The state-owned Guyana Oil Company Limited (GuyOil), in its recently released annual report for 2017, disclosed that fuel smuggling was seriously denting its revenues.
As a result, its net profit has decreased almost 29 percent.
According to the sales revenues, in 2017 sales were $35.259B, compared to $31.939B in 2016, an increase of $3.32B or 10.39%.
Cost of sales was $30.465B compared to $25.889B in 2016, an increase of $4.576B or 17.68 percent.
The figures would be important as it highlights the kind of money that is involved in the trade.
The biggest import bill for Guyana is hogged by fuel.
Atlantic’s other director, Lear Goring
The shipment of fuel from “Century” was under-invoiced, shorting Guyana millions of dollars in taxes.
The country is losing hundreds of millions of dollars annually from smuggled fuel.
For example, the Guyana Power and Light Inc. spends up to US$100M in fuel imports annually.
The earnings from taxes to Government are more than gold which surpassed US$800M in 2016.
There have been published reports of fuel smuggling, involving fishing boats and even vessels, which attempted to quietly and illegally off-load their precious black gold while moored in the Demerara River.
The risk is minimal compared to the millions of dollars in profits–once you are not caught.
There is evidence now that a company owned by one senior government official is the subject of an investigation by the Guyana Revenue Authority.
At the centre of the probe is Atlantic Fuel Inc.
This company is owned by Dr. Richard Van West Charles. One director is Lear Goring.
Goring was the former Debt Recovery Unit manager of the Guyana Water Inc., the same state-owned company headed by Dr. Van West Charles.
He was let go by GWI after reports surfaced of a criminal background, which never came up when he was hired.
He apparently remained a business partner of Van West Charles.
According to shipping documents, in October 2018, a company named Cenrutty Maritime LLC, registered at Port Vila, Vanuatu, had a ship name “Century” transport some 4,047 barrels of diesel (equivalent to170,000 US gallons or 639,000 liters) to Guyana.
The Bill of Lading was dated October 19, 2018 with the local customer listed as South American Ship Breaking and Recycling Inc.
The cost would have been US$379,100. The taxes due on this was around US$265,000.
However, according to Atlantic Fuel Customs documents, dated September 28, 2018, for the same shipment, the cost was pegged at US$159,750. The taxes due on this was US$111,825.
As a result, the state lost US$153,175 ($32M) on that shipment.
The documents, which were signed by Goring, listed the address of Atlantic Fuel as 301 Meadowbrook Drive, Georgetown-the home of Van West Charles.
Van West Charles, the son-in-law of former president, Forbes Burnham, had come under the spotlight in 2015 after news that a fuel import licence had been granted to Atlantic Fuel.
The licence allowed the company to import, store and wholesale fuel. It was granted just after a month that the application was filed.
Applicants must satisfy a host of requirements such as an environmental permit and advertisements in the newspapers so that persons living in the area can be notified.
In addition to the Environmental permit, there has to be approval from the Fire Department, Public Health and the local authority.
The procedures to satisfy the requirements could not have taken less than five weeks.
Persons have been complaining that their applications for fuel import licence have been turned down for flimsy reasons.
Last year, Atlantic Fuel reportedly opened a gas station in Bartica, Region Seven.
