BaiShanLin’s iron grip on Guyana…Company has tentacles in almost all sectors

May 08, 2016 News

-has 19 companies registered

-businesses include mining, housing, logging, transportation, hardware, etc

Over two years ago, its activities in Guyana came under the spotlight raising concerns about the extent of its presence here.
In Region Ten, along the Upper Berbice River, a huge log storage area was discovered, signaling heavy activities in the area.
It was later revealed that BaiShanLin, a Chinese company, had managed to take control of over 700,000 hectares of forest lands.
The investor, much to the shock of other industry stakeholders, was also given a blank cheque, to the tune of billions of dollars, on tax breaks and duty free concessions. It was also helped by the various government agencies in its acquisitions of several properties throughout the country, some of it on credit and others through questionable means, including joint ventures.
Today, facing public backlash and pressure to reform the country’s systems on how foreign investors are dealt with, the David Granger administration has placed a halt on BaiShanLin’s wood exports. The company has exported hundreds of containers of raw logs over the last decade.
A number of forestry concessions were recently repossessed by the Guyana Forestry Commission (GFC). The Guyana Revenue Authority (GRA), a few weeks ago, seized two vehicles, including a Lexus SUV and van, for outstanding taxes.
The company has failed to honour its commitments in developing a wood processing facility in Region Ten, in keeping with an investment agreement.
This was despite collecting US$70M in a loan from a Chinese bank to conduct its logging activities and expand operations.
$1.8B IN CONCESSIONS
A recently released forensic audit revealed that during the period 2012 to 2015, the previous administration granted BaiShanLin fiscal concessions on a variety of machinery, equipment and construction materials. These items carried a value of $7.5B, equivalent to US$37.3 million. The total value of concessions granted amounted to $1.827B.
A few weeks ago, it was revealed that the company and its principals had travelled to China to seek financing to complete a number of ventures in which it had become involved.
Government has since announced that another Chinese company, Long Jiang Forest Industries Group, has acquired 55 percent of the shares in BaiShanLin and intends to fully take it over this year.

SO WHAT EXACTLY HAS BAISHANLIN BEEN DOING IN GUYANA?
The company apparently came here in the mid-2000’s, becoming initially involved in logging.
As a matter of fact, according to official records, the investor in 2006 registered two companies- BaiShanLin International Wood Group Inc. and BaiShanLin Forest Development Inc.
Since then, the principals of the company have registered at least 17 others. It appears that the companies were intent on a range of activities.
The companies include BaiShanLin Housing and Construction Inc.; BaiShanLin Mining Development Inc.; BaiShanLin International Shipbuilding and Heavy Industry Inc.; Heilongjiang Forest Engineering and Processing Development Inc.; C-G Economic and Trade Cooperation Park Inc.; New Life International Inc.; BaiShanLin International Investment Group Inc.; BaiShanLin China Shareholding Group Inc.; H7P International Inc.; Quick Auto Service Centre Inc.; Yongli Investment Inc.; BaiSheng International Investment Inc.; New East International Inc.; East International (South Americ) Inc.; H&P Quarry Inc. and Fun Time Family Park Inc.
In addition to the lands in the Berbice River area, BaiShanLin was granted a waterfront piece in the Linden area for ship building activities and another one not far away for the construction of its wood processing factory.
At Providence, BaiShanLin was able to acquire an unfinished hotel, Cacique Palace and Banquet Hall. The Government had held onto it after the initial developer ran into trouble.
The Chinese investor only paid US$1.5M of the US$4.5M. It appears the previous Government, under the People’s Progressive Party/Civic (PPP/C), made little efforts to collect the outstanding US$3M ($600M).
That property is used as a base of operations for the investor, with not much improvement made on it since it was handed over between 2012-2013.
Right at Providence, BaiShanLin also managed to acquire two more pieces of land. One of them was to build a mall that would have showcased products from China. That mall remains half-finished.
The Chinese investor also was interested in housing. In early 2014, it purchased 100 acres of housing lands from Sunset Lakes, a company owned by businessman Brian Tiwarie. The company paid US$4M of the US$8M asking price. Tiwarie has since taken BaiShanLin to court for the outstanding US$4M. Tiwarie wants back his lands as well as the outstanding monies.
Long Tentacles
But the tentacles of BaiShanLin and its local principal, Chu HongBo, in the country’s business sectors does not stop there.
Through Chu Hongbo, H&P International Inc., New East International Inc. and New Life International Inc, at least 220 gold mining concessions have been acquired.
Indeed, Chu Hongbo has even acquired a Guyanese passport.
One of the companies associated with BaiShanLin…H&P Quarry… appears to be involved in the stone business too.
BaiShanLin has been using its trucks and equipment it received via duty free concessions to compete with local businesses. These include its trucks at the Cheddi Jagan International Airport expansion.
The trucks were brought in for logging purposes and by using it at the airport, it breached the investment agreement that it would have signed.
It has been using its barges to fetch stones for businesses along the East Bank Demerara, also competing with local operators.
BaiShanLin has also been using its vehicles and trucks in its mining operations.
Locals have been forced to pay taxes on their trucks and other equipments. They are not given that many breaks.
It is unclear where the investor has been selling its gold that it has mined as there are no official records at the beginning of the year of any being declared.
BaiShanLin has also been allowed, using loopholes in its tax concessions to bring in containers of hardware, including steel. Some of the steel has reportedly been making it to local worksites.
It even established it own cement mixing plant at Providence where the unfinished mall stands.
Scores of work permits for Chinese nationals have been issued overtime.
It is unclear what exactly BaiShanLin, during the last decade, contributed to the economy as not only were its taxes waived and it failed to build the wood processing facility, but it was allowed with its equipment to compete unfairly against locals.
It remains unclear how many local workers are employed. The company has now announced new owners from this year.

4 thoughts on “BaiShanLin’s iron grip on Guyana…Company has tentacles in almost all sectors”

Keith Williams May 8, 2016 at 7:57 am

If there is one piece of evidence that indicts every politician and political party in Guyana, it is their visible partiality to companies like this. It is the fact that they are hostile to companies like Bai Shan Lin and BK when they are not in the power positions to be necessary to these companies, and the metamorphosis they undergo after coming into positions of power where they become necessary.

Guyana and Guyanese, when it comes to a choice of preference for their rights and concerns, and preference for these companies, are caught betwixt a political rock and a political hard place. It matters not which party is in power, what they promise, or how critical they are of the relationship between the sitting Government and these companies, and the privileges accorded these companies, when they are in opposition. The 180 degree reversal of each political party’s position with regard to these companies, is in perfect synchrony with the 180 degree reversal in its power position in Guyana. There could not be a more graphic example of this than what we have witnessed over the past year, with respect to the metamorphosis the coalition Government has seemingly experience when it comes to Bai Shan Lin and BK.
Cat oman May 8, 2016 at 8:07 am

So what is the government going to do about this discovery? Is this going to be swept away along with the other indiscretions that have been uncovered since the government took office last May? Guyanese at home and abroad are questioning our new government’s commitment to righting the wrongs that have occurred in Guyana over the past 22 years whilst under the PPP governance. President Granger…..you need to throw us a bone here.
Lowes1 May 8, 2016 at 2:38 pm

Now that the extent of BaiShaiLin’s skulduggery has been realized… is the present government willing or able to do anything that would either see that company and its affiliates made to pay what they owe or have whatever lands/ properties reclaimed or dealt with appropriately through the legal system? At the end of it all the Guyanese people should not be the losers. BaiShanLin should be given the ultimatum of obeying the law as dictated in Guyana, adhering to signed agreements or paying up and moving on to some other unsuspecting country. Enough is enough.
Pam May 8, 2016 at 5:57 pm

My blood boils after reading this report…………..makes me feel like a dangerous Guyanese …if you know what I mean!