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.
