THE National Assembly recently approved a motion by Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh which will allow for the Appointment Committee to recommend a parliamentary nominee to serve on the 2021 Natural Resource Fund’s (NRF) Board of Directors. This is in keeping with the Act which also makes provision for another parliamentary nominee to serve on the Public Accountability and Oversight Committee.

This is a significant development in terms of transparency and accountability in the management and use of our oil revenues which have already been earmarked to facilitate developmental works in the 2022 Budget Estimates. The fact that Parliament will now have a representative in these two important bodies can only serve to enhance transparency and accountability and must therefore be seen as a welcome development.

The inclusion of the new Act (Board of Directors) was initiated by the PPP/C administration with a view to enhance transparency and at the same time remove the excessive powers of the minister as contained in the old Act. It also makes provision for the management of the Fund by a Board of Directors which is responsible for reviewing and approving policies which effectively remove the management of the Fund from the Finance Minister.

The new Act also makes provision for suitable and qualified persons who ‘shall be selected from among persons who have wide experience and ability in legal, financial business or administrative matters, one of whom shall be nominated by the National Assembly and one of whom shall be a representative of the private sector.

It is significant that both the National Assembly and the private sector are given representation in the NRF in which our oil revenues are being deposited. The Fund is expected to grow exponentially as more and more oil wells become operational in the coming years. As the highest and supreme law-making body in the country, it is important for Parliament to have a say on what is going on regarding the management of the oil money which could potentially run in the billions of dollars. The private sector, as the engine of growth also has a vested interest in how the billions of dollars will be utilised to generate wealth. Both are important stakeholders and the passing of this legislation would be highly instrumental in the creation of a new governance and management architecture based on the principles of openness, transparency and accountability.

There can be no doubt that this amended legislation is superior to the one that was hastily put together by the previous APNU+AFC administration, which apart from the unconstitutionality of the regime following its defeat at a no-confidence vote had also vested enormous powers in the hands of the Finance Minister. The failure of the then Finance Minister to account for the US$18M signing bonus until that information was leaked into the public domain is enough justification for the creation of oversight entity as envisaged by the new Act.

And as the Finance Minister, Dr. Ashni Singh correctly reminded, the PPP/C administration is on record as saying that under no circumstance would it proceed to withdraw monies from the Fund unless those fatal flaws as contained in the previous Act were fixed. This is exactly what the enactment of this amended NRF legislation seeks to do, namely, to remove the unlimited powers of the Minister of Finance and have those vested in a Board of Directors of which the National Assembly would have a representative.

Even more important from a governance perspective is the fact that transfers from the NRF to the Consolidated Fund will be fully scrutinised by the National Assembly at every step of the way and as the Finance Minister explained during his address to the National Assembly. The fund belongs to the Guyanese people and it is only fair that they understand the basis on which the amount to be transferred from the fund is calculated.

President Dr. Mohamed Irfaan Ali had earlier drawn attention to the deficiencies of the 2019 version of the NRF which he said was both unconstitutional and deficient and pledged to have it restructured to hold the government accountable.

“I want to assure you that the Natural Resource Fund will be managed in the interest of every Guyanese… We have outlined very clearly the type of expenditure: people-oriented, to add disposable income to people’s pocket, to give them the best possible social services, to enhance their livelihood, to improve their lives, to change the image of Guyana and to transform the country,” the President said.

It is significant that the passage of the legislation to create a NRF Board comes on the eve of the presentation of the 2022 Budget Estimates by the Finance Minister, all intended to realise the vision and commitment of President Ali and his PPP/C administration to create a socially just and prosperous society in which all Guyanese will benefit.