Minutes before its midday deadline, the Local Con-tent Secretariat (LCS) yesterday issued Ramps Logistics (Guyana) Inc its Local Content Certificate as ordered by acting Chief Justice Roxane George on Friday.
The certificate now puts the company in a position to bid to provide freight forwarding and supply chain management services to ExxonMobil Guyana. The company in 2018 won a contract to provide the said services and the contract expires this month.
The finding by the judge that the LCS improperly withheld certification will add to concerns that the Local Content Act is being used to favour certain businesses. The judge shredded the arguments advanced on Friday by the Attorney General’s Chambers and also referenced the absence of regulations to ensure the proper functioning of the legislation.
Ramps Logistics Guyana has waited for months on the certification from the secretariat. Its initial application was denied by the Secretariat on the grounds that the company did not provide adequate documentation and proof of Guyanese management as required by the Local Content Act.
Reacting to the issuance of the certificate, Ramps yesterday said in a press release that it was elated to be “certified to provide goods and services to the local Oil and Gas Sector.”
“We remain committed to working with the Local Content Secretariat to develop local content in Guyana and ensure more opportunities within the Oil and Gas sector remain among its people, businesses, and communities,” the company said. It expressed gratitude to those “who have stood by us during the past few months, especially our team members who have remained strong throughout this process.”
In a statement yesterday following the issuance of the certificate, the Ministry of Natural Resources said the government respects the rule of law and the independence of the judiciary and had therefore complied with the ruling.
In the same breath however, the Ministry said that it had strong reservations about the eligibility of this particular application for local content certification and that the government is exploring all available options including an appeal of the judge’s ruling.
The statement added that the LCS will “continue to act in a professional manner and defend the people of Guyana consistent with the Local Content Act”.
Attorney General Anil Nandlall SC in a separate statement said that the government is awaiting the Chief Justice’s written ruling before determining whether there will be further proceedings.
“…Upon receipt, the same would be scrupulously examined for the purpose of determining, inter alia, whether there will be further proceedings,” the statement from the AG said.
Regulations and Guidelines
Nandlall added that Regulations and Guidelines to go with the Act 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. These measures will 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 AG said while making reference to the Chief Justice’s ruling on Friday.
In her ruling, Justice George ordered that the Chambers of the Attorney General take steps to have those gaps swiftly address-ed. She had pointed out that the deficiencies in the Act could well lead to arbitrariness.
Nandlall in his statement yesterday said that the Act was crafted as an initial attempt to create a novel statutory framework in respect of a new undertaking without comparison in the region.
“As a result, we promised that it will remain under constant review and will be modified and refined with time and experience. We are satisfied that the Act provides a solid foundation which has guided the sector thus far and enabled a protective network for the interest of Guyanese and Guyanese companies operating in the sector,” he underscored.
Ramps, whose parent company is Trinidadian, moved to the Court for judicial review seeking a number of declarations, among them that the decision of the Minister of Natural Resources and/or the Secretariat made four months ago—on June 8th—refusing to grant the certification was unlawful.
Following the non-award of the certification, the company resubmitted documents to the secretariat as requested. For months the company had waited for an update on the certification from the secretariat.
Ramps Guyana which considers itself a Guyanese company since it is registered here and has been in existence since 2013, argued that it was entitled to be issued a certificate of registration and to be entered into the Local Content Register in accordance with Section 6 of the Local Content Act.
In her ruling on Friday, the CJ found that Ramps Logistics had satisfied every requirement of the Local Content Act and she then made the order for the company to be granted certification.
In the ruling, Justice George warned Head of the Local Content Secretariat, Martin Pertab that failure to issue the certificate could result in him being held in contempt of court and imprisoned or fined.
Reacting to the ruling, Ramps on Friday said “this win is significant for the people of Guyana,” while adding that “this swift verdict shows the independence of the Court and that private and foreign businesses invest in Guyana with the support of a fair and transparent judicial system”.
The Chief Justice said that both the Minister and the Secretariat had breached the Act. In fact she made it clear that “the Minister had, and has no authority under the Local Content Act, to grant or refuse certification.”
Further, she said that the Secretariat misconstrued the Act and had taken irrelevant factors into consideration, such as pending criminal charges against the company that have “absolutely” no bearing in the determination of whether certification should be granted or not.
