Local Content Act to be updated next year

-Several loopholes to be regulated – GS Jagdeo

General Secretary of the People’s Progressive Party (PPP) Dr Bharrat Jagdeo emphasises that companies who are non-complaint with the Local Content Act have a lot to worry about in the future.

Amendments to Guyana’s landmark Local Content legislation will be enacted next year, ensuring all loopholes are regulated effectively.

Jagdeo made the disclosure at his Wednesday’s press conference in Georgetown at Freedom House, noting that the Local Content Secretariat has identified a number of issues with companies’ compliance.

For instance, Guyana’s local content law mandates 75 per cent of management positions in companies, be held by Guyanese, with only 25 per cent allowed for foreign workers.

However, companies are allegedly rotating foreign workers every six months and subverting the requirement for Guyanese managers.  As a result, “I spoke with the commissioner and we are now drafting legislation that will cover that loophole,” Dr Jagdeo expressed.

Additionally, the government is reviewing the eligibility percentages for a number of sectors outlined in the legislation, including rentals requiring 100 per cent local procurement.  And according to Jagdeo, the possibility of adding new sectors to the local content schedule is also being explored.

“It’s not just that sort of reform that will come but also, we are looking to close the loopholes here…Some companies are doing this and they would be written to shortly to ensure greater compliance,” reporters were informed.

Jagdeo, who also serves as the country’s vice president, emphasised that the situation is being monitored carefully as the wellbeing of Guyanese is a priority. He went on to note that the government has provided support to these ‘big’ companies, and they will not be allowed to shaft Guyanese.

“Because our ultimate aim is to get our people, not just as workers in these places, but as managers too. So, they have to train and improve (their) skills. And so, only when they can really demonstrate that we don’t have this skill, then we can tolerate that. But some of them are doing this to bypass Guyanese management,” he bemoaned.

Although the legislation requires amendments, the current act have facilitated hundreds of small and medium businesses, who are benefitting from the oil and gas industry. Thousands of Guyanese or businesses are now participating in the country’s newly found industry.