Why does the plunderers of Barama pay less than Guyanese holders of State Forest Permissions?

Dear Editor,

Your correspondent, R. Deonarine (’Why such large exemptions?’ SN, 19.9.07) is clearly outraged at the financial subsidies from our government enjoyed by foreign companies offering to invest in a country as poor as Guyana. He, and all Guyanese, should ask the question as to why one of those beneficiaries, the Barama Company Limited, is still allowed exclusive access to over 1.6 million hectares of State Forests at a fraction of the annual area fees charged to Guyanese, when Barama is not in full compliance with even the extraordinarily generous terms of its foreign direct investment agreement. [propaganda note: only one reason, we have a pack of  money hungry, stool pigeons running this scuntry called Guyana]

Compare the area fees paid by 4 current SFP holders with what is levied on Barama:

Barama Company Ltd.

Size of concession (ha) 1,611,106

Area fee in US$ per hectare $2,093

Annual area fee per hectare (US $) 0.0013

SFP 1

Size of concession (ha) 7,500,

Area fee in US$ per hectare $1,500

Annual area fee per hectare (US $) 0.20

SFP 2

Size of concession (ha) 4,900,

Area fee in US$ per hectare $980

Annual area fee per hectare (US $) 0.20

SFP 3

Size of concession (ha) 3,100

Area fee in US$ per hectare $620

Annual area fee per hectare (US $) 0.20

SFP 4

Size of concession (ha) 2,600

Area fee in US$ per hectare $520

Annual area fee per hectare (US $) 0.20

In other words, national holders of State Forest Permissions (SFPs, with 2 years’ security) are paying 154 times more per hectare than Asian-owned Barama which has 25 years’ security.

Up to December 2003 Barama was in arrears to the state for over US$86,000 and still did not lose its concession. SFP holders on the other hand who do not pay their fees lose their concessions after two years.

Small SFP holders provide local jobs for Guyanese and lumber for domestic use; they feed Guyana’s households and our domestic economy. Barama reserves the best and highest paying jobs for Asians, and concentrates on exporting logs of prime flooring and furniture timber.

Samling’s CEO, Mr Yaw Chee Ming, and his shareholders must still be shaking their heads in disbelief at the good fortune they enjoy on the backs of the Guyanese people who are still not well informed by their government about the value of their natural resources.

Yours faithfully,

Mahadeo Kowlessar

September 24, 2007

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