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Oct 23, 2022 News
– Application for Local Content Certificate halted pending outcome of criminal charges by GRA – Director, Martin Pertab
Kaieteur News – Head of Guyana’s Local Content Secretariat, Martin Pertab believes the legal proceedings initiated by Ramps Logistics Guyana Inc. to secure several orders, one of which is to instruct the agency to issue it a Local Content Certificate is not only premature but represents an abuse of the court process.
Pertab made this statement as part of his affidavit to the High Court. His affidavit was filed in support of Natural Resources Minister, Vickram Bharrat who is also one of the named respondents in the judicial review initiated by Ramps.
According to Ramps, the proceedings were seen as necessary since it has been unable to conduct critical business without the certificate. In fact, the company said it is facing “financial ruin” and would run the risk of firing 100 workers. Kaieteur News previously reported that the certificate was not supplied to Ramps as the Secretariat found the information it supplied to be insufficient and not in keeping with the requirements for the document.
Pertab was keen to note in his statement to the court that the absence of the Local Content Certificate does not prevent the Applicant from providing the services. He said business entities may choose to engage the Applicant and the Applicant may provide its services in the absence of the Certificate. He also stressed that there is no requirement by the Act for a company to be registered as a Guyanese company in order to provide services listed in the First Schedule of the Act which include logistics and transportation.
Expounding on his account of dealings with Ramps, Pertab said the company first applied for the certificate in April and its submission of documents at the time was deemed deficient for reasons as set out in letter sent to the Applicant on June 24, 2022. Pertab reminded that on or about February, 2022, the portal for the Secretariat was made public along with the list of requirements and the steps to obtain the Certificate.
Furthermore, Pertab said Ramps was told in June that its application was refused by the Minister. The Director said he and his team subsequently received letters from lawyers representing Ramps on July 13 and 14, 2022. Those letters he said included several pieces of documentation namely, Amended Articles of Incorporation, Share Certificate in the name of Deepak Lall who 51 percent of the company shares were sold to, Resolutions, Share Register, audited Financial Statements for the period ending 31st December, 2021, Annual Returns and a Beneficial ownership Declaration form.
Pertab said the Secretariat then requested the provision of Annual Returns and an audited Financial Statement of the Applicant company for the period ending December 2021, to ascertain that what was reflected on the Share Certificate is actually in the Financial Statement of the company. Pertab explained that the requested financial statement(s) would show that the shares were actually issued, their value and how much of their share capital was owned by the shareholders.
Pertab said the company complied with this, which implied that it knew the application was deficient. He said this also demonstrates that the Secretariat was willing to remedy any faults found.
Before that process could be completed, Pertab said the company invoked a judicial review process.
The Local Content Regulator also said that it later came to the Secretariat’s attention that the Guyana Revenue Authority (GRA) had filed 10 criminal charges against Ramps for allegedly making false declarations thereby breaching the Customs Act. Pertab said GRA’s records also reflect that in a previous instance, Ramps faced similar allegations by GRA and opted to provide a $20M settlement.
Since the Local Content Certificate would be linked to work similar to those involving contracts for oil and gas service companies that was flagged by GRA, the Secretariat said it would halt its review of Ramps’ application.
Pertab said, “I contend that the criminal charges filed against the Applicant are inalienably connected to its activities for which the Application of the Certificate is sought. The Secretariat in consideration of the criminal charges has decided to halt the application pending the hearing and determination of the criminal charges against the Applicant.”
He added, “I am advised by my attorneys-at -law and verily believe that the weight attached to an applicant’s conduct must be exercised with caution. An applicant for judicial review has the same duty of good faith of not approaching the court with unclean hands, as does an applicant for equitable relief.”
The Local Content Director further concluded that the judicial review represented a grave abuse of the process of the Court, is misconceived in law, premature and therefore ought to be dismissed with substantial costs to the Respondents.
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