Regardless of name and billion dollar status…Conduct rigid due diligence tests, hold big companies accountable – TT Energy Leader

Sep 27, 2017 News, https://www.kaieteurnewsonline...le-tt-energy-leader/

By Kiana Wilburg
It is no secret that the relevant authorities here have a history of failing to conduct rigid due diligence tests particularly on foreign companies seeking to invest in the local market.
But with a billion-dollar sector like oil on the way, several anticorruption advocates as well as experienced entrepreneurs in that industry, insist that Guyana’s authorities must ensure that robust due diligence tests are carried out on companies. This is regardless of the company’s name or multi-billion-dollar status.
Specifically noting this salient point recently was Mr. Ashley Taylor, President of Point Lisas Industrial Port Development Corporation Ltd. (PLIPDECO). Point Lisas is a major industrial centre in Trinidad and Tobago and has been a hub for some of the world’s largest operators in downstream activities.
The industrial estate is managed by PLIPDECO. Taylor has been the President of the Corporation for eight years. During that time, the corporation has seen much improvements and diversification.
The businessman said that irrespective of the size of investment being brought by a company, if it fails to pass the nation’s due diligence tests then that truth must not be brushed under the carpet. Taylor noted that it is because of PLIPDECO’s nonsense approach in this regard, it has been able to keep a high standard of accountability and transparency as it relates to their downstream activities.
The entrepreneur said that Guyana would be wise to take all the necessary precautions so as to protect its industries from abuse. He insists that it is necessary to hold companies accountable for their actions too.
Taylor also spoke about the need to be selective when it comes to choosing partners for the oil and gas sector.
The businessman said, “You want to partner with someone who is into this thing for the long haul. You don’t want someone who is coming in and who may appear to have a lot of money to invest and then five years later there is a shock to the sector and the company says it is no longer in a position to operate.”
“One of our major tenants, Methanex Corporation, is Canada-based. It happens to be the largest producer of methanol in the world…We also have companies that can be considered the largest producers of ammonia in the world.”
He added, “So basically, we have partnered with big players; the ‘kind’ of players, who we know once they put the investment down, they will be in it for the long haul. They have such a wide reach and expanse of operations globally that should there be for any reason, a shock to the system, like the reduction in the price of the commodity, these companies can withstand that kind of circumstance.”
Taylor made the point, too, that at Point Lisas, there are extremely strict rules and regulations which companies must abide by. He said, too, that PLIPDECO prides itself as a company that upholds a high standard that must be respected regardless of what the company brings financially.
He said that as Guyana moves to partner with companies that are showing an interest in the many offshoots to come from oil, it would be wise to ensure that they are subjected to due diligence tests in their respective countries.
One can have some assurance that the said companies have systems in place which are expected to ensure that their operations are safe, efficient and environmentally responsible wherever they go.
Taylor also stressed the importance of ensuring that there is an adequate Local Content Policy in place by the host country.
Taylor noted that corporations the size of ExxonMobil, as part of their social responsibility, would tend to train and develop a lot of local personnel too. He said that while this is very important for Guyana, at the same time, the local authorities must ensure that there is a “significant amount of local content” transfer from these companies going forward.
GUYANA’S DUE DILIGENCE
For years, local analysts have argued that Guyana’s inability to properly screen for high risks companies spells nothing but dangerous implications for the economy.
In fact, a report by the United States Bureau on Economics and Business Affairs stated that the Government of Guyana actively encourages foreign direct investment (FDI), but needs to do more to facilitate investment and implement more transparent and accountable procedures.
It said, too, that Guyanese law permits foreign ownership of companies, and there is no mandatory screening of foreign investment. However, the government conducts de facto screenings of most investments to determine which businesses are eligible for special tax treatment, access to licenses, land, and approval for investment incentives.
Minister of Business, Dominic Gaskin has since made it clear that he intends on making some drastic changes where this is concerned. And the first place he is started with was the Guyana Office For Investment (GO-Invest).

Regardless of name and billion dollar status…Conduct rigid due diligence tests, hold big companies accountable – TT Energy Leader

Sep 27, 2017 News, https://www.kaieteurnewsonline...le-tt-energy-leader/

By Kiana Wilburg

GUYANA’S DUE DILIGENCE
For years, local analysts have argued that Guyana’s inability to properly screen for high risks companies spells nothing but dangerous implications for the economy.

Minister of Business, Dominic Gaskin has since made it clear that he intends on making some drastic changes where this is concerned. And the first place he is started with was the Guyana Office For Investment (GO-Invest).

This process should have been started a few months after Gaskin became minister so that by now adequate measures would have been in place.