Chief Justice orders Govt. to issue Local Content Certificate to Ramps Logistics by Monday

Nov 12, 2022 News

---

By Renay Sambach

Kaieteur News – The Director of the Local Content Secretariat, Dr. Martin Pertab has until noon on Monday November 14, 2022, to issue a Local Content Certificate to Ramps Logistics or else he will be held in contempt of court.

Ramps Logistics, which is originally from Trinidad and Tobago had registered under Guyana’s Companies Act, but was denied a Local Content Certificate as required under the Local Content Act of 2021, for purportedly not being a ‘Guyanese company.’

Contentions surfaced over the manner in which foreign companies are now using Guyanese nationals to fulfill their local content requirement for the company to be 51 percent locally owned. Ramps for instance, provided detailed information to the Local Content Secretariat regarding Deepak Lall, a Trinidadian born with strong Guyanese roots who purchased 51 percent of Ramps Guyana for US$1M, making it 51 percent Guyanese owned.

However, in June 2022, the company’s application for a certificate was denied.  After being denied the certificate, Ramps Logistics challenged the decision and took the Minister of Natural Resources Vickram Bharrat and the Secretariat to court.

Ramps Logistics was represented by Senior Counsel, Edward Luckhoo and Attorney-at-Law C.V Satram, while the State was represented by Solicitor General, Nigel Hawke in association of others.

ARGUMENTS

During oral arguments on Friday, Hawke admitted to the court that a company does not need a certificate in order to operate within the oil and gas sector – this too, was pointed out by the Director in his affidavits of defence.  As such the CJ questioned that if a company does not need the certificate to operate in the energy sector, “Why have the Act?”

Justice George-Wiltshire then pointed out that the Director admitted in his affidavit, that Ramps met the 51 percent Guyanese ownership after its resubmission.

The Chief Justice pointed out that while the Respondents in their affidavits highlighted that the company’s Chief Executive Officer (CEO) is before the court facing criminal charges – the Act does not make mention of criminal charges being taken into consideration when a applying for a certificate – and that the criminal charges were filed months after Ramps approached the High Court. However, Hawke contended that the criminal charges being mentioned  goes to conduct.

Additionally, the Chief Justice noted that while the Respondents contended that Ramps did not meet the requirements under ‘Form C’; she highlighted that ‘Form C’ was not exhibited to the court and also that it was not a part of the law that governs local content.

To this end, the General Solicitor accepted that all that was requested by the Secretariat under its ‘Form C’ is not required by law under the Local Content Act.

Following the CJ’s line of questioning to Hawke– Luckhoo pointed out that the company only made one application to the Secretariat.

RULING

The Chief Justice later ruled that there was no evidence submitted by the Respondents to show that Ramps did not meet the requirements under the Local Content Act so as to be classified as a Guyanese company.  As such, the CJ noted that she have considered and concluded that Ramps satisfied the requirements of the Local Content Act.

The Chief Justice further pointed out that the ‘Form C’ which have a list of requirements that the Director referred to in his Affidavit of Defence, have no statutory basis. “He also refers to charges by the Guyana Revenue Authority which are irrelevant to determination of an application under the Local Content Act. The Local Content Act clearly needs regulations so as to prevent arbitrary decision making,” she further stated.

The Chief Justice then granted a declaration that Ramps satisfied the statutory requirements and preconditions necessary for the grant of the Certificate of Registration, a declaration that Ramps Logistics as a Guyanese company is entitled to be issued a Certificate of Registration and to be entered into the local content register; and a declaration that the decision by Minister Bharrat and/or Dr. Pertab and/or the Secretariat to refuse to grant a certificate or registration to Ramps is unlawful, illegal, null, void and of no legal effect.

The other two declarations that the CJ granted was that the decision of the State officials or State agency misconstrued or misapplied Section 2A1 and 2A2 of the Act and that they breached Section 6 of the Act when it refused to grant the certificate to Ramps Logistics.

In addition, the Chief Justice granted a certiorari to quash the decision of Minister Bharrat and/or Dr. Pertab and/or the Secretariat to refuse to issue a certificate to Ramps and an order of mandamus directing the Director to register and issue a Certificate of Registration to Ramps Logistics on or before noon on November 14, 2022.  The CJ noted that if the Director fails to do so he will be held in contempt and imprisoned and/or fined.

As it relates to the damages incurred by the company after the certificate was denied in June, that matter will be heard separately. That matter will come up for hearing on February 20, 2023.

Moreover, the CEO of Ramps Logistics was charged on October 21, 2022 for allegedly making false declaration to the Guyana Revenue Authority (GRA).

Shaun Rampersad, of Windsor Estate, East Bank Demerara, had denied the charges which alleged that the company between 2021 and 2022, at Georgetown, made 10 false declarations on applications presented to a Customs Officer for tax exemptions on several items. It was also stated that the logistics company falsely declared that it was the seller of several items including heavy-duty equipment, chemical compounds, and dehydrated substances.

---

---