TPL pays $80M fine to forestry commission

Aug 29, 2008 News

…TSA restored

Toolsie Persaud Limited has paid off its $80M fine to the Guyana Forestry Commission, resulting in its Timber Sales Agreement (TSA) being restored.

Kaieteur News was informed yesterday that the timber company paid the fine instead of waiting on a decision by President Bharrat Jagdeo.

Before taking a decision to pay the fine, the company was awaiting a judgment by the President, who has the final say in the matter.

President Jagdeo is the Minister of Forestry, while Forestry is also a responsibility of Agriculture Minister Robert Persaud.

On July 27 last, Minister Persaud had suspended the company’s TSA, stating that the President would decide whether or not to uphold his decision.

A source within the company told Kaieteur News yesterday that a decision was made to pay the fine since the TSA determines the company’s future.

“Without this, we cannot export anything, and this will hamper our operations significantly. Based on this a decision was taken,” the source said.

The Guyana Forestry Commission (GFC) had fined the company $80M after it was found in breach of its harvesting regulation.

However, the company moved to the court preventing the Commission from collecting the sum.
On June 30 last, Chief Justice, Ian Chang ruled that the GFC withdraw its closure notice directed to TPL.
The Forestry Commission had appealed the case but subsequently withdrew that petition last Friday.

When contacted yesterday, Minister Persaud said that he does not wish to comment on the matter but will issue a statement today.

Just after suspending the company’s TSA, the Minister said that TPL is the only logging company that has been reluctant in working with the GFC to remedy the situation with its breaches.

He told the media that many other companies, which were also found committing breaches, have been working with the GFC to rectify the situation and pay their respective fines.

The company was claiming that the calculation of the compensation to the commission was not correctly done but was willing to pay $15M of the $80M.

This offer was refused by the commission. Addressing the issue of how the compensation is calculated, Commissioner of Forestry, James Singh said that when companies are caught breaching the regulation for the first time they are required to pay 1/6 of the market value of the produce to the commission.

In the second instance, 35 percent of the market value of the produce is paid and in the third instance, the entire produce is seized.

The GFC and TPL have been at loggerheads since April of this year. According to the GFC, the breaches, for which the company has to pay compensation, were discovered during a routine post-harvest audit of TPL’s operations in 2007.

Based on the findings in 2007, the GFC said, it has since implemented more intensive monitoring programmes, which have already resulted in one large company being found in breach of procedures in February 2008.

Meanwhile, those other companies that were found in breach and were fined by the GFC were given up to December 31 to clear their outstanding balances.

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 Licences (WCL) renewed. (Tusika Martin)