THE Guyana Extractive Industries Transparency Initiative (GYEITI) has adjusted its timeline to cater for the sensitisation of parliamentarians and heads of government organisations on Beneficial Ownership (BO), to within 60 days after the scheduled March 2, 2020 elections.

According to the BO Roadmap of GYEITI, approved by the Multi Stakeholder Group (MSG), one of its planned events is organised round table meetings for Parliamentarians as part of the Natural Resources Sub-Committee and heads of government organisations, to have open discussion on BO and its importance to the extractive sector.

BO, within the goal of the EITI Standard 2016, discloses and makes transparent who controls and receives the proceeds from licences to extract a country’s natural resources. The roadmap has highlighted that the strengthening of the legal framework in key areas which ensure that information on beneficial owners are publicly accessible in registries, is critical to the success of Guyana’s extractive industries. The oil and gas sector in Guyana is most recent to come alongside the country’s long-established extraction of non-renewables such as gold, bauxite and other precious minerals.

The EITI has stated that companies which have obtained rights to these resources are often unknown having been hidden by a “chain of unaccountable corporate entities”.
“This problem also affects other sectors and often helps to feed corruption and tax evasion. People who live in resource-rich countries are at particular risk of losing out as extractive assets are too often misallocated for corrupt reasons… by 2020, all EITI countries have to ensure that companies that apply for or hold a participating interest in an oil, gas or mining licence or contract in their country, disclose their beneficial owners,” the EITI has cautioned.

This information will enable law enforcement, civil society and others to hold accountable anyone guilty of the misuse of anonymous companies. Added to this, Politically Exposed Persons (PEPs) or public officials also have the responsibility of being transparent about their ownership in these companies.

According to the EITI Standard, January 1, 2020 had been named as the date for all EITI implementing countries to disclose their ultimate beneficial ownership for inclusion in the EITI report but the EITI Board has allowed for flexibility to 2021. The 2019 Standard now requires disclosure of contracts signed after January 1, 2021. National GYEITI Coordinator, Dr. Rudy Jadoopat, reminded the newspaper the EITI Multi Stakeholder Group (MSG) will have to take into consideration all the peculiarities with regards to the timeline adjustment.

The MSG Board is comprised of 12 members and 12 alternates representing government, civil society and companies, which operate in the extractive industry. Dr. Jadoopat noted that the flexibility of the timeframe will allow for countries like Guyana to make an extra effort to place themselves in order.

He also expressed confidence that Guyana will be able to meet the requirements of the EITI.
“We have to start showing that we’re making efforts to establish that Beneficial Ownership Register – all the names of all the entities operating in the extractive sector, detail as to who owns the companies, who are the beneficial owners and the politically exposed persons,” he said, at the sidelines of an EITI Special Capacity Building Workshop at the Cara Lodge on Friday. “I am very optimistic as always and I think we can do it, there’s nothing that can prevent us from getting it done.”