Ramps Logistics takes Govt. to court over denial of local content certificate

Oct 19, 2022 News

---

Kaieteur News – Ramps Logistics (Guyana) Inc has filed a lawsuit against the Government of Guyana over its refusal to grant the company a certificate of registration under the Local Content Act.

The company, which is originally from Trinidad and Tobago but is registered under Guyana’s Companies Act was earlier this year, denied a local content certificate for purportedly not being “Guyanese enough.”

Last June, the contentions surfaced over the manner in which foreign companies are now using Guyanese nationals to fulfill their local content requirement for the company to be 51 percent locally owned.

Ramps for instance provided detailed information regarding Deepak Lall, a Trinidadian born with strong Guyanese roots who purchased 51 percent of Ramps Guyana for US$1M, making it 51 percent Guyanese owned. The issue however, is that Lall’s father and grandfather are Guyanese and he, outside of the oil and gas company had very little to do with the country.

Lall would have received his Guyanese passport in 2021. He was described as a Guyanese national, but some believe this was conveniently pursued to fulfill the 51 percent requirement.

After being denied the certificate twice, Ramps Logistics had promised to take the issue to the Courts. According to a Fixed Date Application (FDA) recently drafted by Attorneys-at-law, Edward Luckhoo SC and C.V Satram, the company has asked the Court to issue several orders including a declaration that Ramps Logistics has satisfied the statutory requirements and preconditions necessary for the grant of the certificate of registration under the Local Content Act 2021.

The FDA which lists the Minister of Natural Resources, the Director of the Local Content Secretariat, the Local Content Secretariat and the Attorney General of Guyana as respondents is also seeking a declaration that the decision of the Minister and/or the Director of the Local Content Secretariat and/or the Local Content Secretariat (LCS) made on June 8 2022 refusing to grant or issue them a certificate of registration is unlawful, illegal, null, void and of no legal effect.

The applicant also wants declaration that the failure and refusal by the Minister and/or the Director of the Local Content Secretariat and/or the LCS not to reconsider its decision made on June 8, 2022 is unreasonable, unlawful and arbitrary.

Added to this, the company has requested a declaration that it was unlawfully denied a certificate of registration and benefits arising to as a result since it is by virtue of Section 6 of the Local Content Act 2021 entitled to a number of benefits.

Ramps Logistics is requesting too an order of certiorari quashing the decision not to issue them a certificate and an order of mandamus compelling the Minister and/or Director of the Local Content Secretariat and/or the Secretariat itself to grant the company a certificate of registrations or alternatively an order that the powers that be reconsiders Ramps application for a certificate of registration.

Ultimately, the company wants an order that the matter is heard urgently and expedited.

According to an affidavit in support of the court action which is signed by the company’s secretary Samantha Cole, Ramps Logistics explained that it is an operator in the petroleum sector which had satisfied the preconditions necessary for a certificate of registration under the Local Content Act.

Among those requirements, Ramps outlined in the document is the fact that the company is registered as a local firm under the Companies Act of Guyana.  The company went on to note that it is beneficially owned by Guyanese National representing at least 51 percent of its total shares.

Additionally, in the legal document, Ramps Logistics claimed that Guyanese nationals hold over 75 percent of the executive and senior managerial positions while 91 percent of its staffers are locals.

In the document, Ramps Logistics pointed out that it could suffer huge losses and financial ruin if the certificates are not granted.

According to the affidavit in support, the company has been contracted by at least over a dozen or more entities operating in the petroleum that threatened to cease operations if it does not secure the local content certificate.

With regard to the request for an urgent hearing and determination of the court case, Ramps Logistics explained that almost all the earnings are derived the petroleum sector and if the FDA is not heard and determined with urgency, the company is at risk of being permanently deprived of tens of millions of US Dollars in earnings.

“The applicant will suffer irreparable harm and injury of this application is not heard and determined in a timely manner so as to allow it to renew and or enter into contracts with Esso Exploration and Production Guyana Limited [EEPGL] and other operators which are up to five years. Such contracts will be awarded to competitors of the applicants and will not be available for reconsideration for such in the near future,” the company explained in the FDA.

---

---