Transfer must be done in accordance with national law and policy

Transfer must be done in accordance with national law and policy
Kaieteur News, 27 September 2007


Dear Editor,

Perhaps the institutional memory of the Guyana Forestry Commission
(GFC) 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, largest and 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 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? (Bai Shan Lin a
slave camp – workers. Kaieteur News, 15th August 2007. No regard for
Guyanese workers. Kaieteur News, 21st August 2007. GFC, Labour Ministry
investigating Bai Shan Lin operations… willing and prepared to take
action if necessary – Persaud. Kaieteur News, 21st 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should be rescinded?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