AN INCORRUPTIBLE PRESIDENT DECLARING FIRST OIL: A GOOD SIGN 

On December 20th, ExxonMobil and its partners made it known that there was the production of the first commercial crude from the Liza field. On Friday, December 20th, in a live televised address to the nation, His Excellency President Granger declared ‘National Petroleum Day’ while synchronously communicating that it is ‘our duty to protect the country’s patrimony and to ensure the sustainable management of finite hydrocarbon resources.’

Besides the national euphoria coming from the prospect of 84% GDP growth next year (IMF) for Guyana, there was a feeling of national reassurance to witness a leader of absolute rectitude and probity declaring the official start of Guyana’s oil and gas production. It is most worthy to note, when the dark forces launched their parliamentary coup d’etat on December 21st, 2018, one of their key objectives was to ensure that His Excellency President David Granger did not get the chance to announce the beginning of first oil, let alone steer the country through the first phase of its oil-and-gas existence.
They knew that once this occurred, it meant that their chances of feasting on Guyana’s new-found petrodollars would take a hit. Thankfully, the nation survived this Machiavellian endeavour and we were able to experience this life-changing development with decency and honesty at the helm.

The Institution of the Presidency in the Guyana oil-and-gas context
In our unitary system of government which Guyana possesses along with 165 countries, the institution of the presidency holds unique significance and power. This is undergirded by our Constitution which ascribes special powers to the Executive President. It is for this reason, the character of the person who occupies the seat of power at Shiv Chanderpaul Drive is absolutely critical and directly tied to what the people will experience. This is the point that is made pellucid when one reflects on the federal and other forms of government where power is diffused and the President may not necessarily exert so much control over the affairs of the people.
Our governmental construct lends itself to easy corruptibility of the highest office of the land, if occupied by avaricious characters who may be interested in power for personal aggrandizement. Make no mistake, oil companies, executives and representatives fly to world oil capitals with their attention solely focused on the head of state. They come with a clear intent to seek out that office and are prepared to dish out whatever resources are required to compromise the person occupying same. This modus operandi has been on display in European nations such as Russia and Kazakhstan. If the leader is prone to partying, debauchery and always on a hustle, the people can kiss the benefits of oil goodbye. If a leader is going to resist the mercenary overtures of those who deal in the business of ‘black gold’, he/she has to be rooted in principles and have impenetrable care for the people. This writer is not arguing that this is the only variable that guarantees the benefits of oil for the people, but is a key component. In this regard, the people of Guyana can consider themselves in good stead.

The Presidency and the Coalition Government Arrangement
It is well known, oil companies with dishonourable intentions would rather deal with strongmen who ride roughshod over a nation. They are usually of the view that any unscrupulous business is best had in a context where there is one man who can be purchased for access. Conversely, those who are hell-bent on skimming are not inclined to submit to too much coalescing, they consider complex decision-making in a coalition arrangement to impede their unscrupulous efforts. As we enter our first phase of oil, we are better off in a governance system where there is constant internal debate and checks on decision-making. Several parties with diverse policy agendas and perspectives augur well for Guyana at this juncture of our unprecedented transformation.

There is added comfort knowing first oil is under the tutelage of a President who heads a coalition government. Public discussions and debates on the ‘cash grant’ provide a glimpse of how a coalition framework can work in favour of the people. It would have been a sad day for Guyana if first oil came in the context of a monolithic, vindictive state headed by a puppet President. It would have been an inauspicious start with ominous portent.
Oil, the Presidency and Vision
It has been well established that if petrodollars are properly managed, it can lift developing countries completely out of poverty. There can be the building of schools, hospitals, roads and above all, reduce dependency on international aid. In the New Petroleum Producers Discussion Group workshops held at Chatham House in November 2012 and May 2014, in Tanzania in July 2015 and Kenya in March 2016, it was resolved: ‘Governments in producer countries must have a clear vision of their objectives in the petroleum sector.’

This will allow them to focus their energies and scarce resources on the country’s top priorities. ‘ If the presidency is occupied by one who is preoccupied with the ‘hustle’ benefits, all of the aforementioned becomes null and void. If a nation is led by a group of people prone to kleptocracy, the money end up in private pockets and does not reach the people. Nigeria provides the negative exemplar of this phenomenon. Some experts estimate that US $400 billion has been stolen and misused since 1960. Vision means nothing if the real intent is to realise the next mansion or a next bank account. This provides another reason to be grateful that we have kick started our journey as an emerging petroleum producer with a leader who has a clear vision for the country and has zero interest in the personal acquisition of wealth. This is a good sign.

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