BRIBERY AND CORRUPTION BRINGS TIMBERS
TO AUSTRALIAN KITCHENS
The Rainforest Information Centre will stage a protest at the
sentencing today of the timber importer, Mr Peter Bazos, guilty of
evading duty on rainforest timbers.
Spokesperson for the Centre, Mr Paul Chatterton, said "I'm sure
all Australians would be appalled at the corrupt methods by which
rare and endangered rainforest species are imported for use in our
kitchens."
Bazos, on behalf of his company Elite Wood Products (Australia)
Pty Ltd, not only avoided $294 OOO in duty but also used bribery
to ensure supply of timber from endangered rainforests in Asia. As
part of his defence, Bazos pleaded for lenience on the grounds
that bribery is a requirement for Australia's timber importers
operating in Asia.
"This case puts a lie to any claims that the timber industry can
regulate itself to be environmentally benign", said Mr Chatteron.
"It's an industry based at its core on corruption, bribery and the
thoughtless exploitation of the richest environments on earth."
Mr Chatterton called for immediate government action to ensure
that only sustainably produced timbers are imported into
Australia.
Australian environmentalists, Anja Light and Nancy Rolfe, are
currently serving 90 and 60 day sentences respectively in a
Malaysian prison for protesting against precisely these
practises.
Mr. Bazos is to be sentenced today, Monday 19 August 199l, at
10.00am at Sydney District Court, Downing Centre, corner of
Elizabeth and Liverpool Streets. -- The Protest will be at 10.00
am
Further info: Paul Chatterton 02 281 8099 :bh
02
387
3595
:ah
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BRIEFING SHEET: R v Bazos and Elite Wood Products
BRIBERY AND CORRUPTION UNDERPINS AUSTRALIA'S
TROPICAL TIMBER TRADE
% In July this year Mr Peter Bazos of Elite Wood Products
was convicted in the Sydney District Court on charges relating to
the evasion of $294 000 worth of duty on imported rainforest
timbers.
% At his trial Bazos told of the bribery and corruption
necessary to maintain continuity of supply of the diminishing
resource. Timber millers, buying agents and company directors all
had to take their cut before shipments of rare rainforest timbers
such as nyatoh, meranti and durian could move from Asia, destined
for Australian kitchens.
% The case of Bazos and his company Elite Wood Products is
not isolated. In the trial Bazos continually referred to this
system of corruption as standard practice for any company wanting
to do business in 'that part of the world', particularly Singapore
and Malaysia. Other Australian timber importing companies would
have to meet similar conditions to get their product moved from
its place of origin.
% Bazos also detailed his business practice of defrauding
Customs through under-valuing his product. When buying the timber
Bazos paid the full amount to the companies based in Singapore -
including the cost of bribes to agents and millers. The invoice he
presented to Customs was often considerably less than the amount
actually paid, and excluded the amounts for the bribes -
humorously referred to as `trade development grants'. At the
Australian end, Bazos paid less duty again, because his product
was coming from a `developing country'.
% A friend of Malaysian Prime Minister, Dr Mahathir, Bazos
engaged in a joint venture with the Perak State Development
Corporation in the early '80s. He operated a factory which was
opened personally by Dr Mahathir. This venture had government
authorised import quotas.
% Bazos worked closely with his buying agent Mr Victor Chew
in Singapore,
Malayasia and Australia. Chew is currently uncontactable and
reputed to be under investigation by Interpol.
% Chew received a good commission for negotiating with
Malaysian and Indonesian timber millers as well as a network of
companies in Singapore. Each step in the chain required bribery,
including paying off Chew's bosses, the directors of major timber
trading companies in South-East Asia. According to Bazos these
companies worked very closely together.
% Through this network and system of bribery, Elite Wood
Products was able to corner the Singaporean market in second grade
ply. This would be upgraded by the addition of a paper overlay
which enabled the product to compete with first grade ply in
Australia. As the second grade ply was cheaper, Bazos was able to
gain a considerable market advantage. Rainforest ply imported by
Elite Wood Products now controls a large proportion of the
Australian market.
% Australia imports over 450,000 cubic metres of tropical
timber each year, with 80% of this coming from Malaysia. Once here
the timber is used for purposes such as joinery, architraves,
mouldings, furniture and picture frames. For every 25,000 cubic
metres of tropical rainforest traded one species is lost.
% For all these uses rainforest timber could be replaced by
sustainable alternatives - in Australia we can use our own
hardwoods or plantation pines.
% The practices detailed in Bazos' trial flies in the face
of timber producers' claims that the market is self-regulating.
This 'self-regulation' relies on bribes and tax evasion
master-minded by timber cartels. In an environment where even
timber importers such as Bazos recognise that there is a shrinking
availability, the only way Australians can continue to use the
rare timbers like nyatoh, meranti and durian for kitchen fittings
is through a system of bribery and corruption sanitised by
economic language.