Barama reaches agreement with Govt.

Barama reaches agreement with Govt.
• suspends five staff; paying $96.4 million fine “immediately”
Kaieteur News, 15 November 2005
Barama Company Limited (BCL) has suspended five employees, and will pay
immediately, without admitting any liability, the hefty $96.4 million
fine recently handed down by the Guyana Forestry Commission.

A statement by the company yesterday also said that there were some
breaches by several low level staffers harvesting logs from areas where
permits were still being processed.

According to the company, it agreed to settle with GFC, “the
outstanding G$96.4 million for breaches committed in third party
concessions. BCL has agreed in good faith, without prejudice and
without admission of liability, to pay a total amicable settlement of
approximately G$96.4 million (approximately US$470,000). The decision
to make immediate payment follows numerous discussions with the
Government of Guyana.”

Last month, Barama was slapped with the massive fine after GFC
investigations found that the company breached forestry regulations by
understating, on a number of occasions, its logs harvested, and
incorrectly stating the origin of logs harvested.

“The company has cooperated fully with the GFC in their investigation,
and in certain areas, there were some breaches by several low level
staffers harvesting in areas where permits were still being processed.”
Barama stressed that it is taking the allegations very seriously and is
committed to engaging the GFC in a “comprehensive review of the timber
operation procedures and improve the processes going forward.”

“I want to revamp the whole system and work positively with the
government to further develop and contribute to this industry and
country,” said Peter Ho, the new Chief Executive Officer at BCL.

With five operations staff suspended pending further investigation,
Barama is not ruling out further actions against staffers after the
current internal audit which is currently in progress.

“The company also intends to work with the GFC to resolve any other
outstanding matter which is currently under investigation,” Barama
noted in its statement.

• Ho, in earlier comments to this newspaper, had stressed that the
company is committed to its US$100 million-plus investments in Guyana .
The company has over 1600 employees, and a new sawmill is being erected
at Buck Hall, Essequibo .