Ramps Logistics Guyana has once again found itself in hot water with the Guyana Revenue Authority (GRA) over false declarations, this time causing Stabroek Block operator, ExxonMobil Guyana Limited (EMGL) to be caught in the crossfire. This latest court summons over a US$12.1 billion invoice has underscored a seemingly troubling pattern of false declarations being made by Ramps, hereby casting a shadow of doubt over the integrity of the Trinidadian company’s operations within Guyana’s burgeoning oil industry.
In 2022, GRA’s Law Enforcement and Investigations Division (LEID) revealed numerous instances of false declarations by Ramps Logistics, prompting GRA to file 10 charges against the company in the Georgetown Magistrates’ Court. The charges encompassed various violations, including discrepancies in the quantities and values of goods declared by Ramps. Additionally, GRA found evidence suggesting that Ramps had abused blanket tax waivers granted for the importation of goods intended for use by Stabroek Block operator, ExxonMobil Guyana and its subcontractors.
In its report the LEID emphasized the gravity of the violations, stating, “The said declaration was deemed false since the quantity of the goods declared was inconsistent with the information stated on the invoice. The said act constituted a breach of Sections 217 (1) (a) and 219 of the Customs Act, Chapter 82:01, respectively.”
The Current Legal Battle
Fast forward to present day, GRA has once again turned its attention to Ramps Logistics, this time alongside ExxonMobil Guyana. The recent legal action stems from an inflated US$12.1 billion invoice submitted by Ramps Logistics on behalf of Exxon. In November 2023, Ramps declared to Customs that oil well equipment valued at US$4,467,662 was instead valued at US$12,192,103,923.91. This discrepancy raised concerns about potential impacts on oil profits, highlighting the gravity of the situation.
Despite assertions by Exxon that the false declaration was a result of a typographical error, GRA emphasized the statutory duty imposed on Exxon to verify the accuracy of information provided to GRA by its broker.
Exxon’s response to GRA’s allegations reiterated its stance as not the declarant of the false declaration and emphasized Ramps’ contractual obligation to ensure the accuracy of shipping documentation. The company also distanced itself from the logistics company.
“It was corrected for the customs. And they’ve received that. The GRA has the correct number. Everything was caught early and there were no issues. Nobody suffered any loss. Everything was taken care of. And as I said, we’ve updated our procedures and the checks that are made to make sure this sort of error is not repeated,” Exxon’s President, Alistair Routledge told media operatives when questioned about the matter.
He concluded, “If there is something that there shouldn’t have been, then we will learn from that. We’ve already revisited the procedures around those submissions. As you may also be aware, the company that is supporting us for those customs duties has changed. So, we don’t anticipate that kind of issue happening again. But we’ll learn and make sure we put in place everything we can to not have errors.”
