Chinese investors now made to toe the line

Nov 17, 2017 News

By Abena Rockcliffe-Campbell

Minister of Foreign Affairs, Carl Greenidge has painted a picture that would be viewed with delight by Guyanese who were worried about the local operations of certain Chinese companies. At a recent press conference, Greenidge said that the reality in Guyana is no longer one where Chinese investors are given the kind of leeway to do whatever they want. Things have changed, he said.

Minister of Foreign Affairs, Carl Greenidge

That pronouncement came in response to a question posed by Kaieteur News. This newspaper queried whether the government is taking the necessary precautions in its dealings with China based on the experiences of other countries like Sri Lanka.
Greenidge stated first that he knows of the attention this newspaper places on the issue, “with the help of some political parties that will remain nameless at this point.”
Despite his cynical comment, Greenidge then went on to say that most of the problems that existed in the past have been solved. He said that the evils that existed largely had to do with one Chinese firm.
“But, what is important is that as regards the dialogue between the Government of Guyana and Government of China is that Chinese companies as any other, need to live within the law and need to display respect for the law,” the minister asserted.
Greenidge said that there are going to be occasions where you get a “falling out or a lack of clear understanding of rights and even breaking of the law. Where that happens we will expect the executing agencies to take the necessary actions. Of course we will alert them that they are breaking the law, but the agencies will take the necessary actions.”
Greenidge continued, “But I do not perceive that at this time we have the type of problem that we were encountering in 2013, 2014 and 2015. That is behind us by and large and we will try to ensure that that continues. But obviously there is going to be ongoing work for GRA (Guyana Revenue Authority) and others to carry out…and we will expect them to carry out. I believe I said that in the past. All private companies have to respect the laws in Guyana as we will have to do in other territory.”
Chinese companies essentially enjoyed a free-for-all under the People’s Progressive Party/ Civic (PPP/C) administration. It was duty free galore. BaiShanLin International Forest Development Inc., alone was given duty free to import two billion pails of paint, one billion tons of cement, and 315 low bed container trucks among other huge concessions.
Further, that same company evaded taxes and still owes the GRA over $1B. BaiShanLin also was accused of mistreating workers and paying them below minimum wage.
Guyanese worried about the way in which BaiShanLin misused the forest, “cutting down everything in sight and not planting.” Most if not all of BaiShanLin’s trucks were driven by Chinese nationals who had no licences. BaiShanLin also illegally acquired several other logging companies. While BaiShanLin was most brazen, it was not the only Chinese company that operated this way. Vaitarna and Rong-An did also indulge in a fair amount of lawlessness.
Further, Chinese nationals in the commercial industry are known for employing every trick in the book. They refuse to write bills for customers in order to avoid paying their fair share of taxes. Also, earlier this year, it was found that the Chinese Embassy was importing more containers than all other embassies in Guyana combined. It is believed that the goods in those containers made its way into the commercial sector.

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