PRESIDENT Dr. Irfaan Ali, in refuting claims that the opposition was “shut out” of the process to select a nominee for the Natural Resource Fund board, has maintained that all the necessary procedures were followed.

He described the claims as “untrue” as he responded to questions asked on the sidelines of a media briefing held at State House on Sunday

“The parliamentary process is that the committee selects someone of standing in our country or society; that process brings out a name. It is not that the PPP supported a name that is a minister or a member of the PPP. This is a former member of the PNC……there is a parliamentary process in which a committee makes a decision and we have to respect that process,” he stated.

The Parliamentary Committee on Appointments was tasked with nominating one member for the board. On March 2, the PPP/C MPs sitting on the committee used their majority to select former PNC MP Dunstan Barrow as the nominee, which resulted in the Opposition members walking out.

The private sector is expected to select another nominee.

The board represents a major aspect of the recently enacted Natural Resource Fund legislation under which, the excessive powers previously given to the finance minister will be reduced. The board and an oversight committee will now be responsible for managing the fund.

The board adds a layer of separation between political leaders and the fund and will consist of directors, appointed by President Ali.

The NRF Act contains provisions that confine the selection of directors to having wide experience and ability in legal, financial, business, or administrative matters, and prohibits the appointment of a person who is a member of the National Assembly.

The Act has a long list of mechanisms that promote transparency and practical governance.

Parliamentary scrutiny is a cornerstone of the governance mechanism the government has put in place to ensure the operations of the fund are above board.

The new law will demand that withdrawals and spending of oil revenues benefit from several layers of scrutiny, including at the pre- and post-parliamentary level as was recently indicated by President Ali.

The new legislation requires that withdrawals from the fund only be used to finance national developmental projects or respond to major natural disasters. Further, those projects would all have to be included as components of the national budget, which is subject to parliamentary debates and approval.

Moreover, in accordance with existing financial regulations, the projects and programmes funded by oil revenues would also have to be investigated by the Office of the Auditor General, after which, a comprehensive Audit Report has to be compiled and submitted to the National Assembly. That report then has to face further scrutiny by the Parliamentary Public Accounts Committee (PAC), which is led by the Opposition.