Deodat Indar, one of Guyana’s infrastructure ministers, passionately called upon members of the local private sector to steer clear of engaging in “rent-a-citizen” practices due to its detrimental impact on the government’s dedicated efforts to foster local content growth within the oil and gas sector.
Indar shared these sentiments while delivering his keynote address at the Guyana Manufacturing and Services Association’s mid-year dinner—where he unveiled that while the government has been working assiduously to create equitable opportunities for Guyanese citizens through local content initiatives, it is the private sector that appears to be undermining these endeavours.
The term “rent-a-citizen” refers to the practice of foreign entities utilising Guyanese businesses as mere tools to circumvent the provisions outlined in the Local Content Act. This legislation meticulously sets forth 40 sectors and sub-sectors for Guyanese businesses, and foreign investors wanting to operate within those areas are required to partner with local companies who must hold 51% or more beneficial ownership in their joint venture, among other critical factors.
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Indar firmly addressed the issue, stating, “Our people in the private sector have to be true to that (the local content law) and not do the rent-a-citizen kind of arrangement that we hear reports about —because it hurts the local content fight, it hurts what we’re doing here as a private sector.”
The Minister’s advocacy for robust local content policies precedes his current ministerial role. During his tenure as President of the Georgetown Chamber of Commerce and Industry (GCCI), he actively championed this cause and consistently emphasized the importance of extending preferences not universally to local businesses, but specifically to those that demonstrate capacity in delivering goods and services—a principle that remains steadfast in his current post.
The GCCI, under more recent leadership, has continually voiced concerns about rent-a-citizen practices and advocated for a thorough examination of the “beneficial ownership” behind companies seeking Local Content Certificates. Furthermore, the Chamber suggested to the government’s Local Content Secretariat that the “burden of proof” regarding beneficial ownership should rest with the applicant company. This prudent scrutiny, according to the GCCI, would provide an additional layer of safeguarding against unethical and unpatriotic behaviour within the industry.
