The Guyana Forestry Commission should take major offenders to court

http://www.stabroeknews.com/index.pl/article?id=56531812

The Guyana Forestry Commission should take major offenders to court
Stabroek News, Friday, October 26th 2007

Dear Editor,

I was pleased to see that all three major newspapers carried on October
23 reports of the administrative penalties imposed on the largest
Asian-owned logging company by the Guyana Forestry Commission (GFC).
Given the magnitude of estimated earnings from the illegal export of
unprocessed logs (US$ 3-5 million monthly) during the last several
years, the fines totalling G$ 106.4 million are a token penalty. Recall
that Samling Global Limited, the parent company of Barama, secured US$
269 million from its initial public offering (IPO) on the Hong Kong
stock exchange in March 2007, partly on the basis of its claimed
legality and sustainability of production in Guyana. Given also that
Barama illegally rents other forest concessions and has logged
Amerindian Village Lands in violation of the requirement to 'negotiate
in good faith with the Village' (Article 55(1)(d) of the Amerindian Act
2006), surely it is in the national interest for the GFC to take the
offenders to court in order for the whole story to be exposed through
cross-examination by trained prosecutors?

Instead, the GFC has quite improperly used an administrative procedure
(called "compounding of forest offences") which was designed to cover
small-scale and low-value offences and to prevent such trivial offences
from cluttering up the courts. The author of the standard text "The law
of forestry" (1955), barrister W A Gordon - who was also the
Conservator who drafted the Forests Act 1953 and associated Forest
Regulations for Guyana - states clearly "The power of compounding is a
useful one which can greatly lessen the incidental work involved in the
task of forest protection. It is perhaps unnecessary to emphasise,
however, that there are dangers of its being turned into an instrument
of corruption and oppression" (page 358). Compounding can be used only
when there is an admission of guilt by the offender and an agreement to
pay an administrative penalty. Compounding is final, preventing further
action being taken for the same offence". The Prime Minister's
statement that Barama can appeal the fine, as reported in KN (24
October 2007) is simply incorrect. So Barama has got off very lightly,
on a token charge and with a token penalty, for persistent and
widespread law-breaking. After further investigation of Barama's
illegal activities, the Minister for Forestry Robert Persaud and the
Minister of Forestry HE the President should insist on the cases(s)
being turned over to public prosecutors for legal action and much more
appropriate penalties.

Yours faithfully

Mahadeo Kowlessar

Barama fines 'Gov't won't be blackmailed'

http://www.stabroeknews.com/index.pl/article?id=56531807

Barama fines
'Gov't won't be blackmailed'
Stabroek News, Friday, October 26th 2007

Hitting back at Barama's announcement that workers would have to be
laid off as a result of heavy fines by the forestry commission, the
government yesterday said it would not be blackmailed and it added that
interim arrangements can be made to ensure the company's plywood
factory is supplied with raw material.

In an increasingly acrimonious stand-off with the largest Asian logging
company here, the government also accused Barama Company Limited (BCL)
of underutilizing its concession while tapping logs in other
concessions.

Speaking at a press conference yesterday in the wake of the contretemps
over $96M in fines levied by the Guyana Forestry Commission (GFC)
against Barama, Minister of Agriculture Robert Persaud said that any
interim supply arrangements for the plywood factory would be predicated
on the ending of sub-contractual arrangements for logs from other
concessions.

"This must however, be done through a process that is based on
constructive engagement rather than manipulation of issues and
processes and the issuance of threats and reckless statements. This is
to ensure that (Barama) is prepared to undertake sufficient extraction
of Baromalli from its own concession or make other arrangements for
sourcing raw materials," the Minister said.

Persaud said too that he has communicated this position to Carvil
Duncan, President of the Guyana Labour Union, which represents workers
at Barama's Land of Canaan plywood factory site. "We want to ensure
that workers don't suffer as a result of the breaches committed by the
companies," Persaud said.

Barama said in a statement on Wednesday that jobs would be threatened
as a result of the fines imposed. The company also had some of its
workers congregate at the Square of the Revolution yesterday morning in
what was said to be a protest against the punitive actions of the GFC
and the Ministry. At the gathering, Barama's Chairman Girwar Lalaram
changed his earlier position and said that the workers would not be
sent home.

Extensive acreage

Persaud said that a total of 1,611,195 hectares (3,981,349 acres) had
been issued to Barama and the level of utilisation of the acreage is
about 20 per cent. "Based on the annual plan inventory data submitted
to the GFC by BCL for 2007, I have been advised that BCL can harvest
about 43,000 cubic metres of Baromalli logs that are 40 cm and above in
diameter (used for plywood production) as opposed to their current
extraction of only 14,585 cubic metres up to September 2007," the
Minister said.

He said that for 2006, Barama harvested a total of 12,319 cubic metres
of Baromalli logs from its concession. "The above figures reflect that
BCL is not making maximum use of its extensive acreage leased to it and
this is an area of great concern to the GFC and my Ministry," Persaud
said.

Asked by Stabroek News whether in light of the underutilization of the
concession it could be repossessed, the Minister said that the GFC has
a number of options open to it.

"I have quoted these figures to emphasise the point that whilst BCL is
claiming that the suspension of sub-contracts with neighbouring
concessions would adversely affect raw material supply (to the mill),
and lead to downsizing of its operation, yet it is under-harvesting
significantly in the concession issued directly to BCL," the Minister
said.

Systematic

On Barama's response to the issue published in yesterday's edition, the
Minister said that the investigation into the breach of procedures
involving Barama and three other companies was done in a systematic,
detailed and objective manner.

The Minister in his statement said that after the investigation was
concluded, the GFC had discussions with the three of the companies to
alert them of the findings relevant to their individual companies. "The
GFC then wrote to three of the companies, clearly outlining the
identified breaches, and requesting the companies to provide a
response. The responses of the companies did not provide a satisfactory
explanation for the breaches identified by the GFC," Persaud said.

He said that contrary to the statement by Barama, the GFC maintains
that the charges instituted were specific and based on concrete
evidence "which is available for scrutiny by all stakeholders,
including internationally recognised auditors, forestry consultants and
other experts." But he added that any such scrutiny must be at the
financial cost of the requesting company and must include oversight by
the GFC.

The Minister in his statement said that threats of protests or other
unbecoming positions will not change the Government's stance on the
matter.

"Companies involved in these breaches can appeal the charges and
sanctions imposed. This must however be done through a proper and
acceptable process and not through the use of coercive tactics that
seek to blackmail the GFC and Government to reverse its position,
whilst downplaying serious breaches of the Government of Guyana
guidelines for sustainable management", Persaud added.

According to a GFC press release on Monday, investigations in September
found that in July Barama transported a quantity of logs harvested from
ESS 10/92, issued to Barakat Timbers Limited, to Buck Hall while the
quantity of logs it declared to the GFC in July was below the harvested
amount. Additionally, the findings show that Barama harvested and
removed, without the GFC's permission, a large quantity of logs from
the concession 2/90 issued to Mazaharally. Also, the tags issued to
Barama and Barakat were used on stumps located within the concession
issued to Mazaharally.

GFC had said in its release that Barama was found to have removed a
quantity of logs from WCL 05/93, issued to N. Sukul, without approval
from the GFC. This, the GFC said, is evidence of unauthorized
harvesting and extraction of forest produce. Plus, the GFC found that
the "harvesting operations on the ground were not conducted in a manner
that had serious negative environmental implications." The GFC said
these findings were made after "a detailed analysis of records was
done, including a comparison of the documentation supplied to the GFC
by the companies with the internal records of the companies."

The GFC monitoring teams were also said to have been deployed to the
concession areas to quantify the extent of the breaches, and to
determine if there were additional breaches.

The results of the investigations, "confirmed the GFC's initial
findings that there was under declaration of forest produce harvested,
as well as false declaration with respect to the origin of the logs
harvested," the GFC had stated in its release. "In addition, it was
verified that Barama was harvesting in the concessions areas issued to
A. Mazaharally and Sons Limited, and N. Sukul and Sons, even though the
GFC has not approved any sub-contractual arrangements for these
companies in 2007."

In its response on Wednesday, Barama said that it was appealing for the
GFC to allow for a fair process in determining the breaches, fines and
suspension, where the company acted as contractor in third party
concessions.

"Barama, in its request for a fair process, is prepared to engage
internationally-recognized auditors, forestry consultants and other
experts to investigate the issues, with the involvement and cooperation
of GFC," the Barama statement said.

"Furthermore, Barama is deeply concerned that the penalties will cost
jobs and have a detrimental impact on Barama's continued investment in
the country" the statement said. "Such a sudden suspension means there
will be workers without jobs immediately," said Barama Chairman
Lalaram. "Our preferred choice is to come to a swift resolution to save
jobs as soon as possible."

The statement said that Barama maintains that any anomalies discovered
were unintentional and were the result of operational realities and
practices and made the point that they were part and parcel of
operating in any dynamic and geographically challenging industry.

"Over the past 15 years of operation in Guyana, Barama has used its
best endeavour to operate strictly within the jurisdiction and confines
of Guyanese laws and regulations. As Guyana's largest foreign investor,
it is in the company's best interest to adhere to the GFC forestry
practices to ensure the company's long-term presence in Guyana," the
statement said.

Lalaram said that as an open and transparent company, any discrepancy
discovered is easily highlighted and the proper checks and balances can
rectify the situation.

The investigation and the fines come after a months-long campaign by
civil society activists and members of the timber industry over various
issues such as illegal subletting and the export of logs by Barama and
other Asian-owned companies.

It also follows a recent announcement by President Bharrat Jagdeo to
the Commonwealth Finance Ministers Meeting that Guyana has offered
almost its entire rainforest in the battle against climate change.

Barama began operating here in the early 1990s co-owned by Sunkyong of
South Korea and Samling of Malaysia. The Malaysian investor later
bought out Sunkyong's shares.

Logging scam warning: NO BLACKMAIL

Logging scam warning:
NO BLACKMAIL
By Mark Ramotar
Guyana Chronicle, 26 October 2007
http://www.guyanachronicle.com/topstory.html#Anchor---------23881

ON PROTEST: Barama Company Limited employees on the tarmac of the 1763
Monument Square in Georgetown yesterday
THE government yesterday said it will not be blackmailed by coercive
tactics into reversing the sanctions imposed on Barama and other
logging companies caught in a major multi-million dollar scam.


Agriculture Minister Robert Persaud, reacting to a protest in
Georgetown yesterday by Barama employees, declared “threats of protests
or other unbecoming stance will not change the government's position on
this matter.”

He said from information available to him at this time, the Guyana
Forestry Commission (GFC) investigation into the breach of procedures
involving Barama and three local forestry-based companies was
“systematic, detailed and objective”.

Barama Company Limited (BCL), owned by the Malaysia-based Samling
group, was slapped with a $96.4M compensatory fine earlier this week
and ordered to immediately suspend sub-contractual operations with the
three local firms for breaching stiff forestry regulations.

Barama reacted by temporarily closing its operations in protest,
claiming the penalties imposed by GFC this week are “severe,
unclear…and arbitrary”.

Scores of Barama workers travelled to the city yesterday to protest and
show solidarity with the company - the country’s largest exporter of
logs.

In a statement the Guyana Chronicle obtained yesterday, but which was
sent to other media houses the previous day, Barama appealed to the GFC
to allow a “fair process in determining the breaches, fines and
suspension” where the company said it acted as contractor in
third-party concessions.


SEEKING SOLUTION: Chairman of Barama Mr. Girwar Lalaram
Barama said it is “prepared to engage internationally recognised
auditors, forestry consultants and other experts to investigate the
issues, with the involvement and cooperation of the GFC.”


But Persaud, at a news conference with GFC Commissioner Mr. James
Singh, maintained that the charges instituted on Barama and the other
logging companies “were specific and based on concrete evidence which
is available for scrutiny by all stakeholders, including
internationally-recognised auditors, forestry consultants and other
experts”.

He, however, said that any such scrutiny must be at the financial cost
of the requesting company and must include oversight by the GFC.

Persaud also confirmed that the compensation figures arrived at by the
GFC were in keeping with established and approved GFC procedures and
said the companies involved can appeal the charges and sanctions
imposed.

JOBS AT STAKE
Chairman of Barama, Mr. Girwar Lalaram, in the press statement, said
his company is deeply concerned that the penalties will cost jobs and
have a detrimental impact on its investment in the country.

“Such a sudden suspension means there will be workers without jobs
immediately,” Lalaram contended, adding, “Our preferred choice is to
come to a swift resolution to save jobs as soon as possible.”

Persaud said that in the interest of the workers, his ministry is
prepared to allow access to raw materials for Barama’s Land of Canaan
plywood factory, “but only as part of a transition process that will
eliminate any approved sub-contractual arrangement by December 31,
2007”.

He said this must, however, be done through a process based on
“constructive engagement rather than the manipulation of issues and
processes and the issuance of threats and reckless statements”.

“This is to ensure that it (Barama) is prepared to undertake sufficient
extraction of Baromalli from its own concession or make other
arrangements for sourcing raw materials.”
Persaud said Mr. Carvil Duncan, President of the Guyana Labour Union
which represents Barama employees, was informed about this offer.


“We want to ensure that workers do not suffer as a result of the
breaches committed by the companies.”

Persaud said although a total of 1,611,195 hectares have been issued to
Barama, the company’s current level of utilization of this concession
acreage is about 20%.

Based on the annual plan inventory data submitted to the GFC by BCL for
2007, the minister said he has been advised that BCL can harvest about
43,000 cubic metres of Baromalli logs that are 40 cm and above in
diameter (used for plywood production) as opposed to their current
extraction of only 14,585 cubic metres up to September 2007.

He told reporters that for 2006, only a total of 12,319 cubic metres of
Baromalli logs were harvested from BCL's concession area.

His contention is that these figures reflect that BCL is not making
maximum use of the extensive acreage leased to it and this is an area
of great concern to the GFC and his ministry.

“I have quoted these figures to emphasize the point that whilst BCL is
claiming that the suspension of the sub-contracts with neighbouring
concessions would adversely affect its raw material supply, and lead to
downsizing of its operation, yet it is under harvesting significantly
in the concession issued directly to BCL.”

The GFC earlier this week announced that after a month-long
investigation into suspected breaches in log declarations, Barama, A.
Mazaharally & Sons, N. Sukul & Sons, and Barakat Timbers Limited were
found culpable of breaches.

As such, the sub-contractual operations of all four logging companies
were suspended with immediate effect.

The GFC said it has also been identified that ineffective monitoring of
the concession areas by two of its Field Officers resident at that
location contributed to the breaches of procedures by these companies
and have been dismissed.

Barama penalty raises more questions

Barama penalty raises more questions
Kaieteur News, 25 October 2007

The issue of Barama Company Limited being accused and penalised for
under-invoiced and undervalued timber products harvested from the
concessions of three major timber producers in Guyana has reached the
stage where one must now ask whether Barama has been the only culprit.

Because of an entrenched system, anyone familiar with the forest and
with logging operations could go to any part of the forest and identify
the location from which a particular tree was harvested. It has to do
with some form of tagging.

In days gone by, long before there was talk about global warming, men
walked the forest for choice trees, which they felled. They brought
them out either by floating them downriver, and later, by hoisting them
onto trucks, which then travelled to the sawmills.

Over time, forest activities became more sophisticated and it became
easier for the firms to access even the most remote part of the
forests. And as the demand for Guyana 's wood grew, particularly in the
growing economies of India and China , so too did the local drive to
harvest an increasing volume of timber. We had long suspected that
there would be attempts to maximize profits, and one of the ways is to
under-invoice. We are not saying that Barama did this intentionally,
but surely, even if that was the case, there had to be people in the
Guyana Forestry Commission who acted in concert with the shipper.

It is rather surprising that the Forestry Commission opted to mount an
investigation when it did. To begin with, there was disquiet among some
staffers who were dismissed for irregular dealings. They had begun to
leak bits and pieces of information to the media, and one could only
imagine the fear of embarrassment that lurked in many breasts.

Some were sacked and each claimed that there were people high up in the
Commission who may have been complicit in the dealings. And while each
refrained from naming those involved, there was always the threat that
they would spill the beans.

Barama has been operating here for more than a decade, and it is
strange that it is only now that the Commission has seen it fit to
mount an investigation. Assuming that over the years Barama has been
operating within the confines of the law, it is surprising that the
government would fail to see this slip up as a genuine mistake. If, as
it seems at this time, there was no mistake, then one must wonder at
the length of time that the under-invoicing has been going on. We note
that Barama specifically stated that the logs were duly counted and
passed by members of the Guyana Forestry Commission. The inference is
clear: any illegality was conducted by the Guyana Forestry Commission.

Of course, when the necessary invoices were produced, Barama had to be
aware of the under-invoicing, unless it would argue that it left the
checking to lesser individuals who were entrusted with the affair of
shipping the logs.

Then there is the furore of the timber company accessing timber from
concessions operated by other timber producers. Surely, one cannot
assume that Barama, on its own, went into these concessions and
harvested the logs. One concessionaire has gone public with the report
that the authorities of the arrangement between his company and Barama.
One would expect that people who own concessions may be free to operate
the concessions in their best interests. Therefore, if one of them opts
to allow Barama to work the concession, it should be plain sailing
unless there are stipulations about the management of the concessions.
And if there are such stipulations, they have been hidden from the
public.

Barama's plea that the penalty would affect its operations should not
be allowed to influence any decision. Instead, the company may wish to
challenge the penalty in court. It has already spoken about involving
international auditors and the like. Such comments suggest that the
company believes that it has done nothing wrong. Therefore, rather than
quibble about the impact on the company, it should move to have the
issue resolved in a manner that is neither unilateral nor tainted by
bias.

Whatever the case, we feel that there is more to be done before we
accept that the Forestry Commission is operating in the interest of
all.

M'sian logging firm refuses to pay Guyana fine

M'sian logging firm refuses to pay Guyana fine
Malaysiakini.com
Oct 25, 07 10:32am

A Malaysian timber company has refused to pay a US$480,000 (RM1.6
million) fine to the government of Guyana, which accused it of
under-reporting the number of logs harvested from local firms.

"We wouldn't pay until we have all the due process," Barama Company
Limited chief executive Peter Ho told AFP. He added that current
business and investment plans would be shelved until the current issue
is resolved.

Though the company has a stockpile of logs, Ho warned that both the
fines and suspension of the forest concessions could force the company
to cut production and retrench some of its workers.

He could not say how soon workers would be retrenched because the
company was still assessing the impact of the rulings by Guyana's
forest regulator, the Guyana Forestry Commission (GFC).

The Malaysian-owned firm has been operating in the northwestern Amazon
jungle of the impoverished South American country at least 15 years.

BCL appealed to the GFC to hire internationally-recognised auditors,
forestry consultants and other experts to investigate the issues, and
determine the breaches, fines and suspension in a fair manner.

"The penalties imposed by GFC are severe, unclear, and in our opinion,
arbitrary," the company said in a a statement.

Illegal logging

The company, however, conceded there were a number of anomalies
including unintentional mixing of tree tags between areas, and
harvesting in areas where permits were still being processed.

But it denied the company did not declare to the GFC all the logs
harvested.

The GFC said its probe found that BCL declared less logs than it
harvested in July from privately owned Guyanese companies.

Guyana's agriculture minister, Robert Persaud, said he was
dissatisfied with the responses given by BCL and the three Guyanese
timber companies and he "further directed that all the prescribed
sanctions be imposed immediately."




According to environment group Greenpeace, Barama won an investment
contract, giving the company rights to log 1,690,000 hectares - about
eight percent of the country - in the northwest of Guyana, near the
Venezuelan border.

Greenpeace said that Barama has a 25-year logging licence,
automatically renewable for another 25 years, with a five-year tax
holiday automatically renewable for a further five years for the export
of raw logs, sawn lumber, veneer and processed plywood.

Barama's parent company, Samling, has been criticised by environment
groups for its logging practices both in Malaysia and overseas.

Barama hands over ‘long house’ to Kariwab

Barama hands over ‘long house’ to Kariwab

THE 16-room house Barama handed over to the St. Monica/Kariwab
communities yesterday. (Adrian Narine photo)
LOGGING giant Barama, ordered last Monday by the government to pay over
G$96M in compensation for breaching forestry regulations, handed over
its ‘long house’ at the village of Kariwab in the Pomeroon River for
use by the community.


The house, built with 16 rooms to accommodate Barama’s workers, is no
longer in use by the company, since it was evicted from the
neighbouring village of Akiwni by angry villagers who claimed they were
being exploited. Barama ceased operations, and according to the
company’s Worker’s Welfare Officer Maurice Torres, the workers were
taken to Barama’s operations at Buck Hall and Cuyuni, both in the
Essequibo River.

Village Captain Mr. Raymond Miguel whose Council also manages the
village of St. Monica, said his Council did not have any quarrels with
Barama. “It was nice when Barama was here,” he said yesterday after he
was handed over the keys to the building by Torres.

Miguel said 18 workers of the village were employed by Barama.
According to Barama’s Stakeholder Liaison Officer Mitzy Campbell, the
house is valued at 5.5M, and Barama saw it fit to continue the good
relationship it had with the community.


The Village Captain said, in consultation with the regional
administration of Region two (Pomeroon/Supenaam), the village hopes to
develop into a tourist destination, and will occupy the house for this
purpose.

Barama also donated a computer, complete with printer, to the Ulele
Primary School in the adjoining village of St. Monica.

One of the students said the computer will help the students of the
school to be “on par with the world out there”.

The villages of St. Monica and Kariwab are inhabited by some 1,100
Caribs. Barama operates a 1.6 million hectare forestry concession in
Guyana.

In Region 10… New forestry strategy discussed with stakeholders

In Region 10…
New forestry strategy discussed with stakeholders
By Joe Chapman
Guyana Chronicle, 25 October 2007

MINISTER of Agriculture, Mr. Robert Persaud has implored the people in
Region 10 (Upper Demerara/Berbice) not to be resistant to change,
because what Government is doing is not intended to harm but ensure
resources are available for a long time.

He made the appeal to stakeholders who showed up in large numbers, at
Mackenzie, Linden, for a discourse on forestry, a sector included in
his portfolio.

Commissioner of Guyana Forestry Commission (GFC), Mr. James Singh and
Head of the National Agriculture Research Institute (NARI), Dr. Oudho
Homenauth were in a team accompanying him as the Minister solicited
support from the audience.

Persaud exhorted the gathering of loggers, sawmillers, chainsaw
operators and other forestry producers, some from as far as Kwakwani,
Berbice River, not to resist what may seemingly present itself as an
imposition.

He said the uniqueness of Region 10 and the situation of Linden timber
manufacturers are best represented as the Government, through the GFC.

Persaud said Government is not only looking at the economic benefits
when pursuing forestry development from that standpoint but a lot of
emphasis is placed on the social aspect.

He said the various associations and groupings are not working for
charity as they make money and the GFC has a clear mandate to ensure
there is equitable access to the forestry resources.

Persaud said, when this Government took office, there was an “untidy
situation” in the previous dispensation where forestry resources were
“hugged by a few big players.”

He said this has changed and what is not being seen is that individuals
were brought together as associations and groups to play a role in the
sector as stakeholders and the move has been a successful achievement
by the Government through the GFC.

Persaud said that strategy will be maintained for the resources to be
used beneficially, with certain guidelines that dictate how the GFC
would operate in the future, from the perspective of enforcing
sanctions throughout the country.

The watchword must, however, be “working together” by all involved, to
bring about a change, come 2008, in the forestry sector especially.

Among the concerns raised by many in attendance at the forum was,
perhaps, the possible extinction of the small chainsaw operators with
the new measures to take effect next year.

But Persaud assured that everything is not cast in concrete and the
process will be “fine tuned” although the broad parameters will not be
compromised.

He said, if there are issues, the GFC is willing to receive specific
proposals and fit them into the objectives and goals of the new
initiative, while, at the same time, taking care, in the short, medium
and even long term, of some concerns.

Minister Persaud reiterated that the intention is not to close down
anyone’s operation but to regularise things.

Regional Chairman, Mr. Mortimer Mingo said the Regional Democratic
Council (RDC) is committed to the development of the forestry and
agricultural sectors, including efforts at sustainable activities.

Commissioner Singh remarked that, in the past, the GFC has had a very
good working relationship with the different operators in the Region
and he made a power point presentation on the standardisation of
forestry operations in Guyana.

He said he is looking forward to a “complete buying in” to the GFC’s
new strategy of operations by the Region 10 forestry operators in 2008.