Majority of smuggled gold taken to Suriname via planes

Aug 28, 2015 News

– GRA launching probe, vows action

One day after Government confirmed that a major investigation has been launched into a huge gold smuggling racket that has been negatively impacting the economy, there are more details emerging about the secretive trade.
The Guyana Revenue Authority (GRA) has stepped into the matter, too, yesterday saying that the tax collection agency is concerned about the revelations and is launching its own probe, while stating that the possibilities of Customs officers being part of the scheme is unlikely.
Initial indications were that 10,000-15,000 ounces of gold were leaving Guyana weekly – the majority for the US. It appears now that the Suriname route has been the one preferred by both illegal and licenced traders.
Illegal traders, according to Government officials and investigators, used planes at the Ogle Airport to take the gold to Suriname, without even declaring what was on board.
Other traders, some of them licenced, also preferred to fly direct to Suriname with their precious cargo, under-declaring the amounts or sometimes not declaring it at all.
Sometimes the flights were officially filed to fly to Berbice but instead, the planes ended up in Suriname.
Quite a significant amount of gold, not declared to the Guyana Gold Board and other authorities, was also being flown to neighbouring Brazil.

A significant amount of gold is being smuggled to Suriname, Government officials say.

Minister Raphael Trotman

The extent of the smuggling rackets, involving several licenced traders and independent operators, has the new Government worried because of the taxes and royalties being lost, amounting to billions of dollars annually.
Officials knowledgeable about the rackets said that investigators should examine paperwork relating to the gold being declared in Guyana by the traders as against what is declared in countries like the US, Suriname and Brazil. It would most likely also reveal a significant number of under-declarations on official documents in Guyana.
LOOPHOLES
“The problem is occurring right at the airports in Guyana. You would not dare take a chance outside of Guyana; thinking of fudging the records or lying to authorities. All the loopholes are happening right here at the Ogle Airport and at CJIA. What we are hearing about is only a tip of the iceberg!” one official emphasised.
The official disclosed that Guyana is losing big time in another way. Licenced traders and others returning with large amounts of cash have found ways not to declare the monies when they return from the US and other countries.
On Wednesday, Government officials confirmed that a major investigation is underway into the smuggling of gold from Guyana.
The new administration was reportedly alerted to the organised scheme by the US Government who became alarmed after noticing a surge of gold being taken to that country.
While it is not a new thing to Guyana, gold smuggling has seen a sharp spike over the last two years, as world market prices fell. Already for this year, the industry has recorded a 30 percent drop in declarations.
Last year, declarations fell to 387,508 ounces from a high of 481,000 ounces in 2013. Foreign currency earnings from the gold trade also saw a sharp reduction from US$716M in 2013 to US$470M last year, a big dent for the country’s revenues.
The Guyana Gold Board has been reporting falling declarations which was blamed on miners leaving the industry because of poor world prices. The extent of smuggling has not been known until now, with Government being told that the industry was in deep trouble and needed help.
The US Government has reportedly yanked the visas for a number of licenced traders and other businessmen involved in the trade.
It is believed that at least US$500M in gold is being smuggled annually.
The smuggling involved independent traders who have been taking smaller amounts of up to 200 ounces out on direct flights to the US.
Government has called in the Special Organized Crime Unit (SOCU) to investigate the racket.
On Wednesday, Minister Raphael Trotman, who has responsibilities for Natural Resources, disclosed the reduction of gold smuggling is a major priority for the administration.
PERTURBED GRA
Yesterday, GRA in response to news of the smuggling racket said it is most perturbed by recent revelations in the press about an organised gold smuggling racket, and the implication of Customs officials in the malpractice.
GRA said it has been battling in the past to weed out officers who were involved in wrongdoings.
The entity said that, based on the roles and responsibilities of Customs officers, particularly at CJIA and other ports of entry, it is quite baffling to the authority that officers would be embroiled in the illegal gold smuggling ring.
“Nevertheless it is GRA’s view that every person or agency in question should cooperate with the authorities and avoid speculation.”
The agency explained that passengers are allowed with gold jewellery without declarations once it does not exceed a certain value.
“On the other hand those in possession of raw and scrap gold and those with gold in commercial quantities, must make the required declarations. In such instances, the declaration must be accompanied by an approved import licence and permission from the Guyana Gold Board with an attachment stating the price, weight and other particulars of the shipper and consignee.”
GRA admitted that there is a likelihood of persons taking advantage of this allowance to elude Customs officials.
“As such, the support from other enforcement agencies such as the Customs Anti Narcotics Unit (CANU) would be integral given the pervasive nature of smuggling. Customs Officers at the CJIA do not monitor outgoing passengers’ baggage. This activity is monitored solely by CANU, the Criminal Investigation Department and Special Branch of the Guyana Police Force and airport security personnel.”
GRA stressed that in the event of any discovery, Customs is notified by the relevant agency.
GRA said it will be seeking to ascertain the perpetrators in question to determine what enforcement action will be taken in accordance with the country’s border, trade laws and regulations.
“It is however worth noting that part of the responsibilities of Customs officers at the CJIA include the monitoring of the duty free shop, the incoming and outgoing desk, and the movement and trans-shipment of cargo.”