HGP Nightly News – The government claims it has significantly reduced the use of “rent-a-citizen” arrangements in Guyana’s oil and gas sector, according to Natural Resources Minister Vickram Bharrat, who said authorities moved aggressively to close loopholes that threatened the integrity of the country’s local content framework.
Speaking on Wednesday during the presentation of Letters of Approval for Annual Local Content Plans at Duke Lodge, Bharrat said early implementation of the Local Content Act exposed attempts by some individuals and companies to exploit the system designed to benefit Guyanese.
According to the minister, some businesses used Guyanese citizens to create the appearance of local ownership while the actual control and benefits remained elsewhere.
He said certain arrangements portrayed Guyanese as majority shareholders despite their limited involvement in the operations of those businesses.
“We really had to work hard and clamp down on that and send a strong message to those people who had intentions of doing it,” Bharrat said.
The minister indicated that enforcement efforts, combined with collaboration among industry stakeholders, have led to what he described as the near elimination of such practices.
Government scrutiny also extended to shell companies that attempted to gain access to opportunities under the local content regime without contributing to the development of local capacity or generating meaningful economic benefits for Guyanese.
Bharrat stressed that the purpose of the Local Content Act was to ensure genuine participation by Guyanese workers and businesses rather than facilitating paper ownership arrangements.
The minister said the policy was intended to build local expertise, strengthen businesses, and create long-term opportunities for Guyanese as the country’s petroleum industry continues to expand.
Beyond ownership concerns, Bharrat also turned attention to the issue of wages and compensation, signalling that the government intends to advocate more strongly for equitable pay within the sector.
He argued that many Guyanese workers now possess qualifications, certifications, training, and experience comparable to expatriate employees after years of involvement in the industry.
“We believe that now is the right time to ensure that Guyanese employed with comparable qualifications, training, certification and experience can have comparable remuneration,” the minister stated.
Guyana currently has approximately 7,000 citizens directly employed in the oil and gas industry, a figure the government expects to grow as petroleum activities expand.
Bharrat said the long-term success of the local content programme depends on accountability, strong partnerships, and ensuring that Guyanese remain active participants in the opportunities being created by the country’s oil wealth.
“The right way is the only way to go,” he said, while emphasizing the need to protect the integrity of the system and ensure benefits reach those the legislation was intended to serve.
