How has the GFC permitted these changes in effective ownership?
Guyana Chronicle, 27 September 2007
Perhaps the institutional memory of the Guyana Forestry Commission is
faulty?
In SN's report “GFC satisfied with asset transfer between Jaling, Bai
Shan Lin” (SN 07.09.25), Minister Robert Persaud appears to have said
that Demerara Timbers Limited (DTL) did not have the necessary
expertise to produce the quality of value-added products.
When the Government of Guyana established the original Demerara Woods
Ltd. (DWL, and East German aid built what was then said to be the most
modern, the largest, the best tropical hardwood sawmill in South
America (article in the journal World Wood), DWL claimed just that
expertise. Likewise, when DWL became DTL, and passed into Dutch
ownership, the Green Charter then issued by the company repeated much
the same claim to expertise in value addition to tropical hardwoods,
and to market access.
How has the GFC permitted these changes in effective ownership and/or
managerial control without conducting a full exercise in due diligence
using external expertise? The GFC has failed to substantiate DWL/DTL
claims to expertise in the past. What has happened recently to
encourage the Minister responsible for Forestry to repeat such claims,
in this case, about the expertise of Bai Shan Lin which cannot run a
mill properly at Linden/Coomacka? (Deplorable wages and working
conditions at Bai Shan Lin Linden operations. Agri Minister insists
that the company has to comply with occupational health and safety
standards By Neil Marks-- Guyana Chronicle, 15 August 2007).
As for other Timber Sales Agreements (TSAs), the long-term large-scale
logging concession was granted because the enterprise claimed that the
forest would feed a modern industry. Is this not a good example of a
situation where the investor (DTL) has failed and the sawmill licence
and TSA should be rescinded? Then, and in accordance with the
National Forest Policy 1997, the concession should be re-tendered
according to the law on State Forest Exploratory Permits, and bidders
would have to explain in their applications how they would run the
associated mill. This information should be in the public domain, not
a deal involving Guyana’s publicly-owned natural resources but
conducted between private sector enterprises, with the GFC hovering
uncertainly in the background without the expertise to intervene
effectively.
Janette Bulkan
Guyana Chronicle, 27 September 2007
Perhaps the institutional memory of the Guyana Forestry Commission is
faulty?
In SN's report “GFC satisfied with asset transfer between Jaling, Bai
Shan Lin” (SN 07.09.25), Minister Robert Persaud appears to have said
that Demerara Timbers Limited (DTL) did not have the necessary
expertise to produce the quality of value-added products.
When the Government of Guyana established the original Demerara Woods
Ltd. (DWL, and East German aid built what was then said to be the most
modern, the largest, the best tropical hardwood sawmill in South
America (article in the journal World Wood), DWL claimed just that
expertise. Likewise, when DWL became DTL, and passed into Dutch
ownership, the Green Charter then issued by the company repeated much
the same claim to expertise in value addition to tropical hardwoods,
and to market access.
How has the GFC permitted these changes in effective ownership and/or
managerial control without conducting a full exercise in due diligence
using external expertise? The GFC has failed to substantiate DWL/DTL
claims to expertise in the past. What has happened recently to
encourage the Minister responsible for Forestry to repeat such claims,
in this case, about the expertise of Bai Shan Lin which cannot run a
mill properly at Linden/Coomacka? (Deplorable wages and working
conditions at Bai Shan Lin Linden operations. Agri Minister insists
that the company has to comply with occupational health and safety
standards By Neil Marks-- Guyana Chronicle, 15 August 2007).
As for other Timber Sales Agreements (TSAs), the long-term large-scale
logging concession was granted because the enterprise claimed that the
forest would feed a modern industry. Is this not a good example of a
situation where the investor (DTL) has failed and the sawmill licence
and TSA should be rescinded? Then, and in accordance with the
National Forest Policy 1997, the concession should be re-tendered
according to the law on State Forest Exploratory Permits, and bidders
would have to explain in their applications how they would run the
associated mill. This information should be in the public domain, not
a deal involving Guyana’s publicly-owned natural resources but
conducted between private sector enterprises, with the GFC hovering
uncertainly in the background without the expertise to intervene
effectively.
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