‘Unknown’ forces siphoning gold out of Guyana

-Gold Board to increase presence in mining districts, seal exports

File photo
File photo

Activities in the mining sector and the corresponding production levels do not match the amount of gold being declared to the Guyana Gold Board (GGB) and the entity has begun to go into the mining districts to buy the precious metal while also tightening up security measures for exports. 

“On a comparative basis, the quantity of gold coming to the Gold Board has declined. Consistent reports and intelligence are that activities in the mining sector and the corresponding production levels do not match the amounts being declared at the Gold Board locations,” the Gold Board stated  in a Stabroek News column on Friday. “In other words, the gold is going somewhere,” it said.

According to Gold Board, these circumstances imperil the wellbeing of the GGB and Guyana.

With the appropriate clearances, the column said, decisions and commitments were made to go out in the field and meet the mining constituency “to move closer to the point of discovery.”

The column said that if the gold cannot come to the Gold Board, then the Gold Board will move and go to where it is found.

“In so doing, the Gold Board is being proactive and extending a service to the lesser served in the sector. The Gold Board is expending energy and scarce resources to address a shortfall in its projections, establish a meaningful and honest presence, and embark upon a possible wide-ranging arc of presences and efforts,”  the column said.

The column emphasised that the Board’s priorities are to buy gold as mandated by the law, and reach those mining sector communities that are in need of a consistent and trusted presence, “a presence that seeks to fulfil the interests of those who have complained about being underserved, taken advantage of, and left to their fate.”

The column added that the move to meet the miners in the field has not been met with universal warmth and also immediately, there were claims and complaints that the GGB was entering into competition with long established players, and that there was no need for those who have been authorised by the state to engage in the business of buying gold and declaring the same to the GGB.

The GGB column rejected this and said it is far from the truth. The Gold Board has no intention of competing and taking business away from others or removing others from their operations, it said while reiterating that the objectives of the Gold Board are to provide a much-needed service; to establish and maintain a presence in the areas where there are either minimal or no other official buying presences, and to increase its declarations and bring in more foreign exchange to the country.

“It goes without saying that the actions of the Gold Board seek to achieve two other things: provide the mining community with an avenue to sell mineral production to a legitimate source and to keep the sale of such gold within the borders of Guyana. Thus far, the response has been encouraging,” the column said.

Sealed

The GGB also highlighted that the Gold Board has begun the process of ensuring gold shipments declared for export at the Cheddi Jagan International Airport (CJIA) be sealed. The GGB said that President David Granger has signaled his keen interest and firm commitment for the sealing of such shipments to become a reality as soon as possible.

“The combined knowledge, expertise and wisdom of vigilant overseers – local and foreign – have recommended, in fact insisted and demanded that sealing at CJIA become the norm and standard. Numbered among these providing such insights and guidance are longstanding and reputable security entities and couriers; governmental agencies responsible for and dedicated to the fight against money laundering, drug trafficking, financing of terrorism and smuggling in general, but of gold in particular,” the column stated.

The GGB observed that gold is a depleting asset and said there is the general consensus that many known and more unknown forces and channels are being marshalled and utilised to drain away the gold production in Guyana. The column asserted  that a significant part is not declared to the Gold Board.

It also highlighted that there have been objections and resistance to the pending move.

“They are being worked through; they have to be managed and overcome since almost all of the rationales tendered fly in the face of acceptable robust practices, realities, and an increasingly interconnected foreign surveillance architecture. Current local conduct causes alarms and brings considerable, if not grave, exposures to Guyana,” the column stated.

It was also disclosed that the GGB has engaged a number of agencies, both public and private, to partner with and guide on designing and delivering a modern facility to house its operations. The column said that no corner will be cut and all procedures will be observed.

“All related processes and people must meet the highest standards of compliance with internal expectations, as well as those of any other regulatory bodies that set benchmarks as to what has to prevail. The directorate and management of the Gold Board has one overriding priority: to build, to build right and to build an edifice that will be ready to greet the 22nd century. It must be safe, healthy and also gleam as to an expression of the wealth of this nation,” the column said, while adding that the GGB has initiated bold moves in these directions and has to stay the course, set the tone and succeed for the benefit of the country.

Since it entered office in 2015, the APNU+AFC government has lamented the smuggling of gold. At one stage Minister of Natural Resources Raphael Trotman had said that as much as 15,000 ounces of gold per week was being smuggled out of the country. However, despite these claims, there has been no interception of large gold shipments or the charging of any individual with substantial smuggling. The Gold Board column however suggests that the smuggling is continuing in large amounts.