7 News Belize

The Real Rosewood Deal: DPM’s Brother Is @ Top Of Food Chain
posted (April 15, 2013)
Last week when the Rosewood news broke – it had the air of a scandal – a private trucking company carting out thousands of board feet of confiscated rosewood from the forestry compound in Belmopan. Since then, Government has tried to get in front of the story – but mostly they've ended up getting run over by it. And that's because there hasn't been any coherent and orderly explanation of what's happening, why and when the decision was taken. But today, back from Istanbul and up to speed on all the latest developments, Minister of Forestry Lisel Alamilla addressed the media in an 8:30 press conference at the Fisheries building in Belize city. 7news had a front row seat:… This morning, Minister of Forestry Fisheries and Sustainable Development Lisel Alamilla was calm and at ease as she met with the media.

She opened with a statement:

Hon. Lisel Alamilla, Minister of Forestry Fisheries and Sustainable Development
"The events of the past week have understandably given cause for concern. The decisions and actions were taken with full cognizance that the decision, while not being a popular one, was with the best interest to resolve an impasse in the local Rosewood trade. The rationale for Belize's decision - the Government's decision is based on several mutually supporting activities. To account for the entire volume of Rosewood currently available and to dispose of it and to concurrently be in compliance with a decision made by CITES on March 14th with respect with the trade in Rosewood. The CITES decision directly limits and affects the exportation of Rosewood in its raw form as logs or flitches, lumber, veneer and plywood sheets. With this in mind, the Ministry of Forestry Fisheries and Sustainable Development undertook to institute an amnesty period on all harvested Rosewood. The purpose of the amnesty is to allow all those persons in possession of Rosewood material to declare it to the Forest Department.

I see the amnesty period as essential to ensure that the Forest Department accounts for the remaining volumes of harvested Rosewood material and to permit the eventual sale and export."

The exports will be handled by a local company called GIV, that's German Vega's company.

Hon. Lisel Alamilla
"The material that we have confiscated, we sold to GIV. They are buying it from us. We will then allow them to export it before they export it. They will have to pay government 50% of the revenues earned from that sale. Every exporter, because this material was illegally gotten, as a penalty they will have to pay us 50%."

Alamilla stressed that the 50% is a penalty – but the profit for the Rosewood dealers must still be substantial because Rosewood dealers are jumping through hoops to get their Rosewood together for export right now. And the lynchpin in the operation is the company called GIV.

Jules Vasquez
"The involvement of GIV, the G and the V being German Vega; is the involvement of that company being the brother of the Deputy Prime Minister and former Minister of Forestry - is that an indication that there is political collision and is being orchestrated to facilitate UDP insiders?"

Hon. Lisel Alamilla
"It is a fact that GIV is one of the largest exporter of Rosewood. But anyone who gets material and wants to export it and has the connection and has the finances to pay the government before hand, before they export it, they will be allowed to export this material."

Jules Vasquez
"There's every appearance that the decision was made to facilitate and enrich this UDP insider - Mr. German Vega."

Hon. Lisel Alamilla
"Well that is the perception that people have and I don't think I can do anything to erase that perception."

But Alamilla did want to dispel the perception that the Amnesty period is just a concoction after GOB was busted by the PLUS TV Footage.

Hon. Lisel Alamilla
"I think it was, of course, a downfall on our side that we didn't come out and release this information and so it creates the suspicion that something fishy is going on. I will accept the responsibility of my Ministry that we didn't come out with this information prior and explained to the public why we were doing this. So I'm hoping that today we will be able to rectify that. I think it was discussed in Cabinet for three consecutive Cabinet meetings. It was discussed at length and debated at length and it was the decision of Cabinet that even though this was perhaps not going to be viewed as politically smart. It is necessary for the governance of our Forest resources."

And judicious management of those resources means clearing out the old stock before the CITES regime is effected.

Hon. Lisel Alamilla
"There's material that comes that has to be declared pre-convention material. That is what we are trying to gather. What is pre-convention material? We know that there is material out there that we need to get it out. It's not a decision that we are excited about or happy about but we acknowledge that it's real."

And that reality is also why Alamilla says they have the dealers arranging the sale and export.

Hon. Lisel Alamilla
"The trade of Rosewood is very tricky with China in that you send the material and you don't get paid. Sometimes people have to be hassled and it's risky because once the material is gone, you don't get paid. They don't pay you before. They pay you upon receipt of the material. So it was the decision of Cabinet that we were not willing to take the risk. So the revenue sharing that we're doing, which is 50-50; the exporters will have to pay Government before they are allowed to export the 50%."

And while government now has to protect its commercial position – it seems Alamilla had to vacate her principled one. After all, it's she who effected to Rosewood moratorium 13 months ago and she who burnt the Rosewood in January.

Jules Vasquez
"Isn't this facilitation of exportation of what you know is almost extinct - endangered hardwood. Isn't that a complete reversal of all the stances you have taken?"

Hon. Lisel Alamilla
"Jules, it is the reality of this trade. It's a valuable commodity. It is a challenge that countries face when trading invaluable commodities and nobody likes to be placed in this situation."

No export has happened yet and Alamilla has invited the media, mayan leaders and NGO partners to be present when they are loading and measuring the Rosewood. All the exports will have to be CITES certified. For clarity, the local Rosewood will be sold to GIV Import/Export Company for five dollars per board foot and government has about twenty five thousand board feet, or slightly more.

The companies registry records shows that the company is owned by Ignacio German Vega and Amir Awe in trust for Arlo Vega. It is headquartered in the Commercial Free Zone.

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