UNAMCO likely for Cabinet scrutiny following unauthorised logging By Andrew Richards Stabroek News February 14, 1998 UNAMCO Industries' operations may soon be a topic for discussion by Cabinet in light of the accusations levelled at the company after investigations by the Guyana Forestry Commission (GFC). UNAMCO's forest operations have come under close scrutiny by the GFC after reports indicated that the firm breached a number of regulations and a $1 million fine was proposed. Yesterday, UNAMCO's Environmental Officer, Denise Fraser, said through her secretary, that the company will issue a statement on the matter. The company's Managing Director, Hamley Case, is said to be out of the country and no other official could speak on the matter. Minister of Crops and Livestock, Satyadeow Sawh, who is also responsible for forestry, was contacted again by Stabroek News yesterday on the matter. He stated that he gave permission for Commissioner of Forests, Clayton Hall, to speak to this newspaper on the issue. Hall could not be contacted up to press time. It was reported that UNAMCO conducted unauthorised logging in its concession and violated certain forestry and environmental laws. At his weekly press conference yesterday, Cabinet Secretary Dr Roger Luncheon said the matter has not been brought to Cabinet's attention, but "with allegations of this magnitude" he is certain it will. He was responding to a question following a report in yesterday's issue of Stabroek News on UNAMCO's activities. Up to the time of yesterday's report there had been no public statement on the matter from the government, the GFC or the Environmental Protection Agency. Key members of government had been dealing with the UNAMCO issue since November last year. "UNAMCO is a most recent entrant into the forestry sector and the allegation of illegal logging for a new entrant...we will have to consider significant," Luncheon stated. Luncheon said he was informed that the GFC was provided with information that the infractions took place. "...They [GFC] have satisfied themselves, when investigating, that this was indeed so and they have made recommendations...for UNAMCO to be punished", he stated. Hall, in correspondence on January 16 to Sawh said the Board of Commissioners of the GFC was kept abreast of UNAMCO's activities at various meetings and more than once they expressed concern at the rate of the company's development. On June 24 last year, UNAMCO submitted to the GFC a proposal to cut 17,000 trees to conduct a "trial run" for log harvesting. During this time the EPA advised against approval of any logging activity in the area. On June 27 the GFC advised UNAMCO against pursuing any logging activity at that time. A draft of GFC's response to the timber company was sent to Doorga Persaud, Chairman the GFC's Board. Minister Sawh then instructed that a meeting be convened by Persaud with officers from the GFC and EPA to seek an approach to UNAMCO's application. From that meeting, an approach was worked out which would have permitted UNAMCO to carry out the "trial run" and Persaud advised Sawh accordingly who in turn informed UNAMCO of the decision. The company on July 15 detailed a plan which did not fully conform to what the approach would have been as worked out by the officers. Sawh then sought advice from the then President, Samuel Hinds, and based on what the President said UNAMCO was so advised. The matter of the "trial run" was not discussed between government and UNAMCO after that point. After this proposal to harvest logs by UNAMCO on an experimental basis was not approved by the GFC, indications of irregularities not in keeping with the agreement signed by the company were discovered by the GFC. On November 25, a report from the Environmental Monitoring Unit of the Commission stated that UNAMCO was logging the concession unknowing to GFC. Senior Assistant Commissioner of Forests, Mr Khalawan, in his report said during his visit to the concession to evaluate progress made on the construction of UNAMCO's access road, he observed a number of log markets that indicated to him that logs were being harvested. The Managing Director of UNAMCO, Case, made contact with the Commission later in November to set up discussions on the proposed "trial run" and related issues. The discussions never materialised due to the indisposition of UNAMCO's forest operations advisors as related by Case. In mid-December, the company then applied for the use of its access road, opened by President Hinds on December 4, and to harvest logs. Hall, in his correspondence, told Sawh that "the GFC and the EPA considered this request very strange since, as reported by Mr. Khalawan, in November, 1997, UNAMCO had already commenced log harvesting activities and were using the access road to transport forest produce against your advice..." A meeting was convened on December 23 with UNAMCO, GFC and EPA. At this meeting, UNAMCO's representatives admitted that they had not fully complied with the conditionalities set out by government. A meeting was then hurriedly convened with Prime Minister-designate Hinds. After these meetings, the $1M fine against UNAMCO was proposed and the logs were to be confiscated. UNAMCO also owed at that point, acreage fees for 1997 and other fees were payable at the end of January. Observers note that the $1M fine was puny in relation to the cost of the logs which were culled by UNAMCO. UNAMCO signed a Letter of Intent on November 6, 1996 to undertake activities in keeping with GFC and EPA laws. Eighty-five per cent of UNAMCO is owned by Malaysian Villupillai Kanagalingam. The remaining 15% is held by Case. The Malaysian also holds 80% of Case Timbers Limited (CTL) in which Case holds the remainder. UNAMCO and CTL have concessions totalling 391,000 acres in Region Ten.