All is above board with Japanese cement deal - Minister Gaskin

All is above board with Japanese cement deal – Minister Gaskin

Sep 23, 2016 News

It appears that all is above board with a cement importation deal into the country via a Japanese grant aid.
On Wednesday, representatives from Trinidad-owned TCL Guyana Inc. and KSM Investments Inc. met with Minister of Business, Dominic Gaskin, following a letter they sent him recently seeking clarity.

The back of the cement sack says: “FUNDED BY THE GOVERNMENT OF JAPAN UNDER NON-PROJECT GRANT AID FY 2013.”
The front of the sack: “From The People Of Japan”

Speaking with Kaieteur News following the meeting at his South Road office, Minister Gaskin, explained that importers were assured that all was well with the arrangements.
The two importers had expressed concerns in the letter that cement was being advertised and sold by National Hardware and other suppliers but the bags had questionable wordings on them that suggested it was provided by Japan under concessional terms.
The cement sack had the word “From the People Of Japan” and “FUNDED BY THE GOVERNMENT OF JAPAN UNDER NON-PROJECT GRANT AID FY 2013.
The two importers contended that it appears that the cheap cement, granted under concessional terms, was unfairly competing with theirs. The importers had complained that such labelling is applicable only when a commodity is provided as aid to a country. And such aid should be distributed freely and not sold. They wanted Government to explain the deal.
Yesterday, the minister disclosed that indeed that Guyana has an arrangement for grant aid from Japan.
Some time ago, it was agreed that Japan would source cement for Guyana with the proceeds for the sale to be remitted to the coffers of Government. The sale of the cement would be placed in the hands of local businesses.
The transactions were open to tender.
According to the Minister, National Hardware and number of companies, including Gafoors, submitted tenders.
National Hardware and Gafoors were two of the companies that remained.
The necessary taxes and shipping charges were borne by the hardware companies, it was disclosed. Gaskin said that he is continuing to monitor the deal.
This was similar to what the Ministry of Finance had said earlier this week. Checks with the Guyana Revenue Authority found that the necessary taxes were paid.
Director of National Hardware, Nicholas Boyer, insisted that his company has followed procedures and tendered and was subsequently approved.
”We have helped brought down the price of cement. The question that must be asked is why are some importers keeping the cement price so high?”
According to Government officials, the importers are complaining that such labelling is applicable only when a commodity is provided as aid to a country. And such aid should be distributed freely and not sold.
Among the information contained in the labelling at the back of the bag is the following: “FUNDED BY THE GOVERNMENT OF JAPAN UNDER NON-PROJECT GRANT AID FY 2013.”
TCL Guyana Ltd imports from Trinidad while KSM Investments Inc is the exclusive importer of Domicem brand cement from the Dominican Republic.
The importers are reportedly contending that the Japanese government is likely to have paid all the shipping costs for the cement while the Government of Guyana would have waived all duties and taxes payable on the shipments since these shipments would have arrived as aid.