Ramps Logistics (Guyana) which has been successful in its legal battle against the Government of Guyana for a Local Content Certificate has decided to withdraw its application for damages and will instead, only pursue costs. This position was communicated to acting Chief Justice Roxane George, SC by one of the company’s lawyers, Ron Motilall on Wednesday at the Demerara High Court. At a hearing in January, Justice George had given Motilall up to yesterday date’s to report on whether the company will pursue its claim for costs and damages against the Government.
Addressing the court virtually, Motilall indicated that while Ramps Logistics intends to discontinue its claim for damages, the issue of costs has not been settled between the parties.
Considering this, he requested for costs to be assessed in accordance with the applicable Civil Procedure Rules since attempts to resolve same via letters have not been “fruitful”.
No reason was given by him for this course of action. Representing the Government was Solicitor General Nigel Hawke who said that the Government remains open to amicable settlements rather than litigating. Another report hearing is set for March 23 at 11:30 hours.
Background
After a brief court battle with the government, Ramps Logistics was issued its Local Content Certificate on Monday, November 14, in keeping with an order by Justice George.
The company, whose parent is Trinidadian, had initially applied for certification in April 2022, but that application was refused on June 8, 2022, after the government had determined that it had failed to meet the requirements of the Local Content Act 2021.
The company then reapplied and never received a response. Maintaining that it had met all the requirements of the Act, including being a local company incorporated under the Companies Act and beneficially owned by Guyanese nationals, Ramps Logistics filed judicial review proceedings against Natural Resources Minister Vickram Bharrat, Attorney General Anil Nandlall, SC, and Director of the Local Content Secretariat Dr Martin Pertab (respondents).
The Act defines beneficial ownership as owning 51 per cent of the company.
Also, 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.
In its application, the company had said that it is a “Guyanese company” and contended that the Natural Resources Minister’s decision to refuse its application is not only “unlawful, unreasonable and arbitrary”, but breaches the Local Content Act.
“Guyanese company”
Finding that the company had indeed met the requirements for being a “Guyanese company”, the Chief Justice had ordered Pertab to certify the company by noon on November 14, failing which would have resulted in him being held in contempt of court and fined.
Besides finding that Minister Bharrat had no authority under the Local Content Act to decide whether to grant or refuse certification, Justice George had found that Pertab considered irrelevant matters in deciding to refuse the company’s application.
The irrelevant factors she alluded to include the criminal charges against Ramps Logistics for making false declarations to the Guyana Revenue Authority (GRA) which were instituted in October 2022, several months after the company submitted its application, and a mere five days after the company had mounted its judicial review action in September of that year.
Particulars of the charges stated that between 2021 and 2022, at GRA’s Camp Street, Georgetown headquarters, the company made several false declarations for consideration of a customs officer, on an application presented for tax exemption on items.
Representing the respondents, who the Chief Justice held had fallen “woefully short” of countering the company’s application, was Solicitor General Nigel Hawke and other counsel from the Attorney General’s Chambers.
Hawke had conceded that Ramps Logistics had indeed satisfied the requirements for registration in the Local Content Register but had said that consideration of the company’s resubmitted application was halted pending the hearing and determination of those criminal charges.
While the law does not stipulate that a criminal charge is a ground upon which a company can be refused certification, Hawke had argued that considering this goes towards the company’s conduct, especially since the allegations levelled against Ramps Logistics involved tax evasion.
He had submitted that not being Local Content certified does not prevent the company from operating in the oil and gas sector, but rather just limits what it can and cannot do.
The Chief Justice, however, in her ruling, had questioned the Local Content Secretariat’s rationale for refusing to grant the company the certificate.
“It’s just a charge; it hasn’t been proven,” she had told Hawke while reminding him of the presumption of innocence principle in the Constitution of Guyana.
Justice George had reasoned that the company cannot be denied a Local Content Certificate on a basis that is not set out in the Local Content Act and given the above constitutional parameters.
According to her, the Local Content law provides a simple regime for registration once a company satisfies the criteria. After reviewing the relevant documents submitted by Ramps Logistics, the Chief Justice ruled that the company had satisfied all the requirements and pre-conditions required by the law, in this case—being a Guyanese company—for the issuance of the certificate.
“There is no evidence submitted by the respondents to counter the information provided by [Ramps Logistics] which I have concluded satisfies the requirements of the Local Content Act. Mr Pertab from his Affidavit in defence refers to a Form C—a list of requirements that have no statutory basis. He also refers to charges by the Guyana Revenue Authority which are irrelevant to the determination of an application under the Local Content Act,” held Justice George.
As a “Guyanese company”, the Chief Justice had declared that Ramps Logistics is entitled to be issued with a certificate and to be entered into the Local Content Register. She had found that Minister Bharrat breached the Local Content Act when he refused to certify the company.
The government had signalled its intention of appealing the Chief Justice’s decision.
Divested ownership
At a press conference, Ramps Logistics (Guyana) 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.
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 (WBD), 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.
Despite the assertions of the Local Content Secretariat as to its reasons for not addressing the issuance of the certificate, the company had claimed that the Local Content Secretariat had granted several certificates to companies that are in a similar position to it, including Crane Worldwide Logistics (Guyana). Ramps Logistics had complained that its operations had been severely affected without the Local Content certification and that it had risked losing a US$25 million contract from ExxonMobil (Guyana) and its subsidiaries and dismissing a majority of its employees. Ramps Logistics commenced operations in Guyana nine years ago and has operations in Trinidad and Tobago; Houston, and Miami in the USA; Colombia; Mexico; and Suriname.
