The Guyana Human Rights Association (GHRA) has expressed deep disappointment with Government’s Green Paper for the management of anticipated oil revenues, stating that it lacks context and does not cater for Guyana’s most precious resource, human capital.
Head of the GHRA, Mike McCormack said his organisation has studied the document and while particular emphasis is placed on making education a high priority, it has not taken into account how Guyanese will benefit directly from the revenues of oil.
“We are disappointed with the green paper because it has no context… education has been a high priority in the use of oil revenues, no one disagrees with that but what it doesn’t say is all vulnerable export for the last 50 years have been educated people,” he stated.
In giving his opinion, McCormack said the reason why educated people are leaving, is mainly because they don’t see a secured and happy future in which they can achieve here. He said this view could be changed if the revenues from oil are spent to improve the lives of people.
He said too that the Association is not in favour of having a politically run fund, because they will not be favourable in delivering. He said that technical expertise should be sought to ensure that it is properly managed and resources are properly spent.
But more importantly, the GHRA head said while there is much to talk about how the revenues from oil will be spent, he said the discussion must also include what can transpire in 2020. McCormack reminded that year is critical as it is also an election year.
“Nobody is discussing the fact that 2020… with a political situation in which obsession with gaining power could become serious. The business community, faith-based organisations and trade unions must have strong consensus that whoever wins the elections, as an agenda policy we need to support that. We need to ensure there is stability,” he added.
Opposition Leader Bharrat Jagdeo has already raised concerns over the total control of the Natural Resources Fund by the Finance Ministry. The green paper sets out preliminary plans on how the Government hopes to manage the revenue from oil and other natural resources, with clear objectives of the Natural Resources Fund.
The Sovereign Wealth Fund (SWF) was laid in the National Assembly in August which sets out preliminary proposals to stimulate discussion, also points to possible courses of action open to the SWF legislation.
Jagdeo reminded that he had initial objections to Government’s plans for the Fund but now that the green paper has been made public, he finds the plans to be even more worrying.
The document states that the Finance Ministry will be responsible for the overall management of the Fund, including requested withdrawals in the annual budget proposal.
“…calculating the fiscally sustainable amount; drafting the investment mandate; entering into the operational agreement with the Bank of Guyana [BoG] and drafting the annual report and reporting on the Fund through the annual budget,” the document said.
As such, Jagdeo said he disagrees with Finance Minister Winston Jordan’s total control for various reasons, but zeroed in on Jordan’s silence on the signing bonus from ExxonMobil.
“This is the same Minister who lied to the country about the US$18 million signing bonus, saying that Guyana never received it and never asked for it. He lied to Guyanese for over a year. And it is the same Minister who will now have full control.”
Further, the green paper states that the BoG will be the operational manager of the Fund. Jagdeo has already expressed deep concern about this proposal. Although the Government has catered for a representative from the Opposition to sit on the Fund, he has already objected to this proposal, stating that politicians should not be included.
“We don’t want politicians… we, ourselves, to manage this money. This Fund has to be independently, technically managed… not by politicians again and stored at the Central Bank. We have a problem with that model. It departs radically from best practices, like Norway and the other countries,” he had stated.
Now that the green paper has been laid, it paves the way for the proposed legislation on the SWF to be laid in the National Assembly which looks at addressing two main issues: stability of the economy and saving for future generations. Advice was sought from international agencies, including the Commonwealth Secretariat, among others.
