DECIDING BAI SHAI LIN’S FATE

Jul 24, 2016 Editorial, Features / Columnists

The presence of the Chinese company, Bai Shan Lin Forest Development Inc. in Guyana and the iron grip it has on the country’s forests and mining sector has created serious tensions. In 2006, Bai Shan Lin was granted permission to harvest and transport logs from Guyana for processing in China. It was given duty free concessions.
In return, Bai Shan Lin had promised to build a modern, wood processing factory in Linden that would have created jobs for the locals.
It was known that the revenues from the company would go back to China to spruce up its economy that is now the envy of many countries. Chinese products have been dominating the country’s markets thus forcing other products to take a back seat to a sometimes inferior Chinese product.
While Guyana welcomes Ban Shai Lin’s investments, it faced the onerous task of holding the company to its word and keeping track of its ever expanding operations.
After ten years in operation, the business practices of Bai Shan Lin have become questionable. It was reported that Bai Shan Lin collected US$70M for the wood processing factory but instead of building it as promised, it diverted the monies to its other operations.
There is also evidence that, months before becoming a Guyanese citizen, Chu Hongbo, the company’s CEO used a Guyanese to acquire and hold around 700,000 hectares of forest lands but transferred the land to the company after he became a citizen.
Today, after the Malaysian owned Barama Company which has 1.6 million hectares of forest lands, Bai Shan Lin is the third largest holder of forest lands in Guyana that have been allocated for logging. The company also has a significant foothold in the Mining sector, and has ventured into concrete mixing and rental of its barges.
Recently, it was revealed that the company was exporting more logs than allowed, which is a violation of its investment agreements with the government. Bai Shan Lin was in trouble with the labour department for infractions, GPL, for stealing electricity, GO-INVEST, for lying about an application that it did not file, the Central Housing and Planning Authority over building codes, and with the government for not constructing the wood processing factory.
Despite Bai Shan Lin’s poor track record, the former government granted it duty free concessions amounting to $1.8 billion between 2012 and 2015 to import trucks, excavators, skidders and equipment.
The exact number of trucks and equipment imported has never been disclosed, but insiders believe that the company has at least 200 trucks. Gold miners have complained that Bai Shan Lin has been using its trucks and equipment in the sector and in other areas which it is not authorized to do.
The duty free concessions granted to the company had been a hot topic for many including the government, which, while in opposition, spoke vehemently against the concessions and challenged the former government to make public, the contract it signed with the company.
The government refused.
Amidst raping of our forests, Bai Shan Lin was supported by the former government.
Given its numerous infractions, the government continues to allow Bai Shan Lin to dismantle our forests.
At stake is Guyana’s sovereignty which should not be compromised. The belief that Jong Jiang Forest Industries Group would be different when it takes over Bai Shan Lin is tantamount to a leopard changing its spots, which is impossible.
However, the nation looks to this government as it decides on Bai Shan Lin’s fate particularly.
Given all that has transpired, it would be in the best interest of the country if the government scales back the operations of Bai Shan Lin.

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