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BaiShanLin continues to operate through local logging companies
-even as its concessions are repossessed
While BaiShanLin Forest Development Inc is all out of State Forest Exploratory Permits (SFEP), it continues
Auditor, Anand Goolsarran
to operate through its alliances with local companies.
The forensic audit report into the operation of the Guyana Forestry Commission (GFC) prepared by Anand Goolsarran exposed that BaiShanLin grabbed five major Guyanese companies in the forestry sector. These companies are Sherwood Forrest Inc, Haimorakabra Logging Co., Wood Associated Industries Co. Ltd., Puruni Woods Inc. and Kwebanna Wood Products Inc.
With all of the SFEPs expired, the company is depending solely on the local joint venture entities.
BaiShanLin had two SFEPs (01/2011 and 01/2013) covering 104,768 and 73,015 hectares respectively. Both have been extended on various occasions.
And this is even in the face of the fact that BaiShanLin was not qualified, in the first place, to be issued an SFEP because it failed a number of requirements, including audited financial statements for five years.
Goolsarran said that the very extensions were against the Forestry Act. Those extensions were given under GFC’s previous board.
Goolsarran had also noted that one of BaiShanLin’s extended permits expired on November 4, 2015, but there was no board in place to address the issue. The new Board subsequently decided against renewal.
The final SFEP that the company had in its possession came to an end on Monday. That, too, will not be renewed, according to an official.
Managing Director of BaiShanLin, Chu Hongbo
A forestry official said, yesterday, that while the cease order that Government placed on BaiShanLin does not apply to the other companies under its control, no logs have been shipped out of the country over the past two months.
“According to our records, neither BaiShanLin nor the local partners under its control has shipped out logs within the past two months. We understand that there is logging going on (through the acquired companies) but nothing has been shipped out,” said the official.
The forensic Auditor, Goolsarran had recommended in his report that since the Forests Act prohibits the transfer of ownership/control of a forest concession without the specific approval of the Commission, then the five concessionaires that have transferred such ownership or control to the officials of BaiShanLin should be made to surrender their concessions to the Commission for reallocation to other potential concessionaires.
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