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Jordan “dead sure” data on all concessions granted to companies can be made available to public
Finance Minister, Winston Jordan
…Promises to make intervention at GRA
By Kiana Wilburg
Information on concessions is not private business. It is not a state secret. As such, there is no reason why it should not be made public. That was the position of Finance Minister, Winston Jordan.
He acknowledged that the media, and any citizen for that matter, has a right to know about the concessions being granted to various sectors.
His comment came in response to a report that the media has been trying to access information on all the concessions granted to two of the largest foreign gold mining companies in Guyana—Troy Resources and Aurora Gold Mine—since they came to these shores.
The Finance Minister did not object to this. In fact, he said that he would make contact with the Guyana Revenue Authority (GRA) for this information to be made public.
“I don’t believe this information is private. In any case, back in the 90s, we were under obligation to publish all concessions granted to companies. Remember, we used to publish them in the newspapers…
“But concessions are not a secret. GRA should be able to grant it. In fact, in their annual report, they should have a section showing the value of the concessions which were granted to companies…”
There is no breakdown of the concessions in GRA’s report. The concessions are not shown . Which sectors received what, and which companies are not known.
GRA’s Commissioner-General, Godfrey Statia
The Finance Minister said, “ I am dead sure the information is available. I am going to ask the Commissioner General of GRA, (Godfrey Statia) that if this information is not available, to have his Tax Department compile it.
“And if you know the company by name, then you can also get to have it by sector. I will ask him to do that. This information is not a secret.”
GUYANA LOSING BILLIONS
On an annual basis, foreign companies are given billions of dollars in tax breaks while locals are made to pay the full cost of duties charged on equipment, vehicles and fuel needed to support their operations.
For example, a four-door Toyota Land Cruiser normally costs $14M. It attracts duty of $32M. Foreign entities like Aurora Gold Mine and Troy Resources Limited would only pay $14M. But local must pay $14M plus the $32M duty.
Furthermore, if a small mining company hopes to get at least one duty free concession, he or she must satisfy 13 benchmarks. One of these includes producing over 5000 ounces of gold. This is equivalent to more than U$5M. Only five Guyanese have the potential to do this.
Significantly, while billions of dollars worth in concessions are given to these foreign entities, little is known about how many indigenous companies are used to provide them with goods and services in contrast to the foreign conglomerates contracted to provide same.
Mr. Statia has bemoaned the fact that there continues to be gross distortions between the concessions granted to local mining companies and foreign ones.
The Tax Chief said that he has considered time and again, just how much the nation is benefitting from the billions of dollars in concessions granted yearly.
He said, “There is a distortion to big miners versus small miners…But the story of gold is a web of problems and many unknowns which I agree should be highlighted.”
The Commissioner General said that being the patriot he is, he can certainly understand anyone’s call for equal opportunity in the mining sector as well as a strong dose of transparency and accountability.
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