Govt. seeks legal advice on BaiShanLin’s operations – Trotman

-company’s operations almost at standstill
Government is not rushing in to deal with what has widely been seen as breaches by Chinese-owned

Committee Chairman, Odinga Lumumba

logging company, BaiShanLin Forest Development Inc.
Rather, any action would have to be guided by legal advice which the new Government has requested.
The statements were made yesterday by Minister of Governance, Raphael Trotman, when he appeared before Parliament’s Sectoral Committee on Natural Resources to talk about work under his watch.
BaiShanLin’s operations have been facing Government scrutiny with local businesses complaining that the company is muscling in on their territory, wrongfully using equipment granted under concessions. The problem is that the concessions were granted for logging and local analysts are arguing that the company is breaching its agreement when it competes with equipment, which includes scores of trucks, excavators, skidders, barges and road-making equipment.
Yesterday, Chairman of the Committee, Odinga Lumumba, who is from the Opposition, questioned Minister Trotman whether it is the plan of the government to specifically “isolate” BaiShanLin and look at its activities.
The coalition government, which took office in May following early General Elections, had vowed to look at the arrangements that Government has with the company.
Trotman, who was accompanied by Department Heads under his supervision, stressed that the Memorandum of Agreement (MoU) was signed by former Minister of Finance, Dr. Ashni Singh, “so strictly speaking it is not a Natural Resources issue.”
Also present at the proceedings was Minister of Finance, Winston Jordan.
Rather, the arrangements appear to be a “bilateral one” between Singh and that company.
Trotman disclosed, however, that the agreement suggests that BaiShanLin came here to do wood processing.
“As to whether or not there was a restriction that they must enter or not into any other activity, I can’t say because I have not seen that as that would require a legal opinion.”

Minister Raphael Trotman and his team, testifying before the Parliamentary Select Committee yesterday. At right is Finance Minister, Winston Jordan. At left are the Opposition’s Parliamentarian, Neend Kumar and Yvonne Pearson.

Trotman said that he was aware of media reports that the company is competing in hauling stones using its barge, apparently for hardware giant, Toolsie Persaud Limited. Recent photos published by Kaieteur News, suggest the company is quite busy making weekly trips with local operators saying they have been forced to cut staff as work dries up.
Trotman said that legal questions are being raised on whether BaiShanLin should be allowed and whether the Department of Natural Resources and the Environment should intervene.
“These are things that will require legal opinion. We have solicited them and we are waiting. We are not going to rush in a wild…manner based on what is reported in the press. Because, as I said, an MoU aside, it could be that a company once it is lawfully registered and maintained in the Companies’ Registry, may do other things.”
He declined to speculate and said that the legal advice is being awaited.
However, the company is facing other troubles, the official disclosed.
BaiShanLin has been blocked from exporting logs and there is a current ban on the shipping out of Locust wood, which is popular in the furniture business. Manufacturers have complained of shortages in the market, forcing Government to step in.
Responding to questions about complaints by Region Ten residents, of roads deteriorating in the face of BaiShanLin’s operations in that area, the Minister said that the Company’s activities are down to a minimum.
BaiShanLin has been here almost a decade now.
Its gated housing community at Providence is at a standstill and a nearby mall is standing desolate with no work ongoing. The Company said almost US$70M of a US$140M financing from China Development Bank is in limbo because of negative publicity over the past year.
The BaiShanLin situation has raised questions about the country’s capacity to handle large-scale investment, to ensure Guyana gets the best deal.
BaiShanLin is 51 percent owned by the Chinese government.
It local principal, Chu Hongbo, was granted Guyanese citizenship last year.