BaiShanLin vehicles released on “rigid” agreement

May 30, 2017 News

– Equipment remains in custody

BaiShanLin Forest Development Inc. has been able to negotiate the release of its two Sport Utility Vehicles that the Guyana Revenue Authority (GRA) had taken possession of; this is according to reliable sources.

Managing Director of BaiShanLin, Chu Hongbo

GRA’s Commissioner-General, Godfrey Statia said that he was not in a position to speak on the issue. However, Kaieteur News was told that the vehicles were released based on a “rigid” agreement made between BaiShanLin and GRA.
Part of that agreement stipulates that within six months, BaiShanLin would renegotiate an investment plan with the coalition government. This makes sense when coupled with the Ministry of Natural Resources’ announcement that the Chinese Development Bank (CDB) had asked Guyana to not give out lands once held by BaiShanLin.
The source said that as per agreement, when the six-month period comes to an end, BaiShanLin will have to produce all taxes and duties payable to the Authority – that would include money not only owed for the vehicles that were released, but also for the equipment and machinery that remain in GRA’s custody.
Early last year, the GRA seized the two luxury vehicles from BaiShanLin.
BaiShanLin had persistently defaulted on the investment agreement it had signed with the PPP/C Government to establish a wood processing plant at Linden. Instead, it has bought five logging companies and has been involved in the wholesale exportation of logs with impunity at a time when most tropical timber producing countries have either banned log exports or have severely restricted their exportation.
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.
This was based on investment agreements entered into between the Government of Guyana and Baishanlin for the construction of a wood processing facility in Region 10. The total value of concessions granted amounted to $1.827 billion. GRA indicated that it was unable to provide information relating to the earlier years because of computer problems.
A review of the list of items of machinery, equipment and construction materials for which fiscal concessions were granted indicated that many of the items were either unrelated to, or were significantly in excess of, the requirements for the construction of wood processing facility.