BUSINESSES in Guyana are being advised to develop a sense of urgency for the advancement of corporate governance in their companies as this will ensure that they remain the main beneficiaries of opportunities stemming from oil and gas.

Giving the advice was Senior Vice President of the Guyana Gold Fields Inc. and former United States (US) Ambassador to Guyana, Perry Holloway.

The point was imbedded within his presentation made to members of the American Chamber of Commerce in Guyana (AMCHAM) at the Chamber’s Corporative Governance Luncheon hosted at the Marriott Hotel on Thursday.

The luncheon was hosted in collaboration with the Association of Chartered Certified Accountants (ACCA) and in keeping with a Memorandum of Understanding (MoU) signed between the two to build the capacity of local finance professionals.

In his address, Holloway told the packed audience that corporate governance is absolutely necessary in the business society as the “floodgates will soon open” with ‘first oil’ and the competition will be stiff between local and international companies.

“Guyana is getting ready to change significantly as a result of the soon-to-be-realised oil. This will bring great riches and many challenges; challenges not only for the government of Guyana but also for each and every one of you in the private sector. While creating systems for business in Guyana has always been challenging, one issue that was not always there to worry about is significant competition from new competitors outside of Guyana,” he stated.

“Guyana does not have all the necessary people, expertise or resources to go it alone. So, other companies will come in and once they’re here they will look for opportunities not only in the oil sector but they will look everywhere for opportunities.”

Holloway explained that these companies, many possessing good corporate governance, have an advantage in the way they ensure accountability, fairness and transparency in their relationship with their stakeholders

As such, local businesses, sooner rather than later, must take a fresh look at the type of company they want to be, what they want to achieve and how they are putting themselves in the position to achieve this.

They must also ensure they possess the rules, practices and processes which are designed to bring them closer to meeting their objectives.

While this may be difficult, Holloway reminded that corporate governance is necessary to balance the interests of the companies’ stakeholders and to incorporate their needs into the structure and operation of the business.

The former US Ambassador also urged the private sector to play a greater role in this regard as it will ultimately stand to benefit all Guyanese.

“The Private sector of Guyana could and should do more to develop the country and give back to the people of Guyana… both government and private sector need to do their part and I challenge each and every one of you to figure out more ways to make everything better for all Guyanese and the businesses will benefit,” he said.

Speaking, too, was Head of Business Development at Banks DIH, Ramesh Dookhoo who delved into the Private Sector Commission’s (PSCs) Corporate Governance Code of 2011 which helped to change Guyana over the years.

He stated that every company should have an efficient board and also urged the PSC to go into education and adaptation mode when it comes to corporate governance.

Meanwhile, immediate past President of the ACCA, Leo Lee and President of AMCHAM Guyana Zulfikar Ally thanked the audience for attending and also spoke to the importance of corporate governance.