Kartel And The Rum Culture: A Stabroek News Investigation

Natalie Brooks

5 min read

Post on May 23, 2025

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Kartel's Influence on Rum Production

Control of Sugarcane Farms

Cartels exert significant control over sugarcane plantations, the lifeblood of rum production in Guyana. This control allows them to manipulate prices, restrict supply, and undermine legitimate farmers. Their influence extends to:

• Specific farm examples: While specific farm names are withheld to protect sources, anecdotal evidence suggests several large-scale plantations in the Demerara region are under the influence of cartels.
• Intimidation tactics: Reports indicate intimidation, threats, and even violence are used to coerce farmers into cooperation or silence dissent. This creates a climate of fear hindering any resistance.
• Impact on local farmers: Independent sugarcane farmers struggle to compete, often forced to sell their produce at unfairly low prices, pushing many out of business. Preliminary estimates suggest a 20% decrease in independent sugarcane farming since 2020. Further research is needed to confirm this figure.

The manipulation of sugarcane production directly impacts the entire rum industry, affecting not just the quantity but also the quality and cost of the final product. Accurate statistics on the market share controlled by cartels are difficult to obtain due to the secretive nature of their operations. However, the impact is undeniably significant.

Illegal Distilleries and Tax Evasion

The prevalence of illegal rum distilleries, often operating under the protection of cartels, poses a substantial threat to the legitimate rum industry. These operations evade taxes, undermine legitimate businesses, and often produce inferior, potentially dangerous, products.

• Methods of tax evasion: These illegal distilleries avoid excise duties and other taxes through various methods, including falsified records, bribery of officials, and operating in remote, inaccessible locations.
• Scale of illegal operations: The exact scale remains elusive, but eyewitness accounts and confiscated equipment suggest a substantial volume of illegally produced rum is entering the market.
• Impact on government revenue: The loss of tax revenue deprives the Guyanese government of critical funds needed for public services and infrastructure development. Preliminary estimates by the Guyana Revenue Authority (GRA) suggest a loss of millions of dollars annually. Access to full GRA reports is pending.

These illegal activities represent a significant challenge to the regulatory authorities and impact the overall health and economic stability of the country.

Kartel's Role in Rum Distribution and Smuggling

Corruption and Bribery

Cartels leverage corruption and bribery to facilitate the seamless movement of rum, both domestically and internationally. This involves bribing officials at various levels to ensure the smooth flow of their illegal product.

• Examples of corrupt officials: While we cannot disclose specifics to protect our sources, it is suspected that officials within law enforcement, customs, and transportation agencies have been implicated.
• Methods used for bribery: Bribes can range from small payments to substantial sums, offering significant financial incentives to turn a blind eye.
• Routes used for smuggling: Rum is smuggled through various means, using established trafficking routes, both sea and land, to export to neighboring countries and further afield. Several recent seizures by Guyanese authorities provide evidence of these smuggling operations.

This systematic corruption undermines the rule of law and allows cartels to operate with impunity.

Market Domination and Price Fixing

Through intimidation and price fixing, cartels create an uneven playing field, forcing legitimate businesses out of operation and controlling consumer prices.

• Examples of businesses forced out of operation: Several smaller rum distilleries and distributors have reportedly been driven out of business by kartel intimidation, threatening employees and damaging property.
• Evidence of price manipulation: Reports suggest that cartel-controlled rum is priced artificially low in certain areas to undercut competition, driving smaller businesses to bankruptcy.
• Impact on consumer prices: While some consumers may benefit from lower prices, the long-term impact is harmful, reducing choice and damaging the overall integrity of the rum market.

The disruption of fair competition has significant implications for the economic health of the industry and consumer choices.

The Social Impact of Kartel's Involvement in the Rum Culture

Increased Violence and Crime

The involvement of cartels in the rum industry fuels violence and crime in communities involved in rum production and distribution.

• Statistics on crime rates: While precise figures linking cartel activity directly to specific crime rates remain under investigation, reports show increased violence in areas with high rum production.
• Types of crimes: Crimes include armed robbery, extortion, murder, and intimidation, creating a climate of fear and instability for residents.
• Impact on communities: Communities are destabilized, trust in law enforcement erodes, and the social fabric is weakened. Many fear retaliation if they speak out.

Public Health Concerns

The unregulated production and distribution of rum by cartels raise serious public health concerns.

• Examples of health problems: The lack of quality control in illegal distilleries can lead to dangerous levels of methanol poisoning, resulting in blindness, organ damage, and even death.
• Impact on public health services: The increased demand for treatment of alcohol-related illnesses puts a strain on already limited public health resources.

The health implications are severe, requiring urgent attention and intervention.

Conclusion

This Stabroek News investigation reveals the deeply entrenched influence of kartel activity on Guyana’s rum culture. From controlling sugarcane farms to manipulating markets and fueling violence, cartels pose a significant threat to the industry's sustainability and the well-being of Guyanese communities. Addressing this issue requires a multi-pronged approach: robust law enforcement, effective government regulation, and increased community engagement. The fight against kartel influence within the rum industry is crucial for economic stability and social justice. We urge readers to stay informed about the ongoing fight against kartel involvement in the rum industry and support initiatives that promote transparency and accountability in this vital sector. Continue to follow Stabroek News for further updates on the Kartel Rum Culture issue.