Credibility is about honoring promises

Apr 12, 2024 Features / Columnists, Peeping Tom

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Kaieteur News – Credibility is the currency of trust. It’s the basis upon which public trust is built, and in the case of politicians, it is earned through the consistent honouring of promises made to the electorate.

When a politician fails to uphold their promises, they jeopardise not only their own credibility but also the trust of the people they serve. This is the predicament facing Vice President Jagdeo in the ongoing discourse surrounding the failure of his PPPC government to renegotiate the Production Sharing Agreement (PSA) between the government and oil companies.

At his weekly press conferences, Vice President Jagdeo has been bombarded with persistent questions regarding the renegotiation of the PSA. He gets very agitated when asked certain questions that place him in an uncomfortable position. His responses have been often evasive, characterised by stock answers and excuses. It is either that he has answered that question before or that the government would be breaching the sanctity of contracts if it seeks to renegotiate the oil contract. This week, he added another one from the extensive stock: a government that changes its mind will not be credible.

Jagdeo’s reluctance to engage in renegotiation, coupled with justifications citing potential negative impacts on investor confidence, raises legitimate concerns about his the promises he made prior to assuming office. In other words, it is not about the credibility of the government but about his credibility. During his time in Opposition between 2015 and 2020, Jagdeo vocally criticised the PSA, labeling it as flawed and a sell-out. He assured the electorate that an incoming PPPC government would renegotiate the agreement because the APNU+AFC had sold the country out.

However, upon assuming office, Jagdeo’s stance appears to have shifted drastically. He now contends that changing the terms of the contract would undermine investor confidence and create unpredictability. This about-face is not only disappointing but also undermines Jagdeo’s political credibility. The credibility of a leader hinges on his or her ability to honour promises, irrespective of the circumstances. When politicians fail to uphold their commitments, they betray the trust of the electorate and tarnish their own credibility.

Credibility is not synonymous with stubbornness or inflexibility. Leaders are not expected to adhere rigidly to their positions regardless of changing circumstances. However, when it comes to fundamental promises made to the electorate, such as renegotiating an unfair contract, credibility demands action not excuses.  No one is asking the PPPC government to unilaterally alter the terms of the contract. All that is being suggested is that it calls the oil companies to the table to discuss renegotiation. The PSA itself provides provisions for renegotiation. It is therefore not the case that the PSA is inflexible when it comes to seeking better terms for the country. The contract explicitly states that the contract can be changed with the consent of the parties.

The original agreement signed between Janet Jagan and ExxonMobil was renegotiated by the APNU+AFC government. As such, there is precedent for the PPPC government to have engaged with the oil companies to change the terms of the PSA to ensure a fairer arrangement.

Governments possess a legal and moral obligation to seek fair deals on behalf of their citizens, particularly in matters as crucial as resource extraction agreements. The sovereign authority vested in governments empowers them to negotiate and enter into contracts that safeguard the interests of the people. International law recognizes the right of states to regulate and manage their natural resources in the best interests of their people. Therefore, governments have both the legal standing and moral obligation to pursue fair and just agreements that maximize the benefits for their people, over and above the profits of multinationals.

The refusal of Jagdeo’s government to enter into talks for renegotiation sends a troubling message. It portrays a government unwilling to uphold its promise, and one that is weak-kneed when it comes to negotiating with the oil companies.  This perceived weakness emboldens oil companies and undermines the bargaining power of the government, perpetuating the lop-sided nature of the PSA. Jagdeo should be ashamed rather than so cocky about his government’s position regarding renegotiation

Vice President Jagdeo owes the electorate a better explanation for his failure to initiate renegotiation talks. He must acknowledge the importance of honoring promises made during the electoral campaign and demonstrate a genuine commitment to addressing the concerns surrounding the PSA. Anything less undermines the trust placed in his government by the people of the country.

(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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• electorate, Government, Peeping Tom, politicians, PPPC

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