Govt probe into illegal gold trade: Obey law or face consequences – GGDMA to members

…says illicit buyers have unfair advantage over legal buyers

The Guyana Gold and Diamond Miners Association (GGDMA) on Tuesday said that it stands in full solidarity with Government’s statement issued on Monday regarding the eradication of the unlawful trading of gold in country.
In a statement, the GGDMA said it is heartened by Government’s action as it hopes that these public utterances are indeed followed by requisite action by the relevant agencies to bring violators to heel. It added that in August, it had issued a statement calling for the complete removal of illegal buyers, sellers and illegal operators in the gold sector; for them to be dealt with to the fullest extent of the law and completely wiped out from the mining sector of Guyana.
“We wish to strongly advise our membership to follow the law and to ensure that you are not party to these illicit acts that are destroying the goodwill of the sector and miniaturising the essential role the gold and diamond mining sector plays in national development. We will not defend any person or entity, member or not, found to be legally culpable for misconduct of this nature. Extra money on an ounce of undeclared gold is not worth losing your ability to ply your trade or the serious damage it is doing to the industry,” the miners’ representative body stated.
It added, “To our members and the mining community at large, we emphasise that regulations relating to the buying and selling of gold are in place to protect our livelihood, the legitimacy of our operations, the economy of our nation, and the reputation of our industry on a global scale. Compliance should not be viewed as a burden but as a crucial responsibility we all share.”
The GGDMA implored on all miners to refrain from engaging with entities that do not hold the necessary legal permits and credentials for gold trading. “When selling your gold, ensure that you get a receipt and continuously check with the Guyana Gold Board to reconcile your records to make certain that the gold you have sold to the relevant trader or dealer is correctly recorded at the Gold Board and that the correct amount of gold has been declared and the relevant royalties and taxes have been remitted on your behalf,” the statement issued on Tuesday said.
The GGDMA encouraged strong action to be taken against operators who are selling to illicit buyers, particularly potent action must be taken against the multitude of illegal buyers of gold that are replete around the various mining districts as well as in Georgetown.
“Not every location with a “We buy gold” sign in the front has the legal right to do so; this blatant and shameless illegality must be rooted out from our society and the sector. As long as these illicit buyers exist, they will have an unfair advantage against legal buyers who follow the law and deduct the relevant taxes and royalties; removal of the illicit buyers means that more gold will go to the legal buyers and hence reflected at the Gold Board.”
The GGDMA also implored that the relevant agencies do everything legally possible to curtail these illegal acts, whether perpetrated by local or foreign entities. The GGDMA added that it will continue to engage the Government and other stakeholders to facilitate an open dialogue aimed at addressing systemic issues, proposing improvements, and ensuring transparent communication channels for the betterment of the industry.

Investigation/consequences
In light of dropping gold declarations that are at odds with the investments being made in the sector, the Natural Resources Ministry announced on Monday that an investigation will be launched into whether gold smuggling/illegal trade is responsible for this disparity.
The Ministry reminded miners that they are required to sell all the gold they find to licensed gold dealers/traders or to the Guyana Gold Board.
The Ministry further reminded them that it is illegal to purchase gold without the requisite licence. According to the Ministry, the relevant agencies are tasked with ensuring the laws surrounding the selling of gold are upheld and further, an investigation has been launched into the disparity in gold declarations and investments.
According to the Ministry, persons found to be in breach will face the full force of the law. This, according to the Ministry, can even lead to miners with existing claims losing their holdings in addition to being prosecuted.
In July, there had been reports that Brazilian federal authorities had launched an investigation into a Guyanese businessman suspected of laundering millions worth of illegally mined gold into that country.
The probe was initiated after authorities discovered the involvement of an alleged Guyanese businessman, who has ties to the gold mining industry in Guyana and conducts business in Brazil under suspicious circumstances.
Reports are that Federal Police agents suspect that the Guyanese businessman has a Brazilian partner who aided in the movement of funds through the companies.
At the time, Vice President Bharrat Jagdeo had warned of tough measures and consequences for any miner found engaged in such illegal activities. In fact, Jagdeo had admitted that Government has been monitoring the decline in gold declarations, with at least one foreign company on its radar for declaring lower than usual figures.
The Bank of Guyana (BoG), in its first quarter statistical report on the performance of the economy for the year, had said gold declarations decreased by 5.3 per cent when compared to the same period last year.