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Aug 12, 2023 Editorial

Kaieteur News – People and companies are coming from all over the world to Guyana to grab a piece of our wealth, and the bigger the piece, the better. To position themselves properly, some have resorted to an old trick in the book: they engage in what is called rent-a-citizen, as in a Guyanese, to be the face of their company. The rent-a-citizen practice is more of a mask than the substance of a real face, meaning, someone who was recruited for the sole purpose of giving the appearance that a Guyanese is the dominant presence in a local company, but is not.

Things have gotten so bad that not one, but two ministers in the PPPC Government had something critical to say about the foreign manipulations around, and exploitation of, Guyana’s rigorous Local Content Act requirements. In May, Attorney General, Anil Nandlall, SC, spoke of continuing complaints being lodged about the local content law being played dishonest games with, and with Guyanese ending up as the losers. Minister within the Ministry of Public Works, Deodat Indar, a few days ago was prompted to revisit the infuriating local content issue, and noted that some companies in Guyana’s private sector are part of the problem, and that this is not looked upon favorably.

As seen, it is part of a continuum which features such shabby aspects as rent-a-politician to support a position or stay silent, rent-a-company to engage in sham compliance with the law, or rent-a-citizen to give a foot in the door, while appearing to adhere to the law. The bottom line is that legitimate Guyanese business contenders and other hopeful citizens, fall short of their visions at participating in the openings from their oil bonanza. This is especially so for newer ones in the commercial arena, who are vying for a level playing field and a clean opportunity. They lose out on the rich prospects that the PPPC Government had made possible by reserving for Guyanese alone, enshrined in law.

The Local Content Act could not be clearer: 40 sectors and sub-sectors are the exclusive right of Guyanese to enjoy the highest priority consideration. The law says one thing, while real life practices are another kettle of fish. Clever foreign operators are using willing, maybe even naïve, Guyanese, as “fronts” to give the appearance of fulfilling the 51% local ownership requirement. It is a purely paper arrangement, and nothing more. Matters have deteriorated to such an extent that the major local private sector body, the Guyana Chamber of Commerce and Industry (GCCI) had to take off the gloves, and dive into the fray.

Almost a year ago, the GCCI spoke well of the PPPC Government’s efforts, via local content legislation, for Guyanese to benefit from opportunities in the booming oil and gas sector. It should have been an open and shut issue, as far as the GCCI is concerned. As the entity stated in the clearest terms, its position is that Guyanese citizens and companies must benefit, for that is a prime objective of the local content law. Any maneuvers to trick the system (and get around the law) must be identified, and dealt with appropriately. This means that there must be ongoing efforts to close loopholes, to investigate thoroughly where violations occurred, and who is frustrating the objectives of the law. One of the key areas to probe into has to be that of “beneficial ownership.” What matters boil down to is who is really behind the clean and well-prepared paperwork? Is it a Guyanese, giving off the appearance of a controlling partner, but someone who is nothing but a passive and a sleeping presence? In other words, one recruited for a small fee for the show of complying with the law, and positioning self to obtain the coveted local content certificate.

This country and its citizens are already on the losing end of so many disturbing things in the rich oil and gas sector. Rent-a-citizen practices adds salt to the wounds by blocking those Guyanese who should have had an opportunity to share in their wealth. These arrangements must be brought to a halt, and the perps sent back to where they came from, without too much hemming and hawing.

Anil Nandlall, dominant, Editorial, Guyanese, Wealth

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