The scale of corruption and cronyism is beyond the small mining syndicates

Sep 14, 2019 Letters

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DEAR EDITOR,

Even though the two responses to my letter dealing with Caretaker President Granger’s meeting with members of the mining community come from disparate sources with markedly different tenor, I believe a cogent response can be delivered in a single reply.
Ms. Cherryl Williams, President of the National Mining Syndicate Inc. (NMSI) which was constituted in August 2019, claims “the establishment of mining syndicates can never be considered an act of cronyism”. However, in 2017, it was noted in the Editorial of Stabroek News “the appearance at ‘syndicate meetings’ of contingents from places like Albouystown and parts of Berbice, creating the impression that the idea of syndicates seeks to target an audience that goes beyond traditional miners.
That would appear to be consistent with the ‘philosophy’ of syndicates as articulated by Minister Broomes who says that the government is treating this initiative as an opportunity for Guyanese that goes beyond traditional miners.
The NMSI states clearly on their Facebook page that the syndicates were the brainchild of Simona Broomes (Junior Minister) who was also the person with lead responsibility on the allocation of lands for syndicates.
At the urging of the Granger administration, syndicates were formed, but soon complaints and stories of unusual transactions began to emerge. In October of 2017, a mining syndicate developed for small miners in the Toroparu, Upper Mazaruni, Region Seven, complained that it had been treated unfairly by the Government, after an application for 10 mining blocks has been turned down.
Chief Executive Officer of the Toroparu Mining Syndicate, Melanie Beharry said that the syndicate had initially applied for 29 blocks, based on the rules established that applications had to be for a minimum of 10 blocks. Three applications later, the Syndicate was told that all the blocks it had applied for could not be granted as they were all currently occupied.
“We were told that it was given to a private individual. We find this strange, because, during our meetings with the [Natural Resources Minister], Raphael Trotman and Simona Broomes [Minister within the Natural Resources Ministry], they emphasized that no one or two miners could apply for land in the closed area.”
The GGMC informed Beharry that the individual’s application was accepted, because he applied since January and applications were dealt with on a first-come, first-served basis “But my major concern is, it doesn’t matter who apply for it first, it matters that it’s one person. You are going to give one man who doesn’t even have dredge, 20 blocks against a syndicate [of] 25 members.”
The Toroparu area was previously being developed by ETK Inc., a subsidiary of Denver-based mining company Sandspring Resources Ltd. A pre-feasibility study completed for the Toroparu Project in 2013 at US$1400/oz gold outlined the design of an open-pit mine producing 228,000 ounces of gold per year over an initial 16-year mine life.
The estimated US$464 million pre-production capex is paid back in 2.6 years, with an after-tax IRR of 23.1% and an NPV5% of US$691 million. This was public knowledge as it was shared on the Sandspring website.
The ploy/plight of syndicates was used to force EKT to relinquish the area. Many syndicate members exist as signatures only and have never engaged in mining. Toroparu claims with solid geological evidence of gold were redistributed to APNU cronies and lesser ones to syndicates.
The Syndicates also have no finance to build roads to the best claims, a deficiency that pooling resources were supposed to solve. Former Parliamentarian and Chairperson of the Karrau Mining Syndicate, Julia David-Blair made calls for an investigation.
“We want a full-fledged investigation and shuffling at GGMC…We need for this government to investigate. We calling on SARU (State Assets Recovery Unit), we call on SOCU (Special Organised Crime Unit) to come in and help us investigate so that we can acquire the lands that we are asking for”
Ms. Williams should produce data that supports her claim that the small miners are benefiting more than before. Mere invective should never be a first response. The scale of corruption and cronyism is beyond the small mining syndicates who subsist on the crumbs that fall from the table.
The Public Affairs Officer for the Ministry of Natural Resources, offers nothing new in his ‘clarity’, save and except to say “a brief was prepared and submitted to His Excellency, outlining the existing areas to be discussed during the interaction” which rather proves my point that Mr. Granger has taken his eye off the ball and has left the batting to Mr. 2%, Raphael Trotman.
Mr. Granger’s spate of engagements with stakeholders from various sectors continue to reveal a pattern of disconnectedness, briefs are not enough, A President needs to be constantly engaged with the productive sectors.
It, therefore, comes as no surprise to me that David Granger has flown off on a ‘state’ visit to Berbice, where he plans to engage schoolchildren in New Amsterdam on the topic of Education; after all, he has not found a receptive audience for his hollow promises and platitudes among the adults of the nation.
Respectfully
Robin Singh

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