GOVERNMENT on Friday lashed out at the Private Sector Commission (PSC) for what it deems to be a politically motivated statement about the state of the country’s economy earlier this week.The PSC on Tuesday, said at a meeting with members of the business community, it was noted that there has been a “decline of the economy” thereby affecting investors’ confidence in the country.

“Among the concerns are the crippling new taxes for the mining sector and the institution of Value Added Tax on necessities.” The members of the business community present expressed a lack of confidence in the manner in which the Government is managing the economy. This, they said is reflected in the flight of capital from Guyana and the lack of significant new investments in the last 2 years. “Real estate values are dwindling, property for sale inventory is on the rise and wealth is eroding rapidly,” the body said while calling on government to create an enabling environment and to engage the business community.

Additionally, the PSC noted that the country cannot continue to improve and sustain growth, if investors’ confidence continues to be eroded. “The trajectory in which the country is heading at the moment does not inspire such confidence,” the statement said.

But the government said it is not surprised by the statement made by the PSC at a time when the country hosted the 28th Inter-Sessional Meeting of the Heads of Government of CARICOM. “The Government of the Cooperative Republic of Guyana notes without any surprise the statement issued by the Private Sector Commission (PSC), purportedly about the state of Guyana’s economy. The PSC statement was obviously timed to coincide with Guyana’s hosting of the 28th Inter-sessional Meeting of the Conference of the Heads of Government of CARICOM and is a thinly veiled attempt to embarrass and discredit the Coalition Government. “Rather than share in the pride that Guyana is a stable democracy that enjoys full respect for business and security for investment, the PSC yields to its political handlers in attempting to be a spoiler,” a statement from the government said.

Additionally, the government said it finds it “shameful that the PSC has allowed itself to be used as a political stool pigeon to repeat the propagandistic chatter of the opposition and to seek to undermine confidence in our economy and good governance.”

The strongly worded statement said the credibility of the body as an independent private sector umbrella has eroded as it has stayed quiet during “protracted periods of violent crime sprees, the descent of Guyana into a narco-economy and obscene levels of corruption under the former discredited and corrupt government with which several of its leaders were and continue to be associated.”

The Government said it should not be of surprise that the PSC would not “even grudgingly admit” that since the change in Government in 2015 the government has embarked on a challenging task of restoring confidence in governance and is repairing the country’s “tattered international image.”
The statement also references the 2017 Index of Economic Freedom which shows that Guyana is climbing the ladder of credibility for reducing corruption and protecting the integrity of the nation in all areas of governance. Guyana has gained 3.1 points to move to 58.5 points and is now at 106, positioned to break into the top 100. Additionally, the country has moved up 16 places to 124th on the World Bank’s Ease of Doing Business Index. This represents a significant improvement from 2015 to 2016, yet there has not even been a fleeting acknowledgement by the PSC.

On the Transparency International Corruption Perceptions Index, Guyana has gained an unprecedented 5 points, moving from 29 in 2015 to 34 in 2016. “It is noteworthy that in the last year of the PPP administration, Guyana’s score fell from 30 to 29 between 2014 and 2015, yet the PSC was silent.
It is pathetic that the PSC has mounted on the bandwagon of negative forces that are determined to resist legal and structural changes that are aimed at improving the investment and business environment in Guyana as we continue to show positive signs of development and progress,” the Government said.

Earlier on Friday, during a post-Cabinet press briefing, Cabinet Secretary, Joseph Harmon refused to comment specifically on the statement made by the PSC, but noted that the body does not represent all within the business community. “The people of Guyana voted for us and at the appropriate time…the people will make a statement,” he said referencing the 2020 General Elections.