Govt. gears up to dive into oil account

Jan 03, 2022 News

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…as Ali says money to be spent on citizens’ welfare
Kaieteur News -Amid fears that the Natural Resources Fund (NRF) would be abused and misused with no jail time for the offenders, President Irfaan Ali in his New Year’s message has hinted that funds will be transferred from the account to better the lives of Guyanese.
Ali did not give any specifics as to what projects or how the money would be used to better the lives of citizens, but in the said speech he spoke about granting more scholarships for oil and gas studies and also improving housing. “Of course, I know that you – the people of our One Guyana, expect to see benefits from the NRF flow to you, to improve your lives now; to deliver more jobs and better wages. Therefore, it is obvious that some of the money from the NRF, which now stands at approximately US$534 million, must be spent on your welfare and wellbeing,” Ali said.
The objectives of the NRF are to: ensure that volatility in natural resource revenues do not lead to volatile public spending; ensure that natural resource revenues do not lead to a loss of economic competitiveness; fairly transfer natural resource wealth across generations ensuring that future generations benefit from natural resource wealth; and use natural resource wealth to finance national development priorities, including any initiative aimed at realising an inclusive green economy.

Leader of the Alliance For Change (AFC), Khemraj Ramjattan believes that Vice President, Bharrat Jagdeo, intends to use the oil money in a manner that will score him political points. He said, “Jagdeo may very well take it and do as he likes, conveniently to win an election. Buy votes and (to fund) projects that might very well not be in the interest of Guyana, like reopening the Skeldon Estate and all kind of nonsense…”
In fact, he explained that the former APNU+AFC administration was guided by international best practices when it drafted the Natural Resource Fund Act and it was decided to not have the monies accessible to politicians. In this regard, Ramjattan said, “the politicising of spending of oil monies is an abhorrent act…that is a very retrograde step from what we did and it is a tremendous (sign of) bad governance”.
Ali for his part in his New Year address said that the new legislation, which was hurriedly passed in the National Assembly last week despite warnings from the opposition and civil society, provides a mechanism by which the Parliament will approve the transfer of funds for projects and programmes that the Government has to carry out. Commentators have said Ali’s remarks ring hollow as his government holds a one-seat majority in the Parliament, which it has been using to its advantage to pass bills and undertake other actions without considering the opposition. The recent passage of the new NRF is an example of this and commentators have argued the same approach would be taken when it comes to withdrawing funds from the NRF account.
The President also said when transfers are made, to what department, for what purpose, and the results of the spending – all have to be made public. “It has to be audited. The audited report has to be presented to the National Assembly and of course the PAC will have a chance to review the Auditor General’s report.”
Ali reminded that the World Bank has projected that, over the life span of oil and gas production, Guyana could earn US$72.8 billion in revenues from the multiple offshore projects that will be operational. “Surely, it is right, that with full and adequate supervision by reputable persons, nominated by parliament and the private sector, a portion of those funds should be spent on improving the lives of the people of Guyana – all of them – and bettering the conditions in which they live.”
“I have said it before, and I say it again now, I do not want a rich Guyana of poor people. Yes, Guyana must be rich so that never again should we be among the poorest in the world; never again should our poor have to be nomads, seeking survival in other parts of the world; never again must we be subjected to insults and contempt. But, our people must share in the benefits of the wealth that is now Guyana’s – and share in it without fear or favour. It is the right of their birth and a right that has been earned by them and their foreparents who toiled, sweated and sacrificed to make Guyana their beloved homeland.” It must be noted, that although Ali spoke about citizens’ right to benefit from the oil wealth, his government did not consult them on the drafting and passage of the law, from which the benefits will be derived.
Former Government Minister, Ronald Bulkan during a protest against the bill last week contended that the law “violates what is known as the Santiago Principles to which this administration committed to in its manifesto among others.” He said the Santiago Principles says, among other things, that it is the owners of the resource who have to decide how it will be spent.” According to Bulkan, the owners of Guyana’s wealth “as we all know is not a government, it is not a political party, it’s not the coalition nor is it the PPP…”

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