Fuel smuggling down to 10% – O’Lall

Chief Executive Officer of the Guyana Energy Agency Joseph O’Lall said fuel smuggling is down to 10%, although the illegal trade is taking place across the country especially in the mining areas.

However, he vowed that his department would not let up, while acknowledging that despite the GEA’s aggressive enforcement programme some persons continue to smuggle fuel across Guyana’s large and unpatrolled borders.

Speaking to Stabroek News on Friday the GEA head said that almost every day officers attached to the enforcement section of agency are being called to respond to cases of fuel smuggling. He said a number of persons have been caught and were prosecuted, while the GEA still has several cases involving big businessmen before the courts.

“We have matters in Berbice, West Demerara, East Coast and even in Georgetown so we are working,” O’Lall declared.

He said very soon the GEA would be randomly stopping and checking vehicles’ gas tanks to determine whether they were using unmarked fuel. “Our goal is not to lock-up anyone but to make them do the right thing. We want everyone to get rich but they must do so the right way,” the tough-talking O’Lall said.

The GEA head pointed out that at present fuel smuggling was rampant in the interior locations and the mining sector was the largest consumer of illegal fuel. “They using it like there is no tomorrow,” O’Lall said. He said in the Cuyuni/Mazaruni region fuel smugglers have caused two legitimate dealers to close down their businesses.

According to O’Lall, the GEA had a policy where it did not check fuel being used at border locations in the interior because the agency was not able to supply those places with it. He said however, where vehicles are accessible and fuel is being sold legitimately the GEA would not tolerate unmarked fuel. “So we will go after those folks in Cuyuni; this is a hotspot for smuggling [and] we will ensure that we put them out of their illegal business.”

O’Lall said at present fuel smuggling has been brought down to 10% from 30 % where it started when the programme to stamp it out began.

According to him, every time there is a rise in oil prices internationally, the smugglers would step up their activities. O’Lall said the illegal trade was a lucrative business and many were getting wealthy off it.

He said the GEA also has plans to establish its presence at every crossing in the interior so as to stop the large quantities of smuggled fuel that go into the mining districts.

Meanwhile, last year the GEA launched a programme to license transporters of fuel.

This programme is still ongoing, but it has only been attracting the small operators.

It has been the view of many that the big fuel traders, some of whom are involved in smuggling are not being sought, but O’Lall was quick to deny this while asserting that the GEA has been after all those who are “robbing the country of revenue”.

“GEA is prepared to deal with every single lead right up to the top of the chain to enforce justice because some people believe they are untouchable,” he said.

O’Lall admitted that in the agency’s quest to track down the dealers of illegal fuel, it had caught mainly the small traders, but he said some big ones were hauled in the net and two of them are currently before the courts. He referred to a case where illegal fuel was found in the possession of a West Demerara businessman. The businessman is currently before the courts. With regard to the fuel marking scheme, O’Lall said this was progressing smoothly. He recalled that last year persons on the road had access to the fuel markers, which compromised the programme. Since that time the agency has changed the marker.

The revelation that the fuel marker, which is used to ensure that fuel is shipped legally, was on the streets came to light during the height of a huge smuggling bust on a ship along the East Bank Demerara. O’Lall had initially denied that the fuel marker was being sold on the streets to smugglers who would mark their fuel, thus avoiding prosecution. O’Lall said the GEA was willing to accept intelligence information from the public in this regard. He said the GEA has established a network of surveillance and once someone is suspected that person would be closely observed.

A location was set up in Region One for this purpose. Region One Barima/Waini is one of the hotbeds for smuggled fuel from Venezuela.

On the issue of cooperation with the law enforcement agencies, O’Lall said this has been excellent so far. He said the police and the Guyana Defence Force Coast Guard have been cooperating with the GEA in the prosecution as well as arrest of smugglers. In late July, the GEA’s Licensing Department stepped up efforts to bring the issue of smuggling under control by issuing colour-coded licences to show that vehicles transporting fuel products are in compliance with general safety standards. Every year the licence would have a different colour to allow for the public to play a role in protecting their safety. O’Lall said a number of people have been licensed in various categories.

He advised that if persons have 2,000 litres or the equivalent of ten drums of fuel at their home or in tanks they should seek to have their supplies properly licensed. Being in possession of over 2,000 gallons of fuel is an offence punishable by three years imprisonment and/or a $3 million fine.