Suriname’s state-owned agricultural enterprise Food and Agriculture Industries (FAI) N.V. is confronting a severe financial crisis with accumulated debts reaching $22 million, prompting emergency government intervention. Operations Director Nitesh Ramlakhan has been arrested following allegations of financial misconduct, while General Director Permila Bissumbhar remains suspended—both under criminal investigation for suspected corruption and violation of national anticorruption laws.
The Ministry of Agriculture, Livestock, and Fisheries (LVV) disclosed that despite approximately SRD 200 million in government subsidies over five years, FAI now faces critical liquidity shortages preventing payment of employee wages and essential operational expenses. Minister Mike Noersalim convened an urgent meeting with stakeholders including parliamentary representatives, union leaders, and board members to address what he described as “an extremely dire situation.”
Investigations reveal multiple systemic failures: export operations to Barbados and Trinidad & Tobago have been suspended due to unpaid logistics contracts, while production has plummeted to 200 hectares—far below the 350-hectare break-even threshold. Outdated irrigation infrastructure and forced reductions in fertilizer use have exacerbated production declines.
Minister Noersalim confirmed evidence of unauthorized asset sales, including non-seaworthy containers sold below market value, and salary increases implemented without board approval. With $8.5 million owed to Hakrinbank alone, the minister has initiated emergency talks with financial authorities to prevent collapse. “We cannot continue this way,” Noersalim stated, emphasizing government commitment to restoring FAI as Suriname’s banana sector leader through transparent restructuring.
Stakeholders have pledged collaborative efforts to reduce debt burdens, revitalize production, and restore operational viability. The coming weeks are deemed critical for preserving export markets and ensuring the company’s survival.