Second forestry company fined - reports

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Second forestry company fined - reports
Stabroek News, Thursday, November 15th 2007

A large local logging company was yesterday fined approximately $21
million by the Guyana Forestry Commission (GFC) over similar breaches
for which Barama Company Limited was fined $96.4 million last month.

(Barama yesterday agreed to pay its fine [See story on page 3].)

This newspaper understands that the fine was levied at a meeting at the
GFC. Efforts to get confirmation as to the name of the company that had
been fined proved futile last night.

Barama agrees to pay $96.4M forestry breaches fine

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Barama agrees to pay $96.4M forestry breaches fine
Stabroek News, Thursday, November 15th 2007


Barama Company Limited (BCL) announced yesterday that it will pay the
Guyana Forestry Commission (GFC) $96.4 million fine for a number of
breaches related to under declaration and falsifying documentation of
product origin committed in third party concessions.

"BCL has agreed in good faith, without prejudice and without admission
of liability, to pay a total amicable settlement of approximately $96.4
million (ap-proximately US$470,000).

The decision to make immediate payment follows numerous discussions
with the Government of Guyana," the company said in a press release
issued yesterday.

BCL said it had cooperated fully with the GFC's investigation and in
certain areas, there were some breaches by several low-level staffers
harvesting in areas where permits were still being processed.

"The company takes the allegations very seriously and is committed to
engage with the GFC to a comprehensive review of the timber operation
procedures and improve the processes going forward. I want to revamp
the whole system and work positively with the government to further
develop and contribute to this industry and country," Peter Ho, the new
Chief Executive Officer at BCL, said in the statement.

The company said five operations personnel were suspended until further
investigation.

"The company does not rule out further suspension after the internal
audit which is currently in progress," the release said.

The release said the company also intends to work with the GFC to
resolve any other outstanding matter currently under investigation.

BCL was on October 22 slapped with $96.4 million in fines, for breaches
in three third-party concessions.

The GFC dismissed two field officers resident at the locations for
ineffective monitoring and all three sub-contractual operations with
the three companies holding the concessions have been suspended.

On September 25, Minis-ter of Agriculture Robert Persaud had announced
that the GFC had launched an investigation into suspected cases of
under declaration of forest produce harvested, and false declarations
about the origin of forest produce harvested.

This announcement followed on the heels of a revelation in July that
the GFC had discovered that there were procedural breaches with regard
to the under declaration of forest produce harvested and false
declarations with respect to the origins of forest produce involving A
Mazaharally and Sons Limited, Barakat Timbers and Trading Company
Limited, Barama and N. Sukul and Sons.

According to a GFC press release, 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 a 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, was evidence of unauthorized
harvesting and extraction of forest produce. Plus, the GFC found that
the harvesting operations on the ground were 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 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.

Barama given guidelines to begin audit

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Barama given guidelines to begin audit
Stabroek News, Wednesday, November 14th 2007

Barama has been given a number of guidelines by which it has to
commission an audit of its operations in the wake of a number of
findings which an investigation unearthed some weeks ago leading to the
company being fined $96.4M.

The Guyana Forestry Commission (GFC) and the Agriculture Ministry, some
months ago, began an investigation involving Barama and a number of
smaller forest operators after the GFC's systems checks revealed
instances of under-declaration of forest produce and false declarations
of origin.

Speaking to this newspaper recently, Minister of Agriculture Robert
Persaud said the company had a limited time by which to agree and
accept the guidelines for the independent investigation.

Upon the revelation of the findings, the company had indicated that it
was willing to bring in auditors from overseas to find where the faults
occurred. Barama has been meeting with officials of the GFC and the
ministry over the last weeks with a view to bringing the impasse to a
speedy end.

The company has a self-imposed ban on speaking to the press. But, in a
statement soon after the revelations, Barama maintained that any
anomalies discovered were unintentional and were the result of
operational realities and practices and made the point that it was part
and parcel of operating in any dynamic and geographically challenging
industry.

The statement said that over the past 15 years of operation in Guyana,
Barama has endeavoured 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.

President Bharrat Jagdeo, speaking at a recent event, said that if
entities like Barama couldn't follow the rules then they would have to
leave, in keeping with the administration's recent tough stance on
forestry defaulters and the President's commitment to making the
country's rainforest available to fight climate change.

Persaud had said that an interim supply arrangement for the plywood
factory would have been put in place but this would have been
predicated on the ending of sub-contractual arrangements for logs from
other concessions since Barama is believed to have large enough areas
of concession. However, he said that must be done through a process
based on constructive engagement rather than manipulation of issues and
processes and the issuance of threats and reckless statements.

So, what is the extent of money laundering?

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So, what is the extent of money laundering?
Stabroek News Editorial. Monday, November 12th 2007


In his address to the annual awards ceremony of the Guyana
Manufacturing and Services Association (GMSA), two Saturdays ago
President Jagdeo challenged the widely held belief that a significant
part of the economy is being buttressed by laundered money. He referred
to a statement made by a member of the private sector that 80% of the
economy was based on drug money.

"I don't have a problem with anyone making that assertion", the
President said, adding however that when the annual US State Department
Report on the narcotics trade and laundering had been published he had
called the US embassy and asked how the figure contained in that report
had been estimated but was still to receive the methodology.

"The wild assertions are not enough", the President thundered adding
that in 2006 there was an inflow of US$1.02B inclusive of remittances
and "I don't have here a line called drug money".

We agree that wild assertions are not acceptable but perhaps amid the
friendly and warm environment in which he made his declaration
President Jagdeo might have forgotten that he is yet to tell the
country what he knows of the extent of money laundering in the country.
Is it 80% of the economy? The President says no. Is it 60%, 50%, 10%?
Or doesn't he know or want to know?

And that is the crux of the matter. As long as the President and his
government continue to deny that there is a money laundering problem it
will always be the elephant in the room and any number of persons will
essay attempts at determining its size and characteristics.

In countries like Guyana which have unwittingly and unwillingly become
intermediaries in the supply of cocaine, the onus is on the state to
determine the extent of the problem and to craft solutions. It is not
the role of the US State Department or the US embassy or the
businessman at the private gathering.

This is where the President's attempt to denounce the money laundering
argument amounts to mere bluster and rhetoric. His governments - he has
now been President for nine years - have abjectly failed to install the
legislative and enforcement machinery needed to effectively crack down
on the drug trade. The result has been that conditions enabling the
drug trade and money laundering have thrived. The numerous edifices
that have sprung up around the retail, sport and other sectors beg the
question of how the size of their investments could be matched with the
low growth economy and generally depressed business.

Two years after he became President, the Money Laundering Act was
passed in 2000. Five years after the passage of that Act, the
government was still promising the full operationalisation of the
Financial Intelligence Unit (FIU) provided for under the Act and
pledging to implement the necessary regulations, staff the unit with
the required experts and make it an autonomous agency.

2007 is now drawing to a close and the government is still to live up
to its promise to replace the still-born 2000 Act with a new one which
caters for asset seizure and forfeiture. Can this government really be
serious about finding out about the extent of money laundering and
acting against it?

There has not been a single prosecution under the 2000 Act and the FIU
has never been heard from or the fruit of its labours presented to the
public. And there is no doubt that the drug trade has flourished and
that the fight against it is being waged at US and other foreign ports
and in courtrooms in the US and further afield, but not in Georgetown.
The evidence is there in the cargoes of cocaine that have been seized
abroad after being shipped from Guyana in a variety of now famous
containers: timber, rice, coconuts, molasses, fish, etc. The evidence
is also there in the courtroom deliberations and revelations mainly in
New York.

It was only on Thursday that the Acting Crime Chief made bold to say
that the police believed that indicted businessman Roger Khan had been
involved in drug trafficking. Over that period of time did the
government and its FIU ever try to determine whether Mr Khan's business
operations here had legitimate underpinnings? Or gather evidence
against him while he allegedly assisted in the crime fight? Did it do
this for any of the other business persons held in connection with
drugs? Thus far, the government's fight against drugs has been a sham.

There is also another serious consequence of this dereliction of duty
and insouciance. The last 10 years or so have been littered with
inexplicable killings and other bloody violence more than likely the
result of narco-terrorism. The unwillingness to act against the drug
trade may have brought ephemeral benefits in the form of money pumped
into the economy, but it has also exacted much violence, bloodshed and
death.

The public awaits the swift activation and enlivening of the new money
laundering legislation.

Labourer, 19, drowns near Rockstone - after Toolsie Persaud boat sinks

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Labourer, 19, drowns near Rockstone
- after Toolsie Persaud boat sinks
By Iana Seales
Stabroek News, Tuesday, November 13th 2007


Rabrindranauth Inshanally in younger days.

A boat, transporting goods and staff attached to Toolsie Persaud Ltd's
(TPL) Anarika location, sank in the Essequibo River early Diwali
morning resulting in the death of a 19-year-old man.

Rabrindranauth Inshanally of Lot 405 Diamond New Scheme, East Bank
Demerara, separated from a group of five when the boat went under and
was missing for two days. His body was found on Sunday near the river
bank a short distance away from his work site.

Reports are that the boat began taking in water between Anarika and
Rockstone on the Essequibo River. Because of its excess weight, the
boat was quickly submerged.

The cargo was lost and the passengers floundered, as there were no
lifejackets on the boat.

Inshanally's colleagues told his relatives that they all grabbed onto
items from the boat to stay afloat in the water. However, a few minutes
later, they heard Inshanally screaming that the barrel he was holding
onto was too slippery.

When Stabroek News contacted TPL yesterday, the Managing Director and
Human Resources Manager both said the incident fell under the company's
Interior Location Section and directed all queries to that manager,
Avinash Persaud. There was no response to telephone calls and messages
left at his office yesterday.

Recounting details of the incident as they were relayed to her, Shamin
Inshanally, the young man's mother told Stabroek News that her son lost
his grip of the barrel and started drifting away from the group. She
said no one could help him so he drifted further away, out of sight and
hearing.

She said they were travelling in a small boat with an engine, which
belongs to the company and would take employees to the interior
location after they would have travelled to Linden. She said that
according to the information she received, the boat usually only
transported people and cargo was ferried in on a pontoon. However, for
some reason, she said, the boat her son was in was carrying goods.

"I get to hear that goods don't travel with people but that boat with
my son had rice and all kinds of bag so the water started to get in.
Then it duck and my son try to stay above water but he couldn't make
it," the woman related.

Shortly after the boat sank, she said, a passing fishing boat rescued
the other persons in the river and the rescuers briefly looked for her
son but were unsuccessful in locating him. The rescue boat transported
the others to TPL's site at Anarika where the accident was reported and
news was conveyed that Inshanally had separated from the group.

A relative who travelled to Anarika to search for the missing man on
Sunday told this newspaper that persons on duty at the worksite
declined to go out with the company's boats and mount a search for him
in the river because the person in charge was not there to grant
permission. He said the company had a few boats which could have been
used but since permission was an issue no one went out.

He said a few persons in the area who had boats searched for the
missing man on Saturday but there was no sign of him anywhere. On
Sunday, when relatives journeyed to the area, he said, a search team
from TPL met them on the river and told them Inshanally's body had been
found.

The man expressed concern that since Inshanally disappeared on Diwali
morning no search boats went out for him from the company. He said too
that they were still trying to ascertain why no lifejackets were on the
boat. According to him, residents in the area reported that a
16-year-old was acting as boat captain. He said the boy was not
licensed, based on what the people said, and should not have been
driving the boat.

He added that the family would also like an answer in relation to why
the goods were being transported along with the people. He said this
was not the regular practice and it proved extremely dangerous
resulting in Inshanally's death.

Shamin Inshanally told Stabroek News that her son had only returned
home on Wednesday and spent a brief period home, leaving for Anarika on
Thursday. The woman said after she received a call on Friday last about
the accident she telephoned TPL and asked for a confirmation in
addition to any other information the company had at the time.

She said someone at the company took her telephone number and promised
to return a call before the day was out. The person never called her.

"My son work with them for a few months yes, but that is no way to
treat someone. I ain't hear from them yet but after I bury my son, they
will hear from me," the woman said. She told Stabroek News that her
eldest boy also works with TPL.

He was on location at Anarika when the incident occurred and left
immediately on learning of the incident. He returned to the city after
his brother was found.

Rabrindranauth was the second of four sons. The mother said he was a
sweet young man who took up the job to join his older brother who has
been with the company for some two years.

FPA hosts special forum to review critical issues

FPA hosts special forum to review critical issues
Kaieteur News, 13 November 2007
The Forest Products Association recently held a special meeting to
review outstanding issues, examine the current state of the entity, and
to report on the Associations representations to government on issues
such as Log Export Policy which could impact adversely on the industry.
The venue was the Kings Plaza Hotel.

The forum was attended by a wide cross section of the industry
inclusive of major producers operating timber sales agreements, holders
of wood cutting leases and state forest permissions, small produces,
saw millers, timber dealers, lumber yards and sawpit operators.

According to a press release, discussions coming out of the meeting
also dealt with findings of the Association's Technical Sub-Committee
with regards to the government's recent introduction of new policies
and procedures for saw millers, sawpit operators and others.

The meeting endorsed the FPA's call upon government to take a balanced
approach towards the future development of the industry and to
recognize that sustainable trade of forestry products is achievable
only when there are a sufficient and readily available incentive to
modernize and expand the industry in response to real commercial export
and domestic demands.

A unanimous call was made for the Forestry Commission to consult more
closely with the Association as the industry's representative. In this
regard, concern was expressed that the industry is not represented on
the new Board of the Forestry Commission, while it was also noted that
many proposed charges were either not discussed, or implemented without
adequately consulting the industry.

Another issue addressed as reported, was the fact that the industry is
not represented on the new Board of the Forestry Commission.

At the meeting it was maintained that important issues like Guyana's
recent offer to place its forests at the disposal of the international
community for “the world's battle against climate change” was not
discussed with the country's stakeholders, especially the forest
industry, which, it was stressed, would impact on the livelihoods of
over 25,000 people dependent upon production of those forests.

Discussed at length and in detail were recent announcements by the
Minister of Agriculture to impose new procedures and policies for wood
processing standards to be implemented in 2008.

While acknowledging that timber grading rules for hardwoods had been
formulated since 1973, and most recently published in 2002, and
reviewed in 2005, the particpants noted that these rules are solely for
the purpose of grading the quality of the timber product for the
customer or market.

According to the FPA, the Forestry Commission is however, now seeking
to enforce standards and conditions for production governing a license
to operate which are compulsory and have an entirely different purpose
to the grading rules.

The Association indicated that the Commission in its publicized
consultations with the saw millers has delivered an ultimatum on an
achievable recovery rate of 75% in sawmilling and also the use of
bandsaw technology, which has nothing whatsoever to do with timber
grading rules.

There was also the firm opinion that grading, cutting, moisture content
and other related issues are determined by market forces, whereas
recovery rate is set by the products' sizes and quality, and most
importantly by the quality of log input which, in Guyana 's case, is a
hugely variable and unpredictable factor.

The report of the FPA's Technical Sub-Committee established to examine
the proposed Policies and Procedures and which was presented to and
endorsed by the Meeting, observed that many of these standards and
conditions presented by the Commission are wholly impractical, have
been introduced without sufficient technical research and consultation,
and, if enforced, will result in considerable confusion and dislocation
in the industry.

The FPA informed that the Forestry Commission has agreed to meet with
the its Technical Sub-Committee to examine its findings and
recommendation, but has, however so far postponed two scheduled
meetings.

The forum's participants resolved that the FPA make every effort to
persuade the GFC and the GGMC to establish a protocol to regulate the
coexistence of mining with timber production in forestry concessions
and recommended that the FPA approach the G&DMA to establish a common
and mutually agreeable position on the conflicting interests of the two
industries.

The meeting concluded with an appeal to all members of the forest
industry to join the FPA to strengthen the representative voice of the
industry.

Preparations heighten for Bali climate change conference

Preparations heighten for Bali climate change conference
Kaieteur News, 13 November 2007
Incentives for the country's standing forests will be among the major
proposals to be put forward by Guyana at the 13th Conference of Parties
(CoP13th) to be held as part of the United Nations Climate Change
Conference in Bali , Indonesia , next month.

The Bali Conference will be a culmination of a momentous 12-month
climate debate and is expected to encourage a breakthrough in the form
of a ‘roadmap' for future climate change deals.

The ‘Bali Roadmap' is aimed at establishing a process to work on key
building blocks of a future climate change regime, including
adaptation, mitigation and technology cooperation and financing the
response to climate change. Minister of Agriculture Robert Persaud
explained that the proposal seeking incentive takes into account
conservation and preservation of the standing forests within the
context of Guyana 's developmental needs.

This position, previously outlined by the President, indicates that
countries such as Guyana which is among the world's top six States with
largest forest cover and in which there is still 36 percent unallocated
forests, should be compensated for its contribution to stalling the
effects of climate change.

Another proposal that will be presented by Guyana is the need for more
support for adaptation measures. This will be made in the context of
the country's vulnerability, taking into consideration Guyana 's
location below sea level and the high cost associated with implementing
and adjusting various projects and plans to ensure adaptation.

It is expected that following the (CoP13th) there will be more support
from the international community for adaptation to climate change
measures in developing countries such as Guyana .

Support with the access to technology will also be part of Guyana 's
position at the conference since it is recognised that the cost of
technology and access to such facilities can be a deterring factor.

Minister Persaud expressed optimism that the response and outcome of
the CoP 13th will be favourable for Guyana , taking into consideration
the greater level of awareness and acceptance of the impact of climate
change on the world. Reference was made to the UN's Secretary General's
commitment to prioritise climate change as part of his mandate.

“Climate change is no longer an issue beyond our heads. It is a reality
and we have seen the impact with sea level rise, erratic weather
pattern which resulted in flooding in 2005 and 2006 and increase in
temperature,” Minister Persaud said.

“The CoP 13th has to be seen in the wider context of developing a
post-Kyoto Protocol framework and we must ensure that very early,
Guyana's positions and the views of our partners are reflected in that
framework, which must address emergency awareness in which the whole
world must tackle the effects of climate change,” he added.

Preparations for Guyana 's participation in the conference are
intensifying as stakeholders' contributions are being mobilized
nationally, regionally and further at the multilateral level to gain
support for the country's position. This will be presented at several
major upcoming events such as the Regional Meeting of Ministers,
Commonwealth Heads of Governments Meeting in Zambia and the
International Parliamentary Conference on Climate Change to be held
shortly.

Over the past years, various activities were undertaken by Government
to aid mitigation and adaptation to climate change in Guyana . These
include reactivation of the National Climate Change Committee,
establishment of the National Climate Unit and engagement with various
multilateral and regional bodies to address issues at the planning and
project levels.

Additionally, the administration has been increasing the network of
climate monitoring stations and has been designing and constructing new
sea defences to accommodate varying sea levels. The rip-rap design
allows the raising of defences to prevent overtopping.

It was also noted that further studies on climate change impact and a
climate change vulnerability country assessment in agriculture, will be
conducted.