THE Government of Guyana is actively pursuing violations of its local content legislation, and according to People’s Progressive Party (PPP) General Secretary Dr. Bharrat Jagdeo, those found in breach will risk losing their certifications and face hefty fines.

“They have a lot to worry about,” he said during his weekly news conference on Thursday at the party’s Freedom House headquarters on Robb Street, Georgetown.

“…We intend to crack down on it. This Act was designed to give benefits to our people; Guyanese people, and if there are a few people here who are using it to confer the benefits so that the foreign companies can get these benefits that are set aside for our people, and they are collaborating with the foreigners, then they run the risk of not just losing the certification, but also facing the fines, in accordance with the Act,” Dr. Jagdeo said.

Already, officials have begun investigating instances where persons or companies have violated the country’s local content legislation.

“We are examining the ways in which they are doing this; and, information is credible, and we’re going to act on this information soon,” he added.

Last week, Dr. Jagdeo had noted that amendments to the landmark legislation will be enacted next year, ensuring all loopholes are regulated effectively.

He then disclosed that the Local Content Secretariat has identified a number of issues with companies’ compliance.

For instance, Guyana’s local content law mandates that 75 per cent of the 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 of this, Dr. Jagdeo disclosed that he “spoke with the commissioner, and we are now drafting legislation that will cover that loophole”.

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.

According to Dr. Jadeo, the possibility of adding new sectors to the local content schedule is also being explored.

He emphasised that the situation is being monitored carefully, as the well-being 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.

Guyana’s Local Content Act was passed in December 2021, and brought with it guidelines that were designed to maximise the participation of Guyanese companies in the sector, beginning with the provision of services such as office-space rentals, janitorial services, laundry and catering services, pest-control services, insurance services, and the supply of food among several others.

Officials have said that the update to the piece of legislation will likely include new provisions that reflect the lessons learned since its enactment and include other opportunities and areas that have seen growth.

Earlier this year, Attorney-General and Minister of Legal Affairs Anil Nandlall said that the review and amendments to the law depended on a report from the Local Content Secretariat on the sector’s performance.

At the time, he’d noted that upon receipt of this report, the government intends to engage the private sector regarding consultations for possible amendments.