In the wake of reports that Chinese company Bai Shan Lin has ignored successive cease-work orders issued by the Guyana Geology & Mines Commission (GGMC) and continued to remove laterite and sand from locations at Moblissa and Bamia, Chairman of the Private Sector Commission (PSC) Ron Webster has told Stabroek Business that it is important that both local and overseas businesses be required to abide by the same investment rules.
While making it clear that he was not in possession of “reliable information” and was therefore unable to pronounce on the Bai Shan Lin issue, Webster said foreign investors and their local agents had a responsibility to ensure they follow national laws pertaining to investment in Guyana. And according to Webster, good governance must obtain in the private sector as much as in the public sector with the investment climate being characterised by high ethical standards and compliance with the law.
“What is also important is that we ensure that there is a level playing field for local and foreign investors,” Webster said.
In January this year Chairman of Bai Shan Lin’s parent company China Forest Industry Group listed a timber processing plant at Linden and the creation of an industrial complex at Providence as being part of a US$100 million investment, which would provide employment for 10,000 Guyanese in the long term.
However, despite what appeared then to be a vigorous effort to sell itself as a company that would bring benefits to Guyana, Bai Shan Lin has been unable to evade controversy arising particularly out of a 960,000-hectare forest holding confirmed by the Guyana Forestry Commission (GFC). Last week, trucks reportedly owned by Bai Shan Lin could be seen removing sand and laterite from locations at both Bamia and Moblissa despite not being officially cleared to conduct such activities and having received at least two cease-work orders from the GGMC. Significantly, and despite Bai Shan Lin being in breach of the law there appeared to have been no official attempt, up to late last week, to clamp down on the activity.
Up to earlier this week none of the state agencies responsible for overseas investment, nor the business support entities had commented publicly on the Bai Shan Lin issue. On Monday, however, Webster told Stabroek Business that he believed there was much merit in foreign investors becoming members of the PSC since the entity could provide valuable support and guidance insofar as living with the paradigms of the law was concerned. “There are sixteen sector agencies including those that have to do with mining, tourism, manufacturing and a host of others that can provide the kind of guidance that foreign investors may need, even if those investors are not members of a small business umbrella body,” Webster said.
