The government of Guyana has announced a significant reduction in the use of “rent-a-citizen” arrangements within the oil and gas sector. Natural Resources Minister Vickram Bharrat made this statement during a recent event where Letters of Approval for Annual Local Content Plans were presented at Duke Lodge. Bharrat noted that the early implementation of the Local Content Act revealed attempts by certain individuals and companies to exploit the system, which is designed to benefit local citizens.
According to the minister, some businesses were using Guyanese citizens to create a facade of local ownership while the actual control and benefits were held elsewhere. He pointed out that these arrangements often misrepresented the involvement of Guyanese individuals as majority shareholders, despite their limited participation in the operations of those businesses. Bharrat emphasized the government’s commitment to addressing these issues, stating, “We really had to work hard and clamp down on that and send a strong message to those people who had intentions of doing it.”
The minister indicated that the enforcement efforts, along with collaboration among industry stakeholders, have led to a near elimination of such practices. The government’s scrutiny has also targeted shell companies attempting to access opportunities under the local content regime without contributing to local capacity development or providing meaningful economic benefits.
Bharrat reiterated that the Local Content Act aims to ensure genuine participation by Guyanese workers and businesses, rather than facilitating mere paper ownership arrangements. He highlighted the policy’s goal of building local expertise, strengthening businesses, and creating long-term opportunities as the petroleum industry continues to grow.
In addition to ownership issues, Bharrat addressed the topic of wages and compensation, indicating that the government plans to advocate for equitable pay within the sector. He noted that many Guyanese workers have gained qualifications, certifications, training, and experience that are comparable to those of expatriate employees. “We believe that now is the right time to ensure that Guyanese employed with comparable qualifications, training, certification, and experience can have comparable remuneration,” he stated.
Currently, approximately 7,000 Guyanese citizens are directly employed in the oil and gas industry, a number that the government anticipates will increase as petroleum activities expand. Bharrat concluded by emphasizing that the long-term success of the local content program relies on accountability, strong partnerships, and ensuring that Guyanese remain active participants in the opportunities created by the country’s oil wealth. “The right way is the only way to go,” he said, underscoring the importance of maintaining the integrity of the system and ensuring that benefits reach the intended recipients.
Source: hgptv.com
Follow us on Instagram: @news.tringlobe
