GRA slaps 10 charges on Ramps Logistics for false declarations
The Guyana Revenue Authority (GRA) on Wednesday instituted 10 charges against Ramps Logistics (Guyana) Inc over alleged false declarations made.
According to the GRA, these charges, which are in accordance with the provisions of the Customs Act. Chapter 82:01, stemmed from a recently completed investigation carried out by its Law Enforcement and Investigations Division.
“The investigation determined (among other things) that during the period of 2021 to 2022, the said Company made several untrue declarations to the Revenue Authority,” GRA has said. The 10 charges were filed in the Georgetown Magistrates’ Courts.
As it continues to operate in accordance with its mandate, thereby allowing for a ‘level playing field’ for legitimate businesses and for the collection of revenue, GRA is encouraging individuals and companies involved in any such illicit activity to cease and desist therefrom, and bring their businesses into compliance with the nation’s tax, trade and border laws.
This is not the first run-in Ramps Logistics, a Trinidad-based company, has had with the Revenue Authority. It was revealed in June this year that the company was fined $20 million by GRA for violating local customs laws.
Ramps acts as the agent of motor vessel Seacor Mixteca, and has failed to report the vessel departing Guyana, which is in violation of the Customs Act, hence the fine was paid in lieu of court proceedings being instituted against the company by the GRA.
Meanwhile, these 10 charges against Ramps Logistics, which has been providing freight forwarding and supply chain management services in Guyana since 2013, come days after the company moved to the High Court over its application for Local Content certification.
Back in June, the company had requested answers from the Local Content Secretariat after its Certificate – one of the requirements of the Local Content Act that was passed last December – was denied. The following month, Ramps resubmitted its documents to the Secretariat for approval in hope of being allowed to continue offering support services to the local oil and gas sector.
Respects local laws, operates with high integrity
In a statement on Wednesday, Ramps Logistics noted that the charges were filed by GRA just five days prior to the company filing an application for Judicial Review against the Local Content Secretariat regarding its certification.
Nevertheless, the company pointed out that the charges would be reviewed and responded to by its lawyers through the court system.
The company went on to outline that on July 12, GRA wrote, informing Ramps of an investigation into alleged false declarations. In response on July 25, Ramps, through its lawyers, wrote the GRA, explaining why the allegations had no basis in law and clearly outlining the sections of the Guyana Customs Act that it relied on to form this opinion.
According to Ramps, eight weeks later, September 29, GRA responded to the company but did not address any of the legal points raised by the company’s lawyers.
It was further pointed out by the company that it filed for Judicial Review against the Local Content Secretariat on September 30, and GRA disclosed on October 5 that it is filing charges against Ramps for false declarations.
“We have always respected the laws of every country we operate in, and have always been transparent in everything we do. We will continue to operate with the highest levels of integrity. We continue to be committed to Guyana, and hope for a fair and speedy resolution of this situation,” Ramps Logistics contended.
Ramps Logistics Guyana had claimed that it followed all the requisite guidelines, but the Government had denied its Local Content Certificate, via an “automated” email, without any explanation.
The company said while it was not making any assertions as to why it was denied entry into the Local Content Registry, this move would negatively affect the company and ultimately threaten the more-than 400 Guyanese employees’ livelihoods.
At a subsequent press conference, Ramps Logistics Chief Executive Officer (CEO) Shaun Rampersad 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 Laws.
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 the family now operates one of the largest oil and gas companies in the Caribbean out of Trinidad. In fact, Lall’s grandfather was in the petroleum business in Guyana, operating a gas station – Lall’s Esso Station in Vreed-en-Hoop, West Bank Demerara during the 1950s.
According to the CEO, Lall bought 51 per cent shares for $210 million, 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.
He noted that the company felt it was playing its part in bringing not just investments, but network and skills from the Guyanese Diaspora back into Guyana, in keeping with charges and pleas from President Dr Irfaan Ali. (G8)
