…urges gov’t to give remaining oil blocks to local companies

THE African Cultural and Development Association (ACDA) has thrown its support behind the proposal for annual cash transfers to citizens from oil revenues, saying that its constituency – African Guyanese, represent a large portion of the poor and powerless in Guyana.

A few weeks ago at a forum held in Buxton, Professor Clive Thomas floated the idea, but since then there has been several comments both for and against the proposal. Government said it has not addressed the issue, but President David Granger has stated that there was no evidential basis for such an initiative.

In a statement issued on Thursday ACDA said it noted President David Granger’s recent pre-emancipation address at Beterverwagting. ACDA said the President seemed to have recognised that African Guyanese are at a disadvantage in the society when he alluded to most of our people always wanting a raise. “Our work in our communities has shown us that in most of those instances the request for a raise is to pay for a bus fare to get home or to cook a pot for a household. Things are dread in most African-Guyanese households,” ACDA said.

The group said it fully supports the recent proposal of Professor Thomas for the Government to make cash transfers from the revenues it will garner from oil and gas, to poor Guyanese households. “This will certainly be one way that President Granger and his Government can demonstrate that an effort is being made to reverse some of the economic disadvantages that plague our communities each day.

We encourage the Government also to give effect to the idea of removing the income tax from personal incomes and lowering the corporate tax rates to competitive levels within five years of the commencement of the receipt of oil revenues as a means of encouraging work and industry.”

ACDA further calls on President Granger and his Government to consider ceasing all allocations of oil concessions to foreign companies and instead, begin to grant these concessions to local Guyanese thereby ensuring that Guyanese are given the opportunity to share in the benefits and patrimony of this emerging oil sector. “ACDA is prepared to pursue the mobilisation of resources both at home and in the diaspora for investment in the sector. ACDA claims this opportunity as a right that is just, especially since the bodies of thousands of our Ancestors lie at the bottom of the oceans of the world, a crime that has been described by the United Nations as ‘the greatest crime against humanity.’ The Atlantic Ocean is one of the Oceans in which the Guyana oil concessions now occur.”

Thomas, a renowned economist, speaking at the forum said the government should consider annual cash transfers of $1Million (US$5000) to poor households. However, President Granger said he has not received a formal proposal from Dr. Thomas in this regard. “I have not considered that proposal, it is outside of the recommendations of the Sovereign Wealth Fund, the Natural Resources Fund and I don’t know that there is a precedent for it.”

The Head of State reminded that the quintet of ministers and the newly appointed Head of the Department of Energy, Dr. Mark Bynoe, are advising him on matters related to the sector.

Minister of Finance, Winston Jordan, in weighing on the issue, told reporters that he embraced the public debate on direct cash transfers to citizens after Guyana begins oil production in March 2020. Jordan said if such an approach were to be adopted, then extreme caution must be employed, a view shared by Natural Resources Minister, Raphael Trotman.

He said over the years, there have been such transfers which targeted education. He pointed to the national school-feeding programmes and the uniform vouchers that students in the public school system receive. “I must admit to you, I would have a difficulty if Cabinet were to agree to it and if the implementation it wasn’t properly structured,” said the finance minister, who noted that rather than giving citizens US$5000 as hypothetically suggested by economist, Professor Clive Thomas last Sunday in Buxton, issues within critical sectors should be examined.

“Why not look at issues such as education, health, youth programmes, small businesses …teaching a man to fish and then he could do it for a lifetime, rather than giving him a fish when he could only feed himself for a short while,” Jordan suggested, while noting that the matter has not yet reached the level of Cabinet. Trotman, for his part, said too that the public discourse on the subject is timely, as Guyana has within its reserves more than 4B barrels of oil equivalent. “For 50 years Guyanese have been told about their potential and what they are entitled to, we have seen that potential around us. This and future governments have a duty to spread oil wealth in a responsible way to as many Guyanese as possible. The AFC supports any initiative that spreads the wealth transparently and equally not just for some, but to ensure that every citizen in all 10 regions get an equal say in how this money is spent and they get a share of it,” Trotman said, noting that he would make such a representation to Cabinet.