STATEMENT BY THE MINISTER OF AGRICULTURE

WITH RESPONSIBILITY FOR FORESTRY,

HON. ROBERT M. PERSAUD, MBA, MP

The Guyana Forestry Commission (GFC) is the Government of Guyana Agency that is responsible for the proper management of the state forest resources.  To fulfill this mandate, a number of procedures and guidelines consistent with international standards were developed to encourage sustainable forest management at the level of the forest concession.  Guyana is today held as a model of sustainable forest management.

These guidelines include the submission by the company of an Annual Operational Plan (AOP) to the GFC, by November 30 for the following year’s operation.

The AOP must contain the number of 100 hectare blocks to be harvested, accompanied with the 100% inventory information for all of the commercial species to be harvested from these blocks.  Approval for harvesting is given after the GFC has conducted field checks to confirm the level of accuracy.

There is one company which the public should be advised is seeking to use the court of law to prevent the GFC from fulfilling its statutory mandate as prescribed by the laws of Guyana.  

Toolsie Persaud Limited (TPL) was the holder of a Timber Sales Agreement (TSA) that expired on December 31, 2007.  In the latter part of 2006, all TSA’s and WCL’s holders were reminded at a meeting held in the GFC Lower Conference Room of the procedures which must be followed for their harvesting operations in 2007 to be approved by the GFC.  This was followed by a public notice further reminding TSA and WCL holders of the procedures and the consequences of non-compliance.

In February 2007, the company was directly written to advising again on the procedures to be followed before approval could be granted for commencement of harvesting operations for 2007.   

In the latter part of 2007, a GFC audit revealed that TPL was guilty of harvesting in at least twenty-seven (27) blocks for which no 100% inventory information was submitted to nor approved by the GFC.  Secondly the Company was also in breach of the guidelines by harvesting in two (2) blocks which were not stated in the AOP 2007.

The total volume that was harvested without approval was 24,153m³ of logs and 28,719 meters of round wood (piles, poles, posts).  Compensation payable to the GFC for these breaches was calculated at G $ 80,289,100.00.

On the basis of this evidence, the GFC held several meetings with the management of TPL to address the issue.  At no time during these discussions did the company deny the occurrence of these breaches.

The GFC after completing an exhaustive investigative process, which had included discussion with management of TPL, formally wrote to TPL advising them of the specific breaches committed and the compensation payable in accordance with the procedures for calculating compensatory payments.

Subsequently, the GFC via correspondence reminded TPL of the breaches and the need for this matter to be resolved urgently.  The GFC then received correspondence dated March 18, 2008 from R. N. Poonai and S. J. Poonai, Attorneys-at-Law on behalf of TPL.   That correspondence indicated clearly that TPL was disputing that it committed any breach.  The GFC then held additional discussions with the management of TPL, but TPL maintained its position; as a result the GFC issued a stop order for activities on the TSA. 

On April 30, 2008, the GFC received notice of legal proceedings instituted by TPL against GFC.

The GFC is very concerned that despite its best efforts of encouraging the sector to do sustainable forest management practices, TPL has committed blatant breaches and when so advised, they have chosen to take legal action.  Of note, however, is the fact that other companies such as Barama Company Limited, Caribbean Resources Limited, Guyana Sawmills Limited, amongst others have agreed on settling the liabilities for similar breaches.   

I wish to advise that the GFC emphasize that as the custodian of the State Forest Estate it will continue to make every effort to ensure that utilization of our forest resources occur in a manner that is legal and sustainable.

I also wish to commend those companies in the forestry sector which have been working with the GFC to ensure compliance with the procedures and support our national quest to sustainable manage our forest resources.

April 30, 2008

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