Decline in declaration costs Guyana US$100M in foreign exchange-Ganga

THE Guyana Gold Board(GGB)has issued a reminder to all players in the gold mining industry of the stipulations of the Guyana Gold Board Act and the penalties that can be incurred if they are found hoarding gold.

The reminder comes on the heels of a 20% drop in declaration of gold produced for 2014 to date in comparison with the corresponding period last year. The decrease in declaration is suspected to be largely due to hoarding by producers.

LOSSES
During a recent panel discussion, Chairman of the GGB, Gobind Ganga said that with the decline in gold declaration Guyana has lost about US$100M in foreign exchange and approximately $1.5B less in royalty and taxes.

This current situation, Ganga had said, is very threatening to Guyana’s economy since gold has been helping the country’s fiscal policy to provide for economic sustainability. “So with this decline it’s going to have an adverse effect, not with respect to the exchange rate per se in the immediate future, but later down the road it will have the effect.”

In a media release on Thursday the GGB identified miners, shop owners in mining districts, dealers and persons trading in gold, and persons purchasing gold with a Guyana Geology and Mines Commission (GGMC) permit as the main players who all need to ensure that trading of gold is done within the confines of the Laws of Guyana at all times.

Miners, the GGB reminded, are required by law required to sell all gold produced to the Board or any authorised gold dealer within 28 days of obtaining such gold.

All shop owners in mining districts are required to sell all gold in their possession to the Board within 14 days of obtaining such gold.

All persons licensed by the Guyana Geology and Mines Commission (GGMC) to advance money or supply goods on credit to miners for payment in gold are required to inform the Board of the receipt of gold within 10 days of receiving such gold and to sell all gold so received to the Board.

They are also required to record every transaction in a book kept for that purpose, stating the amount of money advanced or the description, amount and cost of goods supplied, and amount of gold received as payment for the said goods.

And they are required to produce that book for inspection by any officer or person authorised by the Board.

The GGB said that where there is reasonable suspicion that an offence has been or is being committed and evidence of the commission of the offence is to be found at any premises, an officer authorised by the GGB may, with a warrant, search the premises in question, or any other place, at any time, within one month after the date of the warrant.

The “officer” may be any of the following persons: Officer of the GGMC, every member of the Police Force; every mines officer under the Mining Act and every person employed by the GGB and authorised by the General Manager of the GGB.

If an officer has reasonable cause to suspect that any person is unlawfully in possession of, or removing any gold, an officer may stop and search any person and any vehicle or other mode of transportation in that person’s possession or control; or any vehicle which that person is in and any package under that person’s control.

If any gold is found on that person, vehicle or package, the officer may seize and detain the gold and arrest the person until he can be brought before a magistrate and be dealt with according to law.

The GGB said that the reminders are aimed at ensuring that the gold mining sector efficiently serves the national economy.

(By Clifford Stanley)