Jagdeo has made a lame excuse

Jan 20, 2024 Features / Columnists, Peeping Tom

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Kaieteur News – The PPPC has become a backward-peddling party. It has walked back on its promise to renegotiate the oil and gas contract and it’s now prevaricating when it comes to the establishment of a Petroleum Commission.

It was no less a figure than President Irfaan Ali who in his Inauguration Address said the following words, “We will also establish a Petroleum Commission to ensure that the oil and gas sector is not subjected to undue political interference”

When Vice President Jagdeo was recently asked whether it was the obsession with control that was responsible for Guyana not yet having a Petroleum Commission in place, he rejected the suggestion. But it will take some convincing to deny that the PPPC is not uncomfortable with the status quo ante which allows for politicians to be exercising the oversight, and for making decisions concerning the sector.

One year ago, a senior official of the Alliance for Change (AFC) had noted that a draft Petroleum Commission Bill was laid before the National Assembly. At the request of the PPPC it was referred to a Select Committee, where it remains buried.

The AFC official noted that the absence of a Petroleum Commission means that oversight of the petroleum sector is now under the sole control of the PPP. This column had even suggested that in order to reduce political influence over the management of the sector that the oil blocks auction should have been delayed until such time as a Petroleum Commission was in place.

But please, do not tell this to Vice President Bharrat Jagdeo before he blows a fuse. At his most recent press conference he gave a funny back-to-front explanation as to why the Petroleum Commission has not yet been established.

He argued that it is better for the commission to be established when Guyana has matured into the sector. According to this newspaper, he also said that establishing a petroleum commission requires a lot of time by Cabinet’s time. These are pitiful excuses that are akin to putting the cart before the horse.

The establishment of a Petroleum Commission is a critical aspect of managing a nation’s petroleum resources. Such a commission is necessary to ensure compliance with laws and regulations.

Contrary to Jagdeo’s excuse that such a body should only be established when Guyana has matured into the sector, a Petroleum Commission is best established at the onset of oil production. Early establishment serves to mitigate risks, promote transparency, protect the national interests and limit political tampering with the sector.

One of the primary reasons for establishing a Petroleum Commission at the outset of oil production is to mitigate risks associated with the industry. The petroleum sector carries economic and environmental risks. Delaying the establishment of a commission until the sector matures may expose the country to unanticipated challenges. By having a commission in place from the beginning, it can proactively address potential issues, implement robust safety measures, and ensure that the industry adheres to international best practices and standards.

There are major concerns presently over the transparency with which the local sector is being managed. Why, for example, should persons have to take the government to court in order for evidence to be shown that the oil companies have lodged security as per the instructions of the Court?

A Petroleum Commission plays a crucial role in ensuring transparency and compliance with laws and regulations. Waiting for the sector to mature before establishing such an oversight body may result in a lack of accountability during the initial stages of oil production. By having a commission in place early on, the government can set clear guidelines for operators, monitor activities, and enforce compliance from the start. This proactive approach helps create a transparent and accountable petroleum sector.

Establishing a Petroleum Commission at the onset of oil production also enables better management and efficient utilization of petroleum resources. The Commission can develop and implement strategies to optimize resource extraction and prevent rapid resource depletion. Waiting for maturity may result in missed opportunities for responsible resource management, leading to economic inefficiencies.

But by far the most important advantage of establishing a Petroleum Commission early is the reduction of political interference and influence. Delaying the creation of such a commission until the sector has matured may expose it to undue political pressures and influence, potentially compromising the commission’s ability to act independently. Establishing the commission at the outset creates a foundation for its autonomy, allowing it to operate impartially and prioritize the nation’s long-term interests over short-term political considerations.

Jagdeo’s argument, therefore that a Petroleum Commission is best established when Guyana has matured in the sector is a lame excuse. To safeguard Guyana’s interests, including against the wiles of political charlatans, should have been prioritized from the outset.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions and beliefs of this newspaper and its affiliates.)

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• Peeping Tom, Petroleum Commission, PPPC, President Irfaan Ali, Vice President

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