The Government is getting ready to pump millions of tax dollars into the debt-ridden Citrus Growers Association which is on the verge of bankruptcy.
The Association has been up in arms with the Ministry of Agriculture which it claims has been dragging its feet in responding to a request for emergency funding.
Agriculture Minister Dr. Christopher Tufton disclosed Tuesday afternoon that Cabinet has approved a financing plan to keep the association afloat but not without strict conditions.
The bail out package being contemplated to save the country's citrus growers is in the region of $100 million.
Dr. Tufton stated that Cabinet deliberated on the issue on Monday and decided to come to the rescue, but with conditions.
A recent management audit of the Association revealed that the entity's liabilities far outstrip its assets.
A new business plan was presented to the Agriculture Ministry to steer the Association to financial viability but the directors of the Citrus Growers Association needed to agree to certain terms, he said .
"They needed to act on the report on the management audit and we'll be prepared to work with them as long as they would allow for some adjustment in the way the company was managed. The Government was not going to provide financial assistance until we were confident that they were going to restructure and that restructuring based on their current state required some from of equity participation," said Dr. Tufton.
But with the onset of the new crop and millions of dollars in earnings at stake, the Association became agitated and complained about the length of time it was taking for the Government to come to their rescue.
According to Dr. Tufton, a crucial meeting will be held with the stakeholders this Friday to come up with a clear plan of action in light of the approval to grant bridge-financing support.
"I intend to go and speak to the wider body of farmers and members of the association to put the position of the Government to them and to explain how we need to proceed in order to ensure that the tax payers resources which may have to be provided to them, is utilized in a manner that helps them to be viable," he said.
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