The Guyana Revenue Authority (GRA) wrote Chinese logging company Baishanlin in February this year seeking $1.58b for breach of the terms under which tax exemptions were granted.
According to the letter seen by Stabroek News, the GRA said that Baishanlin did not undertake the aspects of the project specified in the investment agreement signed with the Government of Guyana i.e. upgrading and building a modern wood processing facility at Conception, Linden.
It was also argued by the GRA that Baishanlin failed to create and sustain employment for 150 persons over three years and that the company failed to procure and provide all of the investment and other financing needed for the undertaking in the sum of US$130m over a three-year period from the date of the signing of the investment agreement.