The illusion of compliance

Nov 28, 2024 Features / Columnists, Peeping Tom

---

…Peeping Tom 

Kaieteur News- A company can meet the letter of the law. It can tick every box, hit every target. Yet, fairness can still be missing.

The Local Content Act sets thresholds. It defines local content by value percentages. But meeting percentages is not the same as providing opportunities. Numbers can mask inequality and the lack of inclusion.

Companies know the game. They know how to escape through the many loopholes. They calculate compliance to the decimal. Procurement practices follow their logic, not fairness. If the numbers align, the system is lawful. But it can be lawful and not inclusive. Inclusion is the premise of local content legislation. When absent, it defeats the vert purpose of local content laws.

Procurement systems can be opaque. Tendering processes can be exclusionary, yet legal. Barriers can exist, unseen but effective. Complex pre-qualification requirements. Prohibitive financial thresholds. Short tendering deadlines.
These are not illegal. But they exclude local firms.

The Local Content Act remains silent on these barriers. It only demands outcomes in percentages. It does not demand inclusivity in processes only in overall outcome.

A company publishes a tender. The requirements are intricate. Specialized certifications, often unavailable locally. Short response times that local firms can’t meet.

The result? The tender goes to a foreign supplier. The law remains satisfied because of value adjustments. Partnerships with token local firms are created. Value is credited to local participation. But real opportunities are denied. This is because the law is defective, seriously defective.

Local Content laws were rushed. The intent was good. The execution was flawed. Barriers to local participation are not addressed. The Act prescribes results, not processes. This is one of its fatal defects.

Local Content laws do not dictate how companies procure. They only specify outcomes. The government was too cavalier in passing local content legislation.

Without addressing procurement practices, local businesses will always face an uphill battle. They will remain second-tier players in their own economy.

The Local Content Act is flawed. It speaks of inclusion but allows exclusion.
It measures value but ignores opportunity. This is a recipe for failure.

Compliance is a numbers game. Percentages trump participation. Tokenism replaces true partnerships. The law’s spirit is lost in its loopholes.

Local firms are sidelined. Barriers block their entry. Prequalification rules favour outsiders. Fair play is sacrificed for expedience.

Government sees the problem. Too late. It sees the problem after the passage of the Local Content Act. It wants standardized procurement practices. It argues for fairness and transparency. But the law does not give it this power. It can do nothing without amending the law.

Attempts to impose procurement standards are extra-legal. Companies can resist, citing their autonomy. This creates a legal grey area. And the spectre of umpteenth challenges.

The Act needs a reset. A patchwork approach will not work. The foundation itself is shaky. Revision is not optional; it is essential.

Local content must mean more than math. It must empower, not exclude. The Act must demand process, not just results. Transparency must be non-negotiable.

Define local content beyond value. Include skills, ownership, and equity. Address procurement practices head-on. Ensure local businesses have a real chance.

Fairness must be codified. Barriers must be dismantled. Opportunities must be genuine. Without these, local content is hollow.

The Local Content Act’s flaws are too glaring to ignore. Local content must be more than a slogan. It must be a reality.

The law needs fixing. Amendments should address barriers to local participation, including through processes. Pre-qualification rules must be fair and realistic. Timelines for tender submissions should account for local capacities. Support for local certification and capacity-building is crucial.

Procurement processes must be transparent. Companies should be required to publish tender criteria clearly. Independent oversight bodies can ensure fairness. Without changes to the law, nothing can be done now.  Meeting the law is not enough. Fairness demands more. Procurement practices must be inclusive.

Revise the law now, or regret later. Without action, local businesses will suffer. And Guyana’s oil wealth will enrich the few.

Oil and gas revenues are transforming Guyana. But without fair participation, the benefits are uneven. Local businesses are sidelined. Communities see little trickle-down effect. Citizens are left wondering where is all the wealth.

Compliance alone does not equate to justice. The law must reflect inclusion. The current situation creates disillusionment. Local firms feel excluded, despite the law. Trust in government efforts erodes.

Without change, Local businesses will continue to lose. And Guyana will miss the full potential of its oil wealth.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.)   

(The illusion of compliance)

 

 

---

• illusion of compliance, Local Content, Peeping Tom, pre-qualification requirements, Procurement practices

---