GRA probing Ramps Logistics for abusing blanket tax waivers for Exxon projects

Jun 26, 2022 News

Kaieteur News – The Guyana Revenue Authority’s (GRA) Law Enforcement and Investigation Division (LEID) is probing Ramps Logistics Guyana for abusing blanket tax waivers granted for the importation of goods to be used by Stabroek Block operator, Esso Exploration and Production Guyana Limited (EEPGL), and its subcontractors.

GRA Commissioner General, Godfrey Statia

Key documents seen by Kaieteur News state that LEID is in possession of information that Ramps in certain instances made declarations that were inconsistent with its invoices. In this regard, the division cited a case on December 13, 2019, where it checked a shipment of goods consigned to EEPGL where Ramps Logistics Incorporated was listed as the declarant.
The LEID report reads, “The said declaration was deemed false since the quantity of the goods declared was inconsistent with the information stated on the invoice. The said act constituted a breach of Sections 217 (1) (a) and 219 of the Customs Act, Chapter 82: 01, respectively. In the said matter, the Commissioner General (Godfrey Statia) in accordance with Section 271 of the Customs Act, Chapter 82:01, invoked his discretionary power and waived the proposed compensation of $500,000 for the acts committed.”
The report further noted that the Commissioner General also directed that the company be advised that should there be a recurrence of this nature, strict penalties would be imposed.

Ramps Logistics Chief Operating Officer, Shaun Rampersad

The document at this point went on to state that LEID was conducting an investigation based on information received that Ramps Logistics Guyana Inc., “continues to falsely declare consignments under the guise that same is being imported for Esso Exploration and Production Guyana Limited and its subsidiaries/subcontractors using their blanket tax exemption letter when in fact, same is being imported for other persons.”
Kaieteur News understands that Ramps was a few months ago, fined $20M for shipping items out of Guyana to Trinidad without having the vessel used, properly inspected. GRA seemed particularly disturbed by this case since specific instructions were issued for the vessel to await inspection but said instructions were never acknowledged. GRA was therefore unable to determine independently the quantity of items that left these shores. The said items were sold to Ramps by EEPGL.
Ramps Logistics has since informed the media that it has settled that case with the tax authority.
It has since been asked to provide GRA with reasons why its Customs Brokerage Licence should not be suspended for three to six months or revoked altogether.
LOCAL CONTENT CERTIFICATE
The company is also embroiled in a public battle with the Local Content Secretariat regarding its refusal to issue a Local Content Certificate to conduct operations in the nation’s lucrative oil and gas industry.
At a press conference held on Thursday, the company said it is yet to receive an explanation from the Secretariat as regards its denial to issue the certificate.
Ramps explained that the matter is particularly “hurtful” since it went as far as to sell the majority ownership of its company to the grandfather of its friend, Deepak Lall. Both individuals have deep Guyanese roots. In fact, Lall was able to get his Guyanese passport just last year to ensure authorities can be assured that the sale was in keeping with the Local Content Legislation and its requirements.
Ramps had said too that the grandfather of his business colleague is also from the Diaspora while noting that such a move is in keeping with President, Irfaan Ali’s call for citizens to return home to invest.
The Georgetown Chamber of Commerce and Industry (GCCI) of which Ramps is a member, subsequently issued a statement calling for genuine partnerships and the avoidance of what it terms “rent a citizen” or fronting tactics.
Ramps has since threatened legal action regarding the denial of its Local Content Certificate given the fact that it has pursued a legitimate transferral of ownership of its company to persons of Guyanese heritage while having more than 90 percent of its staff and senior management being taken up by locals.
Up to press time, the government has not responded to the concerns of the company.

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