SEVERAL Lethem contractors are peeved at a recent decision by the local authorities there to double the fees for the mining of sand and gravel in Region Nine.Announced and implemented in mid-December, the move has seen contractors paying almost twice the amount they would have been paying to the Ireng/Sawariwaru Neighbourhood Democratic Council (NDC). The NDC is headed by an Interim Management Committee (IMC).

In addition to their objections to the process, the contractors are also upset that a construction firm was appointed to load sand and gravel at the mining grounds, and collect a fee of $3000 for this task. In the past, the contractors loaded sand using their own equipment, and paid a $1000 fee to the village offices; but that fee was increased to $2500 over time.

Efforts to contact IMC Chairman Carlton Beckles yesterday proved futile, as his phone was turned off. However, Regional Chairman Bryan Allicock told the Guyana Chronicle that he was aware of the issue. He said the contractors have written to the authorities, objecting to the move. He posited that the move by the municipal authorities may be aimed at improving the monitoring process.

White sand at Lethem is currently being sourced from the Takutu River bed, since dry weather conditions have been ongoing in the region for months. Sand is also sourced from the mining grounds near Tabatinga, while gravel is mined some one mile from the centre of town.

The NDC has complete authority over mining activities at these locations. There have been reports that persons were removing sand and gravel from the mining grounds without making relevant payments. However, the contractors have disputed this, and one contractor, Oswald Rebeiro, told this newspaper from Region Nine yesterday that the move puts him and his colleagues at a disadvantage. He said the move reneges on a process which existed in the past, wherein one company controlled the sector.

Rebeiro said he has been in the business for several years, and it was only after he and a few others had become engaged in the business that the prices for sand and gravel at Lethem were decreased by more than 50%.

Rebeiro and his colleagues have been using their own machines, including the Bobcat skid steer loaders, to load sand and gravel onto their trucks at the mines. He said that, prior to December, he paid $2500 in fees to the NDC offices for each load. He charges each customer $20,000 per load of sand and gravel.

According to the contractors, on December 11th last, a meeting was called by the IMC to discuss the new fees with the contractors. “It was not really a discussion, because they (had) already made this decision, and we just got called to hear what the changes would be,” one contractor said.

In addition, the new arrangement does not permit him to utilize his own skid steer or loading equipment. Instead, a construction company at Lethem has been installed to load sand and gravel at the mining sites.

“They said that in addition to all this, you cannot charge the customer more than the prices in place, and you cannot work on Saturdays, according to this new law,” Rebeiro added.

Another trucker, who chose to remain anonymous, said the contractors and residents are concerned about the construction company’s involvement in this new arrangement. The company was, under the past administration, reportedly contracted to build two bridges in the South Rupununi, but failed to start any of those projects, even with monies being advanced for same.

Rebeiro said that, years ago, in the early stages of sand and gravel mining in the area, the company in question was the only of its kind working in the mines. “Years ago, only he (the company) had monopoly for sand. They use to charge people $45,000 per load of sand, and also same price for gravel,” Rebeiro noted.

He said that, as more contractors became engaged in the business, the competition resulted in the prices dropping significantly, to less than half the price charged by the company.

He said the contractors have written letters to the IMC as well as the Guyana Geology and Mines Commission (GGMC), objecting to the process which was recently implemented, and expressing hope that the situation would soon be resolved. They noted that some persons have been paying loans to banks and other business institutions for equipment, and the recent move has already affected discharge of those responsibilities.

Lethem, home to some 5,000 residents, has been positioned for major transformation, Government having upped the ante to award the community township status. Since completion of the Takutu Bridge linking the community to neighbouring Brazil several years ago, the community has been on the cusp of development. The commercial zone at Lethem has been a hive of activity, with the Brazilians pledging support for development of the area.

While in Opposition, President David Granger had pledged to transform the community into a full-fledged town under his administration. He said that Lethem already has the facilities to make this a reality, including electricity and water supply, commercial banks, hotels, a hospital, churches, schools and supermarkets, among other entities.

The Regional Chairman told this newspaper in October that several key areas of infrastructural development have been identified and pursued. This includes improvement of water supply, construction of a fire station, as well as improving electricity supply to the grid there using alternative sources, such as the Moco Moco hydro project.

By Alva Solomon