New legislation
not necessary to curb fuel smuggling – President
Jagdeo Stringent policing crucial
Georgetown, GINA, September 3, 2003
“The laws are adequate now to deal with
this issue. And if it requires increased penalties, fine. I am
prepared to do it. But the problems we had recently had nothing
to do with law. You had a bunch of corrupt people…there
is a probe going on now and hopefully we can find those people
involved and take action against them.”
This is the position of the Government of Guyana as communicated
to the Media by President Bharrat Jagdeo at a Media conference
held at the office of the President today.
The Head of State was at the time responding to speculation about
the need for new legislation to curb the increased incidence of
fuel smuggling in Guyana.
According to President Jagdeo, new laws will not solve the problem
of fuel smuggling, but stronger policing of illegal activities.
“It doesn’t require new legislation to seize some
of these vessels if they are carrying smuggled goods. What I am
worried about is that enough attention is not being paid to it.
If it requires stiffer penalties, I am prepared to do that but
I think that we have enough on our books now to take action against
some of these people and that is why we are spending a lot of
time at the highest level paying attention to this issue,”
President Jagdeo said.
The smuggling of fuel into Guyana has severely affected the revenue
collection in that area and Government has taken several initiatives
to address this illegal activity.Anti-fuel smuggling measures
could earn the country between $2 and $6 billion annually in revenue.
Consequently, Government added another step its initiatives to
fight fuel smuggling.
Recently, Cabinet agreed to the implementation of a Fuel Marking
System to identify the origin of fuel being used in Guyana, improperly
imported and to assist in identifying and thereby allowing persecution
of those found in possession of fuel illegally imported.
The Fuel Marking System is being instituted in tandem with an
imposing array of regulations that would further support the criminalisation
of the illegal importation and dealing in illegal fuel.
Measures to cut back the illegal trade include the use of a bio-agent
that will be added to imported fuel supplies. Simple testing will
determine if the agent has been added to the fuel thereby confirming
it legality.
The Fuel Marker System gives the opportunity to sample any fuel
anywhere, at any time, and to tell where it originated, whether
duties were paid or not, Minister of Tourism, Industry and Commerce
Manzoor Nadir had explained.
Large fuel consuming companies like Guysuco and the Guyana Power
and Light, retailing agents including petrol stations and consumers
like farmers, could all find their fuel supplies being tested.
The fuel marker will be supplied by an international company that
will also provide training for personnel who will conduct testing
in Guyana. The company will also be auditing the system.
It is estimated that the cost of adding the bio-agent to gasoline
would be around $2 per gallon. According to Minister Nadir, this
should not affect the price consumers pay. In addition to the
fuel marker, the Government has also drafted legislation, which
is aimed at combating the illegal trade.
The legislation proposes significant penalties for persons found
guilty of smuggling fuel. It also proposes stiff penalties for
those guilty of transporting, selling or storing illegal fuel.
The clamp-down on fuel smuggling will not only improve revenue
collection, but legal operators will now have a level playing
field.
Fuel smuggling originated in Regions One (Barima/Waini) and Six
(East Berbice/Corentyne) but it is now being claimed that this
illegal operation has expanded in all the Regions. Additionally,
it has become the financial basis for entry into other aspects
of the commercial sector in Guyana.
The Fuel Marking System is said to be operating in other countries
with similar fuel smuggling operation and is widely tested. The
exercise will cost Government about US$750,000 and given this
significant investment, the penalties for persons found culpable
are expected to be significant.
This illegal fuel industry has already attracted consistent Government
sanctions, including the creation of special operation forces
to interrupt the pipeline of fuel, both from Venezuela in the
West and Suriname in the East.
One of the major initiatives taken by Government is the establishment
of a Cabinet-mandated fuel smuggling probe team in July last.
The team includes members from the Joint Services, the Auditor
General’s Department and the Guyana Revenue Authority.
While the probe team concentrates on activities related to the
recent seizure of illegal fuel in the Essequibo and Demerara River,
the team would also be examining the illegal fuel smuggling enterprise
and what appears to be an empire created from the unlawful proceeds.
The probe team is required to submit a report after the inquiry
to Cabinet, which laid out the body’s Terms of Reference.
On the issue of a timeframe within which the team will operate,
it is not definite, but after conducting the primary task of investigating
the recent seizure in the Essequibo and Demerara Rivers, the team
will continue work for a few weeks to look into other smuggling
operations.
At present, particularly in the West, boats coming from Venezuela
and involved in the illegal importation of fuel, attracts the
attention of members of the Guyana Police Force (GPF), the Guyana
Defence Force (GDF), the Customs and Anti-Narcotics Unit (CANU)
and Customs Enforcement, which have been appointed to act collaboratively
in the interdiction of the fuel smuggling boats and vessels.
Similarly, such activities have been occasionally done in East
with regard to fuel coming from Suriname.
TOP
Wednesday
September 3, 2003