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BaiShanLin still does not qualify for joint ventures—says Goolsarran
By Abena Rockcliffe- Campbell
Chartered Accountant, Anand Goolsarran has presented yet another reason why the controversial
Auditor, Anand Goolsarran
logging company, BaiShanLin Forest Development Inc, should not be allowed to hold on to its joint ventures with local logging companies.
“It is plain illegal,” said Goolsarran, recently.
In his report of the forensic audit he conducted into the affairs of the Guyana Forestry Commission (GFC), Goolsarran noted that BaiShanLin has over the years been able to gain control of five major companies in the forestry sector. These companies are Sherwood Forrest Inc, Haimorakabra Logging Co., Wood Associated Industries Co. Ltd., Puruni Woods Inc. and Kwebanna Wood Products Inc.
The Forests Act prohibits the transfer of ownership/control of a forest concession without the specific approval of GFC. Nevertheless, the forensic auditor found no evidence that the specific approval of the GFC was granted in relation to the change of ownership/control of these companies.
He argued that in the circumstances, the holders of the Timber Sales Agreements (TSAs) should have surrendered their authorizations to the Commission for reallocation to other potential concessionaires.
GFC said that it had indeed given BaiShanLin permission to enter into its joint ventures.
However, Goolsarran maintains that the logging companies for which shareholders/directors of BaiShanLin acquired controlling interest should still be made to surrender their permits.
He again cited that there was no evidence of approval and went further to note, “the argument that BaiShanLin is involved in joint ventures with these logging companies as previously approved by the Commission is not valid because joint ventures can only be entered into with holders of concessions.”
BaiShanLin’s Managing Director, Chu Hongbo
BaiShanLin was never the holder of a concession. It was the holder of two State Forest Exploratory Permits (SFEPs).
The two State Forest Exploratory Permits, which were illegally granted in the first place, are however no longer in the company’s procession. All State lands that were in BaiShanLin’s name have since been reverted to the state. However, the company continues to operate through its joint ventures.
At present, the joint ventures, are the only known logging operations of BaiShanLin.
In July 2007, Sherwood Forrest Inc. was granted a permit covering 167,066 hectares. In May 2010, Chu Hongbo of BaiShan Lin acquired 100 percent ownership of the shares in the company and became the Managing Director.
The other Directors were Chu Wenze and Zhang Li Na. The State Forest Exploratory Permit (SFEP) of the company was converted into a Timber Sales Agreement (TSA) on May 8, 2015 while the Environmental Permit was granted on the same day. This was the last business day before the May 2015 National and Regional Elections.
Goolsarran also noted that the Guyana Forest Commission granted Woods Association Industries Co. Ltd a TSA in January 2000 covering an area of 26,085 hectares.
In April 2009, Mr. Chu Wenze, bought over the shares in the company. With effect from April 3, 2012, the new Directors were Zhang Li Na, Chu Wenze and Chu Hongbo.
GFC Boss, James Singh
In August 2004, Puruni Woods was granted a SFEP covering an area of 110,253 hectares. The Commission converted the SFEP into a TSA in July 2007.
In August 2013, Heilongjiang Forest Engineering and Processing Development Inc. bought 90 per cent of the shares in the company, and Mr. Chu Hongbo became Director/Secretary as well as the Managing Director.
Goolsarran also documented in his report that in April 2009, the Forestry Commission granted Kwebanna Wood Products Inc. a TSA covering 87,361 hectares. The original company was A. Mazaharally and Sons but the new company was incorporated in January 2008.
In October 2010, there was a change in directorship of the company, with Mr. Chu Hongbo becoming the Managing Director while the other directors were Chu Wenze, and Chu Tongwei.
These companies hold TSAs covering a total of 441,119 hectares. These coupled with the SFEPs that BaiShanLin had given the company access to a total of 627,072 hectares of State forest.
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