BaiShanLin’s fails to get another extension to SFEP – Trotman
BaiShinLin may not be granted another extension to its State Forest Exploratory Permit (SFEP) which would
Minister of Natural Resources, Raphael Trotman
have allowed it to operate for six consecutive years on that permit when the law only allows for three.
The reason given for the non-grant by the Minister of Natural Resources, Raphael Trotman, was not the fact that it is against the law to have an SFEP running for more than three years. Instead, the reason given by Trotman was that BaiShanLin did not seek the extension in the right way.
Trotman told Kaieteur News that the controversial logging company made an “informal” request for the extension and on those grounds it was not granted.
To date, the company has been granted two SFEPs (01/2011 and 01/2013) covering 104,768 and 73,015 hectares respectively. This is a breach of the law. And this is even in the face of the fact that BaiShanLin was not qualified in the first place to be issued an SFEP as it failed a number of requirements. These requirements include the presentation of audited financial statements for five years.
The former Board of the Guyana Forestry Commission approved of Baishanlin’s request for an extension of the SFEP, and by letter dated October 28 , 2014, the Commissioner informed the company of the board’s decision.
An exploratory permit expires on the earlier of the expiry date contained in the permit or on the third anniversary of the permit, and by Section 9 of the Forests Act 2009, the renewal of such a permit is specifically prohibited.
There is also no provision in the Act for the extension of an SFEP once the expiry date is reached. Therefore,
Managing Director of BaiShanLin, Chu Hongbo
Auditor Anand Goolsarran noted in his GFC audit report that “the extension granted to Baishanlin in effect constitutes a renewal of the SFEP and therefore is in conformity with the Act.”
Goolsarran also noted that Baishanlin’s extended permit expired on 4 November 2015, but there was no board in place to address the issue.
He added, “According to media reports, the Minister responsible for natural resources indicated that: (a) the company applied for a further extension of two years to enable it fulfill its obligations under SFEP01/2011, especially as regards to setting up of the wood processing facility; and (b) the Government was favourably disposed to approving Baishanlin’s request.
“The Ministry of the Presidency later clarified that no decision was taken 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 said that his time of reporting, the company was yet to submit the requested information. Based on what Trotman said, the company is still yet to do so.
If this second request for extension is approved, the company would enjoy 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
Auditor, Anand Goolsarran
three years for such a permit.