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GRA, Central Bank, Finance Ministry strengthening capacity to execute NRF functions
By Kiana Wilburg
When it comes to robust preparations for the oil and gas sector, Finance Minister Winston Jordan recently assured that capacity is being developed in the Guyana Revenue Authority (GRA), Central Bank, and his Ministry, so that their respective functions can be executed in relation to the Natural Resource Fund.
In an exclusive interview with this newspaper, the Minister said, “The Ministry of Finance has worked to build capacity across key Government agencies with responsibility for collecting and managing revenues. We have put signal legislation in place – the Natural Resource Fund (NRF), which became law when the Bill was assented to by the President on January 23, 2019 – to ensure funds are collected and transferred to the national budget in a transparent manner, while nullifying the destabilizing effects of volatile oil prices; allowing for the frontloading of development expenditure; and saving for future generations.”
The economist added, “Capacity is being developed within the Ministry of Finance, the GRA, and the Bank of Guyana to execute their functions and responsibilities under the NRF Act. Moreover, the required institutional strengthening across the entire central government is being prioritized and championed by the Ministry of Finance.”
Finance Minister, Winston Jordan
In this regard, the Minister pointed to the strengthening of procurement planning and expenditure management, which are critical to effective spending of resources, whether they be from oil or non-oil sources. He said that other examples include the Ministry of Finance updating the economic forecasting model to include oil resources, while the GRA is strengthening its cost oil audit capability.
The Office of Auditor General, which is led by Deodat Sharma, also has auditing responsibilities when it comes to the Fund. And to prepare for the task ahead, Sharma told Kaieteur News in a previous interview that he has been forging relationships with “the best of the best.”The Auditor General had said that Norway has been sharing key advice on this front with him.
Elaborating further, the Auditor General had said that his Office began sharpening its skills for the oil sector, and in a sense, is already prepared for the audit of the Fund. He had said, “You have to bear in mind that this will be strictly a financial audit, because it is about money coming into the fund. Let us say you get $300M in the Fund, then you have to audit and see how it was spent, and that is a normal financial audit and we have been doing that…”
Even though his office is familiar to an extent about what is required, Sharma had said he is leaving nothing to chance, hence steps were taken to contact Norway’s Audit Office for advice.
The Auditor General said, “I have been checking with the Audit Office of Norway in terms of how they audit their Sovereign Wealth Fund (SWF) and other aspects, and that is an ongoing process…So basically, we are contacting the best of the best. In fact, I went there (Norway) for a meeting, but I reached out and interacted with the Audit Office myself on this matter…”
In spite of international advice, Sharma had said he does not foresee the need to hire any person or firm to assist his office with the new responsibility. He said, “We do have some capacity issues but right now, I don’t think there is a need for that…,” the Auditor General had stated.
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