THE decision of Muri Brasil Ventures Inc. to abandon its exploratory licence in Guyana is regrettable and threatens the likely loss of investors’ confidence in Guyana, Head of the Presidential Secretariat Dr Roger Luncheon observed yesterday.Dr Luncheon was speaking at his weekly post-Cabinet press briefing at Office of the President in Georgetown when he said that investors’ confidence in Guyana as a destination for their financing is under attack.

Cabinet last Tuesday examined the implications of the decision made in the natural resources sector by Muri Brazil and has noted the similarities between how the political Opposition dealt with this project and the Amaila Falls Hydropower project.

“Cabinet’s concerns, however, went beyond the specifics of this unfortunate episode and really were addressing its deeply rooted concerns, the more ominous outcome of a likely loss of investors’ confidence in Guyana.

“Combined with the concurrent parliamentary Opposition to the Anti-Money Laundering Amendment Bill and the consequences that led to CFATF November recommendation to blacklist Guyana; that, combined with these incidents of loss of projects by investors, Cabinet was convinced that these impediments to the government plans for economic development in Guyana, these were real impediments being created, being sustained by the parliamentary Opposition,” said Dr Luncheon.

Meanwhile, misinformation, prejudice and hostility were key factors influencing the decision of Muri Brasil to scrap its local investment venture. The company will no longer pursue its geographical and geophysical survey under the Permission for Geographical and Geophysical Survey (PGGS) in the New River Triangle area, which was granted by the Guyana Geology and Mines Commission (GGMC).

In a statement, Muri Brasil Ventures, said: “Although the process was legal and transparent, this decision is due to the misinformation, prejudice and hostility to this proposed survey by persons and agencies, which are fostering an adverse investment climate in Guyana.”

The company had made it clear that there was nothing “opaque” about its deal with the Natural Resources Ministry in acquiring the PGGS, but claimed that the company applied for it following an advertisement by the government.

The company had said: “Exploration activities have not commenced because permission is being awaited for the construction of a small airstrip to facilitate the airborne aspect of the survey. Other research activities have taken place.”
Written By Telesha Ramnarine