Barama taking action against “unwarranted attacks”

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Barama taking action against “unwarranted attacks”
Guyana Chronicle12 May 2007

Barama Company Limited (BCL) has disclosed that a vicious campaignunleashing unwarranted attacks on it by a local individual, which hasnow taken on an international dimension, is hurting its export sales.An so the company will now have to take appropriate action to counterthe “propaganda and lies being spread.”Speaking at a press conference yesterday at the Cara Lodge Hotel,Quamina Street, Chief Executive Officer of BCL, Girwar Lalaram,reiterated that his company has been a model corporate citizen sinceits operations began in 1991, complying with contractual obligations,operating in accordance with the laws and regulations of Guyana andmeeting satisfying international standards of environmental andsustainable practices.According to Lalaram, the smear campaign at the international level hasresulted in BCL having some 15,000 cubic metres of plywood stockpiledbecause of not being able to find markets, as large buyers are veryconcerned about whether forestry products purchased originate fromsustainable sources.He emphasised that BCL is the largest single investor in the forestrysector and is a significant contributor to the Guyaneseeconomy---employing some 1,400 Guyanese workers who earn a total ofabout $600M annually, while $135M is earned in revenue by thegovernment through income tax from the workers, and $80M is collectedby the National Insurance Scheme (NIS).In addition, he said the company purchases some $2.5 billion annuallyin goods and services, pays $70M in royalties and exports US$23Mannually, 75% of which come from are plywood and downstream products.Lalaram contended that he could not understand why the individual isresorting to scandalising BCL through the local newspapers and now hasgone further by taking the campaign to international fora.“It is against this backdrop of being a responsible corporate playerand vibrant national industry in Guyana that Barama strongly condemnscertain known detractors for making persistent and unfounded attacksagainst it. These critics have been trying at international fora todiscredit Barama, tarnish the country and discourage investment in theforestry sector,” Girwar declared.He said the critic has accused BCL of depleting Guyana’s timber, and hecountered by pointing out that his company extracts three trees perhectare in a 100-hectare block which is way below the 20 permitted bythe Guyana Forestry Commission (GFC).He added that BCL is also under the scrutiny of the ForestryStewardship Council as well as the GFC, and acceded to the programme ofthe FSC as it is committed to sustainable forestry management andpractices.Lalaram said BCL finds especially malicious the charge that it ispaying its workers two dollars a day (presumably US$2) and committingcrimes against the indigenous peoples, asserting that there is noevidence whatsoever of pollution of the rivers by logging activities ofBCL.On the contrary, he said the company has provided some riverainsettlers with tanks to store potable water.As regards the allegation that BCL taking over leases or concessions,Lalaram strongly rejected this contention, asserting instead that thecompany has entered into contracts with concessionaires to complementits species of logs for plywood manufacture in order to satisfy itsexport markets.He pointed out that BCL pays the concessionaires a premium forharvesting of logs as well as the royalties.He noted also that the road from Buck Hall to North West Districtpasses through several concessions and therefore the company thought itwise to enter into such arrangements, adding that this is of mutualbenefit to the company and the concessionaires.With respect to the displacement of Amerindian settlements, he saidthere were a few cases, but the company more than adequatelycompensated the residents and assisted them to re-settle as well.Lalaram also dismissed the charge that BCL does not pay the 2% exporttax because it is involved in corrupt practices with governmentofficials as “absolute nonsense”, and called on the person who madethis charge to prove it.On the issue of BCL showing preference for expatriate workers, Lalaramreiterated that the company, in accordance with its contract, has stuckto the 15% allocation for expatriates and has been working assiduouslyto ensure that Guyanese workers are given the nod whenever they havethe requisite skills for a particular job.He announced that very shortly BCL factory workers will be leaving inbatches for training in Malaysia as part of the plan to have Guyanesepre-dominantly occupying the jobs at the company.He also rejected the claim that expatriates are paid higher salariesthan local workers, stressing that wherever the skills of the lattermatch the former, they receive the same salary, but in the case of theformer, the company has to pay air fares every 18 months, which is verycostly.With respect to BCL’s FSC certification being suspended for threemonths, Lalaram explained that it is elated to the necessity for theestablishment of wood control standards.He announced too that because of the vilification campaign,the companyis now forced to hire a US public relations firm at tremendous costs tocounter the scandalising of it credibility.