The Ministry of Natural Resources yesterday said that as part of its monitoring of Guyana’s petroleum industry, it has through the Local Content Secretariat, intensified its tracking for practices known as “rent-a-citizen” or “fronting”.
Prevalent mainly in cases of joint ventures (JVs), it noted in a press release that “rent-a-citizen” or “fronting” refers to the unethical practice where foreign companies use locals or local entities as fronts to meet local content requirements, while the actual control and benefits remain with the foreign entity.
“This practice undermines the objectives and spirit of the Local Content Act, which aims to ensure that the citizens of Guyana benefit meaningfully from and participate actively in the nation’s natural resources sector”, it stated.
To address these issues, the Government of Guyana, through the ministry, is actively pursuing measures to curb instances of rent-a-citizen. The press release said that one of the steps being taken is enhancing its collaboration with the Guyana Revenue Authority (GRA).
This closer working relationship, it added, aims to identify and penalise those engaging in fronting, ensuring that all stakeholders adhere to the legal and ethical standards set forth by the Local Content Act.
The ministry said it remains committed to fostering a transparent and equitable petroleum industry that benefits all Guyanese. “We urge everyone to support these efforts and uphold the integrity of our local content framework”, the ministry said.
