Suriname seriously disadvantaged by stranglehold contract with Kaloti

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Only a small group of gold entrepreneurs benefit from the agreement Suriname entered into with Kaloti Precious Metals DMCC in 2011. The big winner is gold and jewelry dealer John Kok Foe Chee, as revealed by research from Parbode. And that is no accident. Since the establishment of Kaloti Suriname Mint House in Para, Chee has earned more than three times the amount Suriname itself has received from the valuation of Surinamese gold. He received several million dollars thanks to a secret agreement with Kaloti.
By: Zoë Deceuninck
Chee, a 55-year-old Dutch businessman born in Paramaribo, has long been known as the most influential gold trader in Suriname. His family business, Chee’s Trading NV, a wholesale business in jewelry and gemstones, has been doing business with Kaloti for over twenty years.
The arrival of Kaloti in Suriname is therefore no coincidence, but a result of Chee’s longstanding involvement with the gold company. Chee was unavailable for comment on Parbode’s investigation.
Kaloti Suriname Mint House. Photo: Zoë DeceuninckTen PercentOn October 8, 2011, the government of Suriname entered into an agreement with Kaloti Precious Metals DMCC, one of the world’s largest gold refiners based in Dubai. The government of Desi Bouterse had been in power for a year at that time.
Under a joint name, the Kaloti Suriname Mint House CV (KSMH) factory was established in Para to process raw gold. All Surinamese gold exporters were required to offer their gold for export to KSMH. According to the agreement, the government was entitled to ten percent of the profits, while Kaloti received ninety percent. Additionally, Kaloti was granted ten years of income tax exemption and permanent exemption from import duties.
Third PartnerHowever, a year after Suriname and Kaloti reached an agreement, a third partner entered the deal: Andes Venture Capital NV.
This Surinamese company was co-founded by Chee in May 2012 and has since served as the second managing partner of KSMH, alongside Kaloti.
According to a secret entry agreement from 2012, Andes Venture Capital NV receives thirty percent of the profits—three times more than the Surinamese government. The government itself has no say in this.
‘Other Movements’Suriname is a so-called ‘silent partner’ in the agreement with KSMH. In 2011, the state relinquished any control or involvement in the factory’s operations, which generates approximately one million US dollars in profit annually.
It is Kaloti that decides from whom KSMH receives money, to whom it pays out, and with whom it signs contracts and agreements. This is reflected in the financial figures.The 2020 and 2021 financial statements of KSMH show that Kaloti and Andes Venture Capital, in addition to their profit shares, also award themselves ‘bonuses.’
For instance, Kaloti received 940,000 USD in 2020 on top of its profit share of 600,000 USD. The following year, Andes Venture Capital received 950,000 USD on top of a profit of 280,000 USD. These additional expenses are categorized under ‘Other movements,’ with no further explanation provided. Suriname does not share in these extras.
Not only does the state receive the least, but it also has to wait a long time for its money. It was only in 2021 that a one-time payment of 380,000 USD was made. “These are profits from several years that have not been paid out,” said an international accountant who reviewed the financial statements for Parbode.
Two FriendsThe arrival of Kaloti in Suriname is not coincidental but a result of Chee’s long involvement with the Dubai-based gold company. Chee’s Trading has been exporting raw gold to Kaloti for more than twenty years in exchange for gold jewelry of the same weight.
Chee has a close friendship with Tarek Zouhair El-Mdaka, managing director of Kaloti Precious Metals DMCC. El-Mdaka is also the son-in-law of Munir Al-Kaloti, chairman of the Kaloti Jewellery Group in Dubai.
Tarek El-Mdaka and John Chee in Curaçao, May 29, 2021. Photo: El-Mdaka’s Facebook pageOn his Facebook page, El-Mdaka regularly poses for photos with Chee. They take selfies at the Marriott Hotel in Curaçao, pose shoulder to shoulder in Times Square in New York City, dine together in Peru, and share a hookah in Lebanon, El-Mdaka’s birthplace. The two friends are also active in the real estate sector in Dubai.
It was El-Mdaka who signed the agreement with Suriname on behalf of Kaloti in 2011, a year before Chee cashed in his share of the deal through a secret agreement.During the same period, between 2010 and 2013, suspicious financial transactions occurred between Dubai and Suriname. Three Surinamese gold export companies received at least 156 million US dollars from Kaloti, according to the 2020-leaked FinCen Files from the U.S. Department of the Treasury. Two of the three companies were co-founded by Chee.
President-CommissionerAs …