Latest update May 14th, 2024 12:59 AM
Oct 31, 2016 Letters
Dear Editor;
Six months after the Ministry of Finance seized the equipment of the largest forestry company in Guyana, effectively shutting down that company. The second and third largest logging companies in the country are in advanced stages of closing their respective operations.
The capricious actions by this government were viewed as malicious and the large Asian investors have confessed privately that they are afraid that they will be next.
Minister Jordon, the Minister of Finance effectively forced Bai-Shai-Lin to cease operations by confiscating the company’s equipment. The Ministry was later forced to return some of the company’s assets, which were unlawfully seized. The Ministry of Natural Resources then cancelled the company’s land concession; this has jeopardized the company’s sale agreement to another Chinese investor group. Both Ministries’ actions were taken despite The President’s public commitment to work with Chinese Investors.
The actions by the two Ministries have sent chills through the Asian foreign investment community who hastily drafted contingency plans to wind-down their operations and avoid a fate similar to that of the large Chinese Company.
The large Asian investor who was in advanced talks with Bai-Shai-Lin to invest billions in Guyana and acquire that companies assets has indefinitely suspended their investment.
While these companies concede that they were delinquent in some aspects, they contend that there should be a transparent process with a clear time guideline utilized to enable them to become compliant with all Government Departments.
Recently both BARAMA and DTL publicly announced their plans to close their businesses and leave Guyana. Natural Resources Minister, Rafael Trotman, held a hasty meeting with Demerara Timbers Limited and begged them to stay in Guyana while he is trying to schedule an emergency meeting during this current week with Barama Company Limited to again beg that company to stay in this country.
According to industry officials, the longest of these companies have been operating in Guyana since 1991, combined, at their peak, the three Asian companies employed in excess of two thousand Guyanese workers and together they have invested billions of dollars in the Guyanese economy.
The President should move swiftly to restore foreign investor confidence in Guyana, not only with words but also with tangible actions.
Government should outline a standard process by which any investor can have their delinquencies resolved. Enforcement actions against a company should not be at the discretion of a Minister or a Board, instead a time guideline should be established and enforcement date clearly publicized.
Concerned Businessman
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Mr Concerned Businessman, in reference to the Asian companies, the only way to “… have their delinquencies resolved…” – any delinquency for that matter – is to have the delinquent party brought to justice.
Just as how they brazenly conceded “… that they were delinquent in some aspects…” they must now bravely face the consequences of their delinquent acts.
If they came here when doing things that were illegal or immoral was permitted, they must now get the message that we do not welcome those who come with the intention to offend by neglect or violation of duty or of law.
We must assume that the government, with the case you decry, has already outlined “… a standard process by which any investor can have their delinquencies resolved”.
The disrespect shown to the government and the nation in general by your claims of the minister having to resort to “begging” companies to stay, is a clear indication that your intention, and I will assume, that of those you advocate for, is to continue the abuse that many businessmen grew accustomed to in the past when they were favored with the no-objection role of the well compensated members of the then government.