Arising out of concerns raised by the Stabroek Business regarding the progress being made by the authorities in rolling back the smuggling of gold out of Guyana, a source with several years of experience of the sector has told this newspaper that the continued outflow of gold from Guyana and (mostly) into neighbouring countries is almost certainly occurring with the “full knowledge” of “people in authority” in Guyana. The source told this newspaper that he was not inclined to “go into specifics” on the issue and said that given his own understanding of what he described as “the workings of the sector” it was not “reasonable to believe” the gold smuggling, “open” as the practice is, could “continue uninterrupted” without the knowledge of the authorities. “I believe that the practice continues because there are people who want it to stay that way. There are good reasons for them to ignore it,” the source added. He said that there is “so much money” to be made from gold smuggling that it is not easy to stop the practice.
In July, Vice President Bharrat Jagdeo was reported in a section of the media as saying that the authorities here were “investigating what is believed to be the smuggling of Guyana’s gold into Brazil.” The media report had stated that Vice President Jagdeo’s pronouncement derived from “concerns raised at a People’s Progressive Party Civic (PPP/C) press conference following a Brazilian news report” earlier in the same month. The report, attributed to the Brazilian media, had alluded to a Brazilian Federal Police investigation into “a Guyanese businessman” who was “allegedly laundering some US$16.5M in smuggled gold, through shell companies in Brazil.” The report had also said that the allegation had triggered an investigation which was launched on July 7. Vice President Jagdeo himself was reported to have said that the probe had arisen over concerns raised locally over a decline in gold declarations “over the past few years”. The source had pointed to an assertion attributed to Jagdeo that “tough measures” would be implemented in an effort to eradicate gold smuggling though he challenged government to point to “these tough measures” that had been promised by the Vice President.
Asked whether he felt that the authorities were making an insufficient effort to curb the gold-smuggling practice, the source told the Stabroek Business that the question was a “complicated” one though he responded by opining that the authorities were “not working hard enough” to stamp out the practice. Jagdeo, meanwhile, is reported to have said, back in September, that an official investigation was ongoing into gold smuggling and that miners found culpable would face the consequences arising out of “tough measures” which he promised, would be implemented. When the assertion was put to the newspaper’s informant he responded that he was not “aware of any such ongoing investigation.” A ‘progress’ report on the gold mining sector proffered by President Irfaan Ali early in September had stated that the sector had experienced a decline in production during the first half of the year. It had added, however, that the performance of the sector was showing signs of improving performance. That report had also promised that the government would engage miners and probe any issues raised.
An October 23 Stabroek News report, meanwhile, had asserted that government had secured the “full support” of the Guyana Gold & Diamond Miners Association (GGDMA). The GGDMA statement reportedly expressed full support for the government’s warning about unlawful gold trading and said it will not defend any person found to be legally culpable for such misconduct.
