…US Ambassador tells GMSA luncheon

GUYANA’S private sector, in its oversight of the implementation of the Natural Resource Fund (NRF), must be able to eliminate political biases from its contribution for the success of the Fund.

This was the advice of United States (US) Ambassador to Guyana, Sarah-Ann Lynch at the Annual Business Luncheon of the Guyana Manufacturing and Service Association Limited (GMSA) hosted at the Pegasus Hotel on Tuesday.

Present too at the function were members of the diplomatic corps and members of the political and business community.

Apart from being non-partisan, the US Ambassador stated that the Fund must also be transparent, independent and inviolable which, together, make up four critical areas which can guarantee successful management.

Before expounding on these areas, Lynch explained that Guyana’s NRF, recently established, is a government-owned fund set up for the investment of the country’s natural resources to protect and boost the economy.

“I must congratulate the people of Guyana for taking this important step before first oil production and before oil profits begin rolling in next year,” Lynch said.

However, she reminded that the ongoing phase of the implementation of the Fund will require hard work from both the international and local communities.

As such, she urged: “You, the private sector, have an important role to play in ensuring that the fund achieves its purpose to transform transient natural resources into stable and sustainable future income. Even though management of wealth funds is primarily a public-sector responsibility, their operation and success is heavily dependent on a proactive private sector participating in administration and oversight of the plan.”

Speaking to the principle of the Fund being non-partisan, Lynch told the attendees that the NRF must not be tied to any part of the “political machinery”.

She explained that this means that despite political leanings, stakeholders involved must make contributions to the implementation of the Fund in the interest of the Fund rather than their own political swaying.

“The Fund must be non-partisan. It is for the good of all Guyanese, regardless of political persuasion, hometown or ethnicity,” Lynch stressed.

“This not about politics; it is about economics. You, as a representative of the private sector, must do your part to ensure that the decisions your organisations make are impartial, objective and free from political bias so that they remain focused on economics rather than politics.”

She reminded the GMSA and other private sector groups that they have the opportunity to advocate for the NRF to be properly implemented from the very start before the profits of “first oi” begin.

The Ambassador also reminded the attendees that they represent a diverse array of Guyanese citizens, voters and taxpayers who expect the very best from the implementation of Fund.

Speaking also to need for the independence of the Fund, the US Ambassador stated that the NRF’s Public Accountability and Oversight Committee will have representation from private sector bodies which must make their inputs known.

Some of these whom she listed as having most potential to be useful in the implementation of the NRF are the Bar Association, the Guyana Press Association (GPA) and the Private Sector Commission (PSC).

Addressing the GMSA, she stated: “I urge you to continue taking a leading role in working with the PSC, as well as educating the populace to ensure the NRF is implemented in a way that can make all Guyanese proud.”

Meanwhile, regarding transparency, the Ambassador stated that such was not only important to fight possible corruption but to the publication of “high quality” information on how the government receives, spends and manages its public resource.
She advised the GMSA to push to ensure transparency at all levels of the NRF’s implementation through means such as a competitive and open procurement process and advice on fund investments and NRF-related matters.

Ambassador Lynch also stated that crucial to the success of the Fund is ensuring that it remains “sacrosanct” meaning that it is inviolable for the benefit of future generations.

“You should discuss this need with legislators, policy makers, community leaders and across society as a whole. Everyone may have different opinions to the fund and its implementation but the baseline framework needs to remain to ensure that fund achieves its purpose of bringing prosperity to Guyana well after the resources are extracted,” she said.

She also reminded that the benefits of the NRF can allow for the fostering of entrepreneurship, youth employment and a reduction in emigration away from Guyana.

At the luncheon, the Ambassador also congratulated the GMSA Board of Directors for their leadership at various intervals over the years; its commitment to the development of the manufacturing sector and its overall contribution to the development of the economy.

Also addressing the audience was GMSA President, Clinton Williams who noted that Guyana values its partnership with the US over the years and the advice of Lynch who was happy to assist.
He stated that the recent increased scrutiny on the management of Guyana’s oil resources proves that transparency is needed to protect Guyana’s non-renewable resources from exploitation.

Williams said that the GMSA has sponsored a past consultation on the establishment and management the NRF which was well received by the Government and some of the proposals made were introduced in the legislation.

“Hopefully, coming out of this session, we can have another view on how best we can optimize utilization and management of this fund,” he said.

Furthermore, the GMSA Head recommitted the support of the Association to contributing to the realization of a solution to the current political impasse in Guyana for the benefit of Guyana and its future in oil and gas.

“The organisation’s previous intervention in matters of these types has been well received by all political players. We stand ready, again, on this occasion, to do our best to ensure that we can get over this as soon as possible,” he stated.