An application filed to the Demerara High Court by Ramps Logistics (Guyana) seeking judicial review of the government’s decision to deny the company a Local Content Certificate will be heard on November 11 by acting Chief Justice Roxane George, SC.
A Case Management Conference (CMC) for the application which was filed late last month was held on Thursday, during which Justice George fixed strict timelines by which the parties must file certain legal documents ahead of next month’s hearing.
Ramps Logistics (the applicant) has retained the services of Senior Counsel Edward Luckhoo. Natural Resources Minister Vickram Bharrat, Director of Local Content Martin Pertab and Attorney General Anil Nandlall, SC (the respondents) are being represented by lawyers from the Attorney General’s Chambers led by Solicitor General Nigel Hawke.
In its application, Ramps Logistics said that it is a “Guyanese company” and contends that the Government’s decision to refuse its application for a Local Content Certificate is not only “unlawful, unreasonable and arbitrary”, but breaches the Local Content Act 2021.
The company claimed it satisfied all the necessary preconditions to be registered and is, therefore, seeking a court order compelling the Government to issue the certificate and register it in the Local Content Secretariat. The company complained that it has been severely affected by the Government’s decision and is thus entitled to damages against the respondents. In an affidavit in support of its pleadings, Ramps Logisitcs’ Logistics Director, Samantha Cole deposed that if the company is not added to the Local Content register, it will be forced to reduce its operations and dismiss a majority of its employees.
It also claimed that it followed all the requisite guidelines, but the Government had denied its application for a Local Content Certificate, via an “automated” email, without any explanation. Besides an order compelling the Government to issue it with a Local Content Certificate and damages, Ramps Logistics is also seeking costs against the respondents.
In a letter to Ramps Logistics, the Head of the Local Content Secretariat had informed the company that among the reasons for the denial of the Local Content Certificate was its failure to provide accurate information in compliance with Guyana’s Local Content law.
Included in the reasons was Ramps Logistics’ submission of questionable documents which did not clearly state the amendments to incorporation and the failure to have its Executive Board of Directors be 75 per cent Guyanese.
At a press conference, Ramps Logistics Chief Executive Officer (CEO) Shaun Rampersad had related that the company divested 51 per cent ownership of its Guyana operations to Trinidad-based investor Deepak Lall, who has Guyanese parentage, to bring its operations in compliance with the Local Content Law.
Guyana’s Local Content Act defines a local company as one incorporated under the Companies Act and is beneficially owned by Guyanese nationals. Beneficial ownership is defined as owning 51 per cent of the company. Additionally, a local company is expected to have Guyanese in at least 75 per cent of executive and senior management positions, and at least 90 per cent in non-managerial and other positions.
Lall’s grandfather and father are both Guyana-born but migrated in 1961, and the family now operates one of the largest oil and gas companies in the Caribbean out of Trinidad. In fact, Lall’s grandfather was in the petroleum business in Guyana, operating a gas station – Lall’s Esso Station in Vreed-en-Hoop, West Bank Demerara (WBD), during the 1950s.
According to the CEO, Lall bought 51 per cent shares for $210M, and the monies were earmarked for two major projects for the company – a new cargo airline for additional airlift into and out of Guyana, and a new shipping line to move cargo among Guyana, Trinidad, and Suriname.
In October, the Guyana Revenue Authority (GRA) had instituted 10 charges against Ramps Logistics (Guyana) over alleged false declarations made. According to the GRA, these charges, which are in accordance with the provisions of the Customs Act Chapter 82:01, and filed at the Georgetown Magistrates’ Courts, stemmed from a recently completed investigation carried out by its Law Enforcement and Investigations Division.
The 10 charges are not the first run-in Ramps Logistics, a Trinidad-based company, has had with the Revenue Authority here. It was revealed in June this year that the company was fined $20 million by GRA for violating local customs laws.
Ramps acts as the agent of motor vessel—Seacor Mixteca—and, according to GRA, had failed to report the vessel departing Guyana, which violates the Customs Act, hence the fine was paid in lieu of court proceedings being instituted against the company.
