Days after being given reasons for the refusal of its Local Content certificate, Chief Executive Officer of Ramps Logistics Guyana, Shaun Rampersad said they are working to submit supplementary documents this week.
In a brief comment, Rampersad yesterday told Stabroek News that based on the “additional information the secretariat asked for we expect to submit our application with additional docs by Wednesday/Thursday of this week.”
Last Monday, Director of the Local Content Secretariat (LCS) Martin Pertab said that the company’s failure to provide accurate information in compliance with Guyana’s Local Content legislation was the reason behind the refusal of certification.
Pertab’s letter, seen by this newspaper, identified a number of grounds on which the application was denied. The reasons came after days of silence despite repeated requests by Ramps to the LCS.
The response was provided to Ramps’ attorney, Satram and Satram, two weeks after an initial letter was sent requesting reasons for the decision taken against Ramps Logistics. Pertab in his correspondence informed the attorney that while an applicant is free to seek reasons on the grounds of their application being denied, the secretariat will “respond as soon as reasonably practical.”
At a press conference two Thursdays ago, the company, which has a 49% Trinidadian ownership, contended that it had satisfied all the requirements outlined in the Local Content Act to be considered a “local company” and should therefore qualify for access to the local content register. Ramps, which was a 100% Trinidadian-owned entity just a few months ago, divested 51% of its shares to Deepak Lall – a Trinidadian businessman of Guyanese heritage.
The LCS Director in his response last week on the refusal of certification pointed out that from the documents submitted, Ramps Logistics purports that Lall ultimately exercises voting rights representing 51% of the total number of issued shares at a value of $1,000,000 USD, while Ramps Logistics Limited (“Ramps Trinidad”) exercises voting rights representing 49% of the total issued shares at a value of $960,680 USD. But in their Articles of Incorporation (without the schedule on share transfer restrictions annexed, although the said Article expressly referred to such an annexure) only the issue of 100 ordinary shares at the price of $1.00 GYD each is authorised. “No Amended Articles of Incorporation nor the corresponding resolution were submitted to the Secretariat which authorised the increase in the total number of shares Ramps Logistics is authorised to issue. As a result, Ramps Logistics does not satisfy the fifty-one percent beneficial ownership required under the Act,” the letter from Pertab contended.
The letter further stated that no signed, filed and certified Company Resolutions, nor extracts of the share register or a share certificate was submitted to the Secretariat which authorised and evidenced the sale, transfer or issue of the number of shares allegedly issued to Guyanese national, Lall, nor Ramps Trinidad. In regards to the company’s annual income, the LCS Director stated the most recent annual return showing the information required in relation to the allotment and issue of shares was not submitted to the Secretariat.
Ramps Logistics Guyana currently employs 398 Guyanese.
Ramps’ Logistics Director, Samantha Cole two Thursdays ago said that they approached the LCS in April to be added to the register of local companies to provide services to the oil and gas sector but on June 8, it received an automated message informing Ramps Logistics that its application had been denied. The email said “Your application to the Local Content Register has been refused by the Minister. You have been denied access to Local Content Register.”
