Guyana robbed almost 80 per cent of timber royalties -- source - Customs, loggers in cahoots with sawmills

http://www.kaieteurnewsgy.com/news.htm
Guyana robbed almost 80 per cent of timber royalties -- source -
Customs, loggers in cahoots with sawmills
Kaieteur News, 22 August 2007

By Leonard Gildarie

Guyana is being robbed of an estimated 80 per cent of its timber
revenues. And the racket to defraud Government is so widespread and
organized that it stretches as far as the Customs Department.

Speaking to key players, including lumberyard dealers, drivers and
sawmill employees, among others, Kaieteur News was told that with the
present system that allows for corruption, it is impossible for
Government to really know what Guyana's potential is as far as timber
exports are concerned.

In an industry still reeling from disclosures that the Guyana Forestry
Commission (GFC) is on the verge of taking action against a number of
its employees for manipulating its regulations to allow exporters to
defraud Government of revenues from timber, yet more allegations are
emerging. Some sawmills have in their possession fake Customs stamps,
it was alleged yesterday.

One former office staff of an East Bank business estimated that, for
every container of lumber that leaves Guyana , some $500,000 in revenue
is lost due to fraud by both the businesses and allegedly corrupt
Customs officials.

Whenever a request is made to ship lumber out of Guyana , an export
license is required. Regulations stipulate that a Customs officer
physically verify the lumber to make sure that the list submitted is
exactly what is in the container.

Afterwards, a Customs seal is affixed to the container. The man claimed
that it was not unusual for Customs officers not to verify the
container. Rather, the seal is given to the client, a bribe is handed
over, and the exporter has a chance to defraud Customs.

“What happens is that an invoice showing a lesser amount is made up for
Customs purposes. A real invoice is sent to our clients overseas. Yes,
we have fake Customs stamps, too.”

According to the man, his company had budgeted money just to pay off
forest rangers and Customs officers. “When you look at the money being
made exporting and the savings made by doing the little side thing,
paying off a Customs officer is joke,” the source said. When asked how
much of the lumber being exported fails to fall under the radar of
Government's eyes, the man estimated it at a staggering 50 per cent.

At the sawmill level, the atrocities continue. With many of the
sawmills located on the riverside, it is an easy job to bring logs in
without paying any kind of royalties. According to knowledgeable
sawmill workers, some concessions are located up the Demerara River .
There are sawmills that would give a private logger a blank permit
issued to them, and by this authority, the logger would be able to
float logs down the river. It is virtually unheard of that a forest
ranger or GFC official would stop a logger while he is in the water. In
some cases, although the logger may have a concession in point A, he
sometimes would visit his neighbour in point B, and there isn't
anything much that allows for anyone to prove that logs were taken from
point B.

“How many logs being brought in along the river are declared for
royalties? Maybe 10 per cent or so”, the man said. Further, quite a
number of sawmills are in the habit of deliberately reporting lower
sales.

“You see, the sawmills, in their own systems to defraud, would keep two
different receipt books; one of actual sales and one for the sole
purpose of reporting the incorrect figures. So, all around, the systems
are designed to make millions without paying anything much.”

Late last month, GFC said that a number of it staffers were involved in
manipulating the regulations and collaborating with exporters. Although
not providing much details, GFC head man, Commissioner of Forestry
James Singh, this week disclosed that an internal probe is nearing its
conclusion and action will be taken very shortly against employees.