…Guyana must get its due – Minister
BaiShanLin, the Chinese- owned logging company that closed shop and left under the former A Partnership for National Unity/Alliance For Change (APNU/AFC) Government, still owes the Guyana Forestry Commission (GFC) close to $70 million.
Vickram Bharrat
This was revealed in an exclusive interview with Natural Resources Minister Vickram Bharrat. According to the minister, the company expressed an interest in meeting with the Government, and he fully intends for Guyana to get its due.
“They owe the Forestry Commission close to $70 million. GRA would have seized equipment, but they owe Forestry. They expressed an interest in meeting. If they’re coming to meet, maybe they have an interest in getting back into production; so, definitely, we have to look at arrears,” Bharrat said.
Subsequent checks with the Minister revealed there was a meeting, and the company has expressed an interest in returning to production in Guyana. However, Bharrat noted that Cabinet would have to discuss the issue and, moreover, BaiShanLin’s debt remains an issue.
“We haven’t moved forward because, of course, it has to be cleared by Cabinet. Then there’s the indebtedness to GFC, we have to work through that. BaiShanLin doesn’t have a concession now…but, basically, it was a meeting for them to signal their intention to get back into forestry, and for us to discuss the process on how we move forward. And then Forestry will have to speak on the debt,” Bharrat also said.
When BaiShanLin first started its operations locally, it had committed under its investment agreement to establish a US$100 million wood processing plant in order to engage in value-added exports. This was never built.
In September 2016, the GFC announced that it would repossess concessions held by Baishanlin International Forest Development Inc (BIFDI), since it failed to deliver on several commitments.
In February 2018, Chairperson of the Board of Directors of GFC, Jocelyn Dow, revealed that Baishanlin owes the Commission in excess of $80 million, and that moves are afoot to have the monies recovered with the assistance of the Guyana Revenue Authority (GRA).
The GFC had previously said, during a meeting with company representatives, that it was indicated that Baishanlin had suffered financial constraints which affected the establishment of the wood processing facility. As such, the company was supposed to engage a new partner that would contribute significantly to its investment in Guyana.
In January of this year, GFC had announced that BaiShanLin’s former forest concessions, which the commission had revoked, would be up for grabs. It is unclear at this point who ended up as the recipients of the concessions.
In a statement to the press, the GFC had indicated that it “wishes to inform the general public of its intention to advertise and receive applications for the allocation of State Forest Authorisations (SFAs) and State Forests Exploratory Permits (SFEPs) over areas formerly held by Kwebanna Wood Products Inc, Woods Associated Industries Company Ltd, Baishanlin International Inc, Puruni Wood Products Inc and Haimorakabra Logging Company Inc”.
While BaiShanLin and other companies like Barama were relinquishing their concessions, however, all has not been well financially at the GFC, or with the forestry sector as a whole.
During his budget presentation, Public Works Minister Juan Edghill announced that during the period 2014 to 2019, the forestry sector contracted by more than 30 per cent.
He had further explained that, at the end of 2014, the GFC had a surplus of some $211 million. By 2019, however, this had plummeted to a surplus of $2.3 million. The depleted state of the GFC is coupled with the reduction in exports, from US$53 million in 2014 to US$34 million in 2019.
The GFC also found itself in a position, soon after the change of Government, in which it was unable to pay staff. In addition, GFC was unable to fund critical operational costs for several months, while workers have not been paid their 2018 bonus up to this year.
Soon after taking office, the President Dr. Irfaan Ali-led Government was forced to disburse $350 million to support the GFC, while also promising that outstanding bonuses would be paid by this yearend. (G3)
