Dear Editor,
The Chinese company, Baishanlin has been in the news quite a lot. For me the controversies surrounding this company point to two very important aspects of our political economy. First, it was revealed by the forensic audits that the company acquired a number of other companies over a period of time. This resulted in a monopoly in the forestry sector which in turn amounts to an unfair advantage over other competitors which runs counter to the notion of a developmental model that centres on the encouragement of local investments.
Foreign investments should be encouraged; we need them. But such investments should not structurally undermine local small and medium-scale initiatives. Foreign companies are not known for leaving much of their profits in the countries in which they invest. So it is imperative that the host countries do not afford them such control as Baishanlin was granted by the previous government. I know that contemporary economic praxis no longer favours nationalism, but I still think that the interests of our people and our country must be front and centre when negotiating with foreign companies.
The second issue has to do with the fact that Baishanlin’s acquisition of the companies was in violation of the Forest Act. That the then government permitted this is really the unkindest cut. How can you allow a foreign company to break the laws of the country you were elected to govern, with such impunity? Where was the Guyana Forestry Commission? Why was Baishanlin allowed to hold on to a contract for eight years without setting up the promised facility? This is a trend; we see it also in the building sector. No wonder Baishanlin has had such a bad record when it comes to upholding proper labour standards. We now know that they are a sacred cow.
I am very clear in my mind that those concessions must be recovered. I am also in full support of the recommendations by the auditor that the contract be terminated. We may be poor, but we must have some dignity. Our governments should not be allowed to sell out our natural resources in exchange for the enrichment of a few.
There needs to be a national revolt against this blatant high class exploitation of our country. From Baishanlin to the broadcast licences to the land giveaways on the East Bank and elsewhere, our country was exploited in front of our eyes. There is a linkage between these acts and our substandard education and health systems and our bad roads and poor drainage and the high level of poverty in our country. This is a very serious matter that demands prompt and decisive remedial action from the government.
Yours faithfully,
David Hinds
