President Bharrat Jagdeo said last week that corruption remains an issue at customs which is still reeling from the polar beer scandal from a year ago, and according to him investigations are continuing into the activities of some officers. Since the dismissal of sixteen officers embroiled in the scandal with Fidelity Investments, the authorities have been probing other employees.
President Jagdeo stated on Friday during a Private Sector Commission (PSC) dinner that a lot of corruption still plagues the revenue body. “There are people who try to steal at customs”, and he declared that the investigation which is continuing is only the beginning.
He spoke of the extended processing period at customs saying that changes had been instituted to correct problems within the system, but underscored how corrupt practices are affecting routine work. He recalled that in the past the processing of applications proved challenging.
But certain changes were made, Jagdeo stressed, pointing out that the administration took Inland Revenue and Customs out of the civil service and created the Guyana Revenue Authority with an independent board. He said that steps were also taken to have several processes in the system automated. Additionally, he mentioned the Valued Added Tax (VAT) which he said leaves a paper trail and significantly improved the system. Still, he observed that the notable improvements made were not enough.
“I have asked that they publish timelines for processing of applications from Go-Invest to the Customs and if they can’t comply with the timelines they must say why in the report to the Minister,” the President stated. He declared that in a very short period Customs and other agencies will publish timelines indicating how long processing would take after receiving an application. The President noted that if processing extends beyond the period published then the affected party could take action. And responding to a proposal from a member of the audience about customs instituting an urgent processing fee to speed things along, Jagdeo said that the idea sounds practical.
“People want things fast and when they bribe they get things easy”, a member of the PSC said while stating his proposal to the President.
The President agreed with the idea saying that a structured urgent processing fee is likely to accelerate processing. He said too that some companies are ‘above board’ as demonstrated from their track record, noting that applications from such companies can be processed easily- likely in a day and/or two hours.
On the other hand, he said, there are some companies that simply cannot benefit from accelerated processing because they require 100 percent examination.
“… frankly speaking if I am the Commissioner General I am not processing [them] for a long time until I get a 100 percent examination”, the President stated.
According to him, some companies are ticked off on a list for 100 percent examination. He noted that in the case of exports, customs is still required to make checks because drugs have been leaving the country in rice containers and in lumber among other things.
Questions have been raised about why fraud charges were dropped by the Chambers of the Director of Public Prosecutions against Fidelity Investments over the polar beer scam. It had been suggested in government circles that the charges were dropped as part of a plea bargain arrangement under legislation that was recently passed for this. President Jagdeo himself had hinted at the use of the legislation in this case at a meeting in Georgetown earlier this year of Caribbean police commissioners. However, he has since been silent on the matter. It had been suggested that Fidelity officials would testify against customs employees. Observers have however pointed out that the legislation should work in the opposite direction – the customs officers testifying against Fidelity. There has since been no word about if Fidelity faces further examination over its role in the charges that the customs officers still face.
