SCRAP-metal dealers in Guyana are concerned about the prolonged suspension of the trade and are calling on government to swiftly lift the ban. Since the suspension of the scrap metal trade on June 15, 2015, dealers have been calling for it to be lifted given that it has taken away from their livelihood.
During a telephone interview with the Guyana Chronicle, Secretary of the Guyana Metal Recyclers Association, Michael Benjamin highlighted that “according to the laws of Guyana, under Chapter 91:08 of the old Metal Dealers Act section 13A…the export of old metal could be prohibited for a specific period of time not exceeding one year.”
As such, he said the government is operating “in breach of the law,” as he noted that the livelihood of hundreds are being affected. With the demand of scrap metal still high on the international market, investors have been losing money particularly because dealers were paid in advance for their metal.
“Some of the buyers are now threatening to take legal action against the dealers,” bemoaned the Association’s Secretary.
He said that some members of the Association suffered losses between $10-15M during the period of the ban. Two meetings between government officials and stakeholders to resolve the burning issue resulted in a draft proposal being crafted. According to Benjamin, the proposal was supposed to be taken to cabinet; however they have not received any response from government.
Thus, the Association continues to plead with the government to have the trade open.
“It must remain vibrant so as to deal with low carbon issues,” Benjamin said. Meanwhile, last year, the then 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.
According to the findings of the audit report, there is far too much uncertainty surrounding this trade and the law governing it is severely outdated.
It was outlined that, “there appears to be no consistent policy towards the trade with the government opening and closing the trade at will.”
According to the audit, there is no reason why responsibility for the trade was transferred to the Central Housing and Planning Authority and why no export duty is paid under the Customs Act.
“In our opinion there is a high probability of revenue leakage but because of the inadequate reporting, any estimate is merely speculative,” stated the findings of the audit.
The report further noted that there seems to be a total lack of coordination between and among the four agencies involved, which are the Guyana Police Force, the Ministry of Business, the Scrap Metal Unit and the Guyana Revenue Authority.
As such, it was recommended that the law and the trade need to be completely revamped after consultation with key stakeholders but government needs to put interim measures in place as the trade is at a standstill while export is temporarily banned.