Logging company Baishanlin on Thursday admitted that it has suffered “major setbacks” in completing its long promised wood processing facility and it said that this was due to the lack of adequate funding from its financiers, which it blamed on the “hostile environment” caused by the media.
“The company has indeed suffered major setbacks in completing its state-of-the-art wood processing facility that will create hundreds of jobs for Guyanese. These setbacks directly relate to lack of adequate funding from its financiers, who, since last year when these sustained attacks began, became concerned about the soundness of investing further in what appeared to be a hostile environment,” a statement from the company said.
The company had long promised that it would set up a wood processing facility and had been mum on why it is yet to do so. However, it has been building ships at its Moblissa site and exporting large quantities of logs.
In its statement yesterday, the company said that the management of Baishanlin International Forest Development is deeply concerned about the misrepresentations and false reports being carried out on the company by some sections of the media. According to the statement, Kaieteur News has been leading this campaign “with reports that are erroneous in nature, which fail to highlight, even in a single instance, where the company itself has broken any law or regulation.”
The statement pointed to an April 30 report in the Kaieteur News, headlined ‘Bai Shan Lin delays US$70M wood processing factory for gold, housing, logging,’ and it emphasised that Baishanlin is a privately owned company that does not receive capital from the Government of Guyana. According to the statement, the newspaper printed unsubstantiated information “that can only be geared more towards sensationalism, and less towards keeping the public informed.” “A closer look at much of these articles shows that they are based on hearsay and reckless speculation,” it charged.
The company denied that massive deforestation and illegal exports are being carried out. It said that public record shows that Guyana is felling significantly less trees than is allowed under agreements the country has with international partners. It stressed that Baishanlin has consistently remained well within the law/regulations governing the forestry sector.
In relation to mining lands, the statement noted that under regulations governing the mining sector, only Guyanese can participate in auctions and bid for mining lands. Stabroek News reported recently that Baishanlin director Chu Hongbo’s naturalisation as a Guyanese citizen ensures that at least 50% of the shares of Bai Shan Lin Mining Development Com-pany Limited are held by Guyanese.
Earlier this month, the Guyana Geology and Mines Commission (GGMC) had defended mining claims held by Hongbo and said that he had become a naturalised Guyanese citizen. Stabroek News had reported on a report done for the GGMC that, among other things, revealed that with 109 medium-scale mining properties, Hongbo is the third largest holder of medium-scale mining permits in Guyana.
Baishanlin’s statement on Thursday said Hongbo is a naturalised Guyanese and “The law therefore allows him to bid for mining lands, which he has done, and paid for. These auctions were held publicly with full participation of the media. Baishanlin is deeply disturbed by the implication that Chinese acquiring Guyanese citizenship should be treated differently under the law.”
The statement added that Baishanlin will continue to engage communities, particularly those in which it has a presence, and remains committed to further strengthening relationships with all stakeholders.
Baishanlin has come under intense examination for failing to establish wood processing facilities while all the time engaged in the export of logs. Both Baishanlin and the government have said that its log exports are within allowable limits and there are no illegalities. These statements have, however, been met with great skepticism. Baishanlin has issued press releases but has not answered questions from the media.
Stakeholders, including the opposition majority in the last Parliament, have called for the foreign direct investment contract with Baishanlin to be made public. No answer has yet been forthcoming on who crafted this agreement and on its availability.
The legality of Baishanlin’s landlording arrangement with a series of other forest concessionaires has also been queried as the law that would cover this was brought into force long after this arrangement had begun. Logs have still, however, been drawn from various concessions.
