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Do possess experiences with TWO small scale miners, serving as their Finance Director, with our trips to Venezuela and Brazil to observe “BEST PRACTICES,” for deep water, overground and underground, mining operations.
In Guyana, there is daily IN PRACTICE, 2 Guyanas one with PPP supporters “One Guyana” and the other with NO Opposition in the other Guyana with NO EQUITY and NO EQUALITY, with Guyana’s National Motto, “One People, One Nation, One Destiny.”
From my back channels, conversations are continuing in Washington, Middle East, and Globally, on “will Guyana be another Sri Lanka, Nigeria, Mozambique, OR Norway, Qatar, Kuwait ???
The effluxion of time will tell. Some GOLD DEALERS are becoming HUGE GOLD SMUGGLERS, and DRUG Corruption monies are now moving into OIL, GAS, Security and other businesses, and are being monitored by the USA agencies, on site and via technologies. Am told daily, most in Guyana are aware of these events and they are sending me messages and calls. Some very knowledgeable persons in this industry are saying “Guyana is with ALL the similarities like ZIMBABWE in the ALJAZEERA 4 parts Expose, smuggling, transporting and money laundering, and most persons in Guyana know who these persons are, with their government connections, which is no state secret.”
Guyanese do love to travel to the USA. Have we noticed who many “rich new money” Guyanese, are not travelling to the USA? Visa Revocations? Fears of arrest? Guyana details and linkages, monies, gold bars, investments, and properties in Florida, New York, Dubai, India, Ireland, Hong Kong, Shanghai, Hezbollah, ISIS, Muslim Brotherhood, Etc. and am advised that the USA’s agencies including the IRS, knows of all of these, including the Ft. Lauderdale, Florida properties recently sold, and monies moved, with documentations and pictures, for irrefutable evidence.
One young person, with a high PPP family, with no job, and no reported income to the USA Internal Revenue Service (IRS) but is the registered owner of a million-dollar mansion. IRS is conducting source and use of funds for their due diligences on many high-net-worth Guyanese at all levels. This is Standard Operating Practice (SOP) at the IRS, I know, as I served as an IRS agent in New York.
WASHINGTON – the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Haitian nationals Rony Celestin (Celestin) and Richard Lenine Hervé Fourcand (Fourcand) pursuant to Executive Order (E.O.) 14059 of December 15, 2021, “Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade.” Celestin is a current Haitian senator. Fourcand is a former Haitian senator.
Tax evasion, gold smuggling major sources of money laundering in Guyana. Feb 28, 2023, News…criminal activities involved US$2.2B in proceeds between 2016 to 2020 – Report
“20 predicate offences listed in the AML/CFT Act, the ones that are likely to see the highest level of money laundering activity are gold smuggling, tax evasion, illicit trafficking in narcotic drugs and psychotropic substances and fraud. The estimated value of the proceeds generated from these offences are approximately US$ 2.2 billion, US$ 19.5 million, US$ 13.4 million, and US$ 8.4 million respectively for the period 2016 to 2020.”
Stabroek News. Editorial: February 4, 2023: What happened? Minister Dr. Singh in 2023: “On the downside, the gold mining industry is estimated to have contracted by 2.5 percent in 2022, stemming from lower output from the small and medium scale producers. Overall declaration of gold fell marginally from 499,054 ounces in 2021 to 486,415 ounces in 2022. The single producing foreign operator recorded a notable increase in declarations, with 101,418 ounces declared in 2022, while output from the small and medium scale operators fell by 10.6 percent to 384,998 ounces, attributed to lower declarations from the top two dealerships.” “A turnaround is anticipated for the gold mining subsector, which is projected to grow by 12.7 percent in 2023, on account of higher expected declarations from one of the large operators, and the small and medium scale miners.”
https://www.stabroeknews.com/2023/02/04/opinion/editorial/rice-is-done-with-it-cant-pay/
Guyana Gold Declarations are Down: Do believe the 20 KEY Causes are:
- Highest declaration in history was in 2016 at 713,000 ounces.
- 2019 earned US$112 million record breaking with 634,905 ounces declared surpassing 2018 target.
- 2019 there were 57.69% of Actual Declarations from small and medium scale Gold Miners.
- Large Scale Investors are Guyana Goldfields Inc and Troy Resources.
- Holding on to Gold.
- Illegal Export.
- Severe weather flooding.
- Excessive cost of fuel transport and food.
- High cost to entering this business.
- No law enforcement presence in bush/interior by border (Venezuelan SINDICATOS gang operating without challenges with their AK 47 and high-end high-quality semi-automatic firearms).
- GDF (defense) or GPF (police) with NO boats.
- Smuggling of gold by some Guyana’s gold dealers to bypass the 7% royalty collected from small miners but NOT remitted to Gold Board/GGMC.
- Reportedly, Guyana some gold dealers also cheat their miners in these areas:
- Purity after burning is lowered: gold dealer tells miners gold is 94% pure when the real figure is 95.5
- Weight / specific gravity equipment and scales are rigged.
- Gold prices are based on London fix or spot. Gold dealers will choose the lower price.
14. It is disappointing that after all the concessions made to the miners that declarations are low. Roads were repaired and restored, and NEW EXCAVATORS are arriving each month, yet declarations continue to be low. Who will spend money on new excavators and lose money? fishy ? Yes. No rocket science. Every business number one goal globally is a make money, and Guyana is no different. A business is not a charity, charity can be a method by the business to be a good caring citizen in the community.
15. Bad management and lack of a vision and a comprehensive plan for the sector with transparency.
16. Since 2020, many concessions have been given with the most recent was last year, 2022.
17. https://guyanatimesgy.com/vp-jagdeo-announces-2b-in-relief-measures-for-mining-industry/ . VP Jagdeo announces $2B in relief measures for mining industry
18. Where are the $2B relief measures going? 3Fs”Families, Friends, and Favorites”? Are we receiving value for precious taxpayer’s dollars being spent and the small man and woman miners to benefit as is expected?
19. Most are afraid of these rich corrupt gold persons, due to their position power with the PPP.
20. These rich corrupt gold persons are the major financers to all political parties, and so Guyana is being sold out each day, with corrupt huge contracts, undervaluing, corruption, et al.
Kaieteur News March 7, 2023, the GHK Lall OP: ED – Gold smuggling and money laundering “The first was that President Ali swore to dismantle onerous rules and regulations, with a sharp eye on the gold sector. Then, the Hon Vice President said publicly something to the effect that reports of gold smuggling are largely exaggerated, a figment of overblown imaginations. After that, confidentiality closed all conversations. Now there is this an unconfidently report in the AG’s lap, a real hot potato of unmanageable dimensions, notwithstanding his brave speeches.”
https://www.kaieteurnewsonline.com/2023/03/07/oped-gold-smuggling-and-money-laundering/
A Global Entrepreneur experienced in the industry in Guyana, from my back channel, said “The Annual estimated LOSS of revenues due to shenanigans is around USD $725 million in total input into the economy and USD $50 million in royalties to Guyana Government and the Guyana Gold destination is mostly to DUBAI” and “ Generally, especially by small miners, 10% GOLD is REPORTED with documentation for the 7% ROYALTIES to be PAID, with 90% paid in CASH with no receipts, no documentations, and consequently the avoidance of the 7% ROYALTIES.”
Some mining owners-operators provide their staff with sardines and bread for their meals, many days in a week, so these staff go to other mining owners-operators for their better-quality meals. Reader, you can imagine what else goes on, in the hinterlands, with inadequate working conditions, security, and GRA very lax undercover audits.
Back channel from an Entrepreneur in the Industry, reportedly, that “From 1990 to 2022 over 10 billion USD of gold was mined. Where are the 7% royalties collected from gold miners selling to Government of Guyana and 5% from gold dealers? The ordinary Guyanese has not benefited from gold. The Guyana government should have used some oil monies to purchase gold and refine locally and store as an emergency fund. The Guyana government provides no protection form Venezuelan soldiers and Sindicatos (bandits with AK 47). Even top producers armed staff fear the Sindicatos.”
Example of not declared gold.
- GGMC receipts for 10% of gold value declared for royalties, via documents signed with GGMC seal. Guyana government’s arm is managing gold mining and settlements. So, 90% of gold value is not declared.
- Therefore, Operators pockets 7% royalties for 90% of gold not declared value.
- If processing 400,000 ounces at US $1,200 per Troy oz = US $480,000,000.
- 7% of US $480,000,000 = US $33,600,000.
- Operators legal share is US $9,600,000 (2%)
- GGMC share is US $24,000,000 (5%)
- 90% of US $480,000,000 not declared = US $432,000.000 not declared
- Operators take corruptly 7 % of US $432,000 not declared for US $30,240,000.
- Official SEALS: how many ? where kept ? who is the officer responsible for safe keeping of seals ? who affixes seal on documents ? any operator or operators with a seal or seals, ILLEGALLY ?
- NEED for a Certified FRAUD Examiner (CFE) for audits, for transparency, accountability, and improved clarities, through the Guyana Revenue Authority (GRA).
Possible SOLUTIONS: Guyana Revenue Authority, Guyana Gold Board, and the Auditor General to work cooperatively as a group, via a Memorandum of Understanding (MOU), to hire very experienced persons with onsite knowledge in the industry, to do surprise audits on all operations.
Most operations are 24/7 and owners and operators in the industry are aware of the many styles used by most of the processing staff, especially at nights, to steal the gold, which is hidden in their private parts in condoms, to be retrieved later and sold. GRA to use drone technology. GRA should recruit as consultants with 3 years contracts, experienced persons from the business sector, to draw on their business-savvy entrepreneurial skills, acumen, and auditing street smarts.
Something is seriously wrong in this Industry, and a forensic audit is needed by 1 or more of the TOP 7 Global OVERSEAS Forensic Accounting Firms for arm’s length audits, KPMG; Deloitte; PricewaterhouseCoopers; Ernst & Young LLP; RSM US LLP; Grant Thornton, LLP.; or Mazars USA LLP. OR a boutique forensic accounting firm which does work for corporate valuation units of Morgan Stanley and Goldman Sachs.
In Guyana there is OLD money and NEW money. ALL NEW money accumulated wealth needs justifications, documents’ reviews, operations’ reviews, GRA Taxes returns for Forensic Audits AND IF NOT valid/legally earned wealth, then Guyana can charge and repossess the Assets, Properties, Bank Accounts, Cash, Gold, Platinum, Diamonds, Stocks and Bonds, like Saudi Arabia, with a precedent in the World.
Guyana is with its own precedent with nationalisation/acquisition of assets in 1976 of the Bookers and Sandbach Parker groups, where the Guyana tax records were the basis for negotiations and agreements, and some of those skills are urgently needed. I served on the Guyana Financial Advisory Team for the 1976 acquisition of the Booker McConnell Sugar Estates and other Booker Holdings. Do have the evidence if needed. Who knows know.
Onward and Upward for a better Guyana for all six races.
