Apparent collusion between forestry entities to defraud state of revenue

Apparent collusion between forestry entities to defraud state of revenue

….there will be consequences – President
Kaieteur News, 9 October 2007

Head of State, President Bharrat Jagdeo, in a press briefing yesterday,
said that there seems to be collusion between officials of Barama,
officials (especially field officers) from the Guyana Forestry
Commission (GFC), and concessionaires who have an arrangement with
Barama, to defraud the Government of revenue.

He attributed his statements to preliminary reports of the
investigations launched into allegations that there may be an attempt
to defraud the Government of Guyana, by some stakeholders, by under
declaring logs harvested as well as where the logs were harvested from.

The Head of State referred to the Barama agreement of 1991, which
exempted the company from paying export tax on all logs except
greenheart.

“What seems to be the case here is that there seems to be a system
currently operating which is through under declaration and false
declaration as to the origin of the logs. They are trying to defraud
the state of revenue,” said Jagdeo.

The Head of State, in a firm tone, emphasised that there would be
consequences to Barama, GFC officials, as well as the concessionaires.

He declined to comment further on the consequences, given that the
investigation was in its preliminary stages, “but it seems to be a
system among these three parties to defraud the Government of revenue.”

As it relates to the recent flyover that was sponsored by FPA, Jagdeo
said that it was just an attempt to fight back.

Recently, an Assistant Commissioner and another high ranking official
of the GFC were disciplined following revelations that they allegedly
manipulated internal procedures, as well as take action against a local
business which allegedly collaborated with the two officials. The
action against the two officials came in the wake of recent
announcements of management shake-ups within the army and prison
system, and is being viewed by many as Government's growing intolerance
of indiscipline and corruption within the public service and
governmental agencies.

A former manager of a leading sawmill also recently disclosed that
wrongdoing is widespread within the forestry sector.

He levelled several charges, claiming that Guyana was losing the lion's
share of the royalties due on timber, and accused GFC rangers of
colluding with exporters to defraud the Government.