Feeling Proud: IMF lauds Guyana’s oil money transparency 

Sep 17, 2023 Letters

Dear Editor,

Indeed, as a Guyanese citizen of our amazing country, soon to be made greater than it is, through the excellent administration and management of our oil resources, and people by the government of His Excellency President Dr. Irfaan Ali, this IMF (International Monetary Fund) report recognizing Guyana’s Oil Money Transparency is pleasure to my mind, to my heart, and to all Guyanese at large. I cannot recall an economic period, in recent times, in which Guyana has ever enjoyed such strong financial support by the IMF.

The International Monetary Fund (IMF) in its concluding statements of its 2023 Article IV Consultations published in the Guyana Times of 14^th September, 2023 stated: that the PPP/C Government has made progress strengthening management and transparency in the oil sector. Further, the International Financial Body praised the Government’s work on the Natural Resource Fund (NRF) Act that was amended in 2021. This act assisted in the transparency and accountability of the use of oil revenues. The act allowed for the appointment of the NRF Board of Directors, the Public Accountability and Oversight Committee, and the Investment Committee. Committees which have all worked on ensuring transparency of the use of Guyana’s oil revenues.

The fact that Guyana transfers its oil revenues from the Natural Resource Fund to the budget and reports the use of these funds in its budget documents, making public all receipts, speaks highly of the accountability of this Government in the area of the oil and gas sector to the Guyanese citizens. This process was highly praised by the IMF visiting team.

I must highlight that Guyana has made huge progress implementing the recommendations from the 2019 Extractive Industries and Transparency Initiative (EITI) Reports and Standard. This called for consultations with stakeholders and making financial information on the oil and gas sector readily available to the general public. It was heartening to learn that the 1986 Petroleum Exploration and Production Act was recently modernized, electronically updated, and received Parliamentary Approval in August of this year.

Readers, this recently updated Act now calls for the subject minister to consult with the Cabinet and engage with neighbouring states regarding petroleum reservoirs that extend into their territories. The updated Act further calls for licensees to apply for a geological storage license for carbon dioxide from the Government of Guyana before undertaking operations incidental to Carbon dioxide storage. In addition, under the present updated Act, Members of Parliament and their families are prohibited from acquiring or holding any legal; equitable, or beneficial interest in a petroleum licence.

Guyana was also complimented by the IMF for developing and implementing its new Power Sharing Agreement (PSA) which will be used as a guideline now for the auctioning of the 14 new oil and gas blocks. These are all new administrative measures by the present Government to allow for a level playing field for all stakeholders. Which prevents conflict of interests, increasing the Government’s share of oil profits and ultimately for the development of the oil and gas industry. These international regulatory financial managerial steps auger well for Guyana to keep striding safely into the new millennium as an unmatched ‘oil and gas giant’.

Sincerely,

Haji Dr. Roshan Khan

• administration, Haji Dr. Roshan Khan, His Excellency President Dr. Irfaan Ali, IMF, recommendations