Dear Editor,
I am writing in response to Mr. Mahadeo Kowlessar’s letter captioned “The GFC and the Guyana Revenue Authority need to tackle the prima facie case of falsification of export records for logs” (06.12.25). It is rather ironic that he would venture into a debate about names and aliases as he is the one really engaging in this practice. I hereby request that the real Mr. Mahadeo Kowlessar please stand up. Mr. Kowlessar is yet to provide a single argument against my solid presentation on transfer pricing. My analyses, clearly and unequivocally illustrate, that Guyana’s prices as compared to international timber prices, show that there is absolutely no evidence of transfer pricing. It is sad to say, and I am sorry to burst the short lived bubble of Mr. Kowlessar, that transfer pricing evidence is only concocted in his imagination. This is the only conclusion, as my analysis remains undisputed. I was eagerly awaiting even a speck of debate on the actual facts I presented, but to no surprise there was no factual contention.
Mr. Kowlessar can continue to delude himself that Guyana is well established in the timber trade but persons versed in Guyana’s forest sector would disagree. Mr. Kowlessar is grasping at straws having usurped all of his conjecture. Mr. Kowlessar acknowledged that the allowable cut is 20m3 per ha and indicated quite correctly that the average rate is currently 5m3 per ha. Amazingly, he furthered that this will lead to over harvesting of prime species. A little refresher for Mr. Kowlessar in fractions and percentages, this is 25% of the maximum allowable cut which I must add is set based on the precautionary principle. How can anyone in their rightful mind say that this is over-harvesting?
It is a fact that Guyana’s prices as disclosed in my analyses are correct and not veiled prices, as Mr. Kowlessar would have us believe. It is a fact that all tropical timber exporting countries, including Guyana reflect prices within the same range of prices. It is a fact that given consideration for insurance and freight the CIF price at ports in China reflects prices on par with declared FOB prices adding freight and insurance. It is a fact that Mr. Kowlessar is now grasping at straws after having failed to convince the Guyanese public that transfer pricing exists.
Please allow me to re-emphasize that from my extensive analyses there is absolutely no evidence of transfer pricing in the forest sector. I appeal to the public to be vigilant of mischief makers such as Mr. Kowlessar, who are clearly bent on causing confusion in our minds. Imagine proposing that we are losing US$3 to 5M a month, is he serious? Who really believes this individual?
Yours faithfully,
Vivek Persaud
