(de Ware Tijd) PARAMARIBO – Guyana’s Minister of Natural Resources Robert Persaud has claimed in local Guyanese media that a large amount of gold is smuggled each year out of his country to Suriname.
The Minister’s claims are supported by Gerold Dompig, chairman of the Commission for Structuring the Gold Sector, who states that both Guyana and French Guiana have often complained that gold from their countries is being smuggled to Suriname. “Stakeholders from Guyana and French Guyana have mentioned this problem at several gold seminars,” Dompig says in an interview with de Ware Tijd. “The royalties that must be paid to the state in Suriname are far lower than in those countries. This creates a smuggling problem for them, as selling the gold in Suriname is more attractive to gold miners,” Dompig confirms. He explains that Suriname charges only one percent royalties, while this is between four and six percent in the neighboring countries, adding, “Including taxes, we often arrive at half of what is charged by Guyana and French Guyana.”
In order to help its neighbouring countries deal with this problem, Suriname’s government is preparing a “phased increase” of royalties in Suriname. This will be done in such a way that the reverse problem is prevented, namely the smuggling of gold from Suriname to the neighbouring countries. “Yet Suriname’s royalty policy is focused on keeping the sector competitive, and there must be a healthy balance. The urge to smuggle gold out of Suriname should not be created,” Dompig explains. “It should be kept in mind that the royalties were lowered way back then to stimulate gold production in Suriname. The spirit of enterprise should not be discouraged in the interest of the economy. But with the current overheating of the sector, it is time for the government to get its rightful share,” Dompig adds.
