The Minister of Natural Resources in Guyana, Vickram Bharrat, announced on Wednesday that the government has made significant progress in addressing the issue of foreign-owned companies engaging in the practice of renting Guyanese citizens to falsely demonstrate majority-Guyanese ownership for local content certification. During a signing ceremony for the approval of annual local content plans, Bharrat emphasized the government’s commitment to enforcing penalties against such practices, which are outlined in the local content legislation.
He stated, “We really have to work hard at clamping down on that and sending a strong message to those people who have intentions of doing it that they will face the penalties because there are penalties in the local content legislation.” Bharrat noted that with the cooperation of the public, there has been a marked reduction in these practices, leading to what he described as an almost complete elimination of the rent-a-citizen phenomenon.
In addition to addressing the rent-a-citizen issue, the government has also focused on tackling the problem of shell companies that obscure asset ownership and involve local citizens in misleading arrangements. The Local Content Act was introduced in Guyana five years ago to promote the participation of local businesses and citizens in the country’s natural resource sector.
Previously, the government had indicated the possibility of amending the Local Content Act due to the widespread occurrence of the rent-a-citizen practice. The recent developments suggest a shift towards stricter enforcement and compliance with local content regulations.
Source: demerarawaves.com
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