Timber Scam-- Barama ‘surprised’ at allegations

Timber Scam
-- Barama ‘surprised’ at allegations
By Neil Marks
Guyana Chronicle, 10 October 2007

SURPRISED: Mr Peter Ho, Barama’s new CEO. (Cullen Bess-Nelson photo)
LOGGING giant Barama yesterday said it was surprised it has been named
for “collusion” with other concessionaires and officials of the Guyana
Forestry Commission (GFC) to cheat on taxes, but its new boss stated
that if this is true, it was not intentional, and he will fire any
employee involved “within 24 hours.”


“If during the course of investigations, intentional violations are
found, the company will not hesitate to take extreme measures to
correct the situation,” Mr. Peter Ho, Barama’s new chief executive
officer said.

Barama operates a 1.6 million hectare concession in Guyana, but has
contracts with five other concession owners to cut logs for export. It
is the country’s largest exporter of logs.

Ho was adamant that Barama operates within the confines of the law, and
said the company takes the allegations seriously and will cooperate
with the authorities in their investigation.

“Under no instance has the company intentionally breached any
procedures. Perhaps it is just an administrative and reconciliation
issue,” Ho stated.

He said too Barama could also consider engaging an independent,
international audit firm to review the matter, but said the company is
“more than willing” to meet the government and “find an amicable
solution”.

Ho was speaking at a press conference at Cara Lodge, Georgetown,
hastily put together after President Bharrat Jagdeo Monday named the
company as being involved in the scam and warned of action against
those found guilty when the investigation is complete.

President Jagdeo was speaking on preliminary findings in a probe
launched by the Ministry of Agriculture and the GFC under suspicion
that several companies deliberately under declared what they were
producing, and that logs belonging to one concession were being passed
off as belonging to another.

“We are an open and transparent company and we are eager to get to the
bottom of this so that any misunderstanding with GFC is cleared up as
soon as possible,” Ho stated.

He said in the fifteen years of Barama’s operations here, it has been
committed to sound forest management practices and has acted in
accordance with the law and worked well with the GFC, “without any
serious non-conformance issues raised.”

Ho said Barama’s investment to date amounts to more than US$100M, and
will create 200 new jobs in the coming year.

He said the company’s long term investment strategy includes reducing
log exports, while at the same time finding new ways to market lesser
known Guyanese species.

Barama continues to export logs to China, India and Vietnam, while
observing and learning the usage of these wood species in these
markets, he said.

“When we know the demand and acceptance level of such products in these
markets, we can invest in the appropriate manufacturing facility to
produce such wood products from Guyana,” Ho stated.

He added that as Guyana’s largest wood products company, Barama has
invested heavily in high-value products, creating sustainable
production lines and has developed valuable infrastructure.

In the two years before June this year, Ho said Barama had invested
US$27M in the construction of sawmills, a kiln drying facility, a
veneer plant, and construction of barges.

Through these investments, Barama expects to increase its volume and
variety of exports to the U.S., European, Central America and Caribbean
markets.