…Trotman says EITI compliance crucial to Guyana’s future

WHILE governments across the world tend to shy away from the publicity that comes with full transparency in their extractive sectors, the Government of Guyana believes that the positives are greater than the negatives in this regard, and is forging ahead to meet the requirements of the Extractive Industries Transparency Initiative (EITI).

Such was the message of Minister of Natural Resources Raphael Trotman, who delivered remarks at the opening ceremony of the EITI-led Special Capacity Building Workshop on Friday held at the Cara Lodge. The workshop focused primarily on ‘Beneficial Ownership and Systematic Disclosure’ which examines issues with regards to “politically exposed persons” and practices which can obscure who are the true beneficial owners of a company.

Hosted by the EITI International Secretariat, the workshop was attended by representatives of the GYEITI National Secretariat; multi-stakeholder groups; extractive sector stakeholders; government officials and members of civil society.

In remarks, Trotman said that the government has made “monumental strides” in the past few years, and is proud of its submission of the first EITI Report ahead of the its deadline. The 6,000-page report will pave the way towards positive reformation and transparency in the extractive industry.

“Governments, by nature, tend to be shy about publicity, because these often have implications for national security and stability. In Guyana, we recognise this phenomenon, but still believe that the gains to be made by being transparent far outweigh the negatives that may arise. I speak from personal experience here. The government has committed to making all contracts public, and I believe this speaks to the level of seriousness we attach to the sector and its management,” Trotman said.

He added that the government is proud of its decision to make all petroleum contracts public, as, heading into 2020 and beyond, transparency in the oil-and- gas economy will be at an even greater demand. He pledged: “The natural resources sector will continue to be an important contributor to our economy, even as we prepare to embrace oil production in a few short months. It is with this foresight that we are keen to ensure that GYEITI is fully functional to respond to the new experiences that oil production will undoubtedly bring.

Meanwhile, the EITI Multi-Stakeholder Group (MSG) has drafted an Action Plan to implement the recommendations outlined in the report, while an independent administrator will soon be brought onboard to prepare for the country’s second report.

The minister said that since the submission of the report, several outreaches have been conducted countrywide to help Guyanese understand the report’s contents and its benefits to the extractive sector.

The journey will come with challenges, but Minister Trotman said that the government remains committed to meeting the challenges head-on.

He urged stakeholders in attendance to make the best of the opportunity to better understand the best practices within the EITI.

At the workshop, presentations defining Beneficial Ownership (BO); Politically Exposed Persons (PEP); and advice on the main steps for establishing a BO Register in Guyana were made by EITI Regional Director Dr. Francisco Paris. He fielded questions from the audience on several topics, including the challenges of the voluntary nature of the EITI.

Dr. Paris explained that many countries, having realised the challenges in this regard, have started to enact laws to make participation mandatory. This is so, as, while becoming a signatory of the EITI is voluntary, once implementation begins, the country is required to achieve compliance with the EITI requirements with the participation of all companies and government agencies making or receiving payments.
At the EITI Global Conference held in Paris in June 2019, Guyana was appointed as a member of the EITI International Contract Transparency Committee.

The EITI International Secretariat has noted that Guyana’s Anti-Money Laundering and Countering the Financing of Terrorism Act 2009 (AML/CFT) also takes interest in beneficial ownership and politically-exposed persons. Other areas within Guyana’s laws which complement the work of the EITI are the Integrity Commission, the Access to Information Act and the Petroleum Regulations No. 5 of 1986.