Five days after Ramps Logistics Guyana filed an application for Judicial Review against the Local Content Secretariat, it was slapped with ten charges of false declarations by the Law Enforcement and Investigations Division (LEID) of the Guyana Revenue Authority (GRA).
Ramps Logistics Guyana is a subsidiary of Trinidad owned Ramps Logistics.
Oil Now Guyana yesterday reported that the GRA instituted ten charges in the Georgetown Magistrates’ Court against Ramps Logistics (Guyana) Inc for false declarations.
According to the documents filed by the GRA, it determined, among others, that during the period of 2021 to 2022, Ramps made several untrue declarations to the revenue authority.
It said the move to the courts is in keeping with its mandate to ensure there is a “level playing field” for legitimate businesses and the collection of revenue.
GRA also called for individuals/companies involved in any such illicit activities to cease and desist therefrom and bring their businesses into compliance with the nation’s Tax, Trade and Border laws, Oil Now Guyana reported.
Oil Now Guyana said the GRA has also been probing Ramps Logistics Guyana for abusing blanket tax waivers granted for the importation of goods to be used by Stabroek Block operator, Esso Exploration and Production Guyana Limited (EEPGL), and its subcontractors.
“A report by the division cited a case on December 13, 2019, when it checked a shipment of goods consigned to EEPGL and Ramps Logistics Incorporated was listed as the declarant. The LEID report reads, ‘The said declaration was deemed false since the quantity of the goods declared was inconsistent with the information stated on the invoice’.
“The said act constituted a breach of Sections 217 (1) (a) and 219 of the Customs Act, Chapter 82:01, respectively. In the said matter, the Commissioner General (Godfrey Statia) in accordance with Section 271 of the Customs Act, Chapter 82:01, invoked his discretionary power and waived the proposed compensation of $500,000 for the acts committed,” the report said.
In a swift rebuttal, chief executive of Ramps Logistics Shaun Rampersad, who is also chairman of Ramps Guyana, told the Express yesterday that the charges would be reviewed by the company’s lawyers and offered a timeline of events as follows:
1. July 12, 2022—The GRA wrote to RLG informing them of an investigation into alleged false declarations.
2. July 25, 2022—RLG’s Lawyers wrote the GRA responding on why the allegations raised by the GRA had no basis in law and clearly outlined the sections of the Guyana Customs Act that they relied on to form this opinion.
3. September 29, 2022—eight weeks later the GRA responds to RLG. Their response does not address any of the legal points raised by RLG’s Lawyers.
4. 30, 2022—RLG files for Judicial Review against the Local Content Secretariat.
5. October 5, 2022—GRA issues a Press Release to say they are filing charges against RLG 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,” he said.
Denied Local Content Certificate
In June, Ramps Guyana was denied a Local Content Certificate by the Guyana’s Local Secretariat.
In July, it re-submitted an application.
But with its five-year contract with Exxon Mobil, an American multinational and one of the world’s largest publicly traded oil and gas company, due to end November 2022, and no certificate forthcoming despite addressing the secretariat’s concern, the company filed for judicial review.
“While we wish we could have settled this matter out of court, now that it is in court we are confident about the judicial system in Guyana and we look forward to our judicial review hearing on October 20. Guyana is a lovely country with beautiful people and we look forward to building a bigger, better business with our 400 plus employees and partners in Guyana,” Rampersad said.
At a news conference in June, Rampersad had said no reason had been forthcoming as to why it was denied certification since it met all the requirements outlined by the Act and his lawyers subsequently wrote to the Secretariat seeking reasons for their denial.
“From the initial look of the letter, it doesn’t look like anything unreasonable. They have made some demands of us. From what I have seen, they are not unreasonable and we are very committed to working with them to have this resolved. I am hopeful we can have this sorted out,” Rampersad had told the Express at the time.
Background info
A Local Content Certificate is essential for the company to operate in Guyana.
The Local Content Act was passed in Guyana in December 2021 to encourage development and greater participation for Guyanese nationals in the petroleum industry.
Among the requirements for certification was that the company had to be registered in Guyana, have 90 per cent of its employees from Guyana, 75 per cent of its management team to be Guyanese nationals and that it must be 51 per cent owned by a Guyanase national.
Rampersad sold 51 per cent of Ramps Guyana to Deepak Lall, a friend and businessman, a Trinidad born, now naturalised Guyanese citizen this year.
Lall’s birth was registered in Guyana in June 2021. His Guyanese passport was issued on September 9, 2021
Lall, a mechanical engineer, is the managing director of the Point Lisas-based Qualitech Machining Services Ltd, a machining services, engineering sales and service and project delivery provider in the Caribbean.
He became a shareholder at Ramps Logistics Guyana on March 9 2022, acquiring 51 per cent of the company in newly issued shares, for US$1 million.
Lall had told the Sunday Express that as part of the wider diaspora, it was an entry to contribute to the country.
Ramps Logistics, a family owned business from Cunupia, expanded into Guyana into 2013, and set up a subsidiary company, Ramps Logistics Guyana.
In 2017, Ramps Logistics Guyana was awarded a five year logistics contract for ExxonMobil to coordinate its operations in Guyana.
Since then, Exxon’s has had 31 oil discoveries in its Stabroek block.
In April, the company announced that it found oil in three new wells raising recoverable oil and gas potential from its discoveries to nearly 11 billion barrels.
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