Friday, September 28, 2007

False declarations by logging companies under scrutiny

False declarations by logging companies under scrutiny
Guyana Chronicle, 26 September 2007
http://www.guyanachronicle.com/topstory.html#Anchor-False%20de-37617

Several forestry companies operating locally are currently under
scrutiny for under declaration of produce harvested as well as the
locations from which they were harvested.

Minister of Agriculture, Mr. Robert Persaud said yesterday that
investigations have been launched into breaches of a “very serious”
nature within the sector following recent discoveries made by the
Internal Audit Unit of the Guyana Forestry Commission (GFC).

He said that these breaches, if verified will have serious implications
for GFCs revenue; for tax concessions issued to these companies by the
government and for the GFC staff members at the locations.

The investigation is at the moment being headed by selected Officers of
the GFC as well as members of the Internal Audit Department but may
involve other parties such as the Guyana Revenue Authority (GRA) if the
basis for such an additional intervention is found.

The investigative team is expected to present a preliminary report to
the Minister of Agriculture by October 10.

Persaud made the disclosures during a press conference also attended by
Commissioner of Forests, Mr. James Singh whom the minister credited
with breaking the news about the suspected scams.

Singh had drawn his attention to the suspected breaches by way of a
letter sent on Monday last, Persaud said.

The under declaration of forest produce harvested robs the GFC of
revenue from Guyana’s forestry resources, while false declarations as
to the origins of the harvested produce seek to hide real abuses of
these resources by the culprits, Singh said.

He stressed that the loggers are given permits for clearly defined
geographical areas and exploitation of resources elsewhere amounted to
a very serious breach of the Forestry Regulations.

Companies found guilty of these breaches are liable to heavy monetary
fines and/or suspension or revocation of their licences.

The Commissioner said that the information which had triggered the
suspicions of the GFC’s Internal Audit had been amassed over the past
two months.

Those under scrutiny are the companies which have been granted large
scale permits by Government to harvest forestry products, many of them
foreign owned.

The investigation will also target staffers of the GFC who are on the
ground and whose duty it is to ensure that the regulations are adhered
to.

He added that it was possible that this type of activity had been
ongoing for much longer and the investigators would consider that
possibility even if it meant pushing back the original October 10
deadline for a report to a slightly later date.

Persaud also announced that there will be major changes next year as
the Ministry and the Commission fine tunes its arrangements for
ensuring that Guyana gets its proper dues from those exploiting its
forestry resources.

He stressed yesterday that arrangements which allow for joint
operations in the industry will be the first to be abolished. (Clifford
Stanley)

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