Minister of Natural Resources Raphael Trotman said that although the task force set up to investigate gold smuggling has not been meeting regularly, work is being done.
“That task force has not been disbanded… while it may not have met for the year physically there is a constant exchange of correspondence and reports on different activities,” he told reporters at a post cabinet press briefing on Wednesday.
Trotman said that since the task force was established last year, the Ministry of Public Security and the Special Organised Crime Unit (SOCU) have taken the lead on the issue of gold smuggling.
According to him, the task force is in a review mode and will be convened as needed.
The issue of gold smuggling was raised last year after it was revealed that during a four-month period, gold worth billions of dollars was smuggled into the US. After being alerted, US authorities made contact with local authorities. Investigations were launched at both ends.
Trotman, when contacted on the issue, had told this newspaper that after the APNU+AFC government took office last 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.
Gold declarations for 2015 amounted to 451,490 ounces.
SOCU head, Assistant Commissioner Sydney James had stated that there is evidence of a large-scale network involving several locally-registered mining companies in the smuggling of gold 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 had said.
According to James, this network involves hundreds of persons and the information circulating is that among those who are being linked to the probe are well-established businesses and persons in the mining sector. The US has already revoked the visas of some of the suspected smugglers.
Gold smugglers both inside and out of Guyana were said to be on the government’s radar.
Head of the Guyana Gold and Diamond Miners Association (GGDMA) Patrick Harding has since distanced small miners from the gold smuggling saying that “big players” have hijacked the mining industry and are the ones behind the large-scale smuggling of gold.
US Ambassador Perry Holloway in an interview with Stabroek News had said that his country was preparing an assistance package after it was approached by the Guyana government for help.
“There are many investigations by many entities into the smuggling of gold out of Guyana. I know that the government and many different ministers have asked for assistance in that respect and we are going to be working on that,” he stated.
So far only one gold smuggling charge had been laid. Gold smith Richard Ramjit was charged last month. He was detained at the airport in January while preparing to leave Guyana for the US. The gold jewellery he was wearing – a band and a neckwear together weighing 19.12 ounces were seized.
The jewellery has an estimated value of $3,943,360.
