Probe launched into possible abuse of Rusal duty-free fuel

Nov 06, 2019 News

Authorities are not only looking at the duty-free concessions on equipment of the Russian-controlled Bauxite Company of Guyana Inc. (BCGI), but there are indications that the attention is being paid to fuel.

For sale?: -A few pieces of the Rusal equipment which were brought out from Kurubuka, Upper Berbice River to the East Berbice area.

The GRA is reportedly checking on possible abuse of the duty-free concessions on fuel at Rusal’s locations in Region Ten.

Over the last weekend, auditors of the Guyana Revenue Authority (GRA) were in the Kurubuka mines, Upper Berbice River area, in Region Ten where BCGI operates.
There they found the conditions under which the duty-free fuel was granted to the Rusal-controlled company were not being fully met.
According to Commissioner-General of the Guyana Revenue Authority (GRA), Godfrey Statia, on Monday, there were some irregularities found with checks on fuel at BCGI’s site.
Statia said he is awaiting a report before speaking more on the matter.
Foreign investors, involved in production, are granted fuel concessions to help the business become more competitive and reduce costs.
However, a number of those businesses have been caught or suspected of selling that fuel.
Under the conditions of the concessions, which are monitored by GRA, the fuel cannot be taken or used elsewhere.
The fuel market is one of the most lucrative markets in Guyana with consecutive administrations very deliberate in allowing those taxes to be waived.
In the case of Rusal, it is unclear exactly what kinds of irregularities were found.
BCGI is under fire with both employees and Government unhappy with the situation.
Since coming here in the mid-2000s, the company, which is 90-percent owned by Rusal, one of the biggest bauxite companies in the world, has failed to pay government any dividend.
The Government of Guyana owns 10 percent of the company. In fact, Rusal, despite shipping out loads of bauxite without fail, has not even been declaring profits.
Government has waived billions of dollars in taxes for fuel and on equipment.
The deal was signed under by the Bharrat Jagdeo administration when Region Ten was struggling for jobs and the Aroaima and Kwakwani areas were being run by Government.
However, the Rusal-run company clashed with workers constantly, and in 2009 fired more than 50 of them, including supervisors, after they refused to return to their duties.
That matter was never resolved, bringing Rusal under the spotlight time and again.
Earlier this year, workers blocked the Berbice River and refused to leave Aroaima, a campsite area where workers dwelled.
The government was forced to step in, brokering an uneasy peace, pending negotiations for increased pay.
Recently the talks broke down again with the matter likely heading for arbitration.
Workers are now accusing BCGI of quietly attempting to remove a few of the heavy-duty equipment from the worksite, forcing GRA to send in a team to investigate.
Minister of Natural Resources, Raphael Trotman, said he is willing to meet.
He has been written to by the Guyana Bauxite and General Workers Union, which is asking for a meeting to address their grievances.

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