Samling subsidiary under fire over illegal logging in Guyana

Samling Global, a Hong Kong-listed timber company, has been fined about US$500,000 for illegal logging activities in the South American state of Guyana.

Shares of the Malaysian-based company were listed in March and the underwriting banks - HSBC Holdings, Credit Suisse and Macquarie Securities - came under heavy criticism for assisting a company with a spotty environmental record and controversial handling of indigenous people living in the hardwood rainforests that it cuts. A probe by the Guyana Forestry Commission (GFC) found that Barama, a wholly owned subsidiary of Samling, failed to report some of the logs it harvested and purchased, and misused tree tags.

'Barama will be appealing the findings,' said Samling spokesperson Cheryl Yong.

Two Guyanese field monitors were dismissed and others are under investigation for possibly turning a blind eye to Barama's operations, Associated Press reported, citing a government official.

Barama issued a statement saying the government's suspension of its operating licence meant that local jobs would be lost and that investments into expansion plans would be halted. It said that the 'anomalies' were unintentional and part of doing normal business.

'The penalties imposed by GFC are severe, unclear, and in our opinion, arbitrary,' Barama said.