A. Mazaharally and Sons Ltd. calls on Govt. to ensure equity in the Forestry Sector

Jul 11, 2021 Letters

DEAR EDITOR,

A relevant Churchill quote that still resonates is: ‘Criticism may not be agreeable, but it is necessary. It fulfills the same function as pain in the human body. It calls attention to an unhealthy state of things.’
Worldwide, both illegal logging and the underpayment of fees by concession holders rob the public of an estimated 15 billion US dollars annually; and apart from the direct financial losses, illegal logging significantly undermines the authority’s ability to manage the forest sector sustainably, according to one report by Transparency International. In Guyana, corruption still remains the leading driver of illegal logging; and within its core lies a flawed regulatory framework. Arguably, the design and operations of the forestry regulations have in some ways helped to set the stage for corruption, while over the years various political administrations tried to plug the leaks, but ignored the writing on the wall only to end up with a total financial collapse of the Guyana Forestry Commission. However, now is the time to change this.
When there is sufficient imbalance in any system, loopholes emerge, and with that come unscrupulous opportunists who will take advantage of them to the detriment of all. To boil it down, there are two distinctive forest concessionaire’s categories in operations: small and large. Hectare for hectare, cubic for cubic of the same species of timber harvested from either of the two categories, it costs far less to produce timber as a small concessionaire than a large one – mainly because of the fees and resultant regulatory indirect costs attached to large concessions, while taking economies of scale into consideration. Small concession holders, though limited in acreage size, are allowed to harvest the same type of species as large concessionaires, but without bearing the high costs of the mandatory 100 percent pre-harvest forest inventory, though the regulations recommend that small concessionaires conduct some amount of pre-harvest inventory for management, planning and environmental purposes. Further, the calculations of the quota for harvest in small concessions are restricted by as much as 45 percent if the operator is to produce lumber using chainsaws. So, with just a recommendation to do only some amount of pre-harvest inventory and a significant reduction in the amount of lumber the operator is allowed to produce if chainsaws are used, coupled with an increasing demand for lumber and the majority of small concessionaires are chainsaw operators, the mould is firmly set for corruption throughout the system, as well as, with the highest probability of illegal logging.
The reality is: in the forestry sector, many persons, and even several businesses have craftily converted from large to small concessions in order to avoid the high costs associated with holding and operating large concessions. In some cases, those operators satisfy or even surpass the production quota for a large concession. This is achieved through the operation of a string of multiple small concessions, a clear win-win for such beneficiaries; but clearly not for the remaining 20 odd large concessions countrywide or the GFC. A careful look at the recently released GFC production statistics will confirm this. However, policy makers are urged to put an end to this in having a system of equality, because it is one of the main reasons why large concessionaires’ production is unable to achieve the GFC’s expected production target, and a contributing factor to corruption. Having the right set of policies and regulations will make the difference; especially when there is strong and fair leadership followed by rules that will ensure equality for all stakeholders in a sector. I respectfully call on our government to make the much-needed change that will not only benefit the forestry sector but Guyana.

Sincerely,
Capt. A. Mazahar Ally
Managing Director

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