The management of the oil sector

Aug 27, 2024 Editorial

Kaieteur News – Put politicians near anything of substance and rank perversities become standard practice and way of life. This is the case of Guyana’s oil sector. When one thinks of the US$214M audit fiasco cum scandal involving ExxonMobil all of this registers with increasing certainty.  In Guyana, the wonderful development of a massive national patrimony now takes on the appearance of a national tragedy in motion. Chartered Accountant, Chris Ram, in one of his columns, had called the absence of a Petroleum Commission a recipe for a resource curse, which could be extended to mean a political curse.

To insulate the activities and money of the national oil patrimony, the establishment of a Petroleum Commission made the rounds, and everybody agreed that it would be a good thing, with the right people onboard.  This was the position of the PPPC Government and that of its key figure, Vice President Jagdeo.  It was all lip service, and just for the show.  In this country, citizens have noticed that politicians have schooled themselves to say the right things and display the right postures, on crucial issues of governance and leadership, but with a major hidden qualifier. Citizens are told what they want to hear, but of which there is no intention to deliver.

The Petroleum Commission is one such vital issue.  It was hot, then became cold, and nowhere in consideration of the PPPC Government.  From all indications, Vice President Jagdeo is all words and no action.  A Petroleum Commission would mean having to relinquish some closeness to the action and, more importantly, that irresistible element, which is power and control.  A Petroleum Commission that is fully functioning and very capable would serve as that independent, professional, and credible agency that stands in clean and convincing stewardship over the tempting oil patrimony.  To reiterate, a Petroleum Commission gives Guyanese a better chance of getting fairness and justice from their wealth; it would be the opposite of what politicians can ever come to represent, ever deliver. Local history stands as the best testimonial, for the long trail of evidence is there.

We at this publication believe that this applies to all political groups in this country.  A Petroleum Commission worth its salt would have done better.

It couldn’t have done worse, and definitely would not have made such a fool of itself, as all Guyana learned about the still-to-be-resolved US$214M fiasco. The Ministry of Natural Resources fell on its face, with a small team of its workers supposedly making decisions that were never, should never have been, part of their marching orders.  Or, at least, this is the official version that does not stand firmly rooted, and which comes across as suspicious the longer this shaky story stays in the public eye.

When powerful politicians cast caution to the winds, and do not listen to anyone but themselves, then this is the straw that they are forced to eat.  The hard experiences from other poor parts of the world where oil was discovered confirm that allowing politicians to put themselves in charge of national oil wealth is a recipe for catastrophe.  There is a proven need for an unfettered Petroleum Commission that boasts a significant presence from civil society working alongside competent technical people to represent a vital check and balance.

Before the gush of oil money, many politicians in both of the major parties have done inexplicably well, and without any consequences.  Now that oil money comes in many different forms, politicians position themselves to be the gatekeepers, so that they can possibly collect multimillion-dollar tolls.  It is why there is so much secrecy, and it also explains the degree of hostility unleashed by politicians when pressed for straight answers on this oil.  Though a Petroleum Commission may have its gaps, it would be far better than what any local politician can embody.  The resource curse is already at work in Guyana, with the first ones tarnished being dirty politicians.

• Editorial, ExxonMobil, management, oil sector, Petroleum Commission