AMID calls for the resumption of the scrap metal trade, government is insisting that until the completion of an ongoing forensic audit, the ban imposed under the PPP/C administration will remain in force. Minister within the Ministry of Communities Keith Scott said that the suspension will come to an end only when the forensic audit into the scrap metal trade concludes. Minister Scott, in a brief interview with the Chronicle, said the audit has begun but it is not yet complete. “We are awaiting the report from the auditors…the audit is ongoing,” he said.
The minister said he understands the hardship facing those in the industry, but stressed the importance of transparency and accountability. “We can’t interfere; we don’t want to be accused of compromising the integrity of the audit. When the audit is completed, the auditors will indicate that to us.”
Upon completion of the audit, should persons be found culpable they will be dealt with the full force of the law. “We are going to get the police involved…If those being investigated are found guilty then they will be punished. If the findings are favourable towards them, then we can’t go further.”
The minister said he is alarmed by reports that some persons are attempting to ship scrap metal out of the country. “I have had reports as early as Sunday that dealers are loading up with the intention to ship. Once caught, they will be prosecuted.”
Meanwhile, Secretary to the Guyana Metal Recyclers’ Association (GMRA) Michael Benjamin said the association does not condone such activities. “If there is a pause in the trade, as is the case now, there should be no movement of scrap metals. We need the perpetrators to be dealt with condignly. As much as it is hard, we must respect the government’s decision,” Benjamin said.
He noted, however, that scrap metal dealers are in a “tight spot” as there are billions of dollars invested, but scrap metal cannot be exported. “Exporters and suppliers are calling me daily to find out whether the suspension has been removed. This is a competitive trade and people have invested millions of dollars. If we don’t fulfil our contractual obligations, we lose, despite the fact that government has suspended the trade.”
Benjamin told the Chronicle that the association has written to President David Granger requesting an audience with him on the matter.
In a letter dated September 2, 2015, Chairman of the Association Desmond Sears outlined the association’s frustration. “However, at this point frustration is at its peak for all concerned. The negative effects of the situation are: exporters are deemed unreliable to their suppliers; breaches of contractual arrangements leaving dealers open to litigation; loss of overseas markets; escalating demurrage cost for containers with metal detained on various wharves; additional freight cost levied by shipping lines; outstanding rentals for scrap metal yards; outstanding payment for bank loans; retrenchment of workers; the negative reception of old metal dealers and some ancillary staff had to be laid off and the others are struggling to maintain their families.” Sears noted too that there are 42 undocumented containers loaded with scrap metal that are sitting at various wharves awaiting shipment.
“All of this is affecting the continued viability and sustainability of the trade for the investors, the dealers and our association,” the letter stated. While the association remains optimistic that government will find favour in its appeal to have the suspension lifted, they are appealing to scrap metal dealers to be patient and abide by the laws of the land.
Currently, the market price for scrap metal has declined. Two months ago it stood at USD$300 per ton while today it is USD$140 per ton.

By Ariana Gordon