GFC satisfied with asset transfer between Jaling, Bai Shan Lin - Persaud

http://www.stabroeknews.com/index.pl/article?id=56529539

GFC satisfied with asset transfer between Jaling, Bai Shan Lin - Persaud
Stabroek News, Tuesday, September 25th 2007

The Guyana Forestry Commission (GFC) is satisfied with the transfer of
assets between Jaling Forest Industries Inc and Bai Shan Lin, logging
firms with Chinese interests, which have been under the microscope of
late.

According to Minister of Agriculture Robert Persaud, the GFC had been
working with the two companies to resolve issues of ownership of those
assets. The minister said the matter was resolved to the satisfaction
of the commission.

Persaud explained that the situation between Bai Shan Lin and Demerara
Timbers Limited (DTL) was totally different from what transpired with
Bai Shan Lin and Jaling, where assets were transferred from one company
to another.

In the case of DTL, the minister had said in an earlier statement that
DTL was still in control of both the management and administrative
aspects of its operations. The GFC had on August 28 held a meeting with
the senior management of DTL and Bai Shan Lin and received assurances
that there has been no transfer of shares or assets from DTL to Bai
Shan Lin.

Persaud had disclosed that Bai Shan Lin was considering either a
complete or partial takeover of DTL in the future. However, he added,
both parties have committed to keeping the GFC fully informed of any
such development and following the required government/GFC procedures.

According to the minister, DTL has been engaged in logging and the sale
of logs/lumber to local and overseas markets and was now about to enter
the value-added arena. He had said that DTL did not have the necessary
expertise to produce the quality of value-added products, nor access to
the niche markets to get better prices.

He said that in order to address these shortcomings, DTL formed a
strategic alliance with Bai Shan Lin for product development and
marketing. The minister said there had been no staff changes.

Earlier this year, this newspaper had reported that Bai Shan Lin had
secured the rights to 400,000 hectares of forest for a period of 20
years. According to the company's website, the company would have been
processing logs harvested from the Jaling concession.

President Bharrat Jagdeo, at a press conference, had insisted that the
transfer of any assets of DTL to Bai Shan Lin had to meet strict due
diligence before garnering approval and he had made it clear to the GFC
and that it was not an automatic process.

Stating that the issue was discussed in Cabinet, Jagdeo had added that
the GFC would have to establish the track records of the companies and
do the necessary due diligence before deciding on anything final.