Forceful passage of NRF Bill breaches transparency standards – OGGN

Jan 05, 2022 News

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Kaieteur News – The ‘forceful’ passage of the legislation governing the oil account is in breach of transparency standards and an international agreement Guyana adopted since 2018 that speaks to the inclusion of the public, and access to information – two key ingredients that were lacking when the Bill was passed in the National Assembly on December 29, 2021.

This is according to the Oil and Gas Governance Network (OGGN), an agency founded by specialists across the globe and that has been keeping watch on Guyana’s oil sector.
The OGGN told reporters that it is “extremely disappointed” that the Government rushed through the passage of such an important Bill which it even dared to describe as the “mother of all bills”.
It said that Guyana is a signatory of the 56-member Extractive Industries Transparency Initiative (EITI) – the global standard for the good governance of oil, gas and mineral resources – which has seven standards. Standard 1.3 focuses on Civil Society engagement.
“In accordance with the civil society protocol, some requirements that must be adhered to by countries implementing the EITI include: Civil society must be fully, actively and effectively engaged in the EITI process; the government must ensure that there is an enabling environment for civil society participation with regard to relevant laws, regulations, and administrative rules as well as actual practice in implementation of the EITI; the fundamental rights of civil society…must be respected; the government must ensure that there are no obstacles to civil society participation in the EITI process; the government must refrain from actions which result in narrowing or restricting public debate in relation to implementation of the EITI,” the specialists reasoned.
More so, the oil network highlighted that Guyana is also a signatory of the Escazu Agreement, which has high expectations for stakeholder involvement.
The Escazu Agreement also known as the “Regional Agreement on Access to Information, Public Participation and Justice in Environmental Matters in Latin America and the Caribbean”, signed by 24 countries, was adopted in Escazú, Costa Rica, in 2018.
In this regard, the OGGN pointed out that, “Apart from the right to a ‘healthy environment’, the agreement fosters the rights that are believed to be fundamental for sustainable development: access to information, public participation and justice in environmental matters.”
“Environmental democracy is about the protection of human rights – the right to be heard, the right to have a say and the right to know about what happens to the place that you live in,” the body contended.
Similarly, the “Santiago Principles” govern the operation of Natural Resource Funds also known as Sovereign Wealth Funds. The 24 “Santiago Principles” emerged from an International Working Group of Sovereign Wealth Funds (IWG) established at a meeting of countries with Sovereign Wealth Funds in 2008, in Santiago, Chile, which was facilitated by the International Monetary Fund (IMF). Many of these principles called Generally Accepted Principles and Practices (GAPP) require clear rules and procedures, and public disclosure and transparency.
“In other oil countries, there has been much documentation of Oil corruption and abuses of Natural Resource Funds also called Sovereign Wealth Funds. Guyana must not become another statistic in this regard,” the network urged.
It said that the petition in Parliament asking to hold the Bill for further consultations with civil society was a “unilateral” and “triumphalist” approach that goes against the principles and standards of oil and natural resources-related international bodies.
In fact, OGGN noted that with no bipartisan support, the Act will be an ongoing point of dissension, inimical to the Government’s “One Guyana” rhetoric.
The network said too, “The approved Act is missing many operational and procedural details and is likely to lead to built-in biases in future fund composition and stability. In the best interests of national unity and national consensus, OGGN encourages the Government to convene national consultations and make appropriate amendments to its Act.”
Given that United States Ambassador to Guyana, Sarah-Ann Lynch would have advised, “We continue to look forward to the government’s initiatives to combat corruption, including the Natural Resource Fund legislation that offers both transparency and clear oversight, and to a meaningful and inclusive process of stakeholder engagement.” A strong anti-corruption stance now will show Guyanese citizens, and the rest of the world, that the government is committed to transparent institutions that utilise the country’s resources to the long-term benefit for all Guyanese,” the oil network added. It went on to express optimism that the Ambassador for the US and the other ABC/EU countries have taken note of the railroading done by the administration in passing the Bill, since there has been no meaningful and inclusive process of stakeholder engagement.
The NRF Bill was first tabled in the National Assembly on December 16, 2021. It came up for debate in the House on December 29, 2021 thereby giving opposition parliamentarians a mere 13 days to scrutinise the document.
Shadow Oil and Gas Minister and Opposition MP, David Patterson had related to this newspaper that at least three months would have been needed to properly study the Bill.
Nevertheless, one week ago, the Bill was effectively passed in Parliament according to the Speaker of the National Assembly, Manzoor Nadir.
Meanwhile, the Parliamentary Opposition is still reviewing grounds to legally challenge the passing of the Bill.

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