Dear Editor,
Reference is made to the article titled, `No evidence of smuggled Venezuelan gold in domestic trading system…’ (KN May 26). This is a strange country that gets stranger with every new development. Perhaps, strange is not the word, and hallucinating is the one more suited. I elaborate.
On Thursday, September 19, 2019, the Governor of the Bank of Guyana, Dr. Gobin Ganga, was kind enough to invite me to a meeting, where other very senior officers of the Central Bank were present. After I extended the preambles of professional courtesies, the business of the day commenced. Governor Ganga’s words were, the country was in big trouble, and that he has “the evidence of Venezuelan gold being smuggled into Guyana.” To those the distinguished governor added that there was the risk of the country being “blacklisted.” My response was simple: I am glad that others are finally speaking my language. And, that any available evidence should be shared at the highest levels with the appropriate people.
Editor, I do not know where matter progressed from there, but I do read now that, compliments of Guyana’s Vice President, there is no evidence of Venezuelan gold being smuggled into Guyana’s mix. If accurate, and untainted, then I applaud this news. But, the inquiring part of my mind that still functions raises this question: where is the erstwhile Governor of the Bank of Guyana today on this issue, since reports of such smuggling have intensified, not diminished? It becomes even more relevant, when I understand that Dr. Ganga is now chair of the Guyana Gold Board, a place where I think, now that he wears multiple hats, that he can be a gamechanger in certain directions. I would humbly recommend that the Governor shares his prior intelligence with the Hon. Vice President, as there is some contradiction. Whatever the Governor and the VP do, I would hope that it is what is best for Guyana; of a venerable Governor of the nation’s Central Bank, coupled with that of Chairman of the Gold Board, I think that Dr. Ganga is well-positioned to do so; and I would expect no less. As the Governor himself did state in no uncertain terms to me and others, the country is at risk, very high risk. Accordingly, this country should expect from him only what is protective of its interests, its reputation, and nothing else. Again, I respectfully suggest the Governor enlighten the Hon. Vice President as to what really pertains. Nothing and no one should get between that professional and patriotic obligation.
As for the erudite VP, I confess to bewilderment that a man of his astounding brainpower could conclude privately and then articulate publicly that, “If you ask me, there is enough evidence to support the otherwise (sic) -that Guyana’s gold is leaving our borders and going to Brazil and Venezuela.” This is mindboggling; well, at least to someone with a small brain (like me). It is known universally that the bite of draconian U.S. sanctions has virtually jettisoned the Venezuelan currency into the realm of the undesirable and unacceptable. The Venezuelans are not looking to buy anything, since they don’t have an abundance of U.S. dollars that enables their participation in potentially six or seven figure purchases and sales of gold; or most other things for that matter. Such smuggled gold from here to there would have to be consummated in U.S. dollars. Now where would that come from, since it is such a scarce commodity over there?
As a man of the incomparable business wisdom that is claimed to be incontestably embedded in the Vice President, I would have thought that this would be known to him, and urge him to withhold such a statement re the direction of gold traffic. To cut a real fine point on this, the Venezuelans are so strapped, and so correspondingly desperate, that their gold is being sold into a buyer’s market. Meaning, that they (the sellers) cannot select their price, as they are in no position of strength to haggle. That is for the Middle East, where they conduct other business of particular interest to American sentinels, and some of which is also reported to pass through here. To make this completely clear, I say in another manner: the gold over there is useless to Venezuelans, since they cannot consume it. They need to offload it (just like the Colombians). And, there is this convergence of circumstances present in Guyana that is perfect for their purposes.
First, a long and porous border; a border that suffers from manpower deficiency. Second, a questionable confidence in our guardians to be vigilant, where professionalism and principles are concerned. Third, there is the presence of a potential swarm of buyers, who scent a bargain buying opportunity, and desires to cash in on the bonanza. I am not in any kind of business, but I am tempted by the possible high returns, since the Venezuelans are in no position to demand top dollar, as in world market prices set by the twice daily London Fix. We do our own fixing right here. I suggest comparing our struggling Venezuelan neighbours to the troubled and needy state of those left with no option, but to approach pawnbrokers. It is take what could be had, and this is it. Fourth, there is a sufficiency of American dollars locally to transact business (which led to city shortages) to the satisfaction of the Venezuelans, and make money magic for both seller and buyer in the trade at hand. Last, I would not insult any Guyanese, by seeking to educate him or her on the strengths or ricketiness of our public institutions; specifically, those manning oversight and enforcement responsibilities. Those speak for themselves, and as to how and what is aided and abetted
For all of the aforementioned reasons, with much left unstated, I think that what the Vice President said about gold smuggling, if and when subjected to thorough and genuine smell and taste tests, would fall short on both counts. It should be noted that I took a page from the Vice President’s book and said absolutely nothing about cerebral or ethical tests.
Sincerely,
GHK Lall
Former Chairman, Guyana
Gold Board
