Gold Smuggling

Jun 29, 2024 Editorial

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Kaieteur News – Gold mining has been a blessing for Guyanese.  Gold smuggling is a curse on this country.  The close friends of gold smuggling are tax evasion and money laundering, some lesser ones, are bribery and corruption with all contributing to a criminal stew.  Recent US Treasury Department developments have brought Guyana the kind of attention that it abhors at any time, especially now with many foreign presence and favorable investment sentiment.  Corruption on the scale alleged by the US Treasury Department makes investors question themselves about what Guyana is at the core, what is required to succeed here.  Though unspecified, and perhaps unintended, the reputation of this country, from top to bottom, has been tarnished.  These are the circumstances that have prompted well-meaning resident Guyanese, and others in the diaspora, to offer helpful ideas and measures that they believe could make a difference.  That is, a material reduction in gold smuggling, and more of the benefits of the sector flowing into the national treasury.

Recommendations include camp visits, marking the gold and greater use of technology, among some constructive proposals.  The latter involves blockchain technology and drones.  We, at this paper, believe that these are sound recommendations; all have some level of merit.  It would be helpful if a few, and more from the same menu, could become part of the policies and procedures of the relevant state agencies, and then enforced diligently, without fear or favor.  Unfortunately, this is where great ideas and suggestions run into the reality of unhelpful circumstances on the ground.  A Sicilian proverb captures what goes on at different levels in Guyana, and which forms part of the widespread perception, throughout Guyana.  The proverb has a definite and profound texture to it: to wit, a fish rots from the head.  This is the fundamental Guyana problem that seeps from head to trunk to tail, with only a handful standing in the way, fighting a tough fight in a culture that is diminished and dragged down by corruption.

The US Treasury Department’s allegations spoke repeatedly of corruption by “government officials.”  For sure, it is bland but has lots of teeth that go deep in gold and many other public sectors.  Given what the US has alleged, government officials, as a practical issue, could rope in public servants at the Guyana Revenue Authority, the Guyana Geology and Mines Commission, the Guyana Gold Board, and various supporting law enforcement agencies.  It is a wide net that ensnares more than a few.  Also, there is reason to believe that the Treasury Department’s careful use of “government officials” stretches beyond compromised public servants.  Politicians are also a major part of government, which begs the question about whether the Treasury Department’s use of “government officials” extended to them, and to what heights. It is obvious that politics and business in Guyana enjoy a close relationship.  It shouldn’t surprise that a top government politician found it necessary to issue a statement indicating that his relationship with two of the three Guyana named by the US Treasury Department does not have any taint.

It is soothing to hear that political disclaimer.  But there are doubts about how many Guyanese take that defensive posture without considerable misgiving.  In contrast, government leaders did not instill much confidence in their handling of the senior Guyanese public servant now burdened by the sinister identifier of ‘Specially Designated National.’ The fact that this now former official, was among the highest-ranking Guyanese public servants when this matter first surfaced reflects poorly on this country.  The fact that over a year later, she emerged even stronger (politically) and seemingly highly favored puts a pall on the ruling politicians in the Guyana Government.  It was only when the US Government showed its hand (blacklisting) that the PPPC Government rushed to take action to put a good face on a bad situation.

The handling of this sensitive matter, the belated public postures, and the slipshod ethics of leading politicians, provide glimpses into the corruption culture that reigns in Guyana.  This culture puts the gold sector in the worst light.  Unless the PPPC Government is honest about cleaning house and then the mindsets of its inner circle, then the best recommendations all mean nothing.

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• attention, corruption, Editorial, Guyanese, US Treasury Department

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