Rusal tells GRA auditors: "leave or we leave”

Rusal tells GRA auditors: “leave or we leave”

Feb 02, 2020 News

Auditors of the Guyana Revenue Authority (GRA) who descended on bauxite operations of Rusal/Bauxite Company of Guyana Inc. (BCGI), a few months ago, were told to leave or the company will shut operations.

Commissioner-General, Godfrey Statia

The startling disclosure was made Friday by Commissioner-General Godfrey Statia during a press conference.
The Russian-controlled company is under fire, for the umpteenth time, for not only its labour practices but for taxes and other issues.
A few months ago, questions were raised over possible abuse of duty free concessions on fuel and dividends paid to the Government of Guyana.
GRA decided to act. It sent in a team to the company’s operations in the Upper Berbice, Region Ten area.
Asked if there is an ongoing issue between GRA and the company, the Commissioner-General did not mince words on Friday.
“There is always an ongoing issue but anytime you go to a taxpayer, he believes he is being targeted. When I sent my guys, when they went down to do the audit, (Rusal) told them that if they don’t stop, they will close shop. And I can say that without fear.”
The tax chief also made it clear that there appears to be some level of non-compliance by Rusal/BCGI.
The company also would have acknowledged that it owed.

A few pieces of the equipment that Rusal brought out a few months ago, parked at a New Amsterdam location. It is unclear what happened to the equipment.

“Furthermore, emanating from certain parts of the audit, we decided that because we are under discussions with the lawyers and so forth, until these things are reconciled, then they can pay what they think they owe. They said ok.”
The fact that the bauxite company agreed to pay meant they there was non-compliance, Statia pointed out.
“Also they said they would pay at a particular time and we had the exemptions letter waiting on them. But they didn’t bring in the cheque so we are still waiting on them.”
Rusal since coming here in the 2000s was granted a slew of benefits. These include tax holidays and duty free concessions on fuel and equipment.
They took over operations that were considered a going concern…with workers and electricity, among other things.
Since then, Rusal has been sacking workers in breach of labour laws, the workers’ union has claimed.
In 2009, more than 50 of them were fired. That matter is still not settled.
Last year, 90 workers were sent home for demanding better conditions and pay. Workers blocked the Berbice River then to stop Rusal vessels from moving the bauxite.
While that matter was resolved after a month-long standoff, one year later- last month- the company again took what was described as an unlawful decision to send home 142 workers.
The action sparked another standoff and blocking of the river.
The Department of Labour is paying close attention to the matter and attempting to seek a compromise.
The Cabinet is also being briefed.
Rusal is one of several companies in the extractive industry that is under the microscope.
The Russian company has also been blocked from shipping out its equipment.
Last week, workers took photos of several pieces, including trucks, which were taken from barge, from the Kurubuka area, to New Amsterdam, Berbice.

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