PPP/C wants to give itself power to override oil money rules

Dec 19, 2021 News

– can withdraw any amount as it sees fit for emergency

– puts no jail time for abuse of mechanism

Kaieteur News – The PPP/C administration has proposed in the amended Natural Resource Fund (NRF) legislation, various methods of calculations for the withdrawal of the nation’s oil dollars. But if there is a major natural disaster, the government is proposing to give itself the power to override those rules in place and withdraw any amount it deems fit for the said emergency.
The amended law states that the Minister must however ensure the sum gets Parliament’s blessings and shall provide documents to the House explaining the gravity of the major natural disaster and its impact on the environment, and why the specific withdrawal was required and the projects it would be used to finance. The Minister would also be required to provide a table showing the current fiscal year of the withdrawal requested for emergency and the withdrawal from the fund approved in the annual budget.
In the draft legislation, a major natural disaster includes an earthquake, flood, hurricane or other disaster caused by the natural processes of the earth that has such a severe impact in the environment and the living conditions of the population or part of the population that in the opinion of the Minister, additional public spending in the excess of the amount that can be financed by the ceiling calculator is required to ameliorate the impact on the population and the environment.
Importantly, there is no provision that caters for any abuse of this “emergency” mechanism.
According to the draft legislation, the purpose of the NRF is to manage the natural resource wealth of Guyana for the present and the future benefit of the people in an effective and efficient manner by ensuring that volatility in natural resource revenues does not lead to volatile public spending; ensuring the natural resource revenues do not lead to a loss of economic competitiveness; fairly transferring natural resource wealth across generations to ensure that future generations benefit; and using the natural resource wealth to finance national development priorities including any initiative aimed at realising an inclusive green economy.
Furthermore, powers of overall management of the fund rests with a Board of Directors whose three to five members will be appointed by the President. That board will also determine the investment mandate of the fund.

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