Govt may appeal grant of Local Content Certificate to RAMPS Logistics

Last Updated on Monday, 14 November 2022, 17:43 by Denis Chabrol

Chairman of RAMPS Logistics Guyana Inc; Shaun Rampersad

The Guyana government on Monday said it might appeal a High Court decision that led to the issuance of a Local Content Certificate to the Guyana-registered RAMPS Logistics Inc. whose parent company is based in Trinidad.

“There are strong concerns by the Ministry of Natural Resources as to the eligibility of this particular application for local content certification. And as such, the Government of Guyana is currently exploring all available options including an appeal of the ruling,” the Ministry of Natural Resources said in a statement. The ministry did not state what were its concerns about the company.

In  a separate statement, Attorney General and Minister of Legal Affairs Anil Nandlall said after it receives Chief Justice Roxane George-Wiltshire’s written decision, it would be “scrupulously examined for the purpose of determining, inter alia, whether there will be further proceedings.”

Mr Nandlall also said that in keeping with the observations by Chief Justice Roxane George Wiltshire, regulations would be issued to accompany the Local Content Act on whether a Local Content Certificate should be issued. “Importantly, Regulations and Guidelines are already in draft and will now benefit from the Chief Justice’s ruling and experience garnered in the sector. These Regulations and Guidelines will further enhance the legislative framework, as well as set out criteria which will inform the exercise of discretion and guide the decision-making processes enshrined in the legislation,’ the Attorney General said. The Chief Justice, in her decision last Friday, recommended that government puts in place regulations of the Local Content Act “so as to prevent arbitrary decision-making.”

The Natural Resources Ministry on Monday said that it issued the Local Content Certificate to RAMPS Logistics (Guyana) in keeping with the High Court ruling and government’s respect for the rule of law and the independence of the judiciary.

However, the Guyana government noted the recent settlement by the company and the Guyana Revenue Authority (GRA) on the matter of tax evasion and also the ongoing litigations in 10 false tax declarations to that tax agency. While the Attorney General made no mention of those tax matters, he said the measures to be attached to the Local Content Act would also address the conduct of operators in the sector, including their compliance levels with related legislative and administrative requirements, as we strive to achieve the legislation’s core intent, that is, to protect and promote Guyana’s best interest.

The Guyana government reiterated that the Local Content Act was an initial attempt to create a novel statutory framework in respect of a new undertaking without any comparison in the Caribbean.

Noting that that legislation provides a solid foundation which has guided the oil and gas sector so far and “enabled a protective network for the interest of Guyanese and Guyanese companies operating in the sector,” the Attorney General said the law would be constantly reviewed, modified and refined with time and experience.

The Chief Justice stated the company made one application on June 8, 2022 and was refused by the Minister of Natural Resources Vickram Bharrat via an automatic email on June 9, 2022 and that in doing so was unlawful, illegal, void and of no legal effect.

The Chief Justice said the Minister of Natural Resources has no authority under the Local Content Act to grant or refuse an application for certification. She said the second and third respondents took “irrelevant matters into consideration” in refusing the application.

The court found that the Head of the Local Content Secretariat Martin Pertab’s list of requirements for certification were illegal. “Mr Pertab, from his affidavit in defence, refers to a ‘Form C’- a list of requirements which have no statutory basis. He also refers to charges by the Guyana Revenue Authority which are irrelevant to the determination of an application under the Local Content Act,” the Chief Justice said