Rampant corruption, mismanagement of oil sector denying Guyanese a better life – PNCR 

Sep 05, 2024 News

Kaieteur News – Amid growing concerns over the management of Guyana’s oil sector, the main Opposition, People’s National Congress Reform (PNCR) said if more robust efforts are taken to stamp out corruption and incompetence, every citizen would be able to enjoy a better standard of living from the country’s natural resources.

Economist and Advisor to the PNCR, Elson Low.

Speaking to Kaieteur News recently, Economist and oil and gas advisor to the party Elson Low acknowledged that Guyana was heading down a slippery slope with the general management of the oil sector, making specific reference to the many allegations that have surfaced recently including the award of a contract to monetise the country’s gas resources to a one-year-old company Fulcrum with no proven track record in the business. Stakeholders have also raised concerns about the lack of a Petroleum Commission, which has virtually left the sector in the hands of Vice President, Bharrat Jagdeo who has been bogged down by allegations of corruption. Low said the government is not doing enough to build a post-oil economy as there is no focus on productivity and technological adaptation.

However, Jagdeo told the media last Thursday that the investment the government is currently making in infrastructure will prepare the country to sustain its economy after oil has been exhausted. The Minister of Natural Resources recently disclosed that the projects currently producing may very well be exhausted before 20 years given the ramped-up production by operator of the Stabroek Block ExxonMobil. Following the disclosure, it was a concern voiced by citizens; what will happen to Guyana after oil is finished. This publication asked the VP if when oil is exhausted, will Guyana continue to borrow loans to finance the country’s development like they are doing today?

Saying that the question should be posed to the Opposition, Jagdeo questioned, “So you are saying, don’t build the power plant now, don’t build the other infrastructure now?… Cause a lot of this infrastructure that we’re putting in is not just a social nature (but of an) economic nature.” He explained that the power plant will facilitate lower rates for electricity and will therefore create the atmosphere to move further into the manufacturing sector. Building more farm to market roads and processing facilities like tissue culture labs will allow for further progression of the agriculture sector. “So you have to plan for the day when oil is no longer available or does not generate the same sort of income that it will generate say about three years from now because we are not at peak revenue from oil as yet,” he added.

Low however told this publication that, “The government is definitely not doing enough to build an economy that provides the kinds of high paying jobs Guyanese would desire after the oil economy has waned. There has not been a focus on improving productivity, the adaption of technology and increasing human capital. Without this approach, there will not be high-paying jobs regularly generated.”

Low also believe that there should be greater focus on strengthening the education sector to ensure students receive the highest quality education rather than failing key subject areas in droves. He said this should be combined with skills training and support for small businesses to drive job growth. On the issue of the possibility of the oil be exhausted in 20 years, Low said, “It is totally inappropriate for the government to talk about exhausting oil reserves in 20 years when it is clearly actively hiding them from the Guyanese people. Repeated disclosures from Stabroek block partners demonstrate that Guyana’s reserves are far larger than the PPP’s declared reserve, so there should be every expectation that Guyana will be able to produce oil for an even longer period than currently projected. The government is hiding these reserves to justify its narrative that higher salaries are impossible and to give it an excuse to overwhelmingly focus on infrastructure. This only serves to facilitate corruption via procurement fraud in large infrastructure projects.”

The economist explained that Equatorial Guinea which is perhaps the world’s most corrupted country has a budget focused on infrastructure and a whopping 75% is being spent of capital projects. Looking at the situation in Guyana with the huge focus on infrastructure he believes the government is headed in the same direction. Though it may be the concern of many that Guyana may end up like our CARICOM sister Trinidad Low stated that, “there is no comparison between Guyana and Trinidad. Trinidad only produced 3 billion barrels of oil in a century long legacy of oil production and Guyana will be producing far more than that in a shorter space of time. The idea that Guyana could end up like Trinidad is a myth that must be discarded. Rather, our country is wealthy enough that if we avoid corruption and incompetence, we can give every Guyanese the standard of living they deserve.”

• economy, Government, Minister, post oil, Trinidad