IN a significant move towards greater transparency and accountability in Guyana’s burgeoning oil and gas sector, Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr. Ashni Singh, presented the Natural Resource Fund (NRF) Annual Report for the fiscal year 2023 to the National Assembly.

This action underscores the PPP/C Government’s commitment to transparent management of the nation’s oil resources, pursuant to Section 32(4) of the Natural Resource Fund Act 2021.

Minister Singh’s presentation is more than a procedural requirement; it is a testament to the diligent work of the NRF Board, the Public Accountability and Oversight Committee, and the Investment Committee.

The Minister commended the sterling efforts of these bodies, reflecting the government’s recognition of the vital role these institutions play in ensuring the NRF operates with the highest standards of accountability.

The NRF Act 2021, which came into effect on January 1, 2022, marks a pivotal advancement in the governance of Guyana’s oil wealth. The Act introduces several enhanced clauses aimed at separating the management of the Fund from the Minister responsible for Finance. This structural separation is crucial for preventing conflicts of interest and ensuring that the Fund’s policies and performance are rigorously reviewed and approved by an independent Board of Directors.

Furthermore, the Act mandates that all withdrawals from the NRF must receive Parliamentary approval, a measure designed to safeguard the Fund against misuse and ensure that all disbursements are transparently accounted for. Simplified calculations for achieving the Fund’s objectives are also part of this robust framework, enhancing clarity and efficiency in its management.

Internationally, these measures have not gone unnoticed. The International Monetary Fund (IMF) in its Article IV December 2023 report, praised the strengthened governance of the NRF, particularly highlighting the establishment of the NRF Board of Directors, the Public Accountability and Oversight Committee, and the Investment Committee. The IMF also commended the PPP/C Government’s efforts to ensure full transparency by publishing notifications of petroleum revenue receipts in the Official Gazette.

The NRF Board of Directors, appointed by President Irfaan Ali on August 30, 2022, comprises a diverse and experienced team led by Major General (Ret’d) Joseph Singh, MSS, as chairperson. The other directors include Dunstan Barrow, A.A., nominated by the National Assembly, private sector representative Ramesh Dookhoo, Carolyn Rodrigues-Birkett, and Professor Compton Bourne, O.E.

Additionally, the Public Accountability and Oversight Committee, appointed on the same date, is tasked with providing non-governmental oversight of the Fund’s operations. This nine-member committee, chaired by Clement Sealey, replaces the previously cumbersome 22-member body proposed in the NRF Act 2019. The streamlined committee includes representatives from the religious community, private sector, organised labour, and professional sectors, ensuring a broad spectrum of perspectives in its oversight role.

At the recent National Assembly sitting, Minister Singh also presented notifications of all petroleum revenues received between March 29, 2024, and June 30, 2024, as required by the NRF Act 2021. The total amount in the NRF at the end of June 2024 stands at an impressive US$2.9 billion. A key improvement to the Act is the stringent requirement for the minister to disclose petroleum revenues in the Official Gazette within three months of receipt, with severe penalties, including imprisonment, for non-compliance.

The PPP/C Government’s dedication to transparent and accountable management of the oil and gas sector is commendable. These measures ensure that the NRF funds are invested wisely to benefit both present and future generations of Guyanese. As the nation continues to harness its oil wealth, such robust frameworks are essential in securing a prosperous and sustainable future for all.