Guyana’s historic Local Content Bill 2021 has outlined several penalties for persons who are found to be in breach of its provisions. The Bill notes that a person who carries out petroleum operations without the minimum local content requirement commits an offence and is liable on summary conviction to a fine of GY$50 million dollars (US$250,000). If that person submits or causes to be submitted, any information for the issuance of a certificate of qualification knowing, or ought reasonably to know, that the information is false or misleading, commits an offence and is liable on summary conviction to a fine of GY$10 million dollars (US$50,000).
Should they fail to submit a local content plan, return, report, record, or any other document pursuant to the provisions of the Act, they would be deemed to have committed an offence and is liable on summary conviction to a fine of five million dollars. The draft legislation also states that if the person submits beyond the prescribed time a local content plan, return, report, record, or any other document pursuant to the provisions of the draft Act, then they would have committed an offence and be liable on summary conviction to a fine of one million dollars (US$5,000).
Other penalties state that if they fail to satisfy the prescribed content requirement of an approved local content plan, then it is an offence and would therefore be liable on summary conviction to a fine of GY$10 million dollars (US$50,000).
Furthermore, the failure to submit a performance report, also attracts a fine of one million dollars; so too does the failure to comply with a request by the Minister or the Secretariat to review, or provide information on, any return, report, record, or any other document pursuant to the provisions of the draft.
Additionally, a person who submits, or causes to be submitted, a local content plan, report, record, or any other information pursuant to the Act and the person knows, or ought reasonably to know, that the submission is false or misleading, commits an offence and is liable on summary conviction –in the case of an individual, to a fine of GY$5 million dollars (US$25,000); in the case of a body corporate, to a fine of GY$10 million dollars (US$50,000).
Also, a Guyanese national or Guyanese company who aids or abets anyone to contravene any provision of the Act in order to defeat the local content obligations commits an offence and is liable on summary conviction –in the case of an individual, to a fine of $5 million (US$25,000) dollars; and in the case of a body corporate, to a fine of $10 million dollars (US$50,000).
The draft legislation goes on to state that where an offence has been committed by a body corporate and is proved to have been committed with the consent or the connivance of, or to have been attributable to any neglect on the part of a director, manager, secretary or any other officer or agent of the body corporate, or any person who was purporting to act in such capacity, that person, as well as the body corporate, shall be guilty of that offence and liable to the same penalty.
The Bill notes that the Minister may, by Order subject to affirmative resolution of the National Assembly, amend the monetary penalties specified in the draft Act.
