Thursday, April 14, 2011

Bulkan and the AFC's claims of lack of transparency in the VHPI Forestry deal are false.


Khemraj Ramjattan and Jeanette Bulkan

The AFC as well as Jeanette Bulkan sought to criticize the granting of a State Forest Exploratory Permit (SFEP) toVaitarna Holdings Private Inc. (VHPI), previously issued to Simon and Shock Intl. (SSI), a US company, and a Timber Sales Agreement (TSA) previously issued to Caribbean Resources Limited (CRL) citing lack of transparency among other things.
However, after paying keen attention to press releases by the Guyana Forestry Commission and the Ministry of Agriculture we have deduced the following:

The statement that “The arrival of VHPI hardly seems to comply with the election manifesto of the People’s Progressive Party…” since it does not support value added activities is totally untrue since the company has committed to doing value added work in Guyana in keeping with the PPP manifesto and National Policy.
Also the attempt to compare this reallocation as another “Barama deal” is silly given that Barama Company Limited (BCL) or no other company which has been leased a forestry concession in Guyana has ever paid a cent (other than administrative fees) to access the forest resources, while VHPI paid US $3 M to access a concession which is less than 25% of BCL’s leased concession.
Further, BCL had consecutive 5 year tax holidays and other concessions-none of which VHPI enjoys and pays about G $800,000 as acreage fees for access to 1.6 M hectares while VHPI has to pay G $81.00 per hectare or G$28,022,841 for access to 345, 961 hectares.
This means that if VHPI had BCL’s acreage, they would have paid in excess of G$120,000,000.00 to the GFC.
Whilst BCL enjoys a preferential sliding scale rate on royalties, moving from G $5.00 per cubic foot to G $25.00 in 2011, VHPI has committed to pay the royalty as per any other company. BCL paid until recently (2009), export commission only on greenheart logs while VHPI will export logs only in accordance with the National log export policy.

3 comments:

  1. Ramjattan for one should be the last to question or claim anything on lack of transparency. This man is really an eye and ear sore when he starts to spew the shit he ever so often spills to the media. I wonder if he doesn’t feel any guilt when he is performing his acts in public, damn criminal.

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  2. Jeanette Bulkan is obsessed with burning the PPP-C government's forestry initiatives, but what she really needs is a good piece of wood.

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  3. He-he-he! So true! A really stiff piece of wood will make Janette Bulkan forget about forestry and focus on she bush.

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