Debt not down but double

Feb 10, 2022 Editorial

Kaieteur News – In the thunder and throes of what passed for debate on the scheming Natural Resource Fund Bill, now the law of Guyana, then its tempestuous aftermath, there was a position taken by leaders in the PPP/C Government. It was that accessing and withdrawing monies from the oil fund would lead to reduced levels of debt, and benefits for Guyana. As is now customary, a slight, some would call it huge, contradiction has surfaced, which identifies what was uttered before to be nothing more than the misleading from government leaders, and nullifies the justification put forward. The caption of a news item carried recently in this paper summarises the details: “Guyana loan portfolio to double this year” (KN January 28). At first, it was going to be lower, due to oil fund withdrawals, but now it is going to be the opposite, as in doubled.
“According to the “Estimates”, Guyana’s loans and grant stock portfolio is expected to be some $37B this year, up from $17B last year. The loan aspect of this portfolio however, is expected to double moving from $13.6B last year to $26.8B this year.” When this is added to the expected withdrawals of hundreds of millions of American dollars from the nation’s oil fund sitting in a New York bank, it is the groundwork for governmental, political, public service, and private sector skullduggeries and thievery on a scale never seen or experienced in Guyana before. In a land where corruption is a sprawling aspect of the national culture, this is saying a lot. Yet, for some peculiar reason, known only to a man of learning and wisdom like him, this is what the Minister with official responsibility for the Finances of Guyana, Dr. Ashni Singh, has the audacity and brazenness to stand before citizens of this country and to call a “well-established track record of prudent public debt management…” This is what this man of some intellect and education dares to call “prudent public debt management” when the circumstances on the ground point to runaway borrowing and runaway spending.
In fact, it could be said on strong foundations that the visionaries and strategists in the PPP/C brain trust have never seen a loan that they could resist borrowing. And now with this country’s discovery of oil, and more of it on a continuing basis, financial institutions are racing here and tumbling over themselves to lend as much as we desire (not need) for any purpose under the sun. The question could be fairly and reasonably put on the table: with projected debt levels estimated to be doubling this year, why is there this mad rush to withdraw, other may more accurately say raid, Guyana’s oil fund? Or, with another, since debt levels are planned to be in these enormous amounts, how come it is even necessary to still go near to the tempting oil fund?
We at this publication have put some pieces together from the record of Guyana over the years, which enable us to envision what is in mind, and how things are going to conclude. Debt finances numerous projects, mainly infrastructural and social, which means that invitation for bids and tenders have to be announced, leading to gargantuan contracts being awarded. This is where the sweet and juicy action is. When the tenders are fixed, then PPP/C Government comrades and loyalists are the almost exclusive winners of such contract awards. The bid winners, in turn, have frequently failed to deliver the goods and services they were contracted for, and to the tune of billions upon billions of precious dollars. The taxpayers feel the pain, while Government scoundrels get to celebrate their massive white-collar criminalities, to the torment of those same cash-strapped taxpayers.
The ecstasies over immensely rewarding corrupt practices were from mainly debt taken out in the name of the Guyanese people, who are still waiting to get any little value for their money that they can obtain in return. Now, with debt doubling and the oil fund accessed simultaneously, there are many more millions (billions in Guyana dollars) to electrify and delight the political rogues and the rogues with whom they surround themselves. Debt money and oil money spell doom.

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