Pres. Ali appoints members to NRF Board, Public Accountability & Investment Committees

Aug 31, 2022 News

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– Opposition nominee still outstanding

By Kiana Wilburg

Kaieteur News – President Irfaan Ali on Tuesday awarded Letters of Appointments to several Guyanese who are expected to serve with distinction on the Natural Resource Fund (NRF) Board, the Public Accountability and Oversight Committee, and the Investment Committee.

On the NRF Board, Major General Joseph Singh, MSS will serve as Chairperson. He would be supported by Former Foreign Affairs Minister and Permanent Representative of Guyana to the United Nations, Carolyn Rodrigues-Birkett, Professor Compton Bourne, O.E, former Parliamentarian, Mr. Dunstan Barrow, and long standing member of the Private Sector Commission, Mr. Ramesh Dookhoo.

With respect to the Investment Committee, Executive Director of the Georgetown Chamber of Commerce and Industry (GCCI), Richard Rambarran, Attorney-at-Law, Michael Munroe, and Chartered Banker, MBA Ms. Shaleeza Shaw, received their Letters of Appointment. Shaw will serve as Chairperson. Mr. Lauris Hukumchand, who is currently overseas, will be appointed at a later time.

As for the Public Accountability and Oversight Committee (PAOC), the following persons were selected to serve, Mr. Clement Sealy (Chairperson), Mr. Abu Zaman, Mr. Ryan Alexander, Attorney-at-Law Teni Housty, Mr. Dawn Gardener, Pastor Wendell Jeffery, and Aslim Singh.

President Ali noted that Mr. Desmond Sears and Ms. Savatri Balbahadur are currently not in the country but would be appointed at a later time. The Head of State also noted that the Government is still awaiting the nominee from the Political Opposition to be appointed to the PAOC.

During his remarks, Dr. Ali said the appointees are no strangers to serving Guyana while adding that they represent a pool of outstanding human resources. He expressed every confidence that the members will lend their knowledge and capabilities towards ensuring that transparency, good governance and accountability are the hallmarks of the NRF.

The purpose of Guyana’s Natural Resource Fund is to ensure there is prudent management of the nation’s oil earnings for the present and future benefit of the people by ensuring that volatility in natural resource revenues does not lead to volatile public spending.

The objective of the Fund is also hinged on ensuring revenues collected do not lead to a loss of economic competitiveness along with fairly transferring natural resource wealth across generations to ensure all Guyanese benefit from the sector. The Fund is also intended to ensure Guyana’s natural resource wealth is used to finance national development priorities including any initiative aimed at realising an inclusive green economy.

To ensure that its purpose is realised, the NRF Act 2021 focuses on four key areas: Providing notification of all oil receipts to the Guyana Parliament, ensure withdrawals are governed by a transparent process, Allowance for parliamentary oversight and approval of every cent to be used, and effective management and oversight via a Board of Directors, a Public Accountability and Oversight Committee, the Audit Office of Guyana, and Central Bank.

The NRF Board is responsible for overall management of the Fund, reviewing and approving the policies of the Fund, and preparing the Fund’s investment mandate.

The law also allows for an Investment Committee to provide advice to the Board on the Fund’s investment mandate. The Board would be assisted by a Senior Investment Advisor and Analyst.

The Committee would also be responsible for advising the Board of Directors while taking into account, the overall objectives of the Fund, the current conditions, opportunities and constraints in relevant financial markets, the need to ensure sufficient funds are available for withdrawals, international best practices in investment portfolio management, the principle of financial diversification with the objective of maximising risk adjusted financial returns, and taking into account the capacity of the institutions involved in the management of the Fund.

The Committee is also required to take account of the country’s ability to bear financial risk, the need for the Fund in the long term to achieve on average, over a number of years, a real total return of at least three percent per annum in US dollars while minimising risk.

It would also have to consider the need for the Fund to follow a strategic asset allocation strategy whereby overtime as the balance of the Fund increases, the percentage of the Fund invested in low risk eligible asset classes increases.

The law states that the advice of the committee would be contained in written reports submitted to the Board at least annually or within 20 working days of the Board requesting such advice.

Furthermore, the legislation also paves the way for the establishment of a Public Accountability and Oversight Committee (PAOC) which provides strict monitoring of how the revenues are used.

Guyana’s Central Bank is responsible for the operational management of the Fund which includes establishing risk management arrangements, and all necessary internal management systems for the fund.

The NRF Act states that petroleum revenues shall be directly paid into a bank account denominated in United States Dollars and held by the US Federal Reserve Bank in New York.

With respect to withdrawals, the law states that the maximum amount that may be withdrawn from the Fund in a fiscal year shall not exceed the total withdrawal from the Fund approved by the National Assembly for that fiscal year.  It categorically states that all withdrawals shall be deposited into the Consolidated Fund and shall be used only to finance national development priorities including any initiative aimed at realising green economy and essential projects that are related to ameliorating the effect of a major natural disaster. Furthermore, the amount that may be withdrawn from the Fund in a fiscal year shall be subject to a ceiling calculated in accordance with the First Schedule in the Act.

Additionally, the legislation empowers the Auditor General of Guyana to audit the accounts of the Fund. He can also engage an internationally recognised auditing firm to assist in the discharge of this function.

The Board of Directors is also required to prepare and submit to the Minister, an annual report of the Fund.

Furthermore, the Minister is required to provide Guyana’s Parliament with an Annual Report on the Fund.

The Ministry of Finance is also mandated to publish on its website for public perusal: annual reports on the fund, audited financial statements, and the external auditor’s report, quarterly reports, and financial statements submitted to the Minister by the bank, monthly reports, and the Fund’s investment mandate.

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