Latest update March 29th, 2024 12:59 AM
Aug 19, 2018 News
Economic Analyst, Dr. Peter Ramsaroop thinks that the government is seeking to design Guyana’s Natural Resource Fund (NRF) in such a way where it can be easily used as a slush fund with little or no accountability to the nation.
He said that this is evident from what is outlined in the Green Paper recently presented in the National Assembly.
According to Ramsaroop, based on the model presented in the Green Paper, the government plans to “take a three per cent from whatever is earned in a given year and put that in the Budget, the remainder will be invested overseas.”
Ramsaroop also has a problem with the fact that the National Assembly will have little say over how the money is to be invested.
“It is clear that the monies that will be coming into the country from oil will not be governed by the 65 elected members of the National Assembly but rather, a few members of a cabal to be put in place by Minister of Finance, Winston Jordan, no doubt at the behest of (President David) Granger.”
Ramsaroop noted that many oil-producing countries have Sovereign Wealth Funds, but there are strict control measures, “they are not designed from the get-go as a slush fund for billions of US dollars.”
He said that while most economists would agree it would be unwise to just have an influx of US currency pumped into the economy, the danger lies in having the Minister decide on the seven persons that will make up the Sovereign Investment Committee.
According to the document submitted by Minister Jordan, the Sovereign Investment Committee will be made up of a representative of the Ministry of Finance, two ex-officio members – one recommended by the Natural Resources Minister and another recommended by the Governor of the Bank of Guyana, while the remaining positions will be a representative from the Institute of Chartered Accountants of Guyana; a Representative nominated by the Bankers’ Association; a representative to be nominated by the Opposition Leader, along with an Investment Analyst.
That analyst will have to be hired to assist the Minister.
Ramsaroop noted that the Fund is being set up using an act of Law. He continued, “This is not by accident, since this decision will immediately allow the sitting government to circumvent the constitutional provision that dictates that all revenues be placed in the Consolidated Fund or what is known as the country’s Treasury.”
Ramsaroop explained that by creating a fund under a Law, “This will invoke the caveat in the Constitution which speaks to the revenues being placed in the Consolidated Fund, the part that speaks to except where provided for under a law.”
According to Ramsaroop, while the Constitution does demand that all government earnings be placed in the Consolidated Fund, “There are provisions to allow monies to be retained outside, but it should be downright criminal for government to take this route to withhold access to what is now clearly the most valuable and in-demand resource.”
He said too, this is but one piece of the puzzle. “The law is only for them to have some legal standing in preparing a special account for the oil monies, but the rules that are being put in place, at least in the way it is currently worded, represents a clear and present danger to the economic future of all Guyanese.”
THIS IDIOT TELLING GUYANA WE HAVE NO SAY IN THE 50% PROFIT SHARING AGREEMENT WE HAVE WITH EXXON.
Mar 29, 2024
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