pricing and quality inconsistency.
“We have met with Minister (Audley) Shaw and the permanent secretary and they explained to us that they want to put a monitoring mechanism in place to ensure that the use for which sugar is brought in is being dealt with properly, and for that, we have no issue,” Pandohie told The Gleaner in an interview yesterday.
“… But the idea of all sugar being imported by the SIA and redistributed to us is something we don’t support, and is something we will resist,” he continued.
“We are not in support of the SIA being the only importing source of sugar for the rest of us to go to … . They cannot negotiate for us, they cannot buy for us … . We are running a business, so we go out there and find the best price for our product globally, and we are not prepared to hand that over to the SIA.”
Pandohie also renewed the call for the production of evidence that manufacturers are leaking sugar to the domestic market.
“I am saying that if you have the proof, it is a police matter. Deal with it accordingly because we will not support any manufacturer operating illegally,” said Pandohie.
The ministry said in October that it had not settled on the policy of a centralised importation regime but acknowledged that that was one of several proposals on the table.