Opposition highlights loopholes for corrupt practices in new Local Content Legislation

Dec 29, 2021 News

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– submits amendments ahead of House sitting

Kaieteur News – The APNU+AFC submitted yesterday to the Clerk of the National Assembly, Mr. Sherlock Isaacs, several amendments it believes should be made to the Local Content Bill 2021 which is expected to be debated today. The Opposition said it believes several clauses, if left unchecked, could result in opportunities for rampant corrupt practices.
Below is a chart containing their proposed amendments to the existing legislation and an explanatory note justifying same.

Amendment Explanatory Note
Interpretation – “Guyanese national” means a citizen of Guyana; by birth Based on our loose immigration laws, possibility of corrupt practices in the naturalization process. After Immigration process becomes more transparent, broader citizenship interpretation can be applied.
New Clause 6 (2) (a) Any Guyanese national or Guyanese company, whose application has been refused has the right to appeal to an independent review panel appointed by the Minister, comprising of not less than three persons, one of whom must be from civil society. Seeking to ensure that no discrimination occurs in this process – i.e. the Secretariat willfully refusing to grant a person a certificate. All applications must have recourse, if application is denied.
New Clause 6 (9) The Secretariat shall cause to be published on the website of the ministry responsible for petroleum or any other media in wide circulation the Local Content Register, which shall be updated quarterly. Seeking to ensure greater transparency in the process and better public monitoring.
Insert Clause 13 (7) – A Contractor, Sub-Contractor or Licensee without the written permission of the Minister acting on the advice of the Secretariat, shall not enter into any contract in excess of three (3) years. This is seeking to prevent companies using the exempt percentages in Schedule I, and entering into very long-term contracts (Exxon has already entered into a 10 year contract with a sub-contractor), defeating the purpose of Guyanese building capacity but beingunable to compete in the future, due to existing long-term contracts.
New Heading PART V delete INTER-AGENCY COMMITTEE replace with LOCAL CONTENT OVERSIGHT COMMITTEE.
It would be advisable to establish a multi-disciplinary oversight committee rather than an advisoryCommittee; this oversight committee can establish an inter-agency subcommittee which can provide advice.
New marginal note (PART V) – Establishment of Local Content Oversight Committee.
Amend Clause 20 (1) – There is to be an established committee, which is to be known as the Local Content Oversight Committee.
Amend Clause 20 (2) The Committee shall consist of not than seven members appointed by the President; after nominations from the agencies adumbrated in 20 (3) are deliberated on by the Committee of Appointments of the National Assembly. Seeking to have parliamentary inclusion in the appointment process rather than at the sole discretion of the President.
Clause 20 (3) – The Members appointed to the Committee shall be selected from the following agencies: –
a) Office of the President
b) Ministry of Labour
c) Private Sector Commission
d) National Toshaos Council
e) Guyana Bar Association
f) Labor Union Representative
g) Parliamentary Opposition
h) Guyana Association of Professional Engineers
i) Transparency International Guyana Inc.
j) Representative from local Petroleum Organizations Oversight committee to comprise but not limited to Government, Opposition and Civic Society.
Amend Clause 20 (4) The President shall appoint a Chairperson of the Committee from amongst the members of the Committee. President can appoint the Chairperson only.
New Clause 20 (4) a A Vice Chairperson of the committee shall be elected at the first meeting of the Committee. The Committee shall appoint the Vice-Chairperson, from amongst its members.
Amend Clause 20 (5) The members of the Committee shall be appointed for a term of two years, which term may be renewed by the President. This a new Committee, without an established office, staff or procedures, a great amount of time will be expended in administration issues.
Clause 20 (7) The function of the Committee is to provide oversight of the Secretariat in the discharge of its functions and to provide the Minister with recommendations. The Committee will provide general oversight of the Secretariat functions as well as provide the Minister with any necessary recommendations to enhance the operations of the Act.
Amend Clause 20 (8) The Committee may determine and document its own procedure for discharging its functions. The Committee in determining its procedure, document same for its continued functioning.

PART 1 – SPECIFIC SECTORS FOR GUYANESE COMPANIES AND GUYANESE NATIONALS
The Chart below explains the respective sectors, which the Opposition wants to see participation from locals as well as the extent or degree to which this should occur.

SECTORS END OF 2022 EXPLANATORY NOTE
1. Rental of Office Spaces 100% This service can be provided by Guyanese Companies, if required, they can have international partners.
2. Accommodation Services (apartments and houses) 100% This service can be provided by Guyanese Companies, if required, they can have international partners.
3. Surveying 90% Surveying is a very board discipline; only certain specific sectors cannot be done locally (e.g., seismic surveys), most other sectors can be done locally. Alternatively, the discipline can be subdivided, and relevant percentages applied to the various sectors.
4. Construction Work for Buildings – onshore 100% This service can be provided by Guyanese Companies, if required, companies can hire international sub-contractors.
5. Structural Fabrication (cutting, bending, and assembling of steel products) – onshore 75% This service can be provided by Guyanese Companies. The higher percentage is to encourage companies to train more locals.
9. Waste Management (disposal, and water transportation services) – Nonhazardous Waste 100% This service can be provided by Guyanese Companies, if required, they can hire international sub-contractors.
10. Waste Management (disposal, and water transportation services) – Hazardous Waste 60% This service can be provided by Guyanese Companies, if required, they can hire international partners.
11. Storage Services (warehousing) 100% This service can be provided by Guyanese Companies, if any unique facility is required, local companies can partner with a suitable international firm.
12. Janitorial Services 100% This service can be provided by Guyanese Companies.
13. Catering Services 100% This service can be provided by Guyanese Companies. Importation of food is allowed under Item. 14 – no reason available why local companies cannot prepare same and distribute, partnership can be entered, such the need arises.
21. Pest Control Exterminator Services 100% This service can be provided by Guyanese Companies, if required, they can hire international sub-contractors.
26. Transportation Services
a) Trucking
b) Ground Transportation
100%
100% This service can be provided by Guyanese Companies. There is nothing unique, technical or sophisticated about the provision of trucking services.
29. Industrial Cleaning – onshore 100% This service can be provided by Guyanese Companies, if required, they can partner with an international sub-contractor.
30. Security Services 100% This service can be provided by Guyanese Companies, if required, they can partner with an international security firm.
34. Local Insurance Services 100% This service can be provided by Guyanese Companies, insurance companies have been doing same for decades – if required, a policy can be underwritten by an international insurance company.
35. Accounting Services 90% This service can be provided by Guyanese Companies, if required, they can have an international partner.
36. Local Legal Services 100% This service can be provided by Guyanese Law Firms, if required, they can have an international partner.
39. Engineering and Machining
a) Engineering
b) Machining
75%
5% Engineering is a very board discipline; only certain specific sectors cannot be done locally – most sectors can be done locally.
40. Local Marketing and Advertising Services (Public Relations) 100% This service can be provided by Guyanese Law Firms, if required, they can have an international partner.

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