With only one set of charges thus far from what was said to be a broad probe into the abuse of remigrant duty-free concessions, the Guyana Revenue Authority (GRA) has still not been able to confront a claim by the publisher of Kaieteur News that he was targeted because of his newspaper.
The probe was initiated by the Auditor General’s office under the direction of the GRA Board of Directors. Stabroek News reached out by email to the Chairman of the Board Clyde Roopchand asking about the recent reports that were submitted by the Auditor General’s office to the GRA in relation to the number of persons being investigated. To date, there has been no response from Roopchand.
Auditor General Deodat Sharma had previously told Stabroek News that he could not disclose information on the investigation since it is an active one. This newspaper had requested information on the number of persons implicated and the number of vehicles being looked at. Last week, Stabroek News requested information from Roopchand by email on why the only person publicly accused of allegedly defrauding the programme was publisher of the Kaieteur News Glen Lall, his wife Bhena and family friends of the Lall’s, Narootandeo and Gharbassi Brijnanan.
Sources close to the investigation had previously told Stabroek News that a flood of luxury vehicles prompted a government decision to probe the period 2010 to 2014. While the investigation has been ongoing since the beginning of this year and the process going year by year, little information has been publicly available as to the number of persons being investigated. No one has been charged other than the Lalls and Brijnanans.
Stabroek News asked Roopchand about the preliminary findings of the Auditor General’s report involving cases investigated from 2010-2012 that would have already been concluded.
Lall has been outspoken in his belief that the GRA has targeted him in an attempt to muzzle him and his newspaper’s effort to highlight issues affecting the populace. He has stated that there is no evidence to support the allegation that he had deliberately committed tax evasion.
The Brijnanans had moved to the courts after their vehicles had been seized by the GRA. Acting Chief Justice Ian Chang had directed the GRA to show cause as to why its decision to seize the two vehicles should not be quashed on the grounds that it was unlawful.
Stabroek News was told that it has been a longstanding trend for remigrants to bring in vehicles for people under the pretext that they belong to them. According to the source, customs staff are not being overlooked as it is suspected that both senior and junior staff members may be embroiled in the scam.
To date the Brijnanans’ son and GRA customs officer Navin Sankar remains in his post although there is an ongoing investigation. Critics have noted that his possible role in the vehicles matter required a rigorous investigation by the GRA.
When approached for a comment, head of the GRA Khurshid Sattaur stated that only the Auditor General’s office would disclose the findings of the two reports submitted to the GRA.
After the two vehicles were seized by the GRA, Sattaur stated that the issue was with the remigrants and the possibility that they owed over $102 million in taxes on the two luxury Sports Utility Vehicles (SUVs) which were brought into the country through concessions granted under the remigrant scheme.
Stabroek News understands that Minister of Foreign Affairs Carolyn Rodrigues-Birkett would be the only person able to comment on the investigation at the ministry. Previously, Director-General Elisabeth Harper had told Stabroek News that the GRA “determines the tax concessions to be granted… Based on [that], the GRA can initiate an investigation at any time if they have information that warrants one.
“The Foreign Ministry is always looking at ways to improve the system as is the case with any other system and has been doing this throughout the years. This is a continuous process and Cabinet has authorised several revisions over the years. The idea of the programme is to assist Guyanese citizens returning to their home country to resettle. As such the Foreign Ministry strives for balance with ensuring the system is not too cumbersome but also not susceptible to abuses,” she had added.
Former Auditor General Anand Goolsarran in his Stabroek News column, wrote that “the Remi-grant’s Scheme appears to be a worthwhile and beneficial one, considering the level of ‘brain drain’ that has been taking place since the 1970s and perhaps earlier. However, there is no evidence that any dedicated study was carried out to ascertain the effectiveness of the Scheme, especially as regards any net benefit to the country arising from the concessions granted.”
He questioned if the scheme offered the desired value for money while noting that the concessions can be abused given the absence of effective monitoring.
He stated that there is “no evidence that follow-up procedures are in place to ascertain any help a remigrant may need in the settling-in period and in the pursuit of the economic activity identified in his/her application for remigrant status. Nor is there evidence of any procedure to ensure that a remigrant does not return to resettle in his/her previous country of residence, or any other country, within the stipulated three-year period. This is a significant shortcoming of the Scheme that is open to widespread abuse.”
