Baishanlin still to settle billion-dollar account with GRA

Aug 23, 2016 News

Controversial logging company Baishanlin Forest Development Inc is still to settle its account with the

Baishanlin Managing Director, Chu Hongbo

Guyana Revenue Authority (GRA). The company owes GRA over one billion dollars.
This is according to a reliable source within the GRA.
Kaieteur News understands that, of late, there has been little communication between the Authority and Baishanlin even though the two were supposed to be in consultations for settlement.
About two months ago, Chairman of the GRA Board of Directors, Rawle Lucas told Kaieteur News that Baishanlin was seeking to iron out some of the kinks in its relationship with Guyana.
He said that the company was seeking to settle its debt with GRA which has been accumulated through what financial experts deemed, a wonton distribution of tax concessions.
Lucas had confirmed that the company is looking to pay off its debt to avoid further seizures.
He had said that discussions were continuing and the Authority was yet to decide on a way forward. “None of the company’s proposals have been concretized as yet but indeed, Baishanlin seems to be open to making the necessary payments.”
Lucas had said that the Authority’s discussions are covering all issues related to duty free concessions. Lucas also said that further seizures would depend on the outcome of the discussions
Kaieteur News recently contacted Lucas for a further update on the matter. However, he directed the newspaper to GRA’s new Commissioner-General, Godfrey Statia, for information on the matter. The Chairman said, “The Commissioner-General will be able to answer your questions.”
When contacted, Statia said that he is not in the habit of “giving out tax information.” He also said that

GRA Chairman,
Rawle Lucas

“nothing much has changed” since the media was last updated on the matter.
Sources say that Statia is yet to even meet with Baishanlin which is one of the companies that is most highly indebted to GRA.
Reports are, the negotiations with the company about its outstanding debt are basically at a standstill.
Baishanlin has been granted $1.8B in fiscal concessions over the years.
The company has persistently defaulted on the investment agreement it signed with the Government to establish a wood processing plant at Linden. A promise to set up the said plant is what afforded Baishanlin the opportunity to secure the concessions.
The investment agreement specifically states that if the machinery, equipment and materials for which fiscal concessions have been granted have not been used for the purpose(s) specified, the value of the concessions must be repaid to the Government.
During the period 2012-2015, Baishanlin brought in US$38 million worth of machinery, equipment and materials of which fiscal concessions amounting to G$1.8 billion were granted.
A few months ago, GRA seized two of Baishanlin’s vehicles as part of the process to recover the outstanding sum.
And auditor Anand Goolsarran reported that some of his work was stymied due to the absence of documents he requested from GRA. Goolsarran said that GRA told him that there was some sort of system

GRA Commissioner-General, Godfrey Statia

malfunction that led to the Authority not being able to produce the requested documents.
Lucas had told Kaieteur News that he was looking to solve that problem. He said that he was quite concerned that important documents could not be located. He said that he has asked that the documents be retrieved, as there can be no proper excuse for improper recordkeeping at such an institution.
Goolsarran had told Kaieteur News that the GRA has every right to seize all of Baishanlin’s materials, equipment and vehicles until it has recovered the full $1.8B in fiscal concessions that have been granted.

1 thoughts on “Baishanlin still to settle billion-dollar account with GRA”

carl veecock August 23, 2016 at 3:14 am

Early trouble for the new GRA chief:
…has to deal with Uncle Joe
…has to deal with off-site Rawle
… has to deal with the minister of finance,
and all of them had previous encounters with this taxpayer.

Hope he does not have apologies to make while he tip-toes through this labyrinth.