Dear Editor,
“The extraordinary incidence of arson has many implications for public safety, private enterprise, and the insurance industry…” So said SN’s timely editorial (8.12.09) titled, ‘Investigating arson.’ Allow me, please, to add a few thoughts focused on those “many implications.” These speak to arson in general, but with an especially Guyanese flavour.
There are several additional implications surrounding an arson occurrence in Guyana. This is particularly so where businesses are involved. The fact is that given total destruction almost always, and nothing salvaged, the stage is lit for a fistful of associated crimes and cover-up. There is tax evasion at the VAT and corporate levels, for there is usually no residual audit trail. Next, there is successful insurance fraud, as the editorial pointed out, due to a convergence of factors involving water, hydrants, and lack of facilities and skills, among other things. Then, there could be evidence tampering and obstruction of justice, if an official interest was in the works before the arson event.
Further, some arson events could be a classic case of washing by burning. Or to be more explicit – washing dirty money through setting a fire. This means that the entire commercial complex along with its contents could have been established with proceeds from an illicit trade, and that the operation was simply a front.
Therefore, when the insurance company hands over the amount due, it is in effect distributing incontestably clean funds to replace what started out dirty, and which can now be accepted in toto by any self-respecting financial institution.
In essence, it can be posited that arson has become one more convenient method and outlet through which to launder money. It is another creative – albeit dangerous – way at legitimization and navigating into the mainstream. It goes without saying that the conditions prevailing in Guyana provide opportunity to be creative, and a probability of being successful.
Yours faithfully,
GHK Lall
