Latest update February 6th, 2025 7:27 AM
Patterson: Guyana now a “pimper’s paradise” where oil companies come and do what they want
…deficiencies in new oil law would only make matters worse
Kaieteur News – Shadow Minister for the Oil and Gas Sector, David Patterson recently described Guyana as “a pimper’s paradise” where oil companies flock and are able to do as they please. His position was expressed during his contribution to the debate on the Petroleum Activities Bill 2023 on Thursday.
Shadow Minister for Oil and Gas, David Patterson (KN file photo)
Patterson said the Opposition no doubt welcomes the passage of the Bill that now awaits presidential assent. He said every member of the Opposition acknowledges the need for a modernized legislation that replaces the 1986 petroleum law. Be that as it may, Patterson like many of his colleagues expressed reservations about the Bill and its concentration of powers in the hands of the minister.
Patterson alluded that Guyana has already found itself in a predicament where the pace and magnitude of the oil industry is beyond of the capabilities of the government. Patterson alluded that oil companies are able to get away with several transgressions since the government’s regulators are either overwhelmed or in some instances, inadequate. He expressed fears that the extensive discretion now granted to the minister will only make matters worse.
“This Bill concentrates all powers and decision making for the sector into the hands of the minister with no oversight from any other agency, not even the National Assembly. This is problematic from a government perspective,” the Shadow Minister said.
To underscore his line of contention, Patterson highlighted that the Bill refers to the National Assembly all but four times while it mentions the minister 336 times. In the instances that there is reference to the National Assembly, Patterson said they are not material from a standpoint of requiring transparency and accountability to the citizenry.
“The minister however is mentioned 336 times and of these times, no where is he directed to lay a single report in the National Assembly, the highest forum in this country. He does not have to seek parliamentary approval for a single item, save and except for when the finance minister needs to pass a resolution for oil companies to be exempt from some taxes,” Patterson said.
The shadow minister for the sector pointed that the National Assembly has passed several bills in the past, all of which contained provisions for the subject minister to report to the House. He said this was done in the case of the Natural Resource Fund Law 2021 where the Finance Minister is required to lay reports on the performance of the oil account. Patterson contended that it is in the nation’s interest that the Natural Resources Minister be required to act as a conduit to the people on the performance of the oil sector as well as his dealings in it.
“This Bill can be renamed Proclamation Bill as opposed to a Petroleum Activities Bill since it is more about the coronation of our minster rather than the safeguarding of our national patrimony…There is absolutely nothing on the administration of the sector outside of the minister who has now been anointed the emperor over all things petroleum in this country,” Patterson said.
To ensure there is a degree of independence in the management of the sector, Patterson called for the Bill to require the establishment of a National Petroleum Commission. Without it, he fears Guyana would be heading down a dark alley filled with corruption risks.
Despite his contentions, the government maintained that a commission was unnecessary. That amendment along with all others proposed by the opposition, were thrown out. The Bill was passed as is, paving the way for the minister to have significant authority over a spectrum of activities related to the oil sector.
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