…to repossess concessions, seek payment of $80M outstanding debt

THE Guyana Forestry Commission (GFC) announced on Tuesday evening that it intends to repossess concessions currently being held by Baishanlin International Forest Development Inc. (BIFDI).

Incorporated in September 2006 under the Guyana Companies Act 1991 with the main objective of timber harvesting and establishing downstream wood processing operations in Linden, BIFDI has come under tremendous scrutiny over the years, with allegations of being involved in shady transactions, particularly under the PPP/C Administration.

A GFC statement said the decision was taken after BIFDI had failed to deliver on agreed actions to introduce investors to the GFC, and failing to address its liability despite having been given time to prove that it had an acceptable plan to clear a debt of approximately Gy$80M.

In an effort to conclude the matter, the GFC said, representatives of the BIFDI were invited to a meeting on April 8, 2016 to provide an update on its plans to clear the debts. During the meeting, representatives noted that the BIFDI had suffered financial constraints, which affected the establishing of the wood processing facility; and that the company was engaging a new partner that would contribute significantly to its investment in Guyana.

The GFC said its Board was assured of the financial strength of the new partner who had committed to pay off the debt owed by the company.

“The BIFDI was requested to submit information about its operations in Guyana, settle its arrears, and submit a letter of commitment from the new partner. To date, the BIFDI has failed to fulfill any of its commitments to the Government of Guyana; effectively failing on the obligations it made, which were accepted in good faith.

“In keeping with Forest Governance Practices, the GFC will be formally repossessing the concessions owned by the company, and accelerating efforts to recover the debt owed,” the release stated.