There is evidence of a large-scale network involving several locally-registered mining companies in the smuggling of gold out through the country’s major ports, according to the head of the Special Organised Crime Unit (SOCU) Assistant Superintendent Sydney James.
“Based on information gathered we suspect a number of major networks/individuals are engaged in this practice … there are hundreds of people… some are well-established businesses licensed to export gold,” he told Stabroek News, in wake of recent revelations about a gold smuggling ring operating between here and the United States of America and which has led to the revocation of the US visas for several of those implicated along with their relatives.
It is believed that the smugglers have been able to successfully operate with the help of Customs officials, particularly those working at the Cheddi Jagan International Airport (CJIA), Timehri. However, the Guyana Revenue Authority (GRA) yesterday, in a strongly-worded statement, defended its Customs officers and said that it is “baffling” that they would be embroiled in the illegal gold smuggling ring.
In an interview with Stabroek News, James confirmed that his agency is spearheading an investigation involving “currency” and that there is an “intensive collaboration” with agencies inside and outside of Guyana.
He explained that “currency” is a broad term used under the law to encapsulate money, jewellery, precious metals and stones and monetary instruments.
Further James said that there is information/intelligence which suggests that there is a “deliberate attempt” by known individuals and companies to move currency out of the country.
Noting that the gold smuggling has been occurring over the years, he told Stabroek News that SOCU has picked up a “trend” through most of the country’s ports, including CJIA, Ogle, Charity, Lethem as well as Moleson Creek, including the back track route. Asked about the Eteringbang area or any part of the Guyana/Venezuela border, he said that they haven’t been able to gather enough information in this regard.
According to James, SOCU has been able to establish that the illicit outflows are occurring based on collaboration with regional and hemispheric countries.
“It is based on that that we are able to template and network a number of companies, groups and individuals. This doesn’t only relate to gold. It also relates to the smuggling of money,” he stated before reiterating that based on all the available information there is extensive networking engaging large quantities of gold over several years.
Asked how many people are part of this ongoing investigation, he said “the magnitude is massive” for the period of time between when SOCU became official and today.
James told Stabroek News that investigators are facing challenges, with the main one being getting the required documents to “present in court.”
Raphael Trotman, Minister of Governance with responsibility for natural resources management, has said that out of recognition that gold smuggling has been rampant the government has decided to make it top priority.
This newspaper has been reliably informed that information about collusion between the smugglers and the customs officers have been circulating for some time now. One source told Stabroek News that it is being alleged that the customs officials would collude with smugglers by turning a blind eye when the gold arrives at the ports. The source added that in some cases false declarations are tolerated as no questions are asked.
According to the source, it is a well-organised grouping involving those at the GRA and officials in various positions at all the country’s ports.
The source pointed to the Guyana gold which was stolen off of a Guyanese-owned boat when it docked in Curacao a few years ago. “That particular incident was an eye opener as to the amount of gold that is leaving Guyana undeclared. If there wasn’t a robbery, we would have never known about the existence of that gold,” the source said, while adding that many involved in the mining industry try to beat the system so as to earn more for themselves.
Perturbed
In its statement yesterday, GRA said it was “most perturbed” by the recent revelations about the organised gold smuggling racket and the implication of customs officials.
It added that based on its previous experiences in the past where the integrity of the GRA was compromised by officers within the Authority who have been in collusion with unscrupulous characters, fervent efforts have been made to hold officers accountable to standard operational procedures.
It further stated that it is the GRA’s view that every person or agency in question should cooperate with the authorities and avoid speculation.
“In accordance with the law, passengers with gold worn jewellery are not required to make a declaration providing that it does not exceed a certain value. On the other hand those in possession of raw and scrap gold and those with gold in commercial quantities, must make the required declarations. In such instances, the declaration must be accompanied by an approved import licence and permission from the Guyana Gold Board with an attachment stating the price, weight and other particulars of the shipper and consignee,” the GRA explained.
According to the statement, there is therefore a likelihood that because of the foregoing provisions there would be an enticement to smuggle items as worn jewellery in an attempt to elude Customs officials. As a result, it emphasised that the support from other enforcement agencies, such as the CANU, would be integral given the pervasive nature of smuggling.
“Customs Officers at the CJIA do not monitor outgoing passengers’ baggage. This activity is monitored solely by CANU, the Criminal Investigation Department and Special Branch of the Guyana Police Force and airport security personnel,” the GRA added, while noting that in the event of any discovery, Customs is notified by the relevant agency.
Additionally, it stated that with pressure from the international community for countries to strengthen their laws to guard against money laundering and the financing of terrorism, there is likely to be greater scrutiny for persons from Guyana to disclose the source of their valuable assets to US authorities.
From a Customs perspective, the GRA said it will be seeking to ascertain the perpetrators in question to determine what enforcement action will be taken in accordance with the country’s border, trade laws and regulations.
“It is however worth noting, that part of the responsibilities of Customs officers at the CJIA include the monitoring of the duty free shop, the incoming and outgoing desk, and the movement and transshipment of cargo,” it added.
