Chinese bank cannot save BaiShanLin - Concessions will be reallocated

Chinese bank cannot save BaiShanLin – Concessions will be reallocated – GFC

Feb 21, 2018 News

BaiShanLin’s local head, Chu Hongbo

The Guyana Forestry Commission (GFC) is no longer willing to facilitate a request from the China Development Bank (CDB) to hold off on the redistribution of land concessions previously held by BaiShanLin Forest Developers Inc.
Last year, CDB made the request to stall redistribution because it was looking to secure finances to recapitalise loans owned by BaiShanLin.
On Monday, GFC hosted its first press conference of the year.
At that forum, Kaieteur News made queries about the lands that were being held for the Chinese company. Chairwoman of the GFC Board, Jocelyn Dow made no qualms to state that the GFC has made a decision to disregard the request made by the bank.
Dow said, “We have no nexus with banks that is a matter for BaiShanLin. The concessions are there and we will make a decision when all of the other issues surrounding the collecting of materials and so on are sorted out. When we are able to sort those things out, the concessions will be offered out for reallocation.”
Dow continued, “BaiShanLin and their bankers are not the business of the GFC any longer.”
She noted, “At one stage the CDB had spoken to us. But they have no standing. They are not a concessionaire; their client is BaiShanLin not the Guyana Forestry Commission.”
At the press conference, it was also noted that BaiShanLin still owes the GFC $80M.
GFC Commissioner, James Singh said that the GFC is not willing to count the debt as a loss and write it off just yet. He told Kaieteur News, “Yes, we are making all efforts to collect those monies. Certainly it has not been written off.”
Dow indicated that GFC is looking to get its money from the sale of BaiShanLin’s assets.
She noted that the Chinese company has a number of assets.
“As it stands, the first call on those assets would be the Guyana Revenue Authority (GRA). So we have had some formal discussions as to how it is we can jointly work to secure those assets and offer them for sale so that we can get our money back. GRA’s sums are far more considerable, so they have

GFC Commissioner, James Singh (L) and Chairperson Jocelyn Dow

the first lien on equipment. We have to work with them, as we are doing, to try to secure our money.”
Earlier this year, Minister of Natural Resources, Raphael Trotman had emphasised that BaiShanLin no longer has a presence in Guyana. He said “We are not aware that BaiShanLin has any operations ongoing.”
However, this newspaper recently published a story noting that the company was busted for illegal logging in the Berbice River. The story can be read online following this link: https://kaieteurnewsonline.com/2018/02/18/baishanlin-busted-for-illegal-logging-in-berbice-river/.
That story detailed that trucks with BaiShanLin logos were caught in the operation. However, Dow told Kaieteur News that BaiShanLin’s assets have been seized.
The total size of the concession lands held by BaiShanLin amounted to 680,000 hectares, including joint ventures. The five joint ventures that BaiShanLin had illegally entered into with local companies were also revoked and the lands seized.
Last year, Trotman said that the government was left with little choice than to act sternly with BaiShanLin, since in addition to the national outcry over some of the company’s practices, it had also racked up debts which it could not pay.
“We could not allow a company to remain active in a forest and not be paying royalties and fees for the concessions.”

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