Combining the links

Govt. doesn’t see it necessary to fully scrutinize deals with China

Welcomes more Chinese investments even at a threat of takeover – President  

By Abena Rockcliffe
It is becoming clearer that Guyana rarely knows fully what it is getting itself into when it comes to deals made with China. That was the sentiment expressed by several politicians yesterday after learning that there has been no proper study on the deals Guyana and China has entered into.

For the last few years China has maintained a heavy presence in Guyana and has been sealing some “attractive deals” as more of its nationals take up residence here.

Yesterday at a Presidential Press conference hosted at State House, Donald Ramotar was asked whether his Administration is even the least bit concerned about the amount of stakes China has in Guyana. This question, which was posed by Kaieteur News, was contextualized against the backdrop of a number of international reports which highlighted a trend in Chinese takeover of developing counties.

Appearing extremely anxious to respond, even before the last word of the question could have been spoken, President Ramotar stated “Absolutely not, I welcome Chinese investments in this country as I would welcome any other.”

He told the media that Guyana needs investments and if one follows the trend around the world, one would notice that the Chinese seem to have capital available to drive the world’s economy

The Head of State even made mention of the controversial railroad that China is building in Africa which would run from the coast all the way to landlocked Uganda and beyond.

The President’s contention is that these developments haven’t been done before and the Chinese are now making it possible, so why not.
He urged the media not to fall for the “populace’ view about criticizing the Chinese; their investments are important to us and we welcome it.”

Questioned as to whether there was a think-tank group to determine if the projects being funded by China were good deals and if this group saw the inclusion of financial experts, the President responded in the negative. He told the media that he was unaware that he had to set up a think-tank group for everything the Chinese proposed. “If the Chinese want to come and build a ship that is working from Berbice to Georgetown, should I set up a think-tank to look at that?”

He added that Guyana has very clear guidelines for investments and that he is not of the opinion that the Chinese are acting outside of these.
The President was also asked if Guyana could have accessed better rates from other banks. He, however, responded that it is quite the opposite, as China offers the best deals. According to Ramotar, “they are far more favourable and the speed at which the Chinese can conclude transactions is especially favoured by the Government.”

Guyana is deeply indebted to China and the country continues to borrow more.

Many nations that fell victim are now beginning to observe China’s strategy. As recent as a few weeks ago, this newspaper published an article that reflected what is happening in other jurisdictions. That piece reflected exactly what is happening in Guyana.The article, which first appeared in the New York Times, highlighted the shady deals and contracts “greased with monetary bribes and other enticements like expense-paid shopping trips to China and scholarships for elite children.”

The article said that natives of Africa have realized the penalties of making certain deals and have begun to doubt that China has their interest in their well being.

The article noted, “The doubts aren’t coming from any soured feelings from African leaders themselves, most of whom still welcome (and profit from) China’s embrace. The new skepticism has even less to do with the hectoring of Western governments, the traditional source of Africa’s foreign aid and investment (and interference).”

In a 2012 speech in Senegal, Hillary Rodham Clinton, then Secretary of State, implicitly warned Africa about China. The continent needs “a model of sustainable partnership that adds value, rather than extracts it,” she said, adding that unlike other countries, “America will stand up for democracy and universal human rights even when it might be easier to look the other way and keep the resources flowing.”

The article also reflected that independent media have played an important role in demanding more scrutiny of government deals with Beijing”…A recent op-ed article in one of Kenya’s leading newspapers, The Daily Nation, questioned whether a huge new Chinese investment in a railroad that would run from the coast all the way to landlocked Uganda and beyond was truly a good deal. The project’s first phase will increase Kenya’s external debt by a third.” That railroad is the same one that President Ramotar referred to.

The New York Times article also noted that Kenya could have sought the financing for a project like this through the World Bank, which would have cost as little as a third of the Chinese commercial loan. But that would have required time-consuming processes, from competitive bidding to rigorous environmental and feasibility studies.

The crux of the problem, according to New York Times, is (though not limited to China) the reliance on “shady arrangements made at the very top of the political system, often in the president’s office itself. Contracts are greased with monetary bribes and other enticements like expense-paid shopping trips to China and scholarships there for elite children. Adding to the opacity, China typically favors its state-owned companies for African projects and bypasses open, competitive bidding procedures.

Logs stockpiled as far as the eye can see (KNews)

Thousands of exotic, expensive Wamara and Purple Heart logs at the Kwakwani site

We need to send someone to jail. This kind of predation only happens to people elsewhere. Now it is in our backyard and we must hold someone accountable.

Norway and other donors are currently paying the GFC “in the region of US$500,000 per year” for Monitoring, Reporting and Verification (MRV) work on forest carbon assessment, on top of the US$3 million received by GFC for MRV to date (see: 2013 Report of LTS International, Ecometrica, Indufor Oy, and Chr. Michelsen Institute. ‘Real-Time Evaluation of Norway’s International Climate and Forest Initiative. Contribution to Measurement, Reporting and Verification,’ pages 47 and 57).

The question Guyanese could well be asking is, why is the GFC not monitoring, reporting and verifying (MRV-ing) the haemorrhage of high-value logs by Bai Shan Lin, and the other Asian log traders with none of the local processing and in-country value-addition required by parliament-approved national policy?

This PPP has a lot of explaining to do. This is one of the reasons they are gong to lose and big. Guyanese never knew that despite their sufferings the Chinese were profiting on their backs as the PPP get rich.

that is not 10 acres. That is closer to 30 acres.

Some of those pictures are troubling, if they are accurate.

We need an official comment for the minister responsible for Forestry. He better hold on thight to his bukta if these pictures are accurate. The Chinese are vicious in their capitalistic ventures.

I avoided this thread for a couple of days now but the pictures are now troubling.

We planted vast quantities of rice in Guyana, that is a lot more than 30 acres. Troubling, very troubling.

Those government ministers must jailed for their gross neglect. The Chinese should all leave Guyana. What is wrong with these government people? 

Bai Shan Lin’s “kickbacks” seem to have silenced Govt. – MP Harmon

  “The government is silent about this immoral and abusive act and there can only be one logical conclusion for that—they are benefitting financially in exchange for allowing the rape to continue. Citizens need to understand the corrupt beast that it (Govt.) is dealing with. It is only a win-win deal for the parties involved and Bai Shan Lin’s kickbacks seem to have silenced the government.” This is the contention of A Partnership for National Unity (APNU) member on the Parliamentary Sectoral Committee on Natural Resources, Joseph Harmon.

Joseph Harmon, APNU Parliamentarian

After seeing the aerial view pictures of huge piles of hundreds of Guyana’s precious logs stocked and waiting to be shipped from one of Bai Shan Lin’s Kwakwani areas, Harmon believes that the evidence showcased by Kaieteur News yesterday is simply “horrendous.” “It is sickening to come to grips with the reality that former President Bharrat Jagdeo invited Bai Shan Lin to this country under the pretext that it was going to foster good developments, and all along the true intention was to rape this country of its resources. This underscores the need for the Ramotar administration to resign en bloc. “They have no interest in protecting the people. They have fooled this country. It seems that this Government is being paid to shut its mouth.” The MP pointed out that at a meeting of the Natural Resources Committee in the Parliament Office, Head of the Guyana Forestry Commission, James Singh, was requested to provide information in relation to the contractual arrangements that Government has with Bai Shan Lin, a Chinese company that has been in the spotlight for several months now, for its questionable activities. Singh, according to Harmon, said that the Commission does not have a copy of the contract. The Parliamentary Committee was referred to the Guyana Office for Investment (GO-Invest) for more information. But when contacted, GO-Invest was not even aware of the agreements. “This is a most serious matter, because we have a Government that is so greedy and selfish that it is incapable of understanding that it has the responsibilities to protect the natural resources of this country.” Commissioner Singh had defended GFC saying that Bai Shan Lin is not operating in an illegal manner, but Harmon contends that he does not trust what the nation is being told about what is legal and what isn’t in this matter.

Workers at the log pond site, east of Kwakwani bauxite mines, Berbice River.

“These companies are just being encouraged to gut this country, and indicators show that Guyana is slipping further into the abyss of poverty.” The Environmental Protection Agency (EPA) had made it clear that Bai Shan Lin does not have permission to cut or log.  In fact, EPA denied ever giving the Chinese company any permission to do logging. A senior official at the EPA explained it is currently in discussions with the company in relation to “scoping”. “Scoping” is another aspect of its Environmental Assessment which Bai Shan Lin needs to complete. This publication understands that once everything is done in accordance with the prescribed requirements, the EPA would grant Bai Shan Lin an “Environmental Authorization Permit.” This would give the company the right to log and harvest timber. Though it is currently without a logging licence, Bai Shan Lin has teamed up with four others in joint ventures to export billions of dollars in logs.

GFC stamped logs awaiting pickup by Bai Shan Lin.

It is in possession of a State Forest Exploration Permit (SFEP) which allows for an Environmental and Social Impact Assessment, not large-scale logging. A Forestry official said that at present, the company should only be engaging in limited exploration logging. In June, Bai Shan Lin submitted an application to the EPA seeking environmental authorization to undertake a large-scale logging and sawmill operation for several areas, including on the left bank of the Essequibo River, along the Berbice River and in Regions Nine and Six. That application is still pending. The Environmental Protections Act of 1996 says that an “Environmental Impact Assessment” is required before any decision is taken to approve or reject a project of this magnitude. EPA had invited members of the public to submit, within 28 days of the notice, questions or objections. It is not clear whether this process is completed. Bai Shan Lin has claimed access to forestry concessions that amount to close to one million hectares of rainforest, from which it plans to extract logs and ship them out of Guyana. However, Government has denied it was that much. The company estimates that it will make US$1,800 from each hectare of land, giving it profits totaling US$1.7 billion, according to redd-monitor.org. Additionally, the company sought permission to dig up a 20-kilometre stretch of river to look for gold. Other plans include setting up what it is called a Guyana-China Timber Industry Economic and Trading Corporation Park, plus a 400-acre real estate development. The plans were announced in 2012 by Chu Wenze, Chairman of Bai Shan Lin, at the Second World Congress on Timber and Wood Products Trade in Taicang, China.

These logs were but part of several piles along the Kwakwani/Ituni trail

Those plans were announced even before Guyana knew of it. The country became aware of what was happening only when Bai Shan Lin officials visited Guyana and held discussions with President Donald Ramotar and other government officials. Redd-monitor.org stated that in November 2012, Chu Wenze’s plans have threatened Guyana’s proposals to reduce deforestation and forest degradation. Bai Shan Lin is part of a group of 11 companies operating in Guyana. They are all part of the China Forest Industry Group (Hong Kong).

Bai Shan Lin ignores local requirement in exporting Locust wood to China

Unprocessed Locust and Crabwood should first satisfy local demand before any such wood can be exported overseas; but this is not the case with Bai Shan Lin. It has been found that the company is planning to export over the course of the next six months, 250,000BM of Locust wood, despite local operators approaching them to buy.

Some of the locust wood ready for shipment to China while local demand is being ignored

On Monday last, Haimorakabra Logging Inc, one of Bai Shan Lin’s companies, wrote to the Guyana Manufacturers and Services Association (GM&SA) to indicate its intention to ship the lumber. Haimorakabra Logging Inc. is now owned by Bai Shan Lin International Forest Development Inc. A representative from a local company had approached the company last week to purchase some of the Locust wood for local consumption. This publication has since been told that Gao Yuan, Manager of the Chinese-owned operations reportedly expressed shock that the Locust wood was advertised for sale since he indicated that it was destined for export to China. According to the letter of intention addressed to GMSA’s President, Clinton Williams, by Yuan, the company intends to ship the wood to Heilongjiang Baishanlin Wood Company Ltd., in China. Government had initially not made known what exactly are their arrangements with Bai Shan Lin. The company is now facing investigations by the Opposition after revelations that it is involved in large-scale logging, even allegedly hiding behind third parties to mask the exports. There have been questions over the company’s involvement in Guyana, with the Ministry of Natural Resources and the Environment appearing in Parliament to answer questions. A look at export figures, unofficially supplied, indicated that for the first half of 2013, some 30,000 cubic metres of timber products were exported. For the first half of 2014, this figure rose to over 50,000 cubic metres. This would be significant as Guyana has introduced what is known as a disincentive scheme – a gradually increasing tax and royalty scheme. Despite the increase in tax, the exports have shot up. The Guyana Forestry Commission itself has not explained the rise in the exports, but industry insiders said that Bai Shan Lin is playing a major part in this. The deals with the company were reportedly signed during the period when former President Bharrat Jagdeo was heavily promoting his Low Carbon Development Strategy which among other things targeted increased tracking of illegal logging.

Ban shai Lin is part own by the PPP cabal.

Residents growing weary of Bai Shan Lin’s exploitation, destruction

– Region 10 Chairman  

What is now being highlighted by Kaieteur News for all of Guyana, and indeed the regional and international communities to see, comes as no shock to Region 10.

Region 10 Chairman, Sharma Solomon.

“Our region has been dealing with this for some time now, but we are pleased that we are no longer fighting alone.”
This was expressed by Region 10 Chairman, Sharma Solomon, as he explained the extent to which Bai Shan Lin International has been going in terms of “the exploitation, disruption and destruction of Region 10”.
In an exclusive interview yesterday, Solomon told Kaieteur News that Region 10 residents and the Regional Democratic Council (RDC), which manages the region, have for years been dealing with what is now being exposed by Kaieteur News.
“For years this region has been fighting for Guyana and Guyanese to be respected by foreign companies. The country must be able to benefit from its national resources.”
According to Solomon, residents dwelling in Coomacka, Moblissa, Bamia, Kwakwani and Ituni can fully attest to the “wanton robbery and destruction of the region’s environment and infrastructure”.
“It’s nothing new to those dwelling in Coomacka, as they know the truth about the processing plant that Bai Shan Lin was supposed to be operating there.”
The Chairman said, that considerable concessions were given to Bai Shan Lin for the plant that the company operated for a few months, but instead closed it and started concentrating on logging in the area.
“We know too that other areas in the Coomacka Mines were almost given away to Asian companies.”
Solomon added that “It is nothing new to the farmers of Bamia (located at the right bank of the Demerara River) who were displaced when Bai Shan Lin was, through NICIL, given concessions to operate there.”
The Chairman lamented that he still does not know what exactly the arrangements are between NICIL and Bai Shan Lin.
Solomon also stressed that there were five meetings between Prime Minister Samuel Hinds and the then head of the Guyana Forestry Commission, Clinton Williams, just to get Bai Shan Lin to respect the people of Moblissa
He noted that the Moblissa people had threatened to block trucks from passing and obstruct operations at the processing plant. Bai Shan Lin was forced to cooperate as a result.
“The people of Moblissa are not the only ones who had cause to stand up and fight for what is right in this regard. The residents of Kwakwani and Ituni also had to protest when they became fed up with the destruction and exploitation.”
Kaieteur News understands that 20 persons were arrested and taken before the courts for protesting on that occasion; 10 of whom remain before the court.
“It’s not yesterday. The RDC has been in constant battle with Bai Shan Lin. For years we have been fighting on behalf of the people,” Solomon reiterated.
Solomon said that the Region is very concerned about the lack of mutual benefits in a case like this and the region does not see the benefits in accommodating a company like Bai Shan Lin “that is all about exploitation, disruption and destruction.”
Solomon told Kaieteur News that at a recent meeting between the RDC and residents of Kwakwani, measures were discussed to deal with the situation. These included Bai Shan Lin fixing of the roads, but “frustration is building and we will have to act.”
NEXT STEP
The Region is now preparing to send letters to the Guyana Forestry Commission, Guyana Geology and Mines Commission and Ministry of Agriculture asking for the names of all companies extracting resources in Region 10.
“There are many other Asian companies operating in Region 10, they too are getting concessions, but the locals are not.”
Solomon believes that Bai Shan Lin is being encouraged to do wrong as it cannot be acting on its own accord. He said that even a very small sawmill has to do an Environmental Social Impact Assessment (ESIA) to ascertain how the dust will affect the community and so forth, but Bai Shan Lin was not required to do so.
“Someone in the government would have said to Bai Shan Lin that it is okay to have such a massive operation without the blessings of the statutory bodies.”
Solomon said that the region will no longer be looking to the Government for answers but instead seek to go straight to the company which has remained uncooperative.
“I recall during the protest on the Ituni/Kwakwani road an Asian gentleman noted, in plain English, that he could have made one phone call and have everything removed with immediate effect. This just shows that the company has representation high up.”

Absolute greed of the Chinese. What the hell they be doing with that many logs. I believe their desire is to deplete the country of its resource and stock pile in China. The Chinese government should intervene as good measure for their foreign policies.

The Corrupt PPP/C Government will not acede to that simply because the kickback will stop flowing.