By James McAllister

EQUATORIAL Guinea has a lot of lessons for Guyana and the people of Guyana cannot afford to ignore them. Oil was discovered in Equatorial Guinea in 1996 and by 2005, oil production was around 320,000 barrels per day. The Gross Domestic Product (GDP) increased from US$440M in 1997 to US$23B in 2012. The per capita GDP was impacted significantly because of a relatively small population of 1.2 million people. GDP per capita increased from just US$2,200 in 2000 to US$8,201 in 2006 and US$23,789 in 2012.

However, by 2017, GDP fell to US$12.5B and per capita was down to US$12,737, and is projected to fall to US$7,500 by 2024. What happened? A lot. It is true that the price of oil fell from US$112 per barrel in 2012 to $48 in 2017, but this is not the only reason. The primary reason is corruption, and this is what Guyana must guard against.

The governing elite in Equatorial Guinea has made corruption into an art form. What is frightening is that there are a number of similarities between what is happening in Equatorial Guinea and what happened in Guyana under the PPP.

The Berbice Bridge; the Skeldon Sugar Factory; “Pradoville,”; New GPC sole-sourcing; keeping the Lotto money out of the Consolidated Fund; the law books theft and the oil blocks give-away are all tactics lifted directly out of the Equation Guinea playbook. How? Let us look at it.

Each year, the regime in Equatorial Guinea spent approximately 80 percent of its budget, approximately US$4B, on infrastructural projects. The majority of these projects were not needed and are white elephants today. They were built because they present the best opportunity for the elite to siphon off money. For example, the country has five airports, but only two hospitals; each ministry has three buildings, but schools have no running water; an island with a population of 5,000 has a US$120M seaport, but no school.

The Berbice Bridge Scam
The PPP was accused of discrimination against New Amsterdam because of the location of the Berbice Bridge. It was alleged that the location was because the PPP was looking after supporters on the Corentyne. Not true, it was just a scam at the expense of the people of Berbice.

At least three reputable international companies had submitted proposals to build fixed, high-level bridges at locations different from the current location where the bridge is. The PPP rejected all of the proposals and insisted that it wanted an Acrow panel floating bridge. The interesting thing about an Acrow panel bridge is that it is a proprietary item. That is to say, it is a special product available from very limited sources. In such cases, manufacturers give incentives, sometimes as much as 10%, to officials who chose their products for major projects. In the case of the Berbice Bridge, US$2.5M would have been the incentive.

The location and type of bridge was never about supporters. There were two and a half million reasons why the decision was made. Now the people of Berbice are saddled with a bridge they cannot afford to use and must depend on government subsidy. Yes, there was a need for a bridge across the Berbice River. However, like in Equatorial Guinea, the PPP designed the project to satisfy corrupt desires instead of the needs of the people.
Skeldon Sugar Factory

Many local experts were puzzled by the PPP’s determination to build the Skeldon Sugar Factory. GUYSUCO had admitted that the cost of production at the factory would have been significantly above the world market price for sugar, but yet the PPP persisted. Some argue that this determination was the PPP’s effort to take care of its supporters. However, if this was all about supporters they would have acted on the information that the sugar lands at Wales and Uitvlugt were depleted. They were advised to diversify and commence training of sugar workers at Wales and Uitvlugt to ensure that they are marketable outside the sugar industry. They did nothing. Instead, they rushed to build the US$200M Skeldon Factory. As in Equatorial Guinea, the factory is now a white elephant. As in Equatorial Guinea, the project was overpriced by US$60M.

The Skeldon Sugar Factory was never about sugar workers; it was always just a prestige project conceptualised to siphon off money into the pockets of the PPP elite.
“Pradoville” and the Law Books theft.

“Pradoville” and the law books theft are related. “Pradoville” is a case where the PPP decided to allocate national assets to its executives. They sat in cabinet and formally decided to engage in a corrupt act.

The PPP is contending that the law books — national assets — were not stolen because the President gave it to the former AG. The courts might be tempted to go along with this argument because of the limited monetary value of the items in question, but this would set a dangerous precedent. If our courts rule that the President had the power and authority to give away the law books — national assets — then he had the power and authority to give away house lots in “Pradoville.” This would mean that Jagdeo and Ramotar could have given away the Kaieteur National Park.

In Equatorial Guinea the President arranged for the oil company to place the oil proceeds in his personal bank account. The PPP’s defence of “Pradoville” and Law Books scandals is an argument in support of the actions of the president in Equatorial Guinea. The Lotto funds issue is an example of the PPP’s willingness to become creative with the handling and flow of government money.

Oil Blocks Giveaway
The report of the allocation of oil blocks by the PPP to their friends is apparently beyond Equatorial Guinea levels. Knowing that Exxon found oil, the PPP moved swiftly to give away national assets worth tens of billions of U.S. dollars. No doubt, like with the Skeldon Factory and the Berbice Bridge, there is going to be financial benefits for PPP officials.
Guyanese must look at Equatorial Guinea and make informed decisions. It is true that a high per capita GDP is a prerequisite for the Good Life, but poverty and squalor could still exist if we allow a kleptocracy to be in charge of our resources. For instance, in Equatorial Guinea, despite the high per capita GDP, pricey is widespread, and children suffer stunted growth because of malnutrition. The government spends only 2 percent and 3 percent of the budget on health and education respectively, but 80 percent on infrastructure. There is no investment to diversify the economy, and the collapse in oil prices had a devastating impact.

The PPP has demonstrated tendencies similar to the regime in Equatorial Guinea. Fortunately, unlike in Equatorial Guinea, the people of Guyana have it in their power to determine if the PPP, in its current form, is allowed to be in charge of our national resources. When we head to the ballot box in 2020 we must know our vote will determine if there is going to be a Good Life, or if we will replicate Equatorial Guinea, where the people are in abject poverty but the elites are rich.

Research has shown that wealth generated from the hydrocarbon industries tend to entrench authoritarianism previously existing, rather than usher in greater liberties. Under the PPP we saw the murders of Ronald Waddell and Courtney Crum- Ewing, the incarceration of Mark Benschop and the throwing of faeces on Frederick Kissoon, all because they were vocal against the PPP government. This is the kind of attitude that will become entrenched if the PPP, in its current form, is allowed to form the next government.