GOINVEST Two day Seminar… Legal/Financial minds to confront advantages, pitfalls of Joint Ventures

Nov 16, 2017 News

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By Kiana Wilburg

Once properly chosen and executed, a joint venture can bring partnering companies, a plethora of benefits. In the local scenario, there are many cases where two or more companies agree to a joint venture due to complementary skills and assets. However, bitter disputes often arise over the lack of leadership, declining involvement, poor quality work and lack of ethics. At this stage, it is not unusual to see such arrangements fall apart.
Hoping to bring more awareness in harnessing the advantages of joint ventures while avoiding its pitfalls is the Guyana Office for Investment (GO-INVEST). Come next week Monday and Tuesday, the entity will be hosting a seminar at the Marriott Hotel from 8: 30 hours on both days.
According to Chief Executive Officer of GoInvest, Owen Verwey, there will be three presenters for the two-day seminar. Attorneys-at-Law Christopher Ram and Timothy Jonas will be dealing with the legal and financial aspects of joint ventures.
Jonas is a partner at the firm of De Caires, Fitzpatrick and Karran. He specializes in Commercial, Tax, Constitutional, Public, Corporate, Banking, Insurance and Contract Law.
Principal Consultant of Res Consulting, Francis Lewis, will be dealing with the aspects of Management, Strategy, Operations, and Marketing.
Verwey said that the seminars will provide an introductory overview of the legal and financial basics relevant to the development of strategic partnerships and alliances. He said that it will touch on areas such as how to research, evaluate, and develop a strategic partnership.
The GO-INVEST CEO articulated that the presentations are meant to remove the fear and mystique surrounding the concepts of joint venture and will address the most basic forms to the most complex.

FOREIGN COMPANIES CONCERNED
It was in September that several Canadian firms flocked to Guyana’s shores in search of partnerships with local companies to access opportunities that will arise as the nation prepares for oil and gas. Verwey noted that several meetings were arranged between those foreign companies, local entities, Government institutions and non-profit institutions. Verwey noted that the biggest feedback received by GOINVEST was that companies here do not understand the basics of a joint venture relationship.
He said, “So from then to now, we have been looking at the option of running an event that brings awareness to this issue. We aren’t an academic institution and we do not wish to get into that, but we want to start the awareness process and hopefully out of that, the institutions that deal with this can take the lead and go forward with the relevant course…”

FOR ALL SECTORS

Verwey articulated that GOINVEST does not intend for the information from this seminar to only benefit partnerships for the oil and gas sector. He said that it is for the benefit of all sectors.
“This is not an oil and gas economy. This economy has been one of agro processing and natural resources and it will continue to be like that. So the joint venture sessions being organized are not only for the benefit of oil and gas. It is focused on agriculture, forestry, mining, services and everything else.”
He added, “I think that is a big plus and it is one that we want to encourage…”

THE SEMINAR AND REGISTRATION
The Chief Executive Officer said that those who are interested in registering for the seminar can contact GO-INVEST at 190 Camp and Church Streets, Georgetown or call 227-0653 for more information regarding the sessions.
Verwey explained that the seminar is split into two sessions on each day; one in the morning period from 8: 30 AM to 12:30PM and in the other in the afternoon from 13: 30 PM to 17: 30PM. The GO-INVEST CEO said that interested persons only need to attend one.
“In terms of understanding what you need to do regarding joint ventures that would be covered under the first session. So the first session is focused on an overview as well as providing the management context of joint ventures…”
He continued, “The seminar will also help to inform businesses on the advantages and disadvantages of joint ventures, key points you should know before jumping into one, what you should be planning in the initial stage, how you should be executing those plans, and the common interests of both parties.”
“As an example, many of the foreign companies coming into the oil and gas industry regard health and safety as a priority issue. In Guyana, health and safety is not that high on the agenda; profitability is and so that would not work for most of those foreign companies.”
Verwey commented that several international companies looking for joint ventures will be taking into consideration, the quality of work done by locals as well as their work ethics. The seminar will also speak to these areas.
The GO-INVEST CEO said that the second session will cover the legal aspect of joint ventures as well as the financial issues related to it. On this note, he pointed out that Guyana’s business culture is not the best at financial record keeping.
He believes that the seminar would be a most informative one and businesses would be wise to seize the opportunity to be a part of it.

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