PRESIDENT CHEDDI JAGAN SAYS ...
OMAI MUST BEAR FULL BLAME FOR CYANIDE SPILL
(Text of an address to the nation on Tuesday, August 22, 1995)
Fellow Guyanese,
Very early last Sunday morning, Omai Gold Mines Limited informed the Government of Guyana that
breaches had occurred on the dam of the pond holding water mixed with cyanide, an end result of the gold
operations. At one end of the pond, the cyanide-laden solution was flowing into the Omai river, a tributary
of the mighty Essequibo River. At the other end, the solution was flowing into another pit where ore
deposits are being mined. Top officials of the Government rushed to the area and confirmed that a major
disaster had taken place.
As President of this country, I am indeed alarmed, as we all should be, at the repeated incidence of a
major spillage at OMAI Gold Mines Limited (OGML), just three months after the first reported spillage
of this kind at the same site.
My Government's concern has to do with the fact that these spills have potentially disastrous
implications for the lives of people and for the marine and biological life in our major rivers, whose
tributaries flow from and through that area.
Immediately upon learning of the spill, the following steps were taken:
Government dispatched a special team to the OMAI site for an independent assessment of the situation.
A special monitoring team has been established at Bartica which includes the Regional authorities.
Water and mud samples are being taken in the area between and Bartica to determine the toxicity of the
river water.
Samples of fish and other marine life are also being kept for scientific investigation.
The Ministry of Health has dispatched its own team to the affected areas. And mechanism have been
put in place to prevent the sale and consumption, at Parika and other such points, of fish caught in the
river areas between OMAI and Bartica.
Steps are also being taken to inform the Amerindian and other communities in those areas of the
disaster and the need to take precautionary measures.
I therefore appeal to citizens of these areas, including the Amerindian villages, not to drink water or
consume fish or other substances from the OMAI or Essequibo Rivers within the affected area.
Fellow Guyanese,
This morning, Cabinet had a full discussion on the OMAI crisis and arrived at certain conclusions which
I will reveal in a few moments. I want to report that as matters presently stand, a dangerous situation still
remains and cyanide continues to flow into the OMAI and Essequibo Rivers.
This afternoon, Prime Minister Sam Hinds and other officials met with Omai executives to review the
situation. The crucial objective at the moment is to stop the flow into the OMAI river and further
deterioration of the harmful environment effects and to safeguard the lives and welfare of Guyanese. The
various agencies
involved in this matter have been instructed to spare no efforts and resources to achieve these objectives.
My government has time and again expressed concerns over the investments made before the PPP/Civic
took office. From various quarters came severe criticisms and accusations that my government is not in
favour of foreign investments. I want to repeat that our developing economy needs more investments to
come. I also want to repeat that when the investors come, we will ensure that they respect our people, our
laws and our environment.
I have also said on many occasions that we need to monitor the environmental impact of economic
activities, especially in our rainforest area. The OMAI spillage has now brought home to all that a general
review of the situation is urgent.
It is clear that the effects of this crisis will severely affect the economy of the country, as gold is a
significant contributor to our robust growth rate. But this is not my government's main concern at the
moment. The focus is on stopping the spill and protecting our people and environment.
Additionally, the following measures are in train:
I want to assure the citizens of Guyana that this government is concerned about proper management and
operation of mining activities throughout Guyana.
The Environmental Unit at the Office of the President, along with friendly local agencies, has been
steadfastly at work in setting up mechanisms for independent monitoring of activities at OMAI and other
mining sites, where environmental protection must be ensured.
But, as you are well aware, the cost of these activities are not immediately within our means and that
is why it would seem to be taking longer than the situation demands.
There are similar concerns about our ability to monitor the activities of large scale loggers in our
forests. Here too, we are also faced with the similar fact that costs of monitoring mechanisms are holding
back our ability to do what needs to be done with the speed it needs to be done.
Fellow Guyanese,
I want to assure you that this government is always prepared to take the necessary steps to protect the
life and well-being of our citizens in every part of this vast country of ours.
I am myself continuing to receive reports and to take action on the basis of these reports.
Cabinet this morning took a very serious view of the situation. After considering the various reports,
and taking all the factors into consideration, I wish to announce that, in the national interest, the area
affected by this spillage will for the foreseeable future, be deemed an Environmental Disaster Zone.
The exact boundaries will be described in more details in a subsequent government announcement, but
I call on the citizens of the areas between OMAI and Bartica, all of whom have to make use of the rivers
and tributaries in between, to be so advised.
I wish to appeal to good corporate citizens and all those with the resources to provide assistance by way
of fresh drinking water and substitutes for fish to the areas concerned.
Let me also say that Government is monitoring the measures taken by Omai Gold Mines Limited to deal
with this situation.
Let me assure you that OMAI will not be the only judge of its actions. We have our independent
monitors on the ground and we are taking their reports seriously.
OMAI Gold Mines Limited has the responsibility to take certain measures to ensure the safety of
workers and others and to protect the environment. And the government has the responsibility to see that
commitments are carried out. And we will definitely do so.
I look forward to the full cooperation of all Guyanese in this national emergency. And although the
consequences can be potentially dangerous, I also appeal to you to be calm, and not to panic.
The answers to this OMAI problem are being sought, and let me assure you that they will be found.
I expect that OMAI will discharge its responsibilities to the nation, the workers and the people in the
affected area.
Resolution Adopted by Parliament
On August 24, the Guyana Parliament unanimously approved a resolution placing full responsibility
on Omai Gold Mines Limited for the cyanide spill over the past few days. The resolution also declared the
following:
-The area is regarded as an environmental disaster zone.
-Full scale resources must be mounted to protect the human and natural environment.
-An environmental audit fully financed by Omai will be done to determine the extent of the clean-up
required.
-A Commission of Inquiry will be set up to investigate the cause of the disaster and make
recommendations on preventive measures to be taken by Omai to minimize the exposure to the
environment if unexpected, unforeseen events occur.
-Omai operations will remain closed to allow for the clean-up, the audit and the Commission of Inquiry.
-Operations will only recommence on the basis of an examination of the recommendations of the
Commission of Inquiry and the environmental audit.
Current Situation
Latest available samples and analyses taken on August 27 show that cyanide levels have dropped to below
detection point from Omai to Bartica, but levels then rise to 0.022ppm at Stampa, about 10 miles
downstream from Bartica, falling again to below detection at Parika, at the mouth of the Essequibo River.
There were a number of reported sightings of fish kills and dead animals in the Essequibo River but
these are still to be confirmed.
The immediate danger from the massive cyanide leaks from the tailings dam has passed. The
Government is arranging for extensive sampling at various depths across a number of sections of the
Essequibo River to ensure that no pockets of cyanide polluted water remain.
Focus is being placed now on a clean up and restoration of areas more than transiently affected.
Expectations are that effects will be limited to perhaps one mile of the Omai River and a few hundred
meters along the Essequibo River.
Fish Exports Not Contaminated
The Government has reassured all importing countries that there has never been any hazards to fresh
fish and shrimp exported from Guyana since:
i) Less than 1% if any, of the fish and shrimp exported are caught along the Essequibo River and its
discharge.
ii) The Guyana Government had immediately put an embargo on fishing on the Essequibo River
essentially nearly all of which is used locally.
iii) Levels of cyanide contamination never reached toxic levels along the river.
Guyana obtains its fish exports from the Atlantic Ocean and as far away on the eastern border with
Suriname, a distance of more than 300 miles from the Omai Gold Mines spill, and the North West area,
a distance of more than 200 miles. Fish exports are also obtained from inland creeks and savannah areas.
In addition, the Ministry of Health and the Ministry of Trade, Tourism and Industry have instructed that
all exports of fish be tested for contamination. The fish can be further rechecked by the importing
countries.
Georgetown Gets New Mayor
Hamilton Green on August 28 lost his bid for a second term as Mayor of Georgetown. He was defeated
by PNC candidate Ranwell Jordan when city councillors voted to choose the Mayor. Elections for Mayor
are held annually when councillors select one among themselves for the position. Jordan received the
backing of both the PNC and the PPP/Civic councillors. Green's group, the Good and Green for
Georgetown (GGG) holds 12 seats on the council while the PNC and the PPP/Civic have 10 and 8 seats,
respectively.
Meanwhile, Philomena Sahoye-Shury of the PPP/Civic was returned unanimously to her position as
Deputy Mayor.
UG Bill Passed Unanimously
The Guyana Parliament on August 25 gave government the go-ahead to diffuse the accountability crisis
engulfing the University of Guyana, by unanimously approving a Bill to replace the controversial
University Council with one that is respectful of authority and sensitive to student and worker welfare.
The minority PNC, which had earlier defined the University of Guyana (Amendment) Bill as an attempt
to curtail academic freedom, agreed in Parliament that government action was necessary to keep intact
the integrity of the university.
The United Force and the WPA both welcomed the government's proposals to assure financial
accountability, good governance and academic enrichment at the University of Guyana.
The Bill authorizes the setting up of a Commission of Enquiry to investigate conditions at the
University, the establishment of a 26-member university council, and appropriate mechanisms to promote
financial accountability and student welfare at the university. Membership of the council is to include
representatives from the trade union movement, political parties, student society, and universities and
colleges in Canada, the United States, Britain and the West Indies.
During the debate, PNC front-bencher Deryck Bernard conceded that the Bill represented "a significant
step forward in the process of good governance." He said that for a university in the Third World to
perform its functions in a professional manner, it must be accountable and must see autonomy as both a
privilege and a responsibility.
Labor Minister Henry Jeffrey made clear the government's commitment to allowing the highest level
of autonomy at the university.
Guyana Gets US PL-480 Funds
At a time when the US Congress is slashing foreign aid even to the most needy of developing countries, intense lobbying by Guyana has resulted in Washington assuring Georgetown it has been allocated US$3 million in PL-480 Title I Funds. Guyana Washington lobbyist, Mr Paul Reichler, and Guyana's Ambassador to the United States, Dr. Odeen Ishmael, both describe the allocation as a great victory for Guyana.
Hikes in Public Servants Allowances
The Finance Ministry announced large hikes in public servants allowances, for the first time in years.
Finance Minister Mr. Bharat Jagdeo said the increases in station and subsistence allowances, among
others, take effect from July 1 last.
Increases in station allowances, granted for the first time since 1989, are between 1150 per cent and
1173 per cent for various categories of workers.
According to a release from the Ministry on the new stipends, the station allowance is paid to officers
residing and working in certain areas of the country.
The increases are as follows:
Category A - From $200 per month to $2,800 per month.
Category B - From $190 per month to $2,400 per month.
Category C - From $160 per month to $2,000 per month.
Subsistence and related allowances, which were last revised in 1985 are as follows:
Lodging - From $40 per night to 1,000 per night.
Meals - From $40 per day to $800 per day.
Out-of Pocket - From $5 per night to $100 per day.
Camp - From $10 per day to $200 per day.
Field - From $5 per day to $100 per day.
In consideration of the substantial increase in the cost of repairs and spare parts for motor vehicles,
approval was also given for a 100 per cent increase in the 1992 rates.
The new figures are:
Motor Car - From $51,000 to $103,200
Motor Cycle - From $21,300 to $42, 600
Auto Cycle - From $11,300 to $22,600
According to the Ministry, the $600 allowance to public servants whose duties require the use of
protective clothing has been revised to $2,200. The increases will be funded by Central Government.
$1,000 Note Soon
Cabinet is currently looking for a thousand-dollar bill and a dollar coin. The Finance Ministry says the
printing of the $1,000 note and the minting of the one-dollar coin could become a reality before the end
of the year.
The printing of a thousand-dollar denomination has been called for by businessmen who say it will
speed up the process of business transactions and offer greater security to people conducting extensive
financial business.
More CDB Aid
Guyana has been declared eligible for another infrastructure rehabilitation grant from the Caribbean Development Bank, and likely will be receiving that money next January. The grant is expected to be in the vicinity of US$5 million, and will be coming from the CDB's Fourth Programme, a grant-aid mechanism that allows CDB member-countries to finance projects designed to accrue direct benefits to their population's most needy citizens. Help for Interior Communities
Several individuals and private sector firms have assisted families going hungry in Regions 7 and 9 as a result of destruction of their crops caused by severe flooding. Six flights carrying food have gone into the two regions during the past two weeks and distribution of rice, flour, peas, oatmeal and cooking oil has begun. Kayman Sankar provided an Islander aircraft to fly in food while David Bacchus of the Gold and Diamond Miners Association paid for an Islander flight. The Guyana Airways Corporation has already provided 3 flights at reduced rates and on credit while Anthony Mekdeci arranged for a charter flight. SIMAP has 100 tons of food to distribute to the flood and disease stricken areas in Guyana's hinterland.
Newsbriefs ...
Plywood exports are likely to increase in the short-term following the arrival of a wide range of heavy-duty machinery for Barama Company Limited. The all-weather machinery, will partly replace logging and road construction facilities and provide employment opportunities for an additional 30 North West residents.
The US Peace Corps formally reopened for business in Guyana once again. The first team of 20 Peace Corps volunteers is expected in September, initially offering technical expertise to urban and rural folks in the areas of youth and health education.
First Lady Mrs Janet Jagan recently declared open the recently refurbished children's playground at the Zoological Park in the Botanic Gardens.
Two roads at Ogle and Industry on the East Coast of Demerara have been commissioned and the main access road leading into Plaisance, is to be rehabilitated in the near future.
The Inland Revenue Department collected some $7.1 billion up to the end of last month, putting the department some $1 billion ahead of its target so far for the year.
The Health Ministry is moving to boost its anti-malaria campaign in hinterland areas and plans "extensive spraying" at various sites.
A $600,000 self-help drainage project has been formally commissioned in Craig, East Bank Demerara, as part of a programme to revive production in the village.
An agreement reached between the University of Guyana and the Guyana School of Agriculture will allow diploma graduates from the school to complete a Bachelor's Degree programme in three years.
After hovering at G$145 to US$1, the Guyana dollar gradually strengthened over the past few months and moved from about G$143 to G$137 to US$1 during the last two weeks.
Some 23,000 residents between Hague and Versailles on the West Demerara, are expected to benefit from a US$7.5M European Union grant to upgrade the water supply systems in the area.
President Cheddi Jagan said he is lobbying local banks to encourage more lending to small people, and announced Cabinet has decided to deem the Institute of Private Enterprise Development a national development body.
Finance Minister, Mr. Bharat Jagdeo is urging the business community to cut consumer prices to reflect the reduction in taxes and the appreciating exchange rate.
A nine-man malaria eradication team from the Ministry of Health commenced DDT spraying at Madhia and its environs.
The salaries of Parliamentary and senior Government functionaries have been increased retroactive to January 1 last, following an order signed by Finance Minister, Mr Bharat Jagdeo.
Waramadong, Upper Mazaruni students will be attending classes in a more conducive learning environment from the upcoming school term. The Project, which initially estimated at $1M, eventually cost just $316,000 in cash after residents volunteered their labor and worked with government technicians in an aided self-help drive.
The Inter-American Emergency Assistance Fund of the OAS has allocated US$5,000 to the Guyana Government to relieve distress caused by severe flooding in the Amerindian communities. Out going United States Ambassador to Guyana, Mr George F. Jones hosted a farewell reception at his University Gardens residence. President Cheddi Jagan and First Lady Janet Jagan were among those who attended.
In a major address on August 30 to the OAS Permanent Council, Ambassador Odeen Ishmael called upon the member nations to render technical support to help put preventive measures in place to stem any future environmental disasters.
A Venezuelan trade mission visited Guyana and held discussions with representatives of both the public and private sectors on the possibilities of purchasing rice, sugar, timber and sea-food.
Some 41 rice millers benefitted from a three-day Guyana Rice Development Board training program at Burma Rice Mill compound during late August. Similar programs have been planned for rice farmers and millers for later this year.
The Tourism Division of the Ministry of Trade, Tourism and Industry received a gift of equipment from the OAS valued at G$203,272.
Guyanese word-ranking boxer Andrew Murray was defeated in his bid to wrest the world welterweight championship from Ghanian Ike Quartey. The f