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BaiShanLin never had any good intentions for Guyana – Forensic Auditor

April 25, 2016 | By | Filed Under News 

Given the actions of Chinese logging company, BaiShanLin over the years, Chartered Accountant, Anand Goolsarran said that the firm has clearly demonstrated that it never had any good intentions for Guyana.

BaiShanLin’s Managing Director, Chu Hongbo

BaiShanLin’s Managing Director, Chu Hongbo

During an interview, Goolsarran one of the Forensic Auditors contracted by the new coalition administration to audit several government agencies, said that the company has, according to records, called upon the nation’s leaders for leniency when it was not entitled to it and received premium benefits for which it did not qualify.
Goolsarran said that the Chinese company has with its right hand, dangled the idea of a wood processing facility while grabbing with its left hand, the riches to be had from Guyana’s Forestry Sector.
The Chartered Accountant said that it was clear to see from BaiShanLin’s actions over the years that it was only interested in filling its treasure chests and then shipping them to their home country.
“It appeared that they were only interested in filling their pockets regardless of the consequences to be had by the nation. They mercilessly robbed and tricked us,” he said.
To support his argument, Goolsarran referred to some of his findings during a forensic audit of the Guyana Forestry Commission (GFC).
He said that the report documents numerous irregularities which go as far back as 2006, when BaiShanLin International Forest Development Inc was incorporated.
Goolsarran noted that the main stated objective of the company, when it came in 2006, was to set up downstream wood processing operations in Linden and on the East Bank Demerara.
In his audit report, Goolsarran revealed that on November 4, 2011, the Guyana Forestry Commission granted a State Forest Exploratory Permit (SFEP ) to the Chinese company. This covered 104,783 hectares of State forest.
On the surface, everything seemed well with this arrangement. But what alarmed the Forensic Auditor was that BaiShanLin was blessed with the permit (SFEP) for which it failed to meet the necessary requirements.
The criteria the Chinese firm failed to meet included (a) the submission of audited financial statements for the last five years; (b) evidence of technical and financial qualifications; and (c) a history of compliance.
Goolsarran revealed that a key consideration for the grant of the permit was the reassurance BaiShanLin gave the government to build a state-of-art wood processing facility in Linden. It intended to do so since 2006.
The Forensic Auditor revealed that the company had leased 200 acres for this purpose and had given a commitment to complete the facility by the end of 2013, following which the Government of Guyana would make available a further 100 acres for additional value-added processing.
As a condition for the grant of the permit, the auditor discovered that the company was required to carry out an Environmental and Social Impact Assessment (ESIA) before any extraction could begin.

Chartered Accountant, Anand Goolsarran

Chartered Accountant, Anand Goolsarran

It was also required to prepare a business plan and do a forest inventory. However, at the time of the expiration of permit on November 4, 2014, the company had not honoured its obligations.
The auditor said that documents show that BaiShanLin contended that it faced a number of constraints including the need to repair and upgrade roads.
As a result, the Forensic Auditor found out that on October 1, 2014, BaiShanLin requested an extension of one year to fulfill these obligations under the permit and to set up the wood processing facility.
He emphasized however that Section 9 (9) of the Forests Act 2009 specifically prohibits any renewal of such a permit. He said that there is also no provision in the Act for an extension once the expiry date reaches.
In spite of this, the laws of the Forest Act were ignored and the Commission approved BaiShanLin’s request for an extension of the permit.
Goolsarran noted that BaiShanLin’s extended permit expired on November 4, 2015, but there was no board in place to address the issue. He said that Minister of Natural Resources, Raphael Trotman indicated that the company applied for a further extension of two years to set up the wood processing facility.
“The Ministry of the Presidency later clarified that the Government had not taken any decision and that it has requested information from the company about its proposed business plan and evidence of financing.
“Upon receipt of this information, BaiShanLin’s request would be reviewed and a decision taken,” Goolsarran noted.
Up to the time of reporting, Goolsarran said that the company was yet to provide the business plan and evidence of financing.
He said that if this second request for extension is approved, the company would have enjoyed the benefit of the grant of an exploratory permit covering a period of six consecutive years whereas the law allows for a maximum period of three years for such a permit.
Taking into consideration that the Chinese company has failed to fulfill its obligations to Guyana, and the fact that the Forests Act does not permit a renewal  of a SFEP at the end of three years, the contract with the company, Goolsarran said, should be terminated forthwith.
Goolsarran also recommended that State forest should be returned to the Commission for reallocation.
In addition to this, he said that the coalition administration should consider terminating the investment agreements with the company and recover the value of the fiscal concessions granted to it.

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quote "Goolsarran said that the Chinese company has with its right hand, dangled the idea of a wood processing facility while grabbing with its left hand, the riches to be had from Guyana’s Forestry Sector.
The Chartered Accountant said that it was clear to see from BaiShanLin’s actions over the years that it was only interested in filling its treasure chests and then shipping them to their home country."unquote

FM

From the above, it seems like some top officials (Government Minister/s) were taking bribes, but there is no proof.

Now that Bai Shan Lin is in the loop, their contract should be reviewed.

No freeness this time around, every single containers that leave the Guyana Shores should be paid for.

FM

BaiShanLin’s new owner has a history of unsustainable logging –China’s Forests Experts

April 24, 2016 | By | Filed Under News 

A Chinese logging company in Guyana, BaiShanLin Forest Development Inc and another in China, Long Jiang Forest Industries Group, share one special quality. They both have a notable history of unsustainable logging.

Unsustainable logging in China.

Unsustainable logging in China.

BaiShanLin, on numerous occasions, has been heavily criticized by the local authorities for its wanton abuse of Guyana’s forests.
Forensic auditor, Anand Goolsarran, in a recent interview with Kaieteur News said that this company has literally “fooled the nation” while enjoying millions of dollars worth in concessions and the grant of two exploratory permit without meeting the criteria.
The company has also benefited from “premium” privileges under the guise that it would establish a state of the art wood processing facility here. Ten years later and this promise is unfulfilled.
Taking into consideration that the Chinese company has failed to fulfill its obligations to Guyana, Goolsarran, in his recent audit report of the Guyana Forestry Commission (GFC) made several recommendations. The fact that the Forests Act does not permit a renewal of a State Forest Exploratory Permit at the end of three years, the contract with the company, Goolsarran said, should be terminated forthwith.
Goolsarran also recommended that State forest currently controlled by BaiShanLin should be returned to the Commission for reallocation.
In addition, he said that the coalition administration should consider terminating the investment agreements with the company and recover the value of the fiscal concessions granted to it.
But it seems as though BaiShanLin which is currently managed by three directors, will have a new owner. Interestingly, LongJiang which operates in China has a 55 percent hold in BaiShanLin.
It has expressed to the Government of Guyana that it plans to fully take of the company by year end. It has given the coalition administration that it means well. It wants to breathe new life into BaiShanLin.
But this very company has “skeletons in its closet.”
Several Forestry experts have found that LongJiang, which is owned by the Government of China, has “a track record of unsustainable logging.”
The state-owned company operates in the Heilongjiang Province. That area holds some of China’s prime and lush temperate forests.
But after noting the exploitation of the forests in that area by state firms, one of the most powerful being LongJiang, the Government there was forced to halt commercial logging.
China’s Forestry experts have hailed the ban as a major step forward, predicting it will enable timber supplies to recover and shift the industry’s focus towards improved forestry management.
Sheng Weitong, a forestry expert and former advisor to China’s cabinet-level State Council, told chinadialogue that some laid-off loggers “will become forest rangers and learn how to manage forests because the vast numbers of young and semi-mature trees in these districts need management. Workers here neglected forest management in the past.”
“Others will be encouraged to develop alternative industries such as tourism, growing blueberries, ginseng, edible mushrooms, and flowers, or raising chickens and frogs. Existing laws are thought sufficient to tackle illegal logging.”
The ban in Heilongjiang significantly affects Longjiang Forest Industry and Daxing Anling Forestry Company (Anling Forestry), and signifies a shift towards forest conservation, rather than utilization, Sheng says.
The two state-owned companies manage 18.45million hectares of forests, covering 39 percent of the entire province of Heilongjiang, according to the official Xinhua news agency.
The Heilongjiang province, close to the frozen river border with Siberia, had forests which were once so dense that the area was known as the Great Northern Wilderness.
But China’s Forest experts emphasized that more than 50 years of unsustainable logging by state-entities such as LongJiang have led to disastrous deforestation. This has resulted in soil erosion and dust storms. And with fewer trees to retain water, Heilongjiang has suffered devastating floods.
From 2001 through 2012, Heilongjiang lost over 470,000 hectares of tree cover representing more than 2.5 percent of its forested area, according to data from Global Forest Watch (GFW).
The ban comes after years of declining tree cover loss in the province over the past 15 years, from a high of 80,000 hectares lost in 2004 to just under 23,000 hectares in 2012, the most recent date for which GFW data is available.
“A halt here (in Heilongjiang) means an end to the way China has been utilizing forestry resources since 1949, and creates an opportunity for China to move to an era of improved forestry management,” agrees Hou Yuanzhao, a researcher at the Chinese Academy of Forestry, adding that Heilongjiang’s state-owned forests are the center of China’s forestry industry.(Kiana Wilburg)

FM

BaiShanLin, on numerous occasions, has been heavily criticized by the local authorities for its wanton abuse of Guyana’s forests.
Forensic auditor, Anand Goolsarran, in a recent interview with Kaieteur News said that this company has literally “fooled the nation” while enjoying millions of dollars worth in concessions and the grant of two exploratory permit without meeting the criteria.
The company has also benefited from “premium” privileges under the guise that it would establish a state of the art wood processing facility here. Ten years later and this promise is unfulfilled.

FM

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