Chief Justice Ian Chang on Monday ordered the Guyana Forestry Commission (GFC) to withdraw its closure notice directed to Toolsie Persaud Limited (TPL) and quash its decision to close that company’s harvesting operations.
TPL had moved to the court on April 29, to stop the GFC from enforcing a stop order on its Timber Sales Agreement and from collecting a fine of over $80 million for alleged breaches in harvesting regulations and had obtained a temporary order. The GFC was to have responded on May 7.
At a press conference on April 30, Minister of Agriculture Robert Persaud had said that in the latter part of 2007, an audit revealed that TPL was guilty of harvesting in at least 27 blocks for which no 100 per cent inventory information had been submitted to, or approved by, the GFC. He said the company was also in breach of the guidelines by harvesting in two blocks, which were not stated in its Annual Operation Plan for 2007.
“The total volume that was harvested without approval was 24,153 m3 of logs and 28,719 metres of round wood [piles, poles, posts]. Compensation payable to the GFC for these breaches was calculated at $80,289,100,” the minister had said.
He said the GFC had held several meetings with the management of TPL to address the issue, and at no time did the company deny that it had breached procedure.
In February 2007, he said, the GFC wrote to the company advising again on the procedure to be followed before approval could be granted for the commencement of harvesting for 2007.
“The GFC then received correspondence dated March 18, 2008, from RN Poonai and SJ 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,” the minister said.
Toolsie Persaud’s TSA had expired in December 2007, the minister said. He noted that in the latter part of 2006, all holders of TSAs and Wood Cutting Leases (WCL) were reminded at a meeting held in the GFC’s Lower Conference Room of the procedures that were to 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.”
The minister said that despite the GFC’s best efforts in encouraging sustainable forest management practices, TPL had committed blatant breaches and when so advised, chose 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,” the minister said.
Asked how these breaches could have occurred when the GFC has staff deployed in the forests, Commissioner of Forests James Singh said it was physically impossible for the forest monitoring staff to have a presence in all of the concessions.
He added that the onus was on the concessionaires to ensure that the regulations are followed in harvesting operations.