Some of the persons linked to a gold smuggling ring between Guyana and the US including a gold dealer, had their US visas revoked since earlier this year, according to a source with knowledge of the matter.
Government and law enforcement officials have said that there has been major smuggling of gold to the US and other countries including Brazil and a major investigation is now underway and encompasses collaboration between Georgetown and Washington on tracing shipments of gold and their declaration in the US.
A gold industry source told Stabroek News that the dealer learnt of his visa revocation when he turned up at the airport to travel sometime in January. It was stated that this was linked to smuggling and others also had their visas revoked. According to the source, persons in the industry are concerned. “It is disturbing…we ain must be concerned,” the source said.
The disclosure of the smuggling will up the pressure on the gold mining industry which had been stating that lower declarations over the last two years had been a result of a decline in production triggered by the slide in the international price of the metal. There have been incessant appeals from the miners’ association for more concessions to spur gold production and these were granted in the recent 2015 budget.
Thus far neither the Guyana Geology and Mines Commission (GGMC) nor the Guyana Gold and Diamond Miners Association (GGDMA) have said anything about the smuggling reports.
Last week, head of the Special Organised Crime Unit (SOCU) Assistant Superintendent Sydney James told Stabroek News that 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. “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 said.
Minister of Governance with responsibility for natural resources management Raphael Trotman had told Stabroek News that after the APNU+AFC government took office in May it found evidence of rampant gold smuggling particularly to Brazil, Suriname and the United States and has made tackling it a priority,
“There was gold smuggling when we came into office and we found it was quite extensive. We decided to make it priority,” he said while adding that the issue is of serious concern as every bit of ore or gold that leaves Guyana undeclared means less revenue for the country.
Gold declarations and earnings have been on a downward spiral since last year following a record high in 2013. In 2009, gold declarations were 305,178 ounces, while in 2010 declarations rose to 308,438 ounces.
In 2011, gold declarations amounted to 363,083 ounces increasing to 438,645 ounces in 2012.
The following year, 2013, the gold industry achieved total declarations of 481,087 ounces representing the highest level of production in the history of the industry.
However, in 2014, gold declarations dropped by almost 20% compared to the previous year, ending at 387,508 ounces.
