Ram calls Govt. investment offer illegal

Apr 28, 2026 News

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…warns invitation to finance gas bottle, fertiliser plants breach securities laws, exposes investors to risk

(Kaieteur News) – The advertisement issued by the Government of Guyana (GoG) through the Office of the Prime Minister (OPM) inviting the public to invest in the Guyana Ammonia and Urea Plant Inc. (GAUP) and the Guyana Gas Bottling and Logistics Company Inc. (GGBLC) is illegal according to Chartered Accountant and Attorney, Christopher Ram.

In his weekly column published by this newspaper on Sunday, Ram continued part two of his commentary on the “illegal” advertisement by government.

He said the invitation directs prospective investors to forward their expressions of interest to the chair of the National Procurement and Tender Administration Board (NPTAB) in an apparent expansion of the statutory functions of that body.

The Lawyer explained, “It is a public invitation of investment capital dressed up as a procurement notice, inviting members of the public to commit money on the basis of a government promise on a venture that is like a financial plague on the country.”

Ram pointed out that the PPP/C enacted the Securities Industry Act, (SIA) to protect the public by ensuring that adequate information is provided to allow informed decision-making and risk-taking. To this end, he said in failing to meet those standards, the invitation is “reckless, dangerous and unlawful.”

The attorney suggested that the identity of investors will not be “private” as he highlighted the role of the Financial Intelligence Unit (FIU) in advising NPTAB on identifying the source of funds as part of a test for money laundering.

Additionally, he said, “Section 2 of the Companies Act defines a public company as one whose issued shares or debentures are or were part of a distribution to the public within the meaning of Section 531 or are intended for such distribution. Section 3 of the Securities Industry Act adds a second limb: a company is also a public company if it is “the issuer of a security that is beneficially owned by more than fifty persons.”

Both statutes treat the public character of a company as a consequence of how its securities are offered and held, not a label the government attaches to it, Ram argued. He pointed out that each investor in the GAUP is required to provide at least US$5 million on the US$300M plant, meaning at least 60 persons are required, however each investor can pledge more financing towards the initiative.

As such, Ram explained, “The moment beneficial ownership crosses 50, the SIA treats the company as public, with the expansive duties that follow. Second, the offer is made publicly and directed to “local and foreign” investors, including the diaspora. That falls squarely within the SIA’s definition of “offer to the public”. The advertisement seeks shelter behind the statements that “all information provided is only indicative” and that the document is “only a preliminary Expression of Interest.” The Act offers no such escape hatch.”

According to him, a “private company” in which the government exercises control is still a government company. Likewise, a private company whose securities are offered to the public is by statutory effect a public company.

The attorney has not only advised the OPM to seek legal advice on the issue but cautioned investors to be careful about pursuing this option offered by government. “Such an investment is dangerous and frankly, insane. No serious investor should ignore that asymmetry,” Ram cautioned as he pointed to the bypassing of NICIL in this arrangement with Cabinet taking direct control.

“That decision must arouse suspicion and concern. NICIL exists to hold and manage State investments within a recognised framework of governance and accountability. To bypass it and create a company by Cabinet introduces a parallel structure with no track record, no clear oversight, and no obvious rationale,” the Lawyer said.

He pointed out that the arrangement outs the financial burden on the public without the protections that ordinarily accompany such investment such as regulatory protection, clear and independent oversight, clear governance, and enforceable rights. Instead, what is offered is a “guarantee” of return unsupported by the disclosures and safeguards required under the law, according to the lawyer.

Just over a week ago, Kaieteur News reported that the OPM invited investors, both local and foreign, to submit Expressions of Interest for financing the Guyana Ammonia and Urea Plant Inc. (GAUP) is estimated to cost US$300M and the Gas Bottling project which is expected to cost another US$40M. It said investors can provide up to US$5M and US$1M respectively with a government backed guaranteed 10% annual return on the investment.

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• Christopher Ram, fertiliser plants, GAUP, Guyana Gas Bottling and Logistics Company Inc.

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