Latest update April 18th, 2024 12:59 AM
May 31, 2016 News
A Guyana Forestry Commission (GFC) Official, has disagreed with the Indian-owned Vaitarna Holdings Private Incorporated (VHPI) recently disclosure that it has fulfilled all its commitment to Guyana.
Last week, the company issued a statement after it came under pressure to facilitate an interview with its top officials. The statement was presumably sent in response to these requests.
Vaitarna’s Business Support Executive, Aruna Azeez, had sent the release on behalf of her superior whom she said was out of the country. She hoped that the release would have “answered” the questions that Kaieteur News wanted to ask. Unfortunately, it did not.
There were many questions that needed to be answered about Vaitarna’s operation which has over the years, come under heavy scrutiny.
However, she assured this publication that as soon as her boss returns, he would facilitate a meeting.
The release indicated that the company has fulfilled its commitment to Guyana to add value to their operations by installing three WoodMizer Sawmills – one of which was as a “portable” sawmill – at its Wineperu location, Essequibo River.
The release also stated that a saw-doctoring unit facility has also been established to add value.
The GFC official who is familiar with the “Vaitarna issue” requested anonymity for fear of victimisation.
He stated that when Vaitarna signalled its intention to invest in Guyana, the company was required to submit a business plan. The plan would have entailed the use of a “higher technology” to add value rather than portable/mobile sawmills they had installed, he said.
The official said that these types of mills can be deemed appropriate in adding value to small and medium scaled operations however, they do not apply to Vaitarna which has control over the second largest forest concession in the state.
The official believes that with the company installing these mills instead of erecting a “full-out” wood processing facility is a sign of frustration deriving from the mounting of pressure over the years from competitors and the media to have the company keep its promise made to Guyana and its people.
Vaitarna currently has the capacity to produce approximately 350,000BM (825 m3) of lumber per month on an eight-hour shift.
The total area held by Coffee Day is approximately 738,000 hectares of forest. VHPI has in the past come under scrutiny after several reports began to surface that the company was exporting raw lumber.
The exportations of logs rather than processing the timber locally, has long been a concern since numerous promises have been made by the previous administration and foreign investors about value-added operations.
The promise of value-added has been seen as a “sugar coating” to enable the export of large quantities of logs, particularly to China and India, even though there is little job creation in Guyana or value enhancement in this sector.
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