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Surinamese Leaders Debate Controversial Land Conversion Decision

Legal experts express concerns over potential economic disparities

Surinamese Leaders Debate Controversial Land Conversion Decision

The Progressive Workers and Farmers Union (Palu) plans to either approach the Constitutional Court or increase pressure on the 51 members within the National Assembly. The exact course of action is not entirely clear, but Palu will not remain silent as the decision to proceed with land conversion “poses a grave threat to Suriname,” says Chairman Jim Hok.

“Instead of the government doing its job well and making the transfer of land lease easier and faster, it introduces a right for which there are no rules in our current legislation,” analyzed lawyer Irvin Kanhai the state decision on Land Conversion 2023. He was one of the presenters during Palu’s first policy forum held on Wednesday evening at its party center. The topic was ‘Land Conversion; certainty or threat?’

Long Waiting Times

In the legal text of the state decision on Land Conversion 2023, the long waiting time to actually achieve the extension or transfer of land lease is indeed mentioned as a motivation for the state decision. But it also states that natural persons and legal entities (foundations and companies) have the right to convert land lease and leasehold plots up to a maximum of 2,500 square meters into ownership. And that at a rate of SRD 25 per square meter.

However, land conversion is not new. The Venetiaan government had also passed a state decision to make it possible. However, it was not possible for non-Surinamese individuals, and the price was equal to the coconut value of twenty euros per square meter. In the new state decision, that price is mentioned as an obstacle for less affluent individuals to actually proceed with land conversion.

However, the SRD 25 per square meter also applies to legal entities. That will open the Pandora’s box that is already half open in Suriname’s land policy. “I am anxious about the consequences this state decision could have,” said Kanhai.

That anxiety was not fully expressed until someone in the audience shouted, “We must say things as they are! It’s about economic power. Which group in society is capable of buying up? You will see in a few years that economic power will rest with only one group.”

Kanhai responded promptly, “And my fear is the unrest that could bring to society.” It was not explicitly stated, but the person seemed to mean the Hindustani elite in the Netherlands and Suriname.

No Zoning Plans

But there are also other fears that were much clearer. “Suriname has no zoning plans. Our country is in development. We are now giving people property rights, and when it becomes clear that we need to build roads and bridges in certain places, the state will have to negotiate with the new owners who will demand the highest price for their land,” warned Henk Ramnandanlal. “Because once the plot is converted for that SRD 25 per square meter, it is immediately worth four hundred times more. What is the state doing?” he rhetorically questioned.

Ramnandanlal discussed during the forum discussion the unrest that could arise from the implementation of this state decision. He noted that land lease gives the state the opportunity to negotiate with the land leaseholder to accept another piece of land in the interest of the country.

The vice-chairman also mentioned the upcoming oil and gas developments in Suriname. “Even then, land is needed, and those who now pay almost nothing for the land will suddenly become extremely rich.”

Numerical Calculation

But the most impactful was Emmanuel Scheek, who participated as an external expert in the forum discussion, which, according to Palu, will be the recipe in the future: always have one or more external experts, and people are free to speak.

Scheek calculated the difference between the amount that must be paid to the government for land conversion and the value according to the coconut. The president had indicated in an article in the Ware Tijd that the government expects to receive over half a billion Surinamese dollars within three months when at least ten thousand plot holders with a terrain of 2,500 square meters convert their land lease or leasehold plots into ownership. “With this amount, measures to strengthen purchasing power could be taken. Among other things, social benefits, such as AOV, could be increased,” he said then.

If we were to work with the coconut value of thirty euros per square meter for plots on the Second Row, which according to Scheek is on the low side, the state would collect more than 750 million euros with the same number of buyers of 2,500 square meters. For comparison, Suriname’s entire loan from the International Monetary Fund was 690 million US dollars in 2021. “Then we didn’t need to take that loan, and we could just pay Oppenheimer,” said Scheek.

He admits that it is hypothetical, but he finds it a realistic indication. With his remark, Scheek refuted the stated goal of the government. “Land conversion is really not intended to bring in money for the state. The question is: what is really going on?”

Discussion

By the way, Scheek showed an alternative, where the socially weaker would also benefit, but the rich and agricultural companies would indeed pay more than they do now. This caused murmurs among the present Palu supporters because they believe that farmers should not be charged with more costs.

It is noteworthy that land conversion also costs Suriname. A land conversion unit has been set up at the president’s office to guide conversion requests, and the 2023 state decision also states that those who cannot afford land conversion but want to can borrow the amount at a 7 percent interest rate from the government.

After the presentations, the discussion in the hall really started. Questions like, “Should grandma from Abrabroki convert or not?” to “Is ownership not more secure because the bank does not like land lease?” were addressed.

Ramnandanlal implicitly showed that the party has big plans by stating that if Palu comes into government after May 25, the state decision on Land Conversion will definitely be reversed. Hok concluded by saying that DNA members have the duty to hold the government accountable for this state decision.

Source: https://dwtonline.com/grondconversie-met-klapperwaarde-suriname-in-een-klap-schuldvrij/

Date: 15 December 2023

Categories:  Diplomacy 

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