Local Content Bill 2021 Series Pt 3

Dec 22, 2021 News

New law strips oil companies of power to procure as they please

By Kiana Wilburg

Kaieteur News – The PPP/C Government is proposing to implement several protective mechanisms in its Local Content Bill 2021 that will essentially strip oil companies of their current power to procure indigenous services as they see fit.
According to the Bill, the government proposes to create a Local Content Register that will consist of approved nationals for employment and companies from which goods and services may be procured.
The Bill notes that the government will create a Local Content Secretariat which would monitor the entire process. Nationals and companies would be encouraged to apply for and be issued with a certificate of registration from the Secretariat. This can be done within six months of the Act coming into operation.
Furthermore, the Bill proposes that the certificate issued by the Secretariat would become renewable on the anniversary date of its issuance.
If there is a change in citizenship of the national or a change in composition in the company in contravention of the Act, the Bill proposes that the Secretariat be informed immediately, since the failure to do so would attract a fine of $1M for an individual and $5M for a company. Either defaulter would also be struck off of the Local Content Register.
Significantly, the Bill proposes that the government would not consider as local content, any Guyanese or indigenous company that is not registered, but is contracted by an oil company.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News