GO-Invest to increase due diligence checks for high risk companies – Business Minister

Aug 26, 2016 News

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For years, local analysts have argued that Guyana’s inability to properly screen for high risk companies spells nothing but dangerous implications for the economy.

In fact, a report by the United States Bureau of Economics and Business Affairs, (http://www.state.gov/e/eb/rls/othr/ics/2013/204653.htm) says that the Government of Guyana actively encourages foreign direct investment (FDI), but needs to do more to facilitate investment and implement more transparent and accountable procedures.
It says, too, that Guyanese law permits foreign ownership of companies, and there is no mandatory screening of foreign investment. However, the government conducts de facto screenings of most investments to determine which businesses are eligible for special tax treatment, access to licenses, land, and approval for investment incentives.
However, Minister of Business, Dominic Gaskin is intent on making some drastic changes where this is concerned. And the first place he is starting with is the Guyana Office For Investment (GO-Invest).
In an interview with this newspaper, Gaskin spoke of the number of anomalies which characterized the one-stop-shop for business in Guyana under the previous administration.
The Executive Member of the Alliance For Change (AFC) said, too, that he and his team have identified Guyana’s due diligence capacity as a major area which needs to be strengthened.
Gaskin said that thanks to a new Chief Executive Officer and Board at GO-Invest, a new system is in place and other options are being considered.
The Business Minister said that in the past, companies would visit GO-Invest and provide their information without the necessary checks being done on what was received.
Gaskin said that today, for local companies, GO-Invest is looking at compliance issues. The Minister added, “And we have a form that requests certain information on the source of the company’s funds.”
For foreign companies, he said that there are detailed due diligence reports which are issued by reputable firms which GO-Invest can tap into.
He explained that there are some companies which are listed on the New York Stock Exchange, and background reports can be requested on those companies.
Additionally, Gaskin said that GO-Invest is currently considering a scenario where firms interested in investing in Guyana would be asked to pay for a due diligence report which will be conducted by a reputable company. That due diligence firm would be selected by GO-Invest as well.
To make Guyana more business-friendly, Gaskin disclosed that the Ministry of Business is currently engaging various State agencies with a view to reducing bureaucratic red tape and making official procedures easier to navigate.
The Minister said that his ministry is currently seeking financing to implement the Single Window Automated Processing System (SWAPS). He noted that when established, the SWAPS will link licensing bodies along with the Customs and Trade Administration to facilitate the sharing of information and to enhance the efficiency with which trade transactions are carried out.
Gaskin said that these improved procedures will not only reduce the amount of time that private businesses spend mired in paperwork, but also increase government accountability, reduce corruption, and make data and information more accessible.
He pointed out that the Ministry of Business has already established a Help Desk for businesses, which acts as a single point of contact for information and advice for businesses, traders, and the Government.
Furthermore, while consumers and large businesses can access loans, small businesses commonly face a financing gap. Gaskin said that this is being addressed by Government through the implementation of the Micro and Small Enterprise Development (MSED) initiative implemented through the Small Business Bureau of the Ministry of Business.
To build both generic and sector-specific skills, the Minister said that training opportunities for small businesses will be expanded to cover all ten administrative regions. This year, 400 individuals are targeted to benefit from training.
A newly-appointed Small Business Council chaired by Commonwealth Woman Entrepreneur of the Year (2015) awardee, Ms. Valrie Grant is now in place, and tasked with significantly improving the work and expanding the reach of the Small Business Bureau over the next few years.
It has also been noted by the administration that efforts must be geared towards enhancing Guyana’s brand and visibility as an investment destination. As such, it is expected that GO-Invest would work towards improving agency websites and developing partnerships with other investment promotion agencies worldwide.
The Ministry of Business’ Strategic Plan calls for the development of a national export strategy and the design of a sustainable national investment strategy. GO-Invest is expected to play a key role in the implementation of these initiatives.

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