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Agri Minister serves ultimatum on indebted forest concessionaires
Forestry concessionaires, who were fined by the Guyana Forestry Commission for breaches in harvesting regulations and had agreed to pay but have so far failed to honour those obligations, were yesterday given up to December 31 to clear their outstanding balances.
Yesterday, Minister of Agriculture, Robert Persaud, along with Commissioner of Forestry, James Singh, met with a number of representatives from the defaulting companies to discuss the issue of payment of the fines.
All of the companies also have until the end of September to submit post-dated cheques for their outstanding balances.
Should the fines not be paid then companies will not have their Timber Sales Agreement or Wood Cutting Licenses (WCL) renewed.
Yesterday, Minister Persaud told the group that Barama Company Limited, Guyana Sawmills, Interior Forest Industries and Caribbean Resources Limited have all paid their fines.
Demerara Timbers, he said, was fined $8.5M but have an outstanding $5.7M to pay. However, during the meeting yesterday, the representative from that company told the Minister that based on the payment agreement the company has with the GFC, they still have another four months to complete their fines.
Wood Associated Industry (WAICO) was fined $500,000 but only $150,000 was paid.
Mazaharally & Sons, the Minister said, has made no efforts to pay the $11.2M which they were fined.
At the same time, Kurunduni, despite agreeing to pay the $2.6 M fines imposed, is yet to make any payments.
Minister Persaud also pointed out that Nagasar Sawh Ltd was fined $6M. That company had suggested to pay a total of $500,000 a month but is also yet to pay.
Willems Timbers Ltd, Persaud said, was fined $23M and to date no payments have been made.
Of the $1.3 M that was levied against Vergenoegen Sawmilling Industry, that entity has only paid $400,000.
“I am bringing this to your attention because what this has done, it has affected the renewal of TSA (Timber Sales Agreement) and WCL (Wood Cutting Licences) for several of these companies,” Persaud said.
Many of the companies have been operating on a special permit, which the Commissioner has granted, Persaud said.
“I want to give you early notice…since in a couple of months time the year will end and it will not do justice to all of your operations, to the commission and entire personnel management if we still have these amounts outstanding.”
He added that he has recognised that there have been some difficulties in terms of the weather condition and other factors that have affected some of the company’s operation.
Explaining the reasons why Mazaharally & Sons have not made any attempts to pay their fines, a representative from that company told Minister Persaud that of the $11.2M, the company was negotiating to pay only $5M.
However, Minister Persaud pointed out to the representative that the GFC will not change its position.
“We cannot adjust this amount in any way because if we do that we will be interfering with the formula that is used for every other company…if we do that for one company we have to do it for other companies too.”
The decision to have everyone pay their balance by the end of December is only extended to those companies who have been working along with the GFC to pay their fines.
“This does not go to any company that has its matter in court…this facility does not extend to those companies.”
At present, the Minister said, the GFC has been ‘tidying up’ its operations within, with several employees having been fired for breaking GFC guidelines.
“I want us to start 2009 on a clean slate…I hope that we do not have to impose fines on any company,” Persaud said.
He urged companies to be careful and adhere to the GFC guidelines.
The forest concessionaires also used the opportunity to raise concerns about the mining activities in their concessions that are causing production problems.
Minister Persaud has agreed to have the GFC meet with the Head of the Guyana Geology and Mines Commission along with the Guyana Lands and Survey Commission of discuss these issues.
Also yesterday, several concessionaires met with Minister of Home Affairs, Clement Rohee, to discuss security issues within their concessions and the interior. (Tusika Martin)
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