The mounting accusations about Chinese nationals here in Guyana being part of elaborate money laundering and bribery schemes in exchange for investment opportunities “should be investigated by security agencies”, President Irfaan Ali said yesterday.
The Head of State, while responding to questions from this newspaper, said the admissions from persons in VICE News broadcasts requires “some” investigations as his government has zero tolerance for such activities.
“What is clear, there are some people there who are saying they are involved in such activities… if you look at the video and that definitely requires an investigation… And I’m hoping… the relevant security and relevant agencies are looking at this because it is clear that someone says they are involved,” Ali said when asked if he had any concerns over the revelations in the docu-series. Ali was at the time responding to questions on the sidelines of the opening ceremony of the National Toshaos Conference at the Arthur Chung Conference Centre yesterday.
The VICE News video report released on Thursday last, contained revelations from Chinese businessmen operating in Guyana, admitting to money laundering and paying bribes to government officials in exchange for lucrative contracts. The docu-series was an extended version of VICE News’ original video report, ‘Guyana For Sale’, which examined the operations of Chinese businesses in the country and challenged Vice President Bharrat Jagdeo on government corruption. Jagdeo has since vehemently denied the insinuations against him and has said that he intends to sue the middleman who made the claims.
In the new docu-series, Chinese businessmen can be heard openly admitting to paying bribes and utilising middlemen to secure deals. The bribes, which are paid to the middlemen, are described as “consulting fees.” The Chinese businessmen also admit to having access to money launderers who operate within their network to facilitate swift money transfers. VICE News journalist, Isobel Yeung and her undercover colleague (who is referred to as ‘Mr. Chan’), in the series posed as ‘investors’ whose declared interests are in the mining, logging and construction sectors. Yeung explained that this was done to unearth the “corrupt deals” in business transactions. While undercover, Yeung said they were presented with a deal dubbed the most lucrative, with lands in a prime location where a hotel and casino could be built. The VICE News’ ‘investors’ agreed that that would be the deal, Yeung said. According to the VICE News report, the trail to securing any agreement begins with the notorious ‘middlemen’ and goes all the way to Guyana’s Vice President, Jagdeo.
To gain access to the Vice President required meeting with one specific middleman, Su Zhirong. In the meeting with Su, ‘Mr. Chan’ was asked to confirm [to Su] that his investment capital was readily available. ‘Mr. Chan’ however explains to Su that their capital is tied up in China. This led to another meeting between ‘Mr. Chan’ and “a couple of guys who he (Su) says are able to transfer huge sums of money into the country.” In the video, Su can be heard making the arrangements for ‘Mr. Chan’ to meet these businessmen who are also believed to be the principals involved in money laundering. In the video it was explained that China exercises strict controls over moving sums of money outside its borders, and alternative means of transferring any monies had to be explored.
In that meeting, the men were questioned [by VICE News ‘investors’] as to which account the money should be paid into to secure Jagdeo’s intervention. Su is then heard responding, “Once the money is in Guyana. I will give him cash. The Vice President finds this the easiest and most convenient.” Su in a telephone conversation, explains to Yeung and her colleague “… with these procedures no one can pick up on us.”
“There have been a lot of hints throughout our time here that the way that foreign companies are normally getting money into country is through different money launderers that operate here,” Yeung says. In another meeting which takes place in a hotel room, an individual is heard telling Yeung and her colleague, “They deal with all the Chinese businessmen here in Guyana.” In the sit-down, the conversation is in Mandarin and it was explained that fees need to be paid to government officials. The launderer explains, “the money is transferred through us… it is very easy. What we do is we get around China’s regulations.” He reportedly said that he works with others to transfer cash for both private and Chinese state-controlled companies. He indicated too to the VICE News ‘investors’ that he has personally delivered cash directly to government officials.
According to the men, they use a procedure commonly referred to as “flying money” in the Asian state. “Money is placed into a bank account in China. The equivalent amount, minus a hefty fee, is taken out in Guyana for getting around taxes and border restrictions,” Yeung explained. Depending on the source of the money, a laundering fee is set.
“Tell me about your money. If it’s drug money, the client will tell me that. There is a way to handle that. For “dirty” money from corrupt Chinese officials, we have another way to do it… If you want cash, we charge 20 per cent now…” the launderer explained. He went on to state, “If the money is related to the government, we are at risk of being arrested,” when ‘Mr. Chan’ indicated that 20 per cent was hefty. “You give me RMB [Chinese Yuan] and I can give you cash tomorrow,” he told Yeung who in turn questions if it [the money transfer] was “that fast?” to which he nodded his head in the affirmative. “Because of the pandemic some days we can only get you $300,000-$400,000 a day,” he added. When asked if they do that every day he again responded in the affirmative.
A day after the report, the Chinese Embassy here on Friday emphasised that both China’s government and the Communist Party of China have a zero tolerance policy towards corruption. A brief statement issued on the Embassy’s Facebook page said China is a country under the rule of law and Chinese nationals are requested to comply with laws and regulations, and actively fulfill local social responsibilities. The statement also once again accused the media outlet, VICE News, of seeking to tarnish the reputation of and undermine China’s and Guyana’s relationship.
