Money laundering: Myths and fallacies about making dirty money clean

Guyana and the wider world
Money laundering: Myths and fallacies about making dirty money clean
By Dr. Clive thomas
SN, Sunday, December 23rd 2007
http://www.stabroeknews.com/index.pl/article?id=56535635
Last week's column intimated that at least three items we have been
discussing for some time now, are directly related to the significant
roles played by two of the World Economic Forum's "problematic
factors," namely, "crime and theft" and "corruption" in the poor
results obtained by Guyana in the 2007-2008 Global Competitiveness
Report. These are 1) the extensive role of the underground economy 2)
the significant role of organized crime in it (phantom economy) and 3)
the scale, scope, and impact of money laundering on the economy and
wider society. In earlier columns I have already dealt at length with
the first two items. Today I take up the issue of "money laundering."

Definition

Let me begin with a strong word of caution. When considering money
laundering one must be very clear on what is fact and what is fallacy.
The first fallacy to note is that money laundering is not, as is
commonly believed, the exclusive domain of organized crime. In fact it
is the domain of all types of crime, organized or unorganized. Whenever
the proceeds of activities that generate gains are not reported and/or
occur outside of legal formal markets, money laundering is the
inevitable consequence. To take a case in point, all individuals,
firms, business organizations and other enterprises, that seek to evade
taxes, can only successfully do so if they hide and do not report and
then subsequently launder the wealth or income they obtain. The
definition of money laundering below highlights this. It is taken from
the Lectric Law Lexicon, which is based on US legal provisions:

"Conduct/Acts designed in whole or in part to conceal or disguise the
nature, location, source, ownership or control of money (currency or
its equivalents [cheques, electronic transfers]) to avoid a transaction
reporting requirement under state or federal law or to disguise the
fact that the money was acquired by illegal means."

The second fallacy is that the "money" referred to in the term, money
laundering, refers to cash and bank deposits (the traditional
definition of "broad" money). In fact other financial instruments (for
example, electronic transfers) as well as commodities (gold, other
precious metals, high-valued artefacts) are used as means of money
laundering. To limit money laundering only to cash and bank deposit
transactions would be incorrect.

A third fallacy lies in failing to recognise that money laundering is
directly linked to the operations of the entire underground economy,
which as we know refers to all economic transactions that take place
outside of formal and legal markets. As we saw in our earlier analysis
of Guyana, organized crime, while a substantial part of the underground
economy, is not the whole of it. Criminal activity not linked to
organized crime also takes place in the underground economy. Here
individuals, organisations and business units with proceeds from all
types of criminal activities, (for example, fraud, tax evasion, and
ordinary theft) also contribute to money laundering in the underground
economy as their proceeds and ill-gotten gains must be laundered, if
they are not reported.

'Victimless crime!'

Fourth, where there is money laundering the underlying activities that
initiate it are always criminal wrongdoings. However, because of its
nature and operation analysts believe many persons perceive money
laundering as a 'victimless crime.' That is, unlike an ordinary theft
or a fraud perpetrated against a person or organization the victim is
not immediately apparent. Yet, as we shall see, all law-abiding
citizens, the government, and the society as a whole 'pay' for these
criminal wrongdoings.

Have no doubt about it, we hurt ourselves and our country when we go
soft on money laundering. Indeed, many persons feel that in Guyana we
facilitate money laundering both actively (by not passing and enforcing
appropriate legislation) and passively (by turning a blind eye to its
existence).

A fifth fallacy is that money laundering takes place only through
banks, which as we know are the principal institutions dealing with
money. It occurs, however, through all types of financial institutions
and their assets. The truth is that if money laundering is confined
solely to banks, financial intelligence operatives can reconstitute the
source of the funds by deconstructing the deposit-withdrawal-conversion
trail through bank records.

This, however, does not deny that money laundering, in seeking to
'legitimize' the proceeds of criminal wrongdoings, sees legitimate
banks as prime targets.

Process

A sixth fallacy is to interpret money laundering as a single event or
episode. It is usually a very intricate and complex process. Thus,
according to the Financial Action Task Force (FATF) set up by the G-7
countries in 1989 to lead global counter-measures against money
laundering, money laundering takes place in three main stages.

The first of these is when means are found to place funds obtained
illegally into the financial system. There are innumerable ways in
which this has been done over the years. Business activities that
handle a lot of cash make this relatively easy, for example, retail,
entertainment shows and casinos. This stage is called 'placement.'

After the funds have been 'placed' into the financial system, the
second stage seeks to engage in a series of worldwide transfers and
conversions to hide the original source of the funds. This part of the
process is called 'layering.' The third and final stage is to secure
the funds in the legitimate economy after placement and layering.

This is done through established and reputable financial institutions.
This stage of the process is called 'integration.' From this point the
funds can then successfully be invested legitimately in such items as
financial assets, real estate or business ventures (retail, forestry,
mining and so on).

Next week I shall continue to discuss other aspects of money laundering.

GFC integrating bar-coding with its monitoring methods

http://www.stabroeknews.com/index.pl/article?id=56536061

GFC integrating bar-coding with its monitoring methods
SN, Monday, December 31st 2007


The Guyana Forestry Commission (GFC) says it is implementing the Remote
Sensing and Bar-Coding system into its existing log tracking programme
in its promotion of sustainable forestry development.

The GFC project is funded by the International Tropical Timber
Organization (ITTO) at a cost of more than $100M, a press release from
the Government Information Agency said.

It uses modern tracking devices to combat illegal logging activities.
The GFC said this monitoring technique is being used in many South
American countries including neighbouring Brazil.

The project was approved by the ITTO earlier this year and, according
to GFC Head of the Planning and Development Division, Pradeepa
Bholanauth, it began last September with efforts to recruit the three
main consultants necessary for its implementation. Posts were
advertised for specialists in areas of Chain of Custody; Networking and
Bar Coding; and Remote Sensing and Geographic Information System and
applicants are currently being reviewed.

It is expected that once these positions are filled, the project will
move into the next phase which includes conducting remote sensing
imagery and geographic assessments of the current log tracking system
to integrate the Bar-Coding technology. This is expected to take place
in early January after which the Chain of Custody Specialist will be
required to formulate procedures to ensure strategic implementation of
the bar-coding system. This step will allow the GFC to better monitor
production of logs and other timber products extracted from a
particular location and make it easier to track the volume/quantity of
products harvested.

The GFC said the Bar-Coding System is part of its efforts to modernise
its monitoring capacity since it will feed into a central database
linked to a national wide-area network. This will allow for real-time
transfer of data and the availability of tracking information for the
regulatory agency and operators in the private sector. The project will
make detection of illegal logging and other non-compliant activities
easier both in transit and at point of sale, by scanning bar code
labels on log tags to determine if the tag being used is valid,
date/time last checked.

Similar checks will be done in the forest at tree stumps. Under the
system, raw materials and stumps are identified using a plastic barcode
tag that is attached immediately after logging or when being split into
pieces at timber collection points. These tags are scanned at the GFC's
check points to determine whether the produce is legal. The logs that
have been converted are transported to manufacturing plants where the
number and description are recorded on timber certificates and removal
licences. When the logs are collected at the manufacturing plants and
at timber yards the data is recorded. This recording is done in batches
per supplier, as these entities purchase materials from several
suppliers in multiple species and volumes. They can, however, be traced
by log tag numbers and bar codes to the source of origin in the forest.
Scanning and reconciliation will also be enabled at lumber yards,
sawmills and timber manufacturing operations.

The GFC said this initiative will enhance the work of its Forest
Monitoring Division which scrutinizes 22 forest stations located at
strategic points throughout Guyana. These include stations at Canje,
Springlands, Bamboo Landing, Kwakwani, Soesdyke, Linden and Bartica.

Amerindian Affairs Ministry achieved its mandate for 2007 -Minister Rodrigues

Amerindian Affairs Ministry achieved its mandate for 2007
-Minister Rodrigues
Guyana Chronicle, 30 December 2007
The Ministry of Amerindian Affairs, during the year, has made
significant contributions to the development of Amerindians
countrywide.

Yesterday Minister of Amerindian Affairs Carolyn Rodrigues, told the
media that the Ministry has achieved its 2007 mandate through building
the capacity of Amerindian leaders and further developing their
communities.

Minister Rodrigues said that one of the most important achievements was
the National Toshaos’ Conference on October 22 to 26, under the theme
‘Building Capacity for Good Governance’ and hosted by the Ministry at
the Guyana International Conference Centre, Liliendaal.

She noted that the nomination of the three members to the Indigenous
People’s Commission (IPC) is a significant achievement for
Amerindians. The IPC will address all aspects of Amerindian
development.

“We are hoping that it will come into being in the near future. In fact
the Parliamentary Committee of Appointment is looking at it at the
moment and it will be completed in the near future”, Minister Rodrigues
said.

To further enhance the development of Amerindian communities, 20
Toshaos were unanimously elected to the National Toshaos’ Council (NTC)
by their fellow Toshaos.

The NTC will serve in various capacities to represent and ensure all
Amerindians communities are further developed.

The Council has already met once since its formation and has begun
working on its 2008 programme.

The Amerindian Affairs Minister said 111 Toshaos were sworn-in as
Justices of the Peace and Rural Constables, another success for the
Ministry. These Toshaos are mandated with the responsibility of
protecting the interest of Amerindians in the country and will give
support to the Council.

“We have also had the formulation of the draft rules at the meeting and
the Toshaos have started to look at the ones that are applicable to
their communities”, Minister Rodrigues noted.

The Ministry was also able to make significant progress in the issuance
of birth certificates for the year, a collaborative effort between the
Ministries of Amerindian Affairs and Home Affairs.

It was noted that this process has become much more important now since
house-to-house registration will be taking place shortly. However,
there are some persons who did not register in Regions One, Seven,
Eight and Nine. There will be another round of the registration
process in the communities by the Community Development Officers (CDOs)
so that persons can receive their birth certificates.

Minister Rodrigues noted that more than 13, 000 birth certificates were
issued for the past two to three years despite the challenges faced.

Suspect held in illegal Corentyne airstrip probe

http://www.stabroeknews.com/index.pl/article?id=56536003

Suspect held in illegal Corentyne airstrip probe
SN, Sunday, December 30th 2007

As investigations continue into the illegal airstrip in the Corentyne
area, which was discovered by the army two weeks ago, police on Friday
arrested a suspect and he is currently being questioned.

In a release yesterday, police said they have managed to identify and
locate the suspect who is believed to have transported the bulldozer to
the area.

The investigations heated up when police on Friday issued a wanted
bulletin for 35-year-old Mool Persaud Maniram, a Crabwood Creek
businessman who is allegedly connected to a bulldozer that was found on
the airfield along with a burnt aircraft.

The businessman, who is also known as 'Francis', is said to be the
owner of a logging concession in the Crabwood Creek, Corentyne area.
Police said the businessman's last known address was Lot 72 Crabwood
Creek, Corentyne Berbice and he is about 5 ft 5 ins, of medium build
and fair in complexion. Up to yesterday there was no word on the
whereabouts of the businessman and a police source said that they are
still looking for him.

Anyone with information that may lead to the man's arrest is asked to
contact police on telephone numbers 225-6411, 226-6978, 225-8196,
225-3650, 226-1326, 225-7625 or 911 or the nearest police station.

Sources in the Crabwood Creek area have told Stabroek News that in
addition to Maniram, five other businessmen on the Corentyne are
reportedly linked to the illegal airstrip which was set up to traffic
cocaine and conduct other illicit trade. Additionally, a source said
that at least two businessmen based in Georgetown are also linked to
the strip.

The Guyana Defence Force had seized the illegal airstrip with the
burnt-out aircraft - a Czech Republic-manufactured Let 410 turboprop -
along with a still-smouldering all-terrain vehicle and a bulldozer
three weeks ago. The military had said the airstrip was constructed to
facilitate the transshipment of narcotics and other illegal activities.
The airfield was destroyed after a GDF pilot spotted it during a
routine flight in the area.

When the airfield was seized the burnt-out aircraft appeared to have
been severely damaged after attempting to take off. The airstrip, some
3,600 feet in length and 375 feet in width was longer than the Ogle
runway and wider than the Timehri runway. After seizing the airstrip,
the GDF conducted patrols and discovered a 25-ft trail that led for
some two miles to the Corentyne River. Questions have been raised about
the quality of the surveillance in that area considering the amount of
clearing that had been done and the apparent local collusion.

Police hunting businessman in airstrip case

http://www.stabroeknews.com/index.pl/article?id=56535937
Police hunting businessman in airstrip case
SN, Saturday, December 29th 2007

As investigations continue into the illegal airstrip which was
discovered by the army two weeks ago in the Corentyne area, police
yesterday issued a wanted bulletin for a Crabwood Creek businessman who
is allegedly connected to a bulldozer that was found on the airfield
along with a burnt aircraft.

The businessman, 35-year-old Mool Persaud Maniram also known as
'Francis', is said to be the owner of a logging concession in the
Crabwood Creek, Corentyne area. Police in a wanted bulletin said that
the businessman's last known address is Lot 72 Crabwood Creek,
Corentyne Berbice and he is about 5 feet 5 inches, of medium build and
fair in complexion. Anyone with information that may lead to the man's
arrest is asked to contact police on telephone numbers 225-6411,
226-6978, 225-8196, 225-3650, 226-1326, 225-7625 or 911 or the nearest
police station.

Stabroek News made efforts to contact the businessman's relatives
yesterday to no avail. Sources in the Crabwood Creek area said that in
addition to Maniram five other businessmen on the Corentyne are
reportedly linked to the illegal airstrip which was set up to traffic
cocaine and conduct other illicit trade. Additionally, the source said
that at least two businessmen based in Georgetown area are also linked
to the strip.

Transport Minister, Robeson Benn on Thursday received a copy of the
report from the Guyana Civil Aviation Authority (GCAA) on its
investigation into the torched aircraft. He however said that there
were no immediate clues as to where the plane came from and who owns
it. Benn told Stabroek News that while there was no clear-cut
information as to the origin and ownership of the aircraft, there were
enough clues for the GCAA to go out and investigate. He said that the
GCAA would be making contact with its counterparts overseas to verify
the origin of the Czech Republic-manufactured Let 410 turboprop
aircraft which carried a Venezuelan flag when it was found. The Guyana
Defence Force had seized the illegal airstrip with the burnt-out
aircraft, along with a still-smouldering all-terrain vehicle and a
bulldozer three weeks ago. The military had said that the airstrip was
constructed to facilitate the transshipment of narcotics and other
illegal activities. The airfield was destroyed after a GDF pilot
spotted it during a routine flight in the area.

When the airfield was seized the burnt-out aircraft appeared to have
been severely damaged after attempting to take off. The airstrip, some
3600 feet in length and 375 feet in width was longer than the Ogle
runway and wider than the Timehri runway. After seizing the airstrip
GDF troops conducted patrols and discovered a 25-ft trail that led for
some two miles to the Corentyne River. Questions have been raised about
the quality of the surveillance in that area considering the amount of
clearing that had been done and the apparent local collusion.

Tropical forests play a critical role in global climate patterns

Stabroek News letter to the Editor, 25 December 2007

http://www.stabroeknews.com/index.pl/article_letters?id=56535746

Tropical forests play a critical role in global climate patterns

Tuesday, December 25th 2007

Dear Editor,
Caricom Secretary General, Dr Edwin Carrington said a call was made for new
policies and incentives to be a central part of the negotiations with
respect to the development of mechanisms to Reduce Emissions from
Deforestation and Degradation (REDD). Tropical forests moderate local
climates by heating and cooling the air and water, helping maintain humidity
and offering protection from wind.
More than half the precipitation that falls on land is 'breathed out' by
plants, and contributes to the rainfall received by downwind regions. It is
estimated that half of the Amazon region's rainfall is generated by the
forest itself. Tropical forest may play a critical role in global climate
patterns, and continuing deforestation could alter those patterns.
Deforested lands reflect sunshine back into space, affecting convection
patterns, wind currents, and rainfall in areas far from the tropics. In
1980, the clearing of tropical forests added an estimated 1.7 billion tons
of carbon to the atmosphere each year as carbon dioxide. That CO2
contributes to the 'greenhouse effect' which is believed to be causing
global warming, rising ocean levels, and increased climate variability.
Vigorous efforts are needed to slow and reverse current rates of
deforestation. These include establishing tropical forest reserves to
protect forested lands, and improving management of unprotected forested
lands to ensure their sustainable use. Development projects involving
unstainable land use practices must be halted. Reforestation projects and
other programmes to make deforested land productive must be expanded. Land
reform and improvements in agricultural productivity are also important.
Population growth must be slowed, and the demand for forest products curbed.

Tropical forests provide essential services, not only for their immediate
surroundings, but also for the earth as a whole. Forests moderate air
temperature, maintain the hydrologic cycle by absorbing rainfall and
releasing moisture to the atmosphere, and take in carbon dioxide and
generate oxygen through photosynthesis. They recycle nutrients and waste,
control soil erosion and sedimentation of waterways, and regulate stream and
river flows, helping to moderate floods and droughts. Tropical forests also
prevent or limit landslides and rockfalls during rainstorms and earthquakes
and moderate damage from tropical cyclones. When tropical forests are
degraded, these essential functions are lost or jeopardized.
Every effort should be made to reduce greenhouse emissions and
deforestation.
Yours faithfully,
Mohamed Khan

US$1.35M grant inked with China for bilateral projects

http://www.stabroeknews.com/index.pl/article?id=56535725

US$1.35M grant inked with China for bilateral projects
SN, Tuesday, December 25th 2007

Foreign Trade Minister Dr Henry Jeffrey and Chinese Ambassador Zhang
Jungao on Friday inked a US$1.35 million grant for the implementation
of bilateral co-operation projects.

The Chinese government has pumped various sums of money into economic
and technical co-operation with Guyana but the specific areas where the
sums will be expended are yet to be decided.

In brief remarks, the ambassador said the agreement was the second one
signed this year. He said a $548 million grant agreement was inked with
Tourism Minister Manniram Prashad when he attended the Second
China/Caribbean Business Forum held in China earlier this year.

The ambassador said the two governments would join to ensure that the
grants are best utilized on mutually agreed areas. He said the People's
Republic of China has assisted Guyana in many areas and it has received
the most economic and financial assistance in the region.

In his address, Jeffrey said the government was appreciative of the
grants. He told the ambassador that his ministry was yet to put
modalities in place for which Chinese tourism could be introduced
locally, in keeping with the agreement.

Jeffrey also thanked the Chinese government for its continued
involvement in Guyana's development and alluded to the Chinese
volunteer experts currently here assisting in the health, agriculture,
sports and mining sectors, training and bilateral co-operations
projects.

He said the countries share very fertile relations.

Greater support from main polluters crucial to dealing with climate – Agri Minister

Greater support from main polluters crucial to dealing with climate
change – Agri Minister
Guyana Chronicle, 23 December 2007
http://www.guyanachronicle.com/news.html#Anchor-42145
There is need for greater support from developed countries which are
contributing significantly to greenhouse gas emissions, as a collective
approach is being pursued by all countries, both large and small, to
deal with the climate change phenomenon.

This was highlighted by Minister of Agriculture, Robert Persaud, and
other technical officials who participated in the recently concluded
United Nations Framework Convention on Climate Change (UNFCCC)
Conference of Parties (CoP) meeting in Bali, Indonesia.

The Minister and team made the remarks during an interview Friday on
the National Communications Network (NCN) ‘Close Up’ television
programme at the NCN Studio, Homestretch Avenue.

Minister Persaud noted that there is a clear understanding of the
impact of climate change particularly on low-lying, vulnerable states,
but there is need for focus on appropriate actions to deal with the
negative impact. It is observed that although there is great
understanding among developed countries which contribute to the
situation, there is reluctance among some of them to commit to
assisting with adaptation and mitigation efforts.

Reference was made to President Bharrat Jagdeo’s rainforest offer in
the services of the battle against climate change which Minister
Persaud pointed out is not handouts, but a call for a viable
market-based mechanism to reward countries that have been practicing
sustainable forestry development through deliberate policies and
strategies.

This is important, since standing rainforests play a significant role
in mitigating the effects of global climate change even when some
countries are guilty of increasing greenhouse gas emissions. Between 18
to 20 percent of greenhouse gas emissions come from deforestation.

One of the main outcomes of the Bali meeting is the establishment of
the ‘Bali Road Map’ which seeks to address key building blocks of a
future climate change regime, including adaptation, mitigation and
technology cooperation and financing the response to climate change.

This is important since it will ensure that a strategy is in place to
tackle climate change following the Kyoto Protocol which will conclude
in 2012. Minister Persaud noted that the ‘Bali Roadmap’ will also
address weaknesses that exist in the Kyoto Protocol.

Chairman of the National Climate Committee, Shyam Nokta noted that it
was expected that the Bali Meeting would have focused on more
definitive positions to deal with climate change; however, it is still
seen as the start of that process.

Major General (ret’d) Joe Singh noted that it was necessary that so
many countries have acknowledged the severity of climate change evident
through their participation at the Bali Meeting. There were
approximately 10, 000 participants at the Conference from more than 100
countries.

The partnership between the Government of Guyana and non-governmental
organisations, such as Conservation International, was emphasised,
while it was noted that Guyana alone cannot be a loud voice in tackling
climate change, and therefore the need for groups’ formation was
highlighted.

Arising from the Conference, a national team has been established and
will be responsible for developing a strategy that will outline
necessary actions to be taken with regard to adaptation and mitigation.

Future plans include building stronger collaboration among key agencies
to tackle the effects of climate change, while focus will continue to
be placed on sustainable development. There has also been an agreement
for developed countries to share technology with developing states such
as Guyana in this regard.

Additionally, Guyana is among 30 countries from Latin America, Africa
and the Asia-Pacific Region that will seek further information on the
Forest Carbon Partnership Facility (FCPF) at the Bali Meeting by the
World Bank to combat tropical deforestation and climate change.

The FCPF, according to the World Bank, is expected to build capacity of
developing countries in the tropical and sub-tropical regions to reduce
emissions from deforestation and degradation (REDD) and tap into a
future system of positive incentives for REDD. Deforestation and forest
degradation are leading causes of global warming, contributing
approximately 20 percent of global greenhouse gas emissions. (GINA)

Investors embrace trees to tap China boom

Investors embrace trees to tap China boom
The Guardian, U.K.
16/11/2007

Hong Kong - Investors looking for new ways to cash in on China's
strong economic growth are turning to its emerging forestry industry,
which is flourishing amid a clampdown on the global trade of
unsustainable rainforest timber.

China is the world's largest importer of soft and hard woods. Total
forest product imports more than tripled between 1997 and 2005 to 134
million cubic metres, accounting for around half the log exports from
Papua New Guinea, Myanmar, Indonesia and Russia.

But with campaigns against deforestation prompting tighter rules on
international trade, a handful of listed logging firms are looking to
exploit China 's 960 million hectares (9.6 million sq km) of forests,
of which only 5 percent is in plantation use.

The fledgling industry is planting fast growing, high-yield trees such
as eucalyptus to feed demand from explosive growth in home ownership
and construction -- and trying to soothe investors by battling
accusations it is harming the environment by using timber taken
illegally or unsustainably from the world's forests.

China's insatiable demand for raw materials has helped push up the
price of commodities from iron ore and palm oil to copper and milk
powder and wood products are no different. Benchmark NBSK pulp prices
have risen more than 30 percent in two years.

Analysts say firms such as Temasek-invested Sino-Forest Corp and China
Grand Forestry Resources Group can cash in on rising demand and tighter
supply.

"With China 's significant imbalance of wood supply, upstream players
should benefit from rising wood prices," said Chuan Tang, an analyst at
Deutsche Bank.

China Grand Forestry, which transformed itself from a garments maker
formerly called Good Fellow Group, has seen its market value balloon
nearly 18 times since the beginning of 2006, when it announced the
purchase of Beijing Wan Fu Chun Forest Resources Development Co Ltd.

"Despite early scepticism, the market now recognises that the
company's earnings model is sound," HSBC's Ken Ho said in a research
report.

China Grand signed an agreement with Lee & Man Paper last month to
supply the container board maker's pulp facilities in China with raw
materials from its fast-growing, genetically modified paper mulberry
trees.
China Grand also agreed this week to pay $820 million for Yunnan
Shenyu New Energy, a Chinese company that plans to make biodiesel from
Jatropha Curcas trees.

DODGY LOGS?

But some analysts say investing in Chinese forestry firms is risky, as
they are small and could be hit by unpredictable changes in government
policy -- common for any nascent industry.

China is just beginning to regulate its forestry industry and detailed
laws are lacking in many areas.
"They're mainly small-caps and investors may see difficulties when
they want to offload the stocks," said Alex Tang, a research director
at Core Pacific-Yamaichi International.

There is also the risk the highly cyclical pulp and timber markets
fall, denting what forestry firms can get for their logs.

Chinese companies also face competition for forestry assets from both
global timber operators and pension funds, which view growing trees as
a good match for their long-term liabilities.

The world's top paper and board producer Stora Enso, which began the
development of plantations in China's Guangxi province in 2002, has
plans to plant a 160,000 hectare forest to support the establishment of
a pulp and paper/board mill in the province, boarding Vietnam. It spent
$37 million buying suitable land for a mill in April.

Morgan Stanley singled out Sino-Forest among its best China materials
plays, initiating coverage of the Chinese forestry and paper industry
with an attractive view.

"Not only do we forecast demand growth for industrial wood to be
robust for many years, but China's dependence on increasingly scarce
imported wood should ensure strong pricing power of at least 10 percent
per year through the end of the decade," Morgan Stanley's Charles
Spencer wrote recently.

Apart from more established names such as Sino-Forest, a clutch of
up-and-coming producers is getting in on the act.

At least half a dozen Hong Kong firms, such as China Timber and
Venture International Investment, have either been bought by forestry
operators or shifted their focus to logging and wood products
manufacturing in the last two years.

They reason that with 42 percent of logging land owned by the state
and the rest operated in deals with local governments, there is plenty
of room for the private sector to expand.

And if their new plantations are eligible for carbon credit trade
under the Kyoto Protocol, that could bring in extra cash.

"This is a sector with great potential, but it's new to many analysts
and involves technical and government regulation requirements, so
investment risks are relatively high," an analyst with a major European
house said.

Firms are also dogged by environmentalist complaints about
deforestation and illegal logging in tropical forests, often far from
China .

Omnicorp Ltd -- which is buying a tropical rainforest in Suriname in
South America -- has insisted it will
practise "sustainable forest management", cutting selectively to
maintain biodiversity.

But another Hong Kong-listed firm, Malaysia-based Samling Global, said
last month one of its units was
fined US$470,000 by the Guyana Forestry Commission for regulation
breaches, including under-invoicing the trees harvested.

The firm denied the allegations and will appeal against the sanctions,
which include the suspension of its sub-contracting operations relating
to the concessions. But the stock has fallen more than 30 percent from
a July peak of HK$3.55. ($1=HK$7.765)

©Guardian (UK)

Guyana, China ink US$1.35M economic and technical agreement

Guyana, China ink US$1.35M economic and technical agreement
Guyana Chronicle, 22 December 2007


Minister of Foreign Trade and Interntional Co-operation, Henry Jeffery
(left) and Chinese Ambassador to Guyana, Zhang Jungao at yesterday’s
historic signing.
A US$1.35M economic and technical agreement was yesterday inked in the
boardroom of the Ministry of Foreign Trade and International
Co-operation, between Guyana and the People’s Republic of China.


The document which was signed by Chinese Ambassador to Guyana –H.E.
Zhang Jungao and Foreign Trade Minister –Dr. Henry Jeffrey.

Under the agreement, China has pledged monetary support with the
provision of a grant to the tune of ¥10M, (US$1.35M) to the Government
of Guyana for the implementation of bilateral cooperation projects
agreed to by the two Governments.

Ambassador Jungao stated that aside from yesterday’s grant, his
government is prepared to invest an additional $882M GYD, in the coming
year, adding that China will work closely with the government in order
to ensure that the grants are mutually invested to the full benefit of
the Guyanese populace.

He said, too, to date, Guyana has received the most technical
assistance from China when compared to its Caribbean counterparts.

Foreign Trade and International Cooperation Minister, Henry Jeffery,
thanked the Ambassador on behalf of the Guyanese population, for their
longstanding commitment to the further economic development of Guyana.

He said that 2007 has been a very active year for Guyana and the
country looks forward to the continued support from China as well as
other nations.

Guyana currently benefits from the dispatch of Chinese experts in
various sectors of the economy, including health, agriculture, sports
and mining sectors, training and bilateral cooperation projects
implemented under the programme of economic and technical cooperation
between the two countries.

In a brief highlight of the assistances received from the Chinese
government, Jeffrey underlined the Guyana National Conference Centre
and the Ferry Vessels Project as two significant achievements that
accentuate the strength of the existing bilateral ties between the two
nations. (Alex Holder)

GLU set to represent Bai Shan Lin workers

GLU set to represent Bai Shan Lin workers
Kaieteur News, 22 December 2007
The Guyana Labour Union (GLU) has received the unanimous support of
employees of one of the country's biggest logging firms, Bai Shan Lin.

During a recently conducted poll at the Bai Shan Lin International
Forest Development Inc. at Linden , 95 per cent of the staffers there
indicated that they wanted the union to represent their labour
interests.

The Guyana Mine, Metal and General Workers Union (GMM &GWU) would be
representing the remaining five per cent.

GLU, yesterday, confirmed that the Ministry of Labour has since
declared it the winner of the polls and that the stage has now been
cleared for the signing of a Recognition Agreement between the union
and Bai Shan Lin.

The logging company has around 500 employees.

Recently, GLU also went to uncharted territory gaining a significant
foothold in the timber industry after being given the nod from workers
at Toolsie Persaud Limited Sawmills and Lumber Yard.

During a survey by the Ministry of Labour at Toolsie, some 130 workers
expressed interest in being represented by the union.

GLU said that it was issued with a letter from the Trade Union
Recognition and Certification Board of the Ministry, which informed it
that it is now the majority union after a survey at the sawmill and
lumberyard.

“That makes this union one of the most recognised unions in the timber
industry,” said GLU General Secretary Carvil Duncan yesterday.

GLU is the oldest but second largest union in Guyana , after the Guyana
Agricultural and General Workers Union (GAWU), which has more than
10,000 members.

2008 Guyana Business Outlook Survey released -VAT takes high priority

2008 Guyana Business Outlook Survey released
-VAT takes high priority
... Not too late for a review by the Government – Ram and McRae
By Alex Holder
Guyana Chronicle, 18 December 2007


From left Public Relations Consultant –Alex Graham, Managing Partner of
Ram and McRae Christopher Ram (Centre) and Rakesh Lachana –Partner Ram
and McRae
THE thirteenth (2008) Guyana Business Outlook Survey, a review designed
to obtain general information on respondents including turnover,
industry and number of employees; the performance of their business in
2007, was yesterday released.


Aside from the above mentioned functions, the study also seeks to
highlight views on the business and economic environment prevailing in
the country; while toughing on the issues impacting on their
performance; their plans for the future and their goals, strategies and
expectations for 2008.

Launched some four days earlier than anticipated, Managing Partner of
Ram and McRae; the entity responsible for the execution of the annual
project; Christopher Ram, stated the exercise which was conducted
towards the close of the year, witnessed significant developments, all
of which the company assured have been addressed by the seventy-four
persons who responded.

According to Ram, the survey reflects growth in several key sectors of
the economy including sugar, rice, construction, mining and quarrying,
gold and distribution.

Though there have been notable growth in some sectors, the report also
highlighted a 12.2 percent increase in prices by the end of the first
half of this year; an increase which the Finance Minister has
attributed to a combination of imported inflation and ‘the
misapplication of the value-added tax by retailers and other vendors in
the marketplace’.

In a statement on the findings based on the responses of about
seventy-four members of the private sector, respondents highlighted 14
issues that affected optimism about the economy for the past year;
these included the Guyana/Suriname Border Dispute, along with other
border issues; The Free Movement of Skills and Government Support for
Business and Investment, which both had a positive impact; and the
Jagdeo (CARICOM) Initiative on Agriculture.

2007 Business performance
In last year’s (2007) Business Outlook Survey, 68 percent of
respondents had projected increases in turnover for that year, while 71
percent projected increases in profitability, and a mere 12 percent and
29 percent expected turnover and profit respectively, to decrease.

One year later, when asked to provide information on the actual
performance of the business, 39 percent reported performance was worse
than expected, 46% in line with expectations, and 15% exceeded
expectations.

VAT
After close to one year of operation of the Value Added Tax (VAT)
system, businesses have expressed their concerns beginning with the
system’s impact on consumer spending; the existing rate; absence of
corresponding adjustment to rates of other taxes; its inflationary
effect and the absence of information on tax collection.

In its previous release, the survey had highlighted that the majority
(54 percent) of respondents predicted that VAT would not affect their
ability to compete, while 9 percent felt that competing would be easier
and 37 percent felt that competing would be more difficult.

The results underlined in yesterday’s release are in line with those
expectations with 56 percent reporting no change, 39 percent reporting
greater difficulty and 4 percent indicating that VAT made it easier for
them to compete.

Further, the survey’s findings revealed that 58 percent of respondents
have indicated that VAT has had a negative impact on the level of their
business, while 35 percent reported no impact and 5 or 6.8 percent
reported that VAT resulted in a slight increase on the level of their
business.

In a direct address to the responses received on the issue of the new
tax system it was noted that VAT should not be considered ‘tax reform’
at any level.

It was also noted that the current rate of taxation is extremely high
and stands as a system that has done nothing more that impose more
taxes on the Guyanese populace, securing Guyana’s place as one of the
highest taxed economies in the world.

Ram and McRae, Managing Partner -Christopher Ram, stated that “We need
to review the operation of the VAT, it is not six months –it is now
eight months and the government and the Minister of Finance must stand
by their commitment to make VAT revenue neutral and immediately cause
reduction in VAT and other areas.”

It was also noted that it is not too late for a review by the
Government of the VAT issue.

While VAT is not a tax on business, its contribution to inflation and
purchasing power of consumers, the report stated, are affecting
turnover and profitability.

Moreover, the results of the Survey indicate that a number of fears
expressed by citizens and stoutly resisted by the Government have in
fact materialised.

However, even as confidence continue to waver, the survey has indicated
that most businesses remain optimistic about their own performance with
the majority expecting profitability and turnover to increase by
varying percentages, while smaller numbers expect decreases in
profitability and turnover ranging from under 5 to over 20 percent.

The respondents, who expect their turnover to increase, attribute the
principal reasons for the increase to product and service improvements;
new products and services; competitive pricing; entering new markets
and winning market share.

In line with previous years, over half of the respondents, 55 percent,
indicated that they do not plan to raise capital in the year 2008.

When asked about their view on Government’s handling of seven issues
which arose or were considered critical in the previous publication of
the Business Survey, the Government won overwhelming support on the
issue of the Global Warming Fight, Opening of the markets for flour and
its continued Campaign against motorists.

However it did score poorly in as it related to the allocation of
Government advertisements and its handling of appointments to the
Judiciary respectively.

The respondents to the study represented sixteen of the nineteen
business sectors surveyed and the largest number of responses came from
the Distribution and Retail sector (28%), Construction and Architecture
(14%) and Manufacturing (12.2%), and twenty-six percent of the
respondents had turnover of over one billion Guyana dollars while
twelve percent employed over two hundred and fifty persons.

Give credit where due

Give credit where due
Kaieteur News, 18 December 2007
When scientists first began to talk about global warming, there were
the skeptics who were convinced that the talk about global warming was
nothing but hot air. How could a few people notice things that no other
noticed? And besides, if there was indeed global warning, the process
was so slow that all of us on this planet would be dead before the
situation became critical.

Then more and more people began to take note. They started to record
other evidence, including the change in the lifestyle of some creatures
of the sea and in the end it became clear that there was a distinct
warming of the globe and that it was occurring at a pace far faster
than earlier estimates suggested.

Things have reached the stage where there are international forums
discussing the issue. All the world leaders have attributed this change
in the climate and as a consequence the severity of hurricanes and
other storms, to the deforestation of the planet.

For some time, man had come to realize that once the earth had a
vibrant shade of green then it was healthy. The foliage merely consumed
all the carbon dioxide and other emissions, but most of all the gas
responsible for global warming, carbon dioxide.

What is amazing is that at one time scientists predicted that the world
would have killed itself by merely producing too much people. Back then
and not so long ago they argued that people would have to be housed and
in housing them the planet would have had to sacrifice land for food.

Immediately the fastest growing nations took steps to curtail the
trend. China , for example, decided to limit every family to one child.
India opted for a programme of mass sterilization. And both these
countries have done much to ensure that the population remains
ridiculously low.

They have used technology to determine the gender of their
children—aborting girls in preference of boys. Today, some societies in
these countries are complaining that there is a drastic shortage of
women. The result of this is that there would be fewer pregnancies as
the years go by. There may also be more murders as men fight for what
is going to be much needed scarce resource.

But that apart, the threat to the world is really coming from what many
see as being the pursuit of development. It is coming from the major
industries that rely heavily on fossil fuels which lead to deadly
emissions. Not only do these industries pollute the atmosphere, they
also contribute to the numerous ailments that the people who live in
the vicinity suffer.

However, the world knows that there is a cure for the world's ills and
that cure rests in the conservation of whatever forest there is. In
many countries it is illegal to fell trees. New Jersey has a law that
stipulates that before you cut a tree you have to seek permission and
permission is only granted if the tree poses a threat to life and
property.

Guyana has no such problem. Trees abound to the extent that a survey
conducted in 2001 ranked Guyana fifth in the world in clean air. It is
such that people who come here actually pronounce that one can smell
the difference. They always comment on how fresh the air is here.

What is unfortunate is that we do not know how fresh our air is because
we are accustomed to it and we take it for granted.

The developed world recognizes how important Guyana 's forest is but
they seem disinclined to compensate us for maintaining the forest—the
very forest that represents an integral part to saving the world.

Brazil had its forest and in pursuit of development it conducted a
massive land clearing exercise to the point that the Indians who lived
there had to be relocated. The relocation was not easy. People died and
today the global environmentalists talk of Chico Mendez, the man who
lost his life because he tried to protect the forest. Gunmen shot him
down.

Observers, commenting on the disappearance of the Brazilian forest,
noted the effect on the planet and they begged that the land-clearing
programme be stopped. Guyana never reached that stage. Instead, we
allotted our rainforest to a programme of conservation.

We are a poor country and we could use that forest to enhance our
social and financial status but we have chosen to do otherwise.
However, we want to be compensated for our efforts and we should.

We recently participated in a conference in Bali , Indonesia and we
made our case. We made the world recognize our importance. It is now
for the world to acknowledge that recognition.

But mere recognition is not enough. There must be some financial
arrangement that would be equivalent to what we would have earned from
the exploitation of the forest although there are those who say that
the compensation should be far greater.

Perhaps it should be because their very life depends in some part to
what we do.

A valued medical programme

A valued medical programme
Kaieteur News, 18 December 2007
Dear Editor

We, the members of the undersigned communities, wish to respond to a
letter in the Kaieteur News of Thursday, December 16 on the Barama
Medical Outreach Programme.

Over the years, our communities have benefited immensely from Barama's
Medical Outreach Programme. There are visits to our villages and we
usually go to the Health Centre at Buckhall, when necessary.

The delivery of proper health care is vital to us, and we consider this
service invaluable. Residents of Troolie Island ,

Western Hogg Island ,

Caria Caria & Akarakaru

Disapproval of govt handling of ads issue, judiciary appointments high

http://www.stabroeknews.com/index.pl/article?id=56535283

Disapproval of govt handling of ads issue, judiciary appointments high
SN, Tuesday, December 18th 2007


Less than ten per cent of the business surveyed approve of the
allocation of government's advertising.

The question on the allocation of government advertisements was one of
seven in which respondents were asked their views on government's
handling of issues which arose or were considered critical in 2007. The
other questions were about government's handling of macroeconomic
policies; the offer of forests in the global warming fight; the opening
of the markets for flour; the breach of the Common External Tariff on
cement; the campaign against motorists and the handling of appointments
to the judiciary.

The government won overwhelming support on the offer of forests, the
opening of the flour markets and the campaign against errant motorists
but scored very poorly on the questions about the advertisements and
judiciary appointments.

According to the survey, just seven of the 74 respondents said they
approved of the manner in which the government allocated advertisements
for the year. The majority disapproved.

Twenty-nine government ministries and agencies, withdrew advertisements
from the Stabroek News in November 2006 re-allocating these to the
Kaieteur News, the Guyana Chronicle and the Mirror, the ruling PPP/C's
organ.

Climate Change is not futuristic '…it’s happening right now, it’s a reality’ – President Bharrat Jagdeo

Climate Change is not futuristic
'…it’s happening right now, it’s a reality’ – President Bharrat Jagdeo
By Mark Ramotar
Guyana Chronicle, 17 December 2007
CLIMATE Change, one of the most critical global challenges of our time,
is not a “futuristic thing” but an alarming problem that is currently
occurring and which needs a committed global effort to mitigate its
devastating effects, President Bharrat Jagdeo has declared.

According to him, recent events have emphatically demonstrated the
growing vulnerability of countries around the world to climate change.

Climate change impact will range from affecting agriculture- further
endangering food security, sea-level rise and the accelerated erosion
of coastal zones, increasing intensity of natural disasters, species
extinction and the spread of vector-borne diseases.

“Everyone right across the world have recognised adverse weather
because of climate change and what is happening right…so it is not a
futuristic thing,” President Jagdeo told reporters last Friday.

“This is why we are very disappointed that the United Nations (UN) has
not signed on to binding emissions cut in Bali (Indonesia),” Mr. Jagdeo
said, adding that because of this position by the UN, “we may very well
have difficulties in concluding a post Kyoto arrangement that could
help to change the dynamics of climate change”.

“The science is clear, and the manifestations of climate change are
clear right across the world,” President Jagdeo declared.

In an effort to fight against climate change, the Guyanese Head of
State has introduced an initiative on climate change.

The Jagdeo initiative was first introduced at the Commonwealth Finance
Ministers’ Meeting in October and then again at the Commonwealth Heads
of Government Business forum in Kampala, Uganda, in November of this
year.

President Jagdeo’s initiative calls for developed countries to give
market-based incentives to developing countries, who can offer their
rainforest in service of the world’s fight against climate change.

It is a known fact that developed nations are guilty of contributing
the most carbon dioxide emissions to the environment, the leading
contributing factor to global warming.

In fact, the United States alone is said to be contributing 25% of
carbon dioxide emissions.

Meanwhile, Agriculture Minister Robert Persaud represented Guyana at
the just concluded 13th Meeting of the Conference of Parties to the
Climate Change Convention in Bali, Indonesia where he urged
participants to move to end protracted discussions and negotiations and
to take urgent action to address climate change.

Advancing the vulnerability of Guyana to the effects of climate change,
Persaud declared: “Guyana is a developing country, and a net sink for
greenhouse gases. 90% of our population occupies a coastal belt which
is approximately one metre below sea level. My country is particularly
vulnerable to climate change. We have already suffered the effects of
extreme weather events including a devastating flood in 2005 which
resulted in the destruction of 59% of our GDP. This was the worst
natural disaster recorded in Guyana’s history.”

“However, notwithstanding our vulnerability, and the lack of support
for adaptation, Guyana is taking deliberate action for climate change
mitigation and adaptation,” Persaud told the conference.

He noted that Guyana’s vast, intact forest resources, as part of the
Amazonia Rainforest belt, of approximately 16 million hectares covering
75% of the country, serves as an import carbon sink for the world.

“This resource has been maintained through strong political will and
commitment to sustainable forest management, balancing both
conservation and sustainable use,” the Agriculture Minister exhorted.

Guyana’s efforts, he pointed out, however, have not been encouraged by
the current Kyoto Framework which offers no recognition or compensation
to the contribution of standing tropical forest to climate change
mitigation.

The time to act is now -Persaud tells United Nations Framework Convention on Climate Change (UNFCCC)

http://www.guyanachronicle.com/news.html

The time to act is now -Persaud tells United Nations Framework Convention on
Climate Change (UNFCCC)
<http://www.guyanachronicle.com/Bali-Pictures-3.jpg>
Agriculture Minister Robert Persaud addressing Bali Conference on Climate
Change.

AGRICULTURE Minister Robert Persaud urged the 13th Meeting of the Conference
of Parties to the Climate Change Convention in Bali, Indonesia to move to
end to protracted discussions and negotiations and to take urgent action to
address climate change.
Persaud, represented Guyana at the Conference.
Advancing the vulnerability of Guyana to the effects of climate change,
Persaud declared: "Guyana is a developing country, and a net sink for
greenhouse gases. 90% of our population occupies a coastal belt which is
approximately one metre below sea level. My country is particularly
vulnerable to climate change. We have already suffered the effects of
extreme weather events including a devastating flood in 2005 which resulted
in the destruction of 59% of our GDP. This was the worst natural disaster
recorded in Guyana's history."
He noted that Professor Stern has confirmed that countries which will suffer
most are the ones which have made the least contributions to emissions and
are also the ones least able to finance adaptation measures. This, he added
is one part of Guyana's story.
"However, notwithstanding our vulnerability, and the lack of support for
adaptation, Guyana is taking deliberate action for climate change mitigation
and adaptation."
"Our vast, intact forest resources, as part of the Amazonia Rainforest belt,
of approximately 16 million hectares covering 75% of the country, serves as
an import carbon sink for the world. This resource has been maintained
through strong political will and commitment to sustainable forest
management, balancing both conservation and sustainable use," he exhorted.

Guyana's efforts, he pointed out, however, have not been encouraged by the
current Kyoto Framework which offers no recognition or compensation to the
contribution of standing tropical forest to climate change mitigation. This
is the other part of our story.
This COP 13, he contended provides an important opportunity to examine the
current framework and ensures that the "courageous commitment towards the
global good by developing countries, such as ours is duly rewarded. We do
not seek charity nor are we holding the world to ransom."
"Our call for urgent action does not have to await a post-2012 agreement.
The good work of the IPCC and also the advocacy of Vice President Gore, both
of whom I wish to congratulate, support this position," he reiterated,
adding: "The time to act is now. We must change this situation."
In this regard, he said Guyana proposes a three-point agenda for immediate
action which takes into account our national circumstances and the
expectations of our local and indigenous communities:

1. To take into consideration the establishment of a voluntary market
mechanism to compensate for the environmental services of standing tropical
forests from now until a new framework is agreed upon;

2. To ensure that the Bali Roadmap allows for a change in the current
perverse arrangements within the Kyoto Protocol which provide a disincentive
for tropical forest conservation and protection; and

3. To provide increased and easily accessible financial resources to
vulnerable low-lying developing countries for climate change adaptation.

Guyana stands ready to work with international partners who share our vision
and commitment to taking urgent and constructive action on climate change,
Persaud emphasised
"We urge all parties to ensure even the commitment under the existing
framework are met. We know of attempts to water-down the collective targets
and goals which have been committed.
I wish to reiterate the commitment of Guyana. We are prepared to act
immediately. We are prepared to discuss deploying almost our entire
rainforest, which is approximately the size of England, in the global battle
against climate change," Persaud assured

Guyana's forest offer seeks viable market mechanism -agri minister tells Bali seminar

http://www.stabroeknews.com/index.pl/article?id=56535097

Guyana's forest offer seeks viable market mechanism -agri minister
tells Bali seminar
Stabroek News, Saturday, December 15th 2007

Minister of Agriculture Robert Persaud says Guyana's rainforest offer
to combat climate change is a call for a viable market-based mechanism
to reward and compensate countries that have taken deliberate policy
measures to ensure the sustainable use of their forest resources.

According to a press release from the Government Information Agency
(GINA) Persaud made these comments at the 'Capacity Building for
Climate Change Adaptation - A Caribbean Experience' seminar organised
by the Caribbean Community Climate Change Centre, one of the side
events of the United Nations Framework Convention on Climate Change
Conference meeting in Bali, Indonesia.

The delegation also included Chairman of the National Climate Committee
Shyam Nokta, Head of the National Climate Unit in the ministry
Gitanjali Chandarpal, Major General (ret'd) Joe Singh and Co-ordinator
of the Guiana Shield Programme Dr Patrick Chesney.

Persaud said Guyana will continue to deal with climate change including
its forest management which is based on the principles of sustainable
development. This takes into account sustainable use and conservation
which is evident in the work of the Iwokrama Rainforest Conservation
and Development Pro-gramme. Guyana's delegation was involved in
negotiations in the technical sessions which included meetings of the
Subsidiary Body on Science and Technological Advice during which one of
the main topics reviewed was Reduced Emissions from Deforestation and
Degradation.

Guyana and other rainforest countries have been lobbying for adequate
compensation for standing forests and a market-based mechanism to be
put in place as discussions are ongoing on a post 2012 Kyoto Protocol.
The Adaptation Fund, Development and Transfer of Technologies and
Capacity Building were also discussed.

The Guyana team is expected to continue negotiations and will
participate in important bilateral meetings with delegations from the
United Kingdom and other countries.

In October President Bharrat Jagdeo said Guyana was willing to deploy
almost its entire forest in the service of the battle against climate
change.

Compensation for preserving our forests

http://www.stabroeknews.com/index.pl/article?id=56535144


Compensation for preserving our forests
Stabroek News, Saturday, December 15th 2007


Dear Editor

In considering the level of compensation that the Guyana Government
should seek for their grant of 50 million acres of rainforest to
Britain et al, I hope that the Government is aware that some years ago
British farmers were paid an annual set aside fee equivalent to US$200
per acre to keep their lands out of production and thus avoid adding to
the huge and expensive EU grain mountains. Obviously, even at one tenth
of this fee Guyana should receive about US$1,000 million.

Yours faithfully,

Daoud Yamin

The Barama Company Limited's medical assistance programme

The Barama Company Limited's medical assistance programme
Kaieteur News, 13 December 2007
Dear Editor,

Readers like me will be pleased to read the following account of the
Barama Company's activities under the rubric of ‘Corporate
Responsibility' in the 2007 Annual Report of Samling Global Ltd., its
parent company: “Community Assistance Programmes - Medical assistance
programme.

“In Guyana , we have developed a Medical Assistance Programme to
provide forest communities access to health care in the forest. It aims
to promote the total health of the communities it serves through the
identification, training, equipping and supporting of community leaders
as a primary tool for improving the health of individuals, families and
communities.

“Where possible, the programme aims to improve the quality of life of
the forest communities by working to prevent, control, and eradicate
infectious diseases, when possible.

It also brings about awareness through the training and education about
possible health threats.

“The Medical Assistance Programme is funded and administered by our
wholly owned subsidiary, Barama Company Limited,” (pg 24 of the Annual
Report 2007 of Samling Global Ltd).

Through your columns, I would like to ask the Barama Company Ltd. to
provide us with details of this Medical Assistance Programme – the
names of the targeted communities, the details of supportive projects
carried out in 2006-7, number of beneficiaries and the cost of each
project.

It is curious that there is no information on this Medical Assistance
Programme on the Barama Company's website.

I also wish to ask Guyana's Minister of Health to let us know how much
else the state would have had to spend in those communities in each
year had it not been for Barama's Medical Assistance Programme.

For 2006, the Guyana Revenue Authority reported under what it labeled
‘Revenue Loss' that Barama Buckhall and Barama Company Ltd. Benefited
from US$647,000 and US$877,000 respectively in taxes foregone.

Barama Company Ltd. was not required to ‘give back' any part of these
waivers of US$1.5 million to the communities on whose lands they are
logging. So let us give praise if praise is due.

Janette Bulkan

Rainforest offer not a call for handouts - Minister Persaud

Kaieteur News news item, 12 December 2007

http://www.kaieteurnewsgy.com/news.htm

Rainforest offer not a call for
handouts - Minister Persaud

Guyana's offer of the rainforest to combat climate change is not about
handouts but a call for a viable market-based mechanism to reward and
compensate countries that have taken deliberate policy measures to ensure
sustainable utilization of their forest resources.
This was emphasised by Minister of Agriculture, Robert Persaud, at the
'Capacity Building for Climate Change Adaptation - A Caribbean Experience'
seminar held on December 10 in Bali, Indonesia. Minister Persaud was the
head of the Guyana delegation.
Other members on the delegation included Chairman of the National Climate
Committee Shyam Nokta, Head of the National Climate Unit in the Ministry of
Agriculture Gitanjali Chandarpal, Major General (rtd) Joe Singh, and
Coordinator of the Guiana Shield Programme Dr. Patrick Chesney.
The forum was organised by the Caribbean Community Climate Change Centre
(CCCCC) as one of the side events of the United Nations Framework Convention
on Climate Change (UNFCCC) Conference of Parties (CoP). In October last,
President Bharrat Jagdeo said that Guyana was willing to deploy its raw
forest in the service of the battle against climate change.
Under this offer, not a single hectare of forest will be sold and forestry
and mining activities will continue in a sustainable manner.
Minister Persaud, who addressed the seminar, said that Guyana will continue
to contribute to global climate change mitigation through the use of its
standing forest even though the country is vulnerable to the phenomenon and
adaptation is a crucial issue.
Guyana's forest covers approximately 16 million hectares or 75 percent of
the country's total land mass.
Reference was made to Guyana's initiatives to deal with climate change,
including its forest management which is based on the principles of
sustainable development.
This takes into account sustainable use and conservation, which is evident
in the work of the Iwokrama Rainforest Conservation and Development
Programme.
The Minister also spoke about Guyana's agricultural sector and its role in
meeting not only its domestic food needs, but that of the region. The
sector's vulnerability to climate change and the need for greater
collaboration regionally with regard to adaptation was underscored.
Over the past week, Guyana's representatives at the Climate Change
Conference were involved in negotiations in the technical sessions, which
included meetings of the Subsidiary Body on Science and Technological Advice
(SBSTA), during which one of the main topics reviewed was Reduced Emissions
from Deforestation and Degradation (REDD).
Guyana, along with other rainforest countries, has been lobbying for
adequate compensation for standing forests and a market-based mechanism to
be put in place as discussions are ongoing on a post-2012 Kyoto Protocol.
Other issues discussed at the Conference were Adaptation Fund, Development
and Transfer of Technologies and Capacity Building.
The Guyana delegation will continue negotiations and will participate in
important bilateral meetings with delegations from the United Kingdom, among
others.
The Bali Conference is a culmination of a 12-month climate debate.
It is expected to encourage a breakthrough in the form of a 'roadmap' for
future climate change deals.
The 'Bali Roadmap' is aimed at establishing a process to work on key
building blocks of a future climate change regime, including adaptation,
mitigation and technology cooperation, and financing the response to climate
change.
Guyana's primary positions being put forward at the Conference are
incentives for standing forests, the need for more support for adaptation
measures, and support with the access to technology.
Over the past years, various activities were undertaken by Government to aid
mitigation and adaptation to climate change in Guyana.
These include reactivation of the National Climate Change Committee,
establishment of the National Climate Unit, and engagement with various
multilateral and regional bodies to address issues at the planning and
project levels.
Additionally, Government has been increasing the network of climate
monitoring stations and has been designing and constructing new sea defences
to accommodate varying sea levels.
The rip-rap design allows for the raising of defences to prevent
overtopping.
Additionally, further studies on climate change impact and a climate change
vulnerability country assessment in agriculture will be conducted.
The administration remains committed to strengthening the country's options
that will help Guyana adapt to changes in climate in both the short and
longer term.

Extremely proud of the President

Extremely proud of the President
Guyana Chronicle letter, 12 December 2007
I must say that I am extremely proud of Guyana’s President, who has
over the years gained remarkable stature in the international arena
through his debt lobby which has garnered significant debt relief for
us, paving the way for the realisation of more social services.

Following the current affairs closely, I see that he has been ardently
contributing to the climate change debate and has been proposing
compensation for standing forests. I think he is very bold to take his
initiative to international forums and even in the face of criticisms
that Guyana was selling its forest, he clarified his statement that
that is not so and continued his lobby.

A relative of mine living in London, informed me (via internet) that
the British press carried the president’s initiative, and that it
referred to it as a groundbreaking step in the climate change fight.

Kudos, Mr. President, you are indeed a brave and caring man, for if
your initiative is accepted, then Guyana will definitely be a better
place for future generations. As far as I am aware no other CARICOM
leader has come up with such initiative.

I was further impressed when I read what he told the business people
at a meeting in Kampala aside the Commonwealth Heads of Government
Meeting in November. I would therefore, like to share the article on
this meeting that was published on November 25:

Addressing Heads of Government, about 500 business leaders and
government officials in Kampala, Uganda, the President emphasised the
need for solutions to provide incentives for avoiding deforestation to
be placed at the heart of a comprehensive agreement on climate change.
Tropical deforestation causes about 18% of global emissions of
greenhouse gases – about the same as India and China combined, or the
combined total of the entire transport sector, including aviation.

He told the audience of Guyana’s willingness to identify mechanisms
whereby the country’s rainforest, which is the size of England, can be
deployed in the global battle against climate change. The President
emphasised that rainforest countries could not be expected to sacrifice
their economic development in order to combat climate change on behalf
of the world. However, he said that he believed that ways could be
found to balance sustainable forestry management practices with
ground-breaking initiatives to support the global battle against
climate change.

The President emphasised that Guyana’s offer will not involve the
ceding of sovereignty over Guyana’s territory. He said that the
identification of the specific mechanisms for deploying the rainforest
will take time, and that all ideas will be considered, whether proposed
by domestic or international stakeholders. However, he indicated his
expectation that the most sustainable long-term solution will involve
the engagement of the global capital markets. The President said that a
market-based approach is more likely to devise long-term workable
solutions. According to the President, these solutions will not involve
the termination of economic activities within the forest - these will
continue to be supported provided that they are carried out in a manner
which is compatible with sustainable forestry management practices.

Leading climate change activists have also come out in support, with
Hylton Murray, the head of the London-based Rainforest Concern saying
“In the absence of an international agreement, an early action by
enlightened leaders should be greatly welcomed. Business as usual is
not going to work.” Murray, who is working to bring funding into
developing carbon markets, also said “It is insanity that a single
service company, Google, has a market value of $200 billion, while all
the services of all the world’s great forests are valued at nothing.”

Quoted in the Independent, President Jagdeo said that he “was looking
for a partner to sit across the table with” to work out the precise
terms of any deal – “we are a country with the political will and a
large tract of a standing forest. I’m not a mercenary, this is not
blackmail and I realise there’s no such thing as a free lunch…”
However, he emphasised that “We can deploy the forest against global
warming and … it wouldn’t have to stymie development in Guyana.”
JOYCELYN SINGH

Abandoned camp found at illegal Corentyne airstrip

Abandoned camp found at illegal Corentyne airstrip
Guyana Chronicle, 12 December 2007


The burnt-out aircraft (Photo courtesy of GDF)
MORE evidence has been unearthed that troops of the Guyana Defence
Force (GDF) have disrupted a wide-scale illegal operation in the
Corentyne area, some 80 miles upriver from the Orealla Village.


A senior GDF source yesterday said the troops in addition to their
discovery Monday morning, have found another abandoned camp, sited
about a mile from the illegal airstrip which was seized, and another
trail.

At the camp the soldiers found food and a generator which were also
burnt.

“This second trail is a very wide one and the soldiers are still
following it to determine where it leads,” the source said.

The GDF in a release Monday evening, said the discovery of the illegal
airstrip with the burnt-out Let 410 turboprop aircraft manufactured by
the Czech Republic, a still smoldering all terrain vehicle and a
bulldozer, which were in the middle of the airstrip, was as a result of
an operation which it launched the said morning.

The airstrip was sighted Monday by a GDF pilot who was on a routine
flight to New River. The pilot observed while over-flying that an
aircraft was parked halfway up the airstrip and several persons clad in
dark clothes were emerging from the jungle.

The aircraft, which carried a Venezuelan flag appeared to be severely
damaged after attempting to take off and had skidded off to the right,
the GDF statement said.

It is felt that the Czech-made aircraft was deliberately burnt sometime
between Sunday and Monday morning, as persons had seen the aircraft
over-flying the airstrip Sunday and had anticipated an interdiction
operation. The theory, the GDF said, was supported by the still
smoldering all terrain vehicle and the removal of the bulldozer’s
starter, when the troops got there.
Extensive construction works seemed to have been undertaken at the
airstrip which some 3,600 feet long, which is longer than the Ogle
aerodrome, and 375 feet wide, even wider than the runway at the Cheddi
Jagan International Airport, Timehri, the statement added.


It noted, however, that only some 1,800 feet of it was usable and the
construction seemed geared to upgrading the remainder of the airstrip.

After seizing the airstrip the troops conducted several probing patrols
and discovered a 25 feet trail that led for some two miles to the
Corentyne River, which suggested that the bulldozer and other equipment
may have been transported via the river.

The discovery of the airstrip, which is some 10 minutes flying due
southeast from Kwakwani, comes in the wake of the discovery and
destruction of another illegal airstrip in the Orealla area earlier
this year and reports of several aircraft sightings and landings at
remote airstrips in the interior.

It is believed that this airstrip was constructed to facilitate
trans-shipment of narcotics and the conduct of other illegal
activities, the GDF release added.

Burnt plane found on Corentyne strip -Runway longer than Ogle, wider than Timehri

http://www.stabroeknews.com/index.pl/article?id=56534865

Burnt plane found on Corentyne strip -Runway longer than Ogle, wider
than Timehri
-Czech Republic craft carried Venezuelan flag
Stabroek News, article, Tuesday, December 11th 2007

The burnt craft (GDF photo)

The army yesterday morning seized an illegal airstrip located some 80
miles upriver from Orealla in the Corentyne with a burnt-out aircraft
on it along with a still smoldering all terrain vehicle and a bulldozer
- clear signs of a drug operation.

In a press statement last evening the Guyana Defence Force said it is
believed that the airstrip was constructed to facilitate transshipment
of narcotics and the conduct of illegal activities. This is the second
such operation within a year by the men in uniform and it comes at a
time when the government continues to be criticized for not doing
enough to fight drug trafficking here.

The operation was launched yesterday morning following the sighting of
the airstrip on Sunday during a routine flight to New River by a GDF
pilot who on flying over the airstrip noticed the aircraft parked
halfway up the airstrip and several persons clad in dark clothes
emerging from the jungle, the GDF release said. According to the GDF,
the aircraft, a Let 410 turboprop that is manufactured by the Czech
Republic, carried a Venezuelan flag and it appeared that it was
severely damaged after attempting to take off and had skidded off to
the right of the airstrip.

The army said it is felt that the Czech-made aircraft was deliberately
burnt sometime between Sunday and yesterday morning after the persons
had seen the aircraft over-flying the airstrip on Sunday and
anticipated an interdiction operation. The still smoldering all terrain
vehicle and the removal of the bulldozer's starter support this theory,
the GDF statement said adding that there seemed to be extensive
construction works being undertaken at the airstrip since it is some
3600 feet in length, which is longer than the Ogle aerodrome, and 375
feet in width, wider than Timehri runway.

However, only some 1800 feet of it was usable and the construction
seemed geared to upgrading the remainder of the airstrip. According to
the GDF, after seizing the airstrip the troops conducted several
probing patrols and discovered a 25-ft trail that led for some two
miles to the Corentyne River, which suggests that the bulldozer and
other equipment may have been transported via the river.

The bulldozer on the illegal strip (GDF photo)

"The discovery of the airstrip, which is some 10 minutes flying due
southeast from Kwakwani, comes in the wake of the discovery and
destruction of another illegal airstrip in the Orealla area earlier
this year and reports of several aircraft sightings and landings at
remote airstrips in the interior," the GDF said.

Gobeltex

Back in May this year members of the Joint Services had destroyed an
illegal airstrip in the Amerindian village of Gobeltex, some six miles
down the river from Orealla. The joint services had said the airstrip
was in Orealla, Corentyne but residents disputed this. It was thought
that the airstrip was used for drug trafficking. The destruction of
that airstrip by explosives was witnessed by some members of the media.
The GDF had said then that the location of the airstrip was made known
to the lawmen by residents in the area. The lawmen found some 500-plus
gallons of aviation fuel at the location and pots and spoons were also
discovered suggesting that there may have been some occupation of the
area.

Former army spokesman, Earl Edghill had said then that the airstrip was
being used for illegal purposes and did not rule out the possibility
that more such airstrips may be present in the area.

Stabroek News was told by a concerned resident that a number of illegal
airstrips are in areas such as Springlands and Orealla. The resident
was upset at the length of time the lawmen took to act since according
to him for sometime now the information was not only passed to police
in 'B' Division but reports were also made to the police in Georgetown.
The man said that he is extremely concerned because the area is being
used as a major transshipment point for cocaine and he could not
understand why the authorities would not act promptly. He said
residents were aware of what was happening, adding that some are even
involved in the illegal acts. According to the man aircraft would land
in the area from time to time and so it was no big secret.

The police have seen little success in the investigation of illegal
airstrips not even when an aircraft was found as in the case of a
single-engine Cessna aircraft that was discovered abandoned at Kwapau
airstrip, Middle Mazaruni in March 2005. The police seem to have closed
off their investigation in this case even though the owner of the plane
was identified as a Venezuelan.

The man according to reports had acknowledged that the plane was his,
but he said that he did not know about its flight to Guyana. He however
has not approached local authorities to date to repossess the plane.

At present the aircraft is under the control of the Guyana Defence
Force (GDF) and is parked at the Army's hangar at Timehri.

Man on way to see sick wife dies in crash -vehicle ran into parked truck

http://www.stabroeknews.com/index.pl/article?id=56534919

Man on way to see sick wife dies in crash -vehicle ran into parked truck
Stabroek News, Wednesday, December 12th 2007

A forestry worker is dead and two others are in critical condition
after the vehicle they were travelling in slammed into the back of an
unlit truck parked at the shoulder of the road at Dora on the
Soesdyke-Linden Highway last evening.

Dead is Paul Teixeira, 45, of Plaisance, East Coast Demerara. Workers
at the Guyana Forestry Commission said that Teixeira, who was stationed
at Lethem, was returning to Georgetown to be with his wife who is in a
critical condition at the hospital. Those injured in the crash and in
critical condition up to press time last night are Brian Roberts, 32,
of Mocha, East Bank Demerara and Kitty resident Sean Alves.

Head of the Finance Department of GFC, Edward Goberdhan told Stabroek
News last night at the Georgetown Hospital that the three men were in a
forestry pick-up truck coming out of the interior when tragedy struck
at around 6:30 pm. Goberdhan said that Teixeira had requested to be
with his ailing wife and so the vehicle went to pick him up at the
Kurupukari Crossing yesterday morning. Baboolall, who worked as a
labourer on the truck said that they had just come out from Omai Gold
Mines after buying scrap metal. He said that the truck was parked and
he was sitting in the cabin when all of a sudden he felt something slam
into the vehicle and he was pitched outside. Baboolall with his head
bandaged said the impact of the crash sent him through the truck's
windshield and he landed on his face. As far as he is aware the vehicle
had reflectors and its parking lights were on. Stabroek News was unable
to get a comment from the dead man's relatives.

Road deaths have risen dramatically this year and accidents caused by
the careless parking of vehicles have also increased.

Britain backs Guyana's rainforest plan

Britain backs Guyana's rainforest plan
By Daniel Howden in Bali and Colin Brown, Deputy Political Editor
Published:11 December 2007
http://environment.independent.co.uk/climate_change/article3241936.ece

Britain is backing an offer by the President of Guyana to preserve the
country's entire 50 million acres of rainforest in return for
sustainable development funds.

Phil Woolas, the Environment minister, will support the offer by
President Bharrat Jagdeo – revealed in The Independent last month– at
the Bali summit on climate change this week. It follows a preparatory
conference where China, the US and other major economies, agreed to put
protection of the world's forests on the climate change road map that
Bali is supposed to produce this week.

"The UK Government sees this as a significant and welcome step. While
we respect countries' sovereignty, the offer from President Jagdeo is a
groundbreaker and we will be looking at it at official level to see
what part Britain can play," Mr Woolas said.

Tropical deforestation accounts for one-fifth of all carbon emissions –
more than any other sector except energy – but has received little
attention in comparison with aviation.

The government of Guyana has said it is willing to place its entire
standing forest under the control of a British-led, international body
in return for a bilateral deal with the UK that would secure
development aid and the technical assistance needed to make the change
to a green economy. There is no question of challenging Guyana's
sovereignty over its forest.

Britain already has an agreement for forest protection with the
countries of the Congo basin and is involved in sustainable development
pilot projects in Brazil and Indonesia. The £50m spent in Congo comes
from a Department for International Development fund that still has
money to allocate.

Mr Woolas said President Jagdeo had impressed him during a Commonwealth
meeting in London last month. And the minister is optimistic that the
offer will be taken up. A senior spokesman for President Jagdeo
welcomed the support, saying: "We now need to start working together to
harness the resources and innovation of global capital markets, who
will provide the long-term answer to avoiding deforestation. We can
present the world with a model for addressing the root causes of
deforestation."

The Guyanese proposal was raised at the preparatory conference in
Indonesia a month ago when 27 countries including the US and China
agreed that deforestation should be included in the Bali final
communiqué. Forests were left out of the Kyoto protocol – the world's
only attempt to date to limit harmful emissions of heat-trapping gases.

Roughly the size of the UK, Guyana is sandwiched between Brazil and
Venezuela. It is the only English-speaking country in South America and
with its history in the sugar trade and Caribbean links, is primarily a
coastal culture. With a population of only 750,000 it combines dense,
species-rich forests with low population pressure.

Frank Field, a former Labour minister, has joined the growing calls for
Gordon Brown to back the President of Guyana's proposal. Mr Field, the
co-founder of the Cool Earth pressure group with the businessman Johan
Eliasch, has written to the Prime Minister suggesting that he acts to
give UK taxpayers a Christmas present in the form of safeguarding these
huge tracts of rain forest.

The letter also suggests that such action would challenge Western
countries to begin immediately compensating rainforest nations for the
environmental services those forests provide for the whole world.

Matthew Owen, Cool Earth's director, pointed to the £800m Environmental
Transformation Fund the Government has recently created and suggests
that cash from the fund should be released immediately as the first of
annual payments to Guyana to protect the integrity of its rainforest.

Sir Nicholas Stern, whose review last year shifted attitudes to climate
change, has again emphasised that tackling the destruction of forests
is one of the cheapest and most effective ways of reducing global CO2
emissions.

Mr Field is urging Mr Brown to broker a co-ordinated response from
Western nations which will begin by securing Guyana's rainforest. This
strategy could then be rolled out to cover other rainforest nations
which are anxious to be compensated for the role rainforests perform in
mediating the world's weather as well as CO2 emissions.

Stopping the chopping Leader

Stopping the chopping
Leader
Monday December 10, 2007
The Guardian
http://www.guardian.co.uk/commentisfree/story/0,,2224982,00.html


"Save the rainforests" is an easy slogan to agree with and a very
difficult one to put into practice, as delegates at the Bali climate
change conference are proving. Writing for the Guardian recently, Sir
Nicholas Stern put at the top of his wishlist for Bali an
"international programme to combat deforestation", and noted the
problem could be halved at an annual cost of $10bn. Creating a
mechanism to do this is the goal of everyone who thinks markets are the
best way to mitigate climate change. But putting one into effect has so
far proved impossible; it was not even attempted at Kyoto.

At Bali, hopes are pinned on an ambitious proposal known as reduced
emissions from deforestation and degradation (Redd). This does not aim
to stop all destruction of tropical forests. But it does suggest a way
of reducing the rate of their loss, which already accounts for around
20% of current emissions, more than transport. Indonesia, host to the
Bali conference, was declared by controversial research last year to be
the world's third-biggest polluter almost entirely because of
deforestation and especially the destruction of deep peat beds which
are among the richest carbon sinks on the planet. Replacing these with
low-value palm oil plantations is ecological and economic madness,
especially when it is done in the name of supposedly green biofuels.

Countries should be able to earn more from keeping trees than chopping
them down. Estimates suggest the destruction of forests brings economic
benefits to countries such as Indonesia and Peru of between $1-$5 per
tonne of carbon released. The market price of carbon credits in Europe
last week was $32. The problem is that any market must be both
universal and enforced. It is no good paying Indonesia to save forests
in Kalimantan if loggers simply move on to untouched forests in Papua
New Guinea. More than that, the benefits from saving them must be
shared. It would be unjust to send carbon cheques to national
governments, who may keep the money, exploiting the poor who are often
at the forefront of deforestation while still doing nothing to protect
forests.

Making sure countries live up to their promises will be hard. If Bali
achieves nothing else, it will have done its job if a framework for
Redd is agreed. Last week a report from the WWF warned that 60% of
Amazon forests could be lost by 2030. But it is not too late to save
what remains. Last month Guyana made a remarkable offer to Britain,
promising to lease all its standing trees - which include some of the
planet's last untouched forests - in return for aid. The British
government should grab this chance. The loss of forests is a dominant
threat to the world. And it can be stopped.