Mar 28, 2016 News
– Forensic auditor calls for concessions on these items to be repaid
The forensic audit report on the operations of Bai Shan Lin Forest Development Inc. has brought even more worrying findings into the spotlight. It was noted that this very company was granted concessions for machinery, equipment and construction materials which were just too excessive and in many instances, had nothing to do with its work.
The forensic audit report also had data which were provided by the Guyana Revenue Authority (GRA).
The data show that during the period 2012 to 2015, the People’s Progressive Party/Civic administration granted Bai Shan Lin fiscal concessions on a variety of machinery, equipment and construction materials. These items carried a value of $7.5 billion, equivalent to US$37.3 million. The total value of concessions granted amounted to $1.827 billion. The report which was prepared by Chartered Accountant Anand Goolsarran, noted that GRA indicated that it was unable to provide information relating to the earlier years because of computer problems.
The concessions for the equipment and other machinery was based on investment agreements entered into between the former Government of Guyana and Bai Shan Lin for the construction of a wood processing facility in Region 10.
Goolsarran said, “A review of the list of items of machinery, equipment and construction materials for which fiscal concessions were granted indicates that many of the items were either unrelated to, or were significantly in excess of the requirements for the construction of wood processing facility.”
The forensic auditor said that indeed, the evidence suggests that the fiscal concessions granted were substantially in relation to Bai Shan Lin’s ownership and or control of five logging companies which had Timber Sales Agreements (TSAs) as well as its proposed investment at Providence, East Bank Demerara.
The Chartered Accountant noted that up to the time of reporting, Bai Shan Lin had not fulfilled its obligations under the investment agreements and was requesting an additional two years to construct the long awaited wood-processing facility. The APNU+AFC administration is yet to say whether it will grant the Chinese company a two year extension.
Goolsarran said it is important for one to remember that the company in a letter to the former Prime Minister, Sam Hinds, promised that the wood processing facility would have been completed since 2007. A further assurance was given in July 2012 in a letter to the former Minister of Trade, Industry and Commerce that the facility would be ready by the end of 2013.
The forensic auditor said that the investment agreements specifically provide for termination where there has been a failure to undertake the business proposal without providing a reasonable explanation.
He said that when this happens, Bai Shan Lin is required to repay the value of all fiscal concessions granted.
Goolsarran said that despite the persistent failure by the Chinese company to honour its obligations under these agreements, and without reasonable explanations, no action has been taken to terminate the agreements under the previous regime.
In addition to this, the Chartered Accountant said that the Guyana Revenue Authority and/or Go-Invest was/were required to visit the business premises and inspect assets that benefitted from the fiscal concessions. However, there was no evidence that this was done.
Jan 19, 2021Kaieteur News – The Guyana Golf Association (GGA) in collaboration with the Nexgen Golf Academy has acquired land to establish the first of their planned five uniquely designed golf facilities...
Jan 19, 2021
Jan 19, 2021
Jan 19, 2021
Jan 18, 2021
Jan 18, 2021
Kaieteur News – The material on which to build one’s analyses of the year 2020 is literally mountainous. There is... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]