MANAGING director of the Sugar Company of Jamaica (SCJ) Holdings Joseph Shoucair says the entity blundered in not making a lease arrangement, for over a year with Holland Producers Limited (HPL) for 2,400 acres of land at Holland Estate in St Elizabeth.

At the same time, Shoucair made it clear that SCJ Holdings at no time agreed to a one-year due diligence period with HPL, and that it was understood that there was to be a formal agreement made, retroactive from the date when HPL took possession on July 9, 2019.

“I refused to agree to any moratorium, I refused to agree even to a one-year period. What I agreed in writing was early possession, pending formal lease agreement,” he stated.

The managing director was answering questions yesterday at a meeting of the Public Administration and Appropriations Committee (PAAC), which aired details of the land divestment arrangement that ended in controversy and minister in the agriculture ministry, JC Hutchinson being relieved of his duties on Friday. He has been reassigned to the Office of the Prime Minister.

It was not clear whether SCJ Holdings will be able to recoup any payments from HPL based on the company’s finances as shown by a summary of its balance sheet, shared with SCJ Holdings on July 16 this year.

Between July 1, 2019 and June 30, 2020 HPL’s expenditure of $6.24 million all but neutralised its lease income of $6.46 million. Shoucair noted that the company’s accounts payables of $6.6 million were almost entirely for security costs.

There is also $7.7 million in receivables. “If there are uncollected receivables of $7 million, [and] if this is owed by free farmers, it’s going to be hell to collect it; the quality of these receivables will have an implication,” he remarked. The farmers remain on the property.

Member of Parliament for Manchester North Western, Mikael Phillips said HPL’s money woes should not be SCJ’s concerns. “They rent land, and unless you can guarantee that they never collected for it, the expenses that they have to pay is on them,” he said.

He surmised that, based on the $3,000 per acre rental agreement that SCH has with the All Island Jamaica Cane Farmers’ Association under a similar early possession arrangement elsewhere, some $5.4 million would now be due to SCJ from HPL.

The MP argued that HPL should at least pay the property taxes which it incurred, a liability that is now being faced by SCJ Holdings.

Hutchinson was said to be closely affiliated with one of the directors of HPL, Lola Marshall-Williams, who also sat on RADA’s St Elizabeth Parish Advisory Board. She has now resigned.

Shoucair outlined to the PAAC how, upon Hutchinson’s directive which came by way of a letter under ministerial coverage, SCJ Holdings entered into the arrangement with HPL, which was initially introduced in April 30, 2019 as Holland Estate Management Company (HEMCO).

SCJ said it was advised that: “HEMCO was prepared to undertake the management of the property for one year, commencing June 1, 2019, and would thereafter be prepared to enter into an extended lease agreement with SCJ. The letter also advised of the challenges facing the land (for example the high cost of electricity to pump water from the land and the continuous invasion of cattle), implying that these necessitated the need for management of the property.”

Shoucair’s report to the committee said the letter went on to explain that HEMCO had already interviewed 245 farmers who had interest in occupying the entire 2,400 acres, and that it was important that those selected commenced occupying the land “Immediately upon the relinquishing of Appleton’s lease”.

Shoucair made it clear that SCJ Holdings was in no position to manage the Holland lands. In his report he stressed that Holland Estate had continuously been occupied by the previous tenants,Wray & Nephew, and that SCJ Holdings had no presence in the area nor knowledge of the state of the property.