-reiterates gov’t firm stance
Companies using loopholes to cheat the Local Content legislation will face severe penalties, according to the General Secretary of the People’s Progressive Party (PPP), Dr Bharrat Jagdeo.
Jagdeo, who serves as Guyana’s vice president with oversight over the petroleum industry, reiterated the government’s firm position at his weekly press conference at Freedom House in Georgetown on Thursday.
He informed reporters that the administration aims to vigorously go after these delinquent companies, since the Act was designed to benefit the people of Guyana.
“We are serious about this… we are examining the ways in which they are doing this and the information is credible and we’re going to act on this information soon,” the general secretary expressed firmly.
Expounding further, he reminded that companies will not only lose their local content certificate, but will be slapped with fines if they are found to be in breach.
According to the Act, any person who knowingly submits false and misleading information to the Local Content Secretariat, will be fined in the case of an individual, GYD$5 million, and $10 million, in the case of a body corporate.
A Guyanese national or company can face similar fines, if they are found to be abetting anyone to contravene the act.
The Local Content Act passed in 2021, prioritises Guyanese nationals and Guyanese companies in the procurement of goods and services. It lays out 40 services that oil companies and their sub-contractors must procure from Guyanese companies and Guyanese nationals.
Dr Jagdeo has made it clear the government will enhance the current act next year, ensuring all loopholes are regulated effectively. This include amending the Income Tax Act to thwart oil companies from rotating foreign workers to evade taxes.
He previously underscored that the government has supported these ‘big’ companies, and they will not be allowed to shaft Guyanese.