–says no company above the law

GUYANA’S diplomatic relationship with China will remain intact despite the enforcement of this country’s laws on Chinese companies here which have failed to comply with specified rules of operation.Over the past few weeks, the Guyana Revenue Authority (GRA) has started to repossess concessions held by Chinese logging company Baishanlin International Forest Development Inc (BIFDI) due to that company’s failure to deliver on agreed actions to introduce investors to the Guyana Forestry Commission (GFC), as well as failing to address its liability, though given time to prove that the company has an acceptable plan to clear a debt of approximately $80M.

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 been scrutinised following allegations of being involved in shady transactions, particularly under the PPP/C Administration.

Over the past few months another Chinese-run logging company, Demerara Timbers Limited (DTL) has been accused of violating the labour laws and was the subject of many media reports.

On Tuesday night, Minister of Foreign Affairs Carl Greenidge said Guyana’s relationship with China remains strong and noted that the APNU-AFC Government is not targeting Chinese companies.

He said if any business breaches the laws of Guyana, that business will be penalised.

“We don’t have a problem with any nationality- the concern that we have is that they have concessions on certain terms and those terms were not honoured and that is a serious matter. If you get fiscal concessions with both a depleting and depletable resource… they deplete the resource, they haven’t played by the rules and therefore Government had to take action. If a German firm came and did the same thing, the same would apply and you have to do same with Guyanese firms too,” he said.

The Foreign Affairs Minister made it clear that the rules enforced by Guyana are universal and noted that representatives of the Chinese Government here have assured the Government that they have “demanded of their companies that they respect the law”.

Recently he said China’s Ambassador to Guyana, Zhang Limin called on Chinese firms, large and small, to respect the laws that apply and govern the conditions under which they get concessions.

“That is the case for all nationalities. We cannot go to China even as a non- entrepreneur and break the law…they are not going to say we are fraternal,” added the Minister of Foreign Affairs.

Asked whether he believes the Chinese Government would encourage its companies here to pull their other investments, Minister Greenidge responded “why should it? Because one of its firms breaks the law and action is taken against them you withdraw?”

He reminded that Guyana has always supported the People’s Republic of China over the years even when other territories have failed to do so.

“We were there with China and China as far as I can see recognises the value of a bilateral friend who stands with it through thick and thin and no Government worth its salt is going to be encouraging its companies to break the law and then get upset when the law is applied to them.”

The Foreign Affairs Minister made it clear that while there may be “popular speculation” he is sure that the diplomacy is not run that way.

“That may be how you run your house, or kitchen but you can’t run diplomacy that way, so don’t take much notice of those persons who suggest that a rift will arise. We have taken action against American companies in the past and we will continue to do the same against all of those who break the law.”
The intention, the minister said is to ensure that all business conducted in Guyana is done at a high standard and in compliance with the law, rules and regulations.
“If we do our business properly and we apply our laws evenly then we’d be respected both by the firms and the country; that is what we are aiming to do,” said Greenidge.