– Gov’t seeks certification by global transparency body

GUYANA is hoping to submit its official application to become a candidate of the Extractive Industries Transparency Initiative (EITI) by November, Natural Resources Minister Raphael Trotman said on Tuesday. EITI is a global organisation of 51 countries which have subscribed to establishing, upholding and promoting the standards and tenets of good governance, transparency and accountability in the management of extractive industries.

At its core, the EITI promotes the belief that natural resources belong to the people and are to be extracted and managed on behalf of the people for current and future generations.
Countries, on assuming membership, coordinate their activities through a tripartite Multi-Stakeholder Group (MSG) that comprises representatives of government, industry and civil society.
On Tuesday at the Arthur Chung Convention Centre, a tripartite MSG symposium was convened to discuss the role of stakeholders in the process of safeguarding extractive industries.
Minister Trotman, who was among the key speakers, said the trust and confidence that EITI engenders are critical to the development of the country.
“Addressing the issues pertaining to better resource revenue collection is complicated and requires effective coordination of our agencies and institutions and coordination between civil society and the stakeholders in the extractive industries. Thankfully, the EITI process provides a bridge where all three can engage and exchange information and views with the intention of ensuring better management of revenues and better choices for our spending,” Trotman said .
Guyana’s economy is heavily based on the extractive industries. Its oil and gas sector is currently taking shape and is an indication for the extreme wealth that could behold the country once managed effectively. As such, EITI is critical in this process.
“The recent discoveries of hydro carbons in the Atlantic Ocean tell us that Guyana has oil and natural gas many times more valuable than our nation’s entire economic output,” Trotman said.
However, he made it clear that other contributing sectors such as gold-mining will not be glossed over or under-emphasised.
“Gold has been the largest earner of foreign revenue over the last seven years, from all indicators it will again be our single largest foreign exchange earner this year,” he posited.
The Natural Resources Minister said while the Government anticipates that the expected revenue will be “explosively transformative for the economic and social development of all Guyanese,” such ‘explosion’ will be both “good and controlled.”
Adhering to sound macroeconomic principles and becoming a member of EITI will aid in making this transformative process a reality, Trotman said.
“Transparency, accountability and good governance are the bedrock of strong economies and strong societies,” the Natural Resources Minister added.
Mike McCormack, a representative of Policy Forum (Civil Society), in his presentation underscored the importance of understanding and improving the management and use of natural resources in Guyana, particularly in the extractive sector.
McCormack said the next decade is likely to see a major transfer or shift in terms of greater reliance on domestic revenue for development rather than international aid.
As such, he said the elimination of illicit financial flows and availability of tax information are among key issues that ought to be addressed.
“If we are going to manage extractive resources there is a whole range of infrastructural changes that have to take place, our governance arrangements are no way near in place for this projected shift,” he opined.
The private sector was represented by Hilbert Shields – a geologist. Minister within the Ministry of Natural Resources, Simona Broomes, British High Commissioner Greg Quinn, Canadian High Commissioner Pierre Giroux, and U.S. Ambassador Perry Holloway were among officials present at the symposium.
Even as the country awaits full membership of the EITI, in its quest to embrace good governance standards in the regulation of extractive industries, Guyana has been receiving guidance and support from the EITI’S Norway- based secretariat and the Trinidad & Tobago Chapter (TTEITI).