Home News Denial of Local Content certification: Arguments in Ramps Logistics’ judicial review case...
An application filed in the Demerara High Court by Ramps Logistics (Guyana), seeking judicial review of the Government’s decision to deny the company Local Content certification, will be heard on November 11 by acting Chief Justice Roxane George, SC.
A case management conference (CMC) for the application, which was filed late last month, was held on Thursday, during which Justice George fixed strict timelines by which the parties must file certain legal documents ahead of next month’s hearing. 
Ramps Logistics (applicant) has retained the services of Senior Counsel Edward Luckhoo. Natural Resources Minister Vickram Bharrat; Director of Local Content, Martin Pertab; and Attorney General Anil Nandlall, SC, (respondents) are being represented by lawyers from the Attorney General’s Chambers, led by Solicitor General Nigel Hawke.
In its application, Ramps Logistics has said it is a “Guyanese company”, and contends that Government’s decision to refuse its application for a Local Content Certificate is not only “unlawful, unreasonable and arbitrary”, but breaches the Local Content Act 2021.
The company has claimed it had satisfied all the necessary preconditions to be registered, and is therefore seeking a court order compelling the Government to issue the certificate and register it in the Local Content Secretariat.
The company has complained that it has been severely affected by the Government’s decision, and is thus entitled to damages against the respondents. In an affidavit in support of its pleadings, Ramps Logistics’ Logistics Director Samantha Cole has deposed that if the company is not added to the Local Content Register, it will be forced to reduce its operations and dismiss a majority of its employees.
Ramps Logistics has also claimed that it followed all the requisite guidelines, but, without any explanation, the Government has denied its application for a Local Content Certificate via an “automated” email.
Besides seeking an order compelling the Government to issue it with a Local Content Certificate, and being awarded damages, Ramps Logistics is also seeking costs against the respondents.
In a letter to Ramps Logistics, Director of the Local Content Secretariat, Martin Pertab, has informed the company that among the reasons for the denial of the Local Content Certificate was its failure to provide accurate information in compliance with Guyana’s Local Content Law.
Also included in the reasons is Ramps Logistics’ submission of questionable documents, which did not clearly state the amendments to incorporation, and the failure to have its Executive Board of Directors be 75 per cent Guyanese.
At a press conference, Ramps Logistics Chief Executive Officer (CEO) Shaun Rampersad had related that the company divested 51 per cent ownership of its Guyana operations to Trinidad-based investor Deepak Lall, who has Guyanese parentage, to bring its operations in compliance with the Local Content Law.
Guyana’s Local Content Act defines a local company as one incorporated under the Companies Act, and is beneficially owned by Guyanese nationals. Beneficial ownership is defined as owning 51 per cent of the company. Additionally, a local company is expected to have Guyanese in at least 75 per cent of executive and senior management positions, and at least 90 per cent in non-managerial and other positions.
Lall’s grandfather and father are both Guyana-born, but migrated in 1961, and, out of Trinidad, the family now operates one of the largest oil and gas companies in the Caribbean. In fact, Lall’s grandfather was in the petroleum business in Guyana, operating a gas station – Lall’s Esso Station at Vreed-en-Hoop, West Coast Demerara (WCD), during the 1950s.
According to the CEO, Lall bought 51 per cent shares for $210M, and the monies were earmarked for two major projects for the company – a new cargo airline for additional airlift into and out of Guyana, and a new shipping line to move cargo among Guyana, Trinidad, and Suriname.
In October, the Guyana Revenue Authority (GRA) had instituted 10 charges against Ramps Logistics (Guyana) over allegedly false declarations made. According to the GRA, these charges, filed at the Georgetown Magistrates’ Courts, are in accordance with the provisions of the Customs Act Chapter 82:01, and stem from a recently completed investigation carried out by its Law Enforcement and Investigations Division.
The 10 charges are not the first run-in Ramps Logistics, a Trinidad-based company, has had with the Revenue Authority here. It was revealed in June this year that the company was fined $20 million by GRA for violating local customs laws.
Ramps Logistics acts as the agent of motor vessel Seacor Mixteca, and, according to GRA, had failed to report the vessel departing Guyana, which violates the Customs Act; hence the fine was paid in lieu of court proceedings being instituted against the company.
