Guyana should commit to open contracting with oil money

Guyana should commit to open contracting with oil money – Expert

Feb 08, 2020 News

A sizeable portion of the oil revenue to come will be spent on several infrastructural projects. In doing so, Guyana must ensure that these projects are not mere avenues for funneling billions of dollars into the pockets of political elites or/and their cronies says Illicit Financial Flows Expert, Gavin Hayman.
During an interview on Kaieteur Radio’s Programme, Guyana’s Oil and You, Hayman said that Guyana can protect the revenues from projects becoming corruption schemes by committing to a process of “open contracting”.
The Industry Expert said, “This is incredibly important because when you have the sheer size of the contract, and undue influence and political power are added to the mix, they can be really harmful for Guyana.
“I would therefore like to see Guyana commit to a process of open contracting which is where you go through a process of systematically disclosing every piece of information connected to the contract, from the tendering stage to planning, its award, etc.”
Hayman also suggested that Guyana should seek to make investments in having a fully open, data driven, public procurement system, where all the information is available. He said that there are multiple countries, which do this, citing Colombia and Paraguay as two fine examples for Guyana to follow.
“These two countries have robust systems that allow you to track the money. That is a key safe guard; you will need transparent systems for the oil money,” the industry Expert said.
With respect to the local companies that will bid for contracts in the oil industry, Hayman warned that they should be mindful of who they partner with.
The Illicit Financial Flows Expert said, “…Demand the disclosure of beneficial owners for these (foreign) companies,” he cautioned.
Further to this, Hayman noted that it is quite easy for politicians to award contracts to those they are well connected with or to shell companies that they are hiding behind, hence his recommendation for the media and local anticorruption advocates to also ensure they do rigid due diligence on all companies that stand to benefit from infrastructural projects funded by the oil revenues.
“I have seen that happen way too much in my career and it is a real danger Guyana needs to look out for. Guyanese need to understand that good or bad decisions will have implications for the next generation so it is in their interest to stay vigilant. I would also remind that putting really good governance structures in place will yield good dividends,” Hayman added.
He was keen to note however that if policy leaders start cutting corners, binge spending, engaging in acts of cronyism, and awarding contracts to their political cronies then public trust and the country’s development will be put in harm’s way.
The industry expert said, “It therefore means that Guyana should waste no time in investing in good transparency and governance structures which support open contracting.”

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News