Suriname's President's travels around the new year

Happy New Year and Happy Monday!

In this week's newsletter, we're covering President Santokhi's recent travels, the crisis at the SLM, Suriname's national aircraft, and the implementation of value-added tax (VAT) in the country.

Happy Holidays and as we enter the new year, feel free to share DeBrief with some of your family and friends if you think they'll be interested in Surinamese news.

President Chan Santokhi has been doing his fair share of traveling to bring in the new year, jetting off to India and Brazil.

Brazil

The president attended the inauguration of President Luiz Inacio Lula da Silva in Brazil on January 1. Over 40 other heads of state also attended the inauguration as the Surinamese delegation held talks with various Brazilian officials including the Minister of Foreign Affairs, Mauro Vieira. President Santokhi also spoke to heads of state from the Caribbean, Africa, and Europe, to name a few. Santokhi believes there will be no significant changes in Brazilian policy towards Suriname with the new government. He also emphasized the importance of maintaining good cooperative relationships with the BRIC countries (Brazil, Russia, India, and China). He also mentioned the potential of strategic development between neighbors, Suriname, Guyana, and Brazil, particularly regarding food security, oil and gas, and infrastructure projects, such as highways and bridges between the countries.

India

The president visited India to attend the 17th Pravasi Bharatiya Divas Convention; a convention for the Indian diaspora abroad. During the trip, President Santokhi met Indian President Draupadi Murmu, Prime Minister Narendra Modi, and Foreign Minister Subrahmanyam Jaishankar to discuss bilateral and multilateral cooperation. Furthermore, President Santokhi was also the guest of honor at the Inaugural Session of the Global Investors Summit, which will focus on oil and gas exploration.

The trip’s goal was to finalize debt restructuring between the two countries and secure grants and subsidies for Surinamese projects.

The financial injections from India will stimulate the agricultural sector in Suriname, among aspects of the economy.

The SLM's crisis recovery act.

Suriname’s national airline, the SLM has been in turmoil for the last few years. Recently, however, the airline acquired a new aircraft called Sabaku, a Boeing B737-800. President Chan Santokhi and the Minister of Transport, Telecommunications, and Tourism have emphasized the need for the airline’s survival and financial stability. The company has a $75 million debt and is facing challenges on the way to recovery. Sabaku will serve regional routes and will soon be joined by another aircraft for the Mid-Atlantic route, as the minister mentioned plans to enlarge the SLM. With the acquisition of Sabaku, the SLM hopes to put past struggles behind them and speed up the recovery process.

Suriname's VAT implementation

While the government has emphasized the need for VAT to reduce the tax burden on society. As the tax is on the consumers, everyone will participate in the tax collection. The implementation of the value-added tax (VAT) has left a lot to desire as many unclear issues arise. Parliament members questioned the feasibility of the laws' implementation by the end of 2022. While many businesses were also unprepared and left in the dark about its implementation.

One key issue that is coming up is companies that do not earn more than 1 million SRD in one year can claim to be exempt from VAT. As VAT is applied to suppliers’ prices when companies pay suppliers' invoices with VAT included and will have to ask for a refund from the government on the back end. Furthermore, the collection of 5% VAT on petrol, which some parliamentarians fear will put an extra strain on society. Due to the lack of government cooperation, chaos ensued in the first week of the new year.

Nickerie's rat plague impacts the country's crops.

A rat plague is causing significant damage to crops, including rice, vegetables, and fruit, in Nickerie, Suriname. Nickerie is a district on the Northwest coast of Suriname bordering Guyana, where agriculture is the basis of the economy particularly the harvesting of rice, bananas, and sugarcane. As such, the Ministry of Agriculture has advised the burning and burying of damaged crops.

The cause of the plague is due to a combination of farmers not reporting the infestation promptly and poor maintenance of rice fields due to high rainfall. While the ministry has provided farmers with environmentally-friendly rat poison, there has been little or no information on responsible use and maintaining a clean environment to combat the infestation. This communication mishap has resulted in the misuse of the poison by farmers. While also causing the deaths of cows, goats, and sheep. The plague has also impacted people in the region.

After a fork in the road, the December 8th murder trials will continue.

The December 8th trial will continue. Former President Desi Bouterse’s lawyer Irvin Kanhai challenged the impartiality of the military judge, Colonel Dennis Kamperveen at a hearing on December 16th. The lawyer argued that his clients doubt Kamperveen’s objectivity due to Judge Kamperveen and one of the victims, André Kamperveen, sharing a common grandfather. This familial relationship raised the suspects’ doubts. The judge further insinuated, that the judge only asked questions about Kamperveen during the inspection at Fort Zeelandia. While these relationships

Acting president of the council, Judge Dinesh Sewratan, indicated that the proceedings would not continue until a judgment is made on the challenge.

However, after further investigation, the case will continue to be heard. The survivors' lawyer, Hugo Essed, applauded that the attempt to delay the process was thwarted.