Latest update November 5th, 2024 1:00 AM
Financial records never showed Chinese Govt. as part of BaiShanLin –Forensic Auditor
It appears that directors of Chinese logging company, BaiShanLin, were not as forthcoming as they should have
Chartered Accountant, Anand Goolsarran
been to authorities in Guyana about who really are the principal owners of the company.
During an interview with Kaieteur News last year, Managing Director of the company, Chu Hongbo, revealed that approximately 51 percent of the entity was owned by the Government of China.
In fact, Minister of State, Joseph Harmon recently revealed that the Government of China actually has a 55 percent hold in BaiShanLin through a company called Long Jiang Forest Industries Group. This company is situated in the Heilong Jiang Province of China.
Harmon said, “The Long Jiang Forest Industries Group is a state-owned company that had acquired 55 percent of the shares in BaiShanLin and is intended to fully take over the company in 2016.”
But this is in stark contrast to a forensic audit report which was conducted by Chartered Accountant, Anand Goolsarran. In his report, the forensic auditor said that BaiShanLin was first incorporated in Guyana on September 20, 2006 under the Guyana Companies Act 1991.
Goolsarran noted that the company listed three persons as its only shareholders/directors. These persons were Chairman, Chu Wenze, Managing Director Chu Hongbo, and Director Zhang Li Na.
Never once did it state in its statements to the Guyana Forestry Commission (GFC) or to the Deeds Registry or even in its financial records that the Government of China was ever a shareholder in the company.
Goolsarran emphasized, yesterday, that the Chinese company only listed three individuals owning and operating BaiShanLin as well as taking over five other major logging companies.
Managing Director for BaiShanLin, Chu Hongbo
The forensic auditor said that this company has literally “fooled the nation” while enjoying millions of dollars worth in concessions, the grant of an exploratory permit covering a period of six consecutive years whereas the law allows for a maximum period of three years for such a permit among other “premium” privileges.
Taking into consideration that the Chinese company has failed to fulfill its obligations to Guyana, and the fact that the Forests Act does not permit a renewal of a SFEP at the end of three years, the contract with the company, Goolsarran said, should be terminated forthwith.
Goolsarran also recommended that State forest should be returned to the Commission for reallocation.
In addition, he said that the coalition administration should consider terminating the investment agreements with the company and recover the value of the fiscal concessions granted to it.
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