Latest update January 3rd, 2025 4:30 AM

Guyana's largest selling daily and New York's most popular weekly

Latest News

Revise structure of ‘politically tainted’ Committee to overlook oil money -NRGI tells Guyana

Nov 12, 2018 News

 

– Says the best run funds in the world have Macroeconomic Committees consisting of professionals with no ties to the government

When the Natural Resource Fund (NRF) is established, the Government will appoint a Macroeconomic Committee to determine the economically sustainable amount of money that can be taken from the Fund on an annual basis.
While this approach is deemed laudable, international experts opine that the structure for appointments to the Committee does not support the principle of effective oversight.
This was recently noted by the Natural Resource Governance Institute (NRGI) in its detailed report on the weaknesses of the Government’s Green Paper. The Institute pointed out that the proposed structure of the Committee presents a “politically tainted” picture.
According to the Green Paper, the Macroeconomic Committee would consist of the five members, all of whom would be appointed by the Minister of Finance. These persons include a representative of the Minister of Finance (who shall be the Chairperson); a member from academia or the private sector nominated by the Institute of Chartered Accountants of Guyana; a representative of the Bank of Guyana nominated by the Governor of the Bank of Guyana; a member from academia or the private sector nominated by the Leader of Opposition in Parliament; and a leading expert in macroeconomics appointed by the Minister with the approval of Cabinet.
NRGI noted that out of the five-member committee, three can be considered political appointees, persons who are to answer to the government.
Considering this, NRGI said that the government should consider revising the structure of the Committee. The Institute made it clear that the best run funds in the world have Macroeconomic Committees or similar bodies but they only consist of professionals with no ties to the government.
In Ghana for example, NRGI said that the country has a Public Interest and Accountability Committee, a statutory body consisting of professional organizations and civil society leaders which provides annual reports on the management of the country’s oil and gas revenues. In other jurisdictions, such as Alberta (Canada) and New Mexico (U.S.), the government’s Macroeconomic Committee consists of professionals who have no ties to the government. NRGI said that the Committee also puts out regular press releases and holds information sessions to inform the media and public on fund activities and balances.
Further to this, NRGI pointed out that the functions of the Committee need to be strengthened. In this regard, the Institute said that the Committee should be made to play an oversight role where it monitors adherence of the Government to the fiscal rules governing the Fund.
If the Government is against modifying the functions of the Committee, then NRGI suggested that an independent fiscal council be established and consist of only independent experts.

Similar Articles

The Glenn Lall Show | December, 2nd, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Tonight: Sparta Boss goes up against Bent Street ‘A’ for K&S National Futsal title

Tonight: Sparta Boss goes up against Bent Street ‘A’ for K&S...

Jan 03, 2025

Lady Royals and Kanaimas to clash for Female championship Kaieteur Sports- The inaugural Kashif and Shanghai/One Guyana National Futsal Championship, which kicked off at the National Gymnasium with...
Read More
Botafgo pummel Milerock, 11-7, to become new UDFA Christmas Futsal Champions 

Botafgo pummel Milerock, 11-7, to become new UDFA...

Jan 03, 2025

BCB player transfer window opens for 2025 

BCB player transfer window opens for 2025 

Jan 03, 2025

Archery Guyana National 2-Day Indoor Senior Barebow Open, shoots off January 11 

Archery Guyana National 2-Day Indoor Senior...

Jan 03, 2025

Grandmaster Jose Luis Montes to lead Self-Defense Seminar

Grandmaster Jose Luis Montes to lead Self-Defense...

Jan 03, 2025

Keevin Allicock – the next torchbearer for Guyanese professional boxing

Keevin Allicock – the next torchbearer for...

Dec 31, 2024

Features/Columnists

Publisher’s Note

Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.

Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]