Ghana to help Guyana with Natural Resource Fund Training

Jul 26, 2019 News

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By Kiana Wilburg

Once all the arrangements are finalized, officials from Ghana are expected to help Guyana with oversight training for the Natural Resource Fund (NRF) says Finance Minister, Winston Jordan.

During an interview, yesterday, the economist reminded that the NRF legislation provides for a Public Accountability and Oversight Committee.
This body which will meet with representatives from the Media, the Guyana Bar Association and Transparency Institute Guyana Inc. (TIGI), will be responsible for monitoring and evaluating the compliance of the government and other relevant persons when it comes to the principles of transparency; good governance; and international best practices, including the Santiago Principles, when using the Natural Resource Fund.
Jordan said that Ghana has a similar set up for its Fund and a workshop is being organized so that Guyana’s oversight committee can be aware of what is expected of it in practice.
“We are trying to organize a seminar with representatives from Ghana who can come and share their knowledge…We will then write all the 22 groups that will have a seat on our committee and invite them to the workshop where it will be explained to them how the process works etc.
“After that, they will return to their respective bodies and nominate their representatives.”
Minister Jordan disclosed that letters have since been dispatched to the President, the Private Sector Commission and the Leader of the Opposition, Bharrat Jagdeo, for their nominations for the Committee.
Jordan noted that Jagdeo has since declined to comply with the request.
According to the NRF Law, Guyana’s oversight committee will include a representative from civil society organizations and community-based organizations, a nominee to represent women with the said person being nominated by civil society organizations, a nominee of the Bar Association of Guyana, a representative of the Guyana Consumer’s Association, a nominee of the Guyana Extractive Industries Transparency Initiative (EITI), a nominee of TIGI, a nominee of the Guyana Press Association, a nominee of most representative associations of trade unions, a nominee of the Private Sector Commission, one nominee from each of the 10 Regional Democratic Councils and a nominee from academia who is nominated by the governing council of the University of Guyana.
CRUCIAL ROLE OF OVERSIGHT BODIES
Since Guyana pursued the creation of the historic legislation, numerous independent oversight bodies have stressed the importance of Governments being held accountable for the management of Natural Resource Funds.
In fact, this was endorsed by Chatham House, a non-governmental organization based in London whose mission is to analyze and promote the understanding of major international issues and current affairs.
Chatham House explained that in many countries, the courts are explicitly mandated to determine the constitutionality of legislation and ensure government compliance with laws, including those governing natural resource fund management.
Where the courts are free from political interference, Chatham House said that judicial review is a strong form of independent oversight insofar as courts are able to enforce their decisions on the government.
Chatham House said, “Some countries are not brave enough to embrace this type of independent oversight. But the evidence is overwhelming to prove that this is an extremely powerful form of ensuring transparency and accountability in the operations of the NRF.”
It added, “In 2008, the Timor-Leste Appeals Court found that a $290.7 million withdrawal from the Petroleum Fund by the Government was illegal. The rationale was that it violated the 2005 Petroleum Fund Law requirements that the government provides a detailed explanation for the withdrawal and that petroleum revenues be managed for the benefit of current and future generations. The Court was able to order that the money be returned to the Fund.”
Turning its attention to the importance of Multi-Stakeholder Groups, Chatham House said that some countries have established formal forms of these oversight bodies to reinforce and support the work of traditional bodies such as Parliament and the Judiciary or to provide an additional source of regulation.
Chatham House said that in Chad, Ghana, and Timor-Leste, civil society persons such as Chartered Accountants, trade unionists, traditional leaders, and central bankers, form formal oversight committees for their country’s NRFs.
The transparency body said, “Ghana’s Public Interest and Accountability Committee, for example, is mandated by law to monitor the management of petroleum revenues as outlined in the Petroleum Revenue Management Act. Timor-Leste’s Petroleum Fund Consultative Council, which consists of various civil society persons, is mandated to advise Parliament on how the country views the operations of the fund as well as recommendations for improvement…”

 

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