Missing money that found its way into foreign accounts

Mar 08, 2017 Letters

---

Dear Editor,
Those who are guilty of contributing to the precipice that Guyana almost found itself are increasingly aware that SARU’s scope, intelligence and international reach will expose their former schemes. That fact fuels their trepidation, and the thought of a fully constituted and functioning SARA is the last thing they would ever desire. The government and people of Guyana must remain resolute in their quest to recover stolen state assets and bring those who are directly responsible, their cohorts and abettors to justice.
The State Asset Recovery Unit (SARU) was set up by the Coalition Government to address State Asset abuses and concerns in Guyana. Its functionality is to ensure that stolen or misappropriated state assets are traced and recovered. Fundamentally, assets of the state include tax-payers funded tangibles, land and finance.
There is a hue and cry over some tax related aspects of budget 2017. But, the country cannot spend what it does not have. The Government has to find money from somewhere to effectively finance this country’s fiscal expenditures. That financing primarily comes from export earnings and taxation. I will not detail further economic factors, since I am no expert in this field, but wish to make the fundamental point that loss in revenues through the depletion of state assets over the years has placed a huge burden on this country and the average citizen as a whole.
For example, Guyana lost over US$50 Million (GYD$10.2 Billion) in 2014 on log exports to just one major importer alone. Surely that money didn’t go towards our Mashramani, or building condominiums for aspiring University students. Indicators suggest that those funds found their way into overseas banks and investments, strengthening the economies of some insouciant foreign countries. Those countries will be able to improve their own infrastructure, fill the bellies and educate their children at our loss of revenues and expense. Research reveals that those proceeds resulted from ‘UNDER-PRICING’ on our log exports at this port of origin. Under-pricing leads to lower export commissions than the law provides, and on massive scales of exports the loss of revenue is considerably high.
This government could have further reduced Value Added Taxes (VAT) had that fraction of lost earnings (assets) found its rightful place into our Consolidated Fund. For this reason, the recovery of stolen state assets and their proceeds are of utmost importance. This country has suffered extensive losses in cash and kind. The State Asset Recovery Bill, once legislated, will result in the efficacy of an Agency that will have a concomitant positive impact on the country’s economy. Seventy-five percent (75%) of all recovered state asset proceeds will be paid directly into the Consolidated Fund.
The Washington DC based Global Financial Integrity group, in their 2015 report, ranked Guyana at 102 of 149 listed countries on the Illicit Financial Flows from Developing Countries Index, with an average revenue loss of USD$285 Million (GYD $58 Billions) per annum between 2004 – 2013. Comparatively, the average annual illicit cash flow from Antigua and Barbuda, ranked 144, was USD$5 Million and United Arab Emirates, ranked 148, with less than a Million US dollars. The People’s Republic of China was ranked No.1, with the most illicit financial flows of USD$139 Billion.
Guyana’s GDP for 2017 is pegged at approximately USD$3.7 Billion (GYD$750B). Based on those statistics, it is conservatively estimated that our country would have been losing 13 – 20% of earnings over time through illicit financial flows alone. Just imagine the positive impact if at least 10% of those funds were recovered and injected into our economy. Mind you, that is only derivative of illicit cash flows.
Eric Holder, former Attorney General of the United States, stated; “[W]e must work together to ensure that corrupt officials do not retain the illicit proceeds of their corruption. There is no gentle way to say it: When kleptocrats loot their nations’ treasuries, steal natural resources, and embezzle development aid, they condemn their nations’ children to starvation and disease. In the face of this manifest injustice, asset recovery is a global imperative.” (end of quote).
Every elected Government in the World has a fiduciary duty to prudently manage, preserve and protect its state’s assets. Guyana is no exception, as the majority of citizens expect the government to ensure accountability; fairness and equitable distribution of the nation’s resources are basic tenets. If this country is to truly optimize its potential and enjoy all of its yields, there must be a united approach against the criminality that had so successfully woven itself within our public and private sectors, resulting in the horrendous loss and misuse of our State’s Assets. The government would have failed the people of Guyana if it doesn’t succeed in ensuring safe passage of State Asset Recovery legislation in a timely manner.
Orette Cutting

---

---