PPP’s Natural Resource Fund (NRF) Bill seeks more power and less accountability and oversight

Dec 29, 2021 Letters

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Dear Editor,

Kaieteur News – There is a saying, “The more you watch, the less you see; the less you watch, the better for me.” The PPP seems bent on using its one-seat majority to railroad the repeal of the Original NRF Act approved by the Coalition, replacing it with its own bill, and reducing the Public Accountability and Oversight committee from 22 to 9 persons. They want us to watch less, and the better for them.
They did not like the PNC’s NRF Act so they are repealing it. Why do they also not want to repeal the PNC’s bad oil deal, the way they want to cancel some other bad deals in which the PNC gave away State assets?
The Government claims the Coalition’s NRF was rammed down our throats with no consultation. So, who is ramming down gas-to-shore and the failed Amaila Falls, Payara, Yellowtail, and now this NRF Bill? What consultation was done with the Opposition and civil society for this Bill?
Truth be told, the Coalition’s Bill resulted from a broad consultative process with the assistance of international experts. The Bill meets essential elements of the Santiago Principles and expectations of the EITI and Escazu Agreement, which are all very concerned about public transparency, accountability, and stakeholder oversight.
In our system, Ministers have enormous power, so the criticism that the NRF Act gives too much power to the Minister is frivolous. Our Minister of Natural Resources can grant Tax Certificates worth millions of US dollars to the oil companies although this may be a violation of Guyana’s tax laws. Is the Government interested in reducing such Ministerial power so that only Parliament can do that? One Minister signed away our entire national oil and gas patrimony of billions of barrels of oil for a 2% royalty. There was no consultation with the parliamentary Opposition; the matter was not brought to Parliament; there was no broad public or civic consultation; it was a secret. Why isn’t the PPP Government holding a Commission of Enquiry to find out what happened?
It has been our ongoing plight that when the PPP or PNC is in power, even hanging by a thread on a one-seat majority, they exhibit arrogance and triumphalism that excludes the other side of the House and the people of Guyana. The President is just reported as saying, “The people of this country went to a poll and they placed their confidence in a President, in a government, are you saying that after the people placed that confidence, that we don’t have the right or we can’t be trusted to name people on a Board?” he asked a gathering of Berbicians.” The PPP has learned nothing from the 2011 and 2015 elections. The PPP tends to see itself as Saint with a divine right to impose its will, and everybody else are dumb sinners to be ignored.
Nation, we have an oil and gas giveaway now, a “Dollar Store” type of sale going on with our oil and gas, gold, and timber. The Oil Companies get US$ billions and Guyana gets a handful of US$ millions. From the gross oil income, oil companies get about 85.5% while Guyana gets 14.5%. The world average for countries with oil is a 65% take. So, you see how much we are losing. For the oil companies, every day is Christmas – they get huge gifts from our sitting Governments –PNC or PPP. And our poor, huddled masses yearning for a better life, get hampers!
The problem with this Government so far is their all-around scorecard is one of lack of transparency, accountability, and consultation in the big things that matter most. The Government refuses to disclose information that stakeholders request about oil, gas and documents pertaining to environment assessments. Transparency is missing. Neither the Opposition nor civic society is consulted about all the projects – Gas-to-Shore, Amaila Falls, etc. The actions of one Government may be binding on a successor government so it is important that the Government involves the Opposition, Parliament, and civic stakeholders in such major decisions on expensive projects.
So, let’s see whom the PNC bill included, and compare it with whom the PPP wants to exclude. Instead of the 22 members now, the PPP proposes a nine-member Public Accountability and Oversight Committee whose members would be – one from the National Assembly, three from the religious community, two from the private sector, two from organised labour; and one representative of the professions.
Those axed by the PPP’s bill in apparent violation of Article 13 of the Guyana Constitution which requires consultation, include representatives of civil-society, women and youth – all to be nominated by a consortium of civil-society organisations and community-based organisations; Bar Association of Guyana; Guyana Consumers Association; Guyana Extractive Industries Transparency Initiative (GYEITI); Transparency Institute of Guyana Inc. (TIGI); Guyana Press Association; Institute of Chartered Accountants of Guyana; Private Sector Commission; one representative from each of the 10 Regional Councils and a nominee from academia nominated by the governing council of the University of Guyana. Clearly, the PNC bill has broad, inclusive representation of major stakeholders.
The PPP proposes 3 religious representatives. This is the type of committee where you need technocratic people, not religious representatives. What happens if they are all duds (unless that’s the kind of folks they want)? The religious folks let us down by their silence during the rigging, were not in the forefront of vaccination, have nothing to say about renegotiation of oil and all natural resource contracts, and had nothing to say when Indians were being dragged out of vehicles and brutalized. Same for the unions. I don’t buy the arguments that the PPP’s amendments will reduce Ministerial control; it increases such control. The Minister will control the 3-5 member Board of Directors being proposed. I suggest a parliamentary confirmation process for the Board of Directors. Nation, we need more oversight of oil and gas and all natural resources, not less. We need more People’s Power, and less political power grab!

Sincerely,
Dr. Jerry Jailall

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