Despite having valid licence GEA puts fuel dealer before court

Jul 17, 2021 News

Kaieteur News – The Guyana Energy Agency (GEA) recently filed charges against SBF International—a local bulk fuel importing and distributing company—for importing a shipment of fuel, despite being in possession of a valid licence at the time.

GEA Head, Dr. Mahender Sharma

The company headed by Guyanese businessman, Dorwain Bess, on September 2, 2020, imported 791,000 litres of diesel fuel.
The importation of that shipment of fuel had even been sanctioned by the Minister with responsibility for the Sector, Prime Minister (Ret’d) Mark Phillips, and GEA Head, Dr. Mahender Sharma.
SBF’s Bess in April last however, saw GEA hauling him before the courts seeking charges for purportedly illegally conducting the business of a wholesaler of petroleum products without being in possession of a valid importation licence between the periods September 28, 2020, and December 27, 2020.
The offence stated that he resold the fuel to a mining company. He is set to be formally charged at the end of the month.

One of the gas stations operated by SBF International Inc.

One of the storage facilities owned and operated SBF International Inc.

Bess in a letter to the Prime Minister on September 23, last, had requested permission for the importation of the 791,000 litres of diesel, since the GEA had previously, on August 13, 2020, written to SBF to show why its licence should not be revoked in light of an alleged infraction.
GEA later wrote to SBF informing that the licence would be revoked on September 11, 2020.
In a letter seen by this publication, Bess indicated to the Prime Minister that SBF prior to receiving the ‘show cause’ letter from GEA in August 2020, had already ordered and partly paid for the fuel, and was requesting special permission for the shipment to be discharged and utilised.
The letter also notes that the fuel had arrived in Guyana on September 2, 2020, but the Guyana Revenue Authority (GRA) refused to accept payment of taxes due on the shipment.

The GEA Letter to SBF signed by GEA Head, Dr. Mahender Sharma, informing of the concession to discharge the imported fuel.

It was pointed out that as a result, at the time of writing the letter, the fuel was not discharged and was incurring demurrage charges at some US$5,000 daily.
Bess in his letter to the Prime Minister requested that he be allowed to pay the taxes due and discharge the fuel that had already been imported, and was ordered and part paid for even before the ‘show cause’ letter from the GEA.
Prime Minister Phillips had given his approval the following day by way of signature on September 24, 2020.
In a letter from the GEA to SBF on that day, September 24, 2020, it was pointed out that with reference to his letter to the Prime Minister the previous day, a onetime concession had been granted to the company to discharge the fuel provided all of the requirements are met.
These included the payment of taxes, marking fees and other payments to be made. That letter indicating to SBF of the onetime concession to discharge the fuel was signed by GEA Head, Dr. Sharma.
The GEA Head had previously attempted to deny entry of the shipment, to which SBF responded by way of a legal representative, and indicated to Sharma that the August 13, 2020, show cause letter gave no mandatory instruction to cease the importation of fuel, but it offered that “the GEA wishes to advise your company against entering into fuel importation agreements.”
According to SBF’s attorney in a letter to the GEA, it was never contemplated that the GEA would summarily refuse to bulk mark and take steps to prevent the clearing of our imported diesel before the lapse of 30 days.

The SBF letter to the Prime Minister along with his approval signature

The GEA Head has since been writing to fuel retailers warning them not to do business with companies related to SBF, since they are not in possession of a valid licence to conduct business.
SBF’s licence was formally cancelled on September 14, last, but the company, according to documentation seen by this newspaper, was given the onetime concession by the GEA and approved by the Prime Minister.
As such, Bess in an invited comment told this publication that the charges against him can only be seen as malicious prosecution on the part of the Energy Agency since it was not a case of him avoiding taxes or an infraction, but he had in fact, gotten permission from both the GEA and the Prime Minister for the importation of fuel.
He posited, “This is nothing more than malicious prosecution, and persecution by person or persons in the energy agency.”

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