We note with interest the appeal by the Commissioner of Customs and Trade Administration to businessmen to help put an end to corruption within the Customs department by ceasing the practice of offering bribes. It follows earlier remarks by the President and the Commissioner General of the Guyana Revenue Authority earlier this year which more-or-less conceded that there is a high level of corruption within Customs.
We have commented on this issue before and now that some of the key figures in the Customs process have conceded that bribes and kickbacks are the order of the day at least we can, once-and-for–all, set aside what used to be a peculiarly quixotic official position that customs functionaries were honest and hard-working people and that corruption was, in large measure, a figment of the public’s imagination.
Of course, old habits die hard, particularly – as is the case with Customs – where people derive considerable satisfaction from the prosecution of those habits. That is why Colonel Ramsarup’s call may well fall on deaf ears unless it is attended by long overdue monitoring and sanctions mechanisms aimed at businessmen who offer bribes and Customs Officers who accept them.
It has to be said that one does not get the impression – given the openness with which bribes and kickbacks are paid – that up until now the GRA and its predecessor have really been prepared to put monitoring and sanctions mechanisms in place. Either that or the mechanisms that have been put in place have been woefully ineffective.
That having been said we, nonetheless, welcome the fact that the CTA Commissioner himself has placed the issue in the public domain. One assumes, of course, that he is aware of the fact that as long as the objective conditions for bribe-giving and bribe-taking exist, the practice will not go away. For example, as long as those patently contrived bottlenecks – which customs have become so expert at creating -continue to impede the expeditious clearance of goods there will probably be no shortage of businessmen willing to pay to circumvent that process.
Corrupt officials understand only too well that for as long as they are able to keep those bottlenecks in place money is likely to continue to flow their way and it will be up to the Commissioner to find those bottlenecks – some of which are particularly cleverly contrived – and remove them.
What is somewhat encouraging is that the remarks made by Colonel Ramsarup were actually made at a forum organized by the Georgetown Chamber of Commerce and Industry (GCCI) whose President Chandradat Chintamani appears to have decided that tackling the thorny problem of corruption at Customs will be one of the priorities of his administration. Whether or not Mr Chintamani and Colonel Ramsarup can combine their efforts to at least reduce the level of kickbacks and, by extension, the level of corruption at Customs, remains to be seen.
Customs, of course, appears to be faced with a slew of logistical and administrative problems including, according to Colonel Ramsarup, a lack of surveillance capacity and apparent inability – at least in some cases – to determine genuine invoices from fakes. Given the significance of the Customs and Trade Administration as a revenue collection agency and the volume of resources that have been allocated to its operations one is hard-pressed to believe that it has no reliable capacity to determine real invoices from fake ones. One would certainly have thought that there is technology that is available to determine what is real and what is fake and in this particular case the excuse or lack of capacity appears patently contrived.
The particular case of the alleged Fidelity/Customs fraud to which Colonel Ramsarup referred in his presentation continues to be a matter of public concern and there is – at this stage – no really good reason why the findings of the enquiry have not yet been made public. Of course, for as long as the findings of this enquiry remain a “state secret” Colonel Ramsarup’s entreaties to the business community will do little to persuade the public that the CTA is really serious about stamping out corruption.
There is, as well, the wider problem of our porous borders and what has long been the uncontrolled inward flow of illegal goods of one sort or another. This newspaper understands, for example, that dozens of brands of illegally imported cigarettes, alcohol and other products are imported into Guyana from Suriname and that having evaded customs duties, these products have literally laid waste to some legitimate business enterprises. As far as our borders are concerned Colonel Ramsarup has said that there is need for increased surveillance. This is by no means a new revelation and we believe that a point has long been reached where hard decisions must be made about investing in the real improvement of border security by, perhaps, seeking the support of one or more multilateral agencies to secure the resources necessary to do so. The simple fact is that the sanctity of our borders has implications for our territorial integrity, our internal security and our economy and by any stretch of the imagination these three considerations are sufficiently important to warrant more than persistent reference to the problem.
The mere fact that a senior official of the CTA is prepared to discuss the issue of corruption publicly is a step forward in circumstances where in the past there existed a determined official reluctance to admit that such practices existed. We believe that the various umbrella business organizations should publicly associate themselves with Colonel Ramsarup’s call to the business community to stop bribing Customs Officers.
I have two suggestions that could work towards eradicating this whole mess of bribery in the customs department. One is to investigate all the customs officials who have accessories and assets that is not in keeping with the level of salaries that they receive. Just a few nights ago i saw a customs official coming from work in a Toyota Tundra. We all know that that thing is a gas guzzler. Just going to work and back with it will run you to about forty thousand dollars a month. This should raise red flags in the investigating department of customs or its management team but apparently it doesn’t.
The next suggestion is aimed at our policy makers. Drop the ridiculous duties on goods imported to this country. Would you believe that I can purchase a vehicle and ship it to Guyana for about $4000 US but then have to give my government another $6000 US to clear it? This is ridiculous and would always prompt the small man to find ways around this system. Unfortunately bribing the customs officer is one of them. Winston Churchill once said that a government who tries to tax its self rich is like a man standing in a bucket and trying to raise it.
Ken,
You beat me to the punch here, I spoke to a used car dealer in Guyana, and he told me that regardless, of if the vehicle is new or used, the government demands $6,000.00 US in import tax. That is an outrage, also he said that in the US, a dealer would pay tax at the time he sells his vehicle, in Guyana, the government creams off that tax right off the bat.
All of this excess in taxes has to passed on to the overburdened buyer. He also said that he relies heavily on bank loans that can be as much as 24 to 30 percent.
Moreover, he said that many customers cannot afford, to pay all cash, so he is forced to give the vehicles on credit. In the US the banks assume that liability, in Guyana the car dealer is burdened with that liability.
He showed me a long list of customers with outstanding debt. His business is held up by a wing and a prayer.
Corruption cannot be stamped out, if the government is the first practioner, of the shakedown scheme. The importers, will logically lean towards the second level practioners, who happen to be the customs officials.
The entire system all the way to the top, needs to be revised. The fox is being put to guard the henhouse.
What is good for the goose is good for the gander, those that came up with this repressive, extortionist tax scheme, needs to be strapped to the lie detector machine, found guilty and thrown into the slammer.
Joe.
Have you ever heard of “STRICTER THE GOVERNMENT WISER THE POPULATION?”
……. i remember a story i was told ,,– by my grandmother whose parents came from india — ,, it’s about a donkey ,, and his owner ,, the owner ,, was happy to take the donkey to the well,,, he stupidly whipped the donkey to death to make it drink from the well !…..
Where has all the bloggers gone, Carl Veecock, say something, anything will do.
Ok, since Carl has proved himself to be a sheep. LOL Allow me to fill in some space here.
This mess needs to be cleaned up from the higest echelons of the administration. Do what is right by the people, for the people, or do us an honorable service.
Joe.
Word to the sycophants I once respected at STAB NEWS you guys need to get a life or start commenting on your own articles,my views are what they are,mine.They do not cross the line however you choose to censor me by selecting what to carry or discard,well;to u i bid good ridance,they re beta forums out there,in time you guys like the ppp will be exposed for your hypocracy and bigotry.YES!!! If you survive the revolution i.e.Dig IT?
My God, you are very bitter bro. Chill out man. Life is very short. Both the PPP and the PNC have failed the people of Guyana, but PPP still doing lil lil things. I heard that things are very expensive in GT these days.
“Leh dem try deh”.
Libel is a big big headache.
“Dem lawya dus eet people money out”.
RL
Mannnn…. ….. Bribe bribe bribe……. In guyana it starts as soon as you steps off the air-plane.. if you give a few bucks custom would not even open your bags ….try to get a copy of your birth certificate…………. you will sit forever & for days….with a few bucks you will be 1st. in line. try to get a death certificate you will. die before you get it…………. When Forbes was alive you did not pay tax him not to the Government you had to give the cheque to him… Cheddie said that he will do something about bribe…..yea yea the PPP is doing A WHOLE LOT OF NOTHING.. So friends if you want to go back to our country to start a buisness you better be ready to dish out some of your $$ towards bribe 1st …….For me I will keep my cash in my pocket… & I say every one must do the same………..Hell with the btibe takers.
wHEN WOULD gUYANA GOVERNMENT PAY HEED TO ALL THE COMMENTS? All these things are true because travelling to and fromGuyana for more than thirty years I have had my full share BUT I STILL LOVE GUYANA and is HOPING AGAINST HOPE things would improve ,When JAGAN TOOK OVER IT DID. Last year I found that things were more expensive . Lots of people have to come over here to see how the EURO flies out of your purse , my american visitors say ÍF YOU WANT TO FINISH YOUR MONEY COME OVER HERE.
I once had a flourishing business in Guyana and went broke because of this policy. In 2001 I went to Japan and took to Guyana a quantity of small Suzuki Super Carry vehicles. Before I left for Japan the Customs Duties was app $265,000.00 per unit because the Suzuki Super Carry had engines below 1000cc. The law had been of such that vehicles with engines that use very little fuel bore smaller Customs Duties. However, before my shipment arrived, the Law was changed. Vehicles that cost US$1,500.00 in Japan were required to pay GY$900,000 Customs Duties each. This was around US$5,000.00 at that time.
I had already exhausted my borrowing ability – had a few properties in GT. I was at a standstill for over a year. I did not want to borrow more money to clear the vehicles because it would have been impossible for me to sell them to make back the Cost, Freight and Duties, while interest of existing mortgages were growing. Buddy,,,, I hit the streets of the Caribbean with a bag on my shoulder.
My Government made me suffers. I took my woes to Bharrat Jagdeo and he told me a long story about Malaysia, which is a country that is far more industrialized and wealthier than Guyana. I did not want to argue with Bharrat. My wife and children suffered.
I always get into problems with the Customs Officers in Guyana. They delay your documents on purpose until you find a way to them. They never accept CIF values. In 2000 I took a 1998 Toyota Starlet in Guyana. I paid US$1,500 for the car because it was purchased by an agent at an Insurance Auction in Japan. It was in a minor accident with damaged fenders, grill, bumper, head lamp and so on. Customs did not accept my Invoice. I was sent to the Local Toyota Company for them to give me the book value. The book value was very high.
I found a new life and new friends in Trinidad. I would always return to Guyana to visit. It is where I was born and where my parents are buried, but I would never return to live in Guyana or to do a business there again. I have really gotten to like the Island of Trinidad and Tobago, and I never regret my failures in Guyana. I love to go to Maracas Bay and enjoy the quietness of the beach when none is around and watch the gulls foraging. I enjoy the food of TT and I sometimes imagine the beautiful landscape and villages at the foot of the Northern Mountain Ranges.
Good luck Guyana!
Red Lion
http://www.mainlandweb.com
We Power the Caribbean
TRU…TRU…TRU… GAAD!!!!
man,that story is very moving.I wonder what was it that jagdeo was trying to tell you.