Unprocessed Locust and Crabwood should first satisfy local demand before any such wood can be exported overseas; but this is not the case with Bai Shan Lin.
It has been found that the company is planning to export over the course of the next six months, 250,000BM of Locust wood, despite local operators approaching them to buy.
Some of the locust wood ready for shipment to China while local demand is being ignored
On Monday last, Haimorakabra Logging Inc, one of Bai Shan Lin’s companies, wrote to the Guyana Manufacturers and Services Association (GM&SA) to indicate its intention to ship the lumber.
Haimorakabra Logging Inc. is now owned by Bai Shan Lin International Forest Development Inc.
A representative from a local company had approached the company last week to purchase some of the Locust wood for local consumption.
This publication has since been told that Gao Yuan, Manager of the Chinese-owned operations reportedly expressed shock that the Locust wood was advertised for sale since he indicated that it was destined for export to China.
According to the letter of intention addressed to GMSA’s President, Clinton Williams, by Yuan, the company intends to ship the wood to Heilongjiang Baishanlin Wood Company Ltd., in China.
Government had initially not made known what exactly are their arrangements with Bai Shan Lin.
The company is now facing investigations by the Opposition after revelations that it is involved in large-scale logging, even allegedly hiding behind third parties to mask the exports.
There have been questions over the company’s involvement in Guyana, with the Ministry of Natural Resources and the Environment appearing in Parliament to answer questions.
A look at export figures, unofficially supplied, indicated that for the first half of 2013, some 30,000 cubic metres of timber products were exported. For the first half of 2014, this figure rose to over 50,000 cubic metres.
This would be significant as Guyana has introduced what is known as a disincentive scheme – a gradually increasing tax and royalty scheme. Despite the increase in tax, the exports have shot up.
The Guyana Forestry Commission itself has not explained the rise in the exports, but industry insiders said that Bai Shan Lin is playing a major part in this. The deals with the company were reportedly signed during the period when former President Bharrat Jagdeo was heavily promoting his Low Carbon Development Strategy which among other things targeted increased tracking of illegal logging.