Guyana must set guardrails against corruption

Sep 07, 2022 News

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…NRF Committee members should submit declarations to Integrity Body – Economist

By Davina Bagot

Kaieteur News – As Guyana continues with its plan to speed up the production of oil and gas, the revenue stream from these operations must be safely secured and managed sustainably. Not only that, but Guyanese must enjoy the comfort of assurance that the wealth generated from their patrimony is being put to good use, rather than drained by those appointed to act as the watchdogs of the fund.

At least this is the position of Economist, Elson Low.
In a recent interview with this publication, Low the holder of a Bachelor’s Degree in political Science and Economics from a United States College, Amherst, explained that there are a number of steps that must be taken immediately to ensure that the Natural Resource Fund (NRF) or the oil account is protected.

He believes that corruption and theft have been two sore plagues that Guyana has lived with over the years, but with the nascent petroleum sector already streamlining profits, the Economist warns that the losses from these ends can be monumental. As a consequence, he told this publication that all members of the Committees – established to manage the fund – should file a declaration with the Integrity Commission. Failure to do so, he believes, should be viewed as a major red flag. Moreover, he said that a member should be removed from the Committees for not submitting such a declaration.

On another note, the Economist insisted that Guyanese must be aware of meetings that take place with members of the Committees. “We must be alert to financial institutions which come to Guyana to meet with members of the NRF (Committees) and no one-on-one meetings should take place unless absolutely necessary,” he asserted.

In addition to that, Low believes that the members of the NRF Committees should not accept gifts, travel or entertainment offers from financial institutions, which the fund works with. He also suggested, “We should also be alert to family members of NRF (Committees), members who are given employment opportunities by financial institutions as the bonuses those jobs pay, as well as the lucrative jobs themselves, can constitute bribes.”

The Integrity Commission Act was passed and made into law in 1997, requiring all persons who hold public office or public life to declare their assets, or make financial declaration to the Integrity Commission. The Integrity Commission was established by Act No. 20 of 1997 and passed on the 24th September of the same year.

The Commission was specifically established to ensure the President, all Members of Parliament, Ministers, Permanent Secretaries, Civil Servants, and other persons in public life, file entries of income from whatever source and makes it mandatory for annual declarations to be filed on or before the 30th of June annually.

Section 22 of the Integrity Commission Act states that any person who fails to comply with the Act shall be liable on summary conviction to a fine of $25,000 and a term of no less than six months imprisonment, no longer than one year.

As at June 2022, the Ministry of Finance reported that the oil and gas subsector expanded by 73.5 percent when compared with the first half of 2021. This was due to the second Floating Production Storage and Offloading Vessel (FPSO) starting up operations at the Liza Two Field in the Stabroek Block in February.

The Government in its Mid-Year Report said in the first six months of the year, a total of 34.6 million barrels of oil were produced, compared with 20.2 million barrels during the same period last year. Moreover, it pointed out, “Given the outturn in the first half of the year, total production is expected to reach 93.6 million barrels by year-end, and with elevated prices supporting the sector, annual growth for 2022 is now targeted at 113 percent.”

In December last year, the People’s Progressive Party (PPP) government passed the Natural Resource Fund (NRF) Act, which makes provision for a NRF Board as well as a Public Accountability and Oversight Committee, and an Investment Committee. The members of these key bodies were appointed by President Irfaan Ali last Tuesday. The legislation does not make it a requirement for the members of these Committees to make submissions to the Integrity Commission. However, it notes at Section 44 that “The Minister may make regulations generally for the better carrying out of the purposes of this Act taking into account the generally accepted principles and practices on sovereign wealth funds as contained in the Santiago Principles.”

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• corruption, Guyana, NRF

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