—includes conflict-of-interest rules, annual audits, lending safeguards and hefty fines to protect public resources

The proposed Guyana Development Bank will operate under a strict governance and accountability framework, with directors facing removal for misconduct and individuals and companies exposed to multimillion-dollar fines for offences ranging from providing false information to misusing the institution’s funds and assets.
Those provisions are contained in the Guyana Development Bank Bill 2026, which was recently published in the Official Gazette and is expected to be debated in the National Assembly.
While much attention has focused on the bank’s role in providing financing and support to small and medium-sized enterprises (SMEs), the legislation also outlines extensive governance, transparency and enforcement mechanisms designed to safeguard public resources and ensure prudent management.
The bill places significant responsibility on the institution’s board of directors, which will oversee the affairs and business of the bank.
Among its responsibilities, the board will be required to approve strategic and business plans, establish credit, risk and governance policies, monitor management performance and safeguard the independence of credit decisions. The legislation also stipulates that the bank must operate with due regard for financial sustainability and risk management.
To strengthen public confidence in the institution, the bill establishes strict eligibility requirements for board members.
Under the proposed legislation, an undischarged bankrupt, a person of unsound mind, or anyone convicted of an indictable offence or an offence involving fraud, dishonesty or moral turpitude would be disqualified from serving as a director.
The legislation also outlines several circumstances under which a director may be removed from office.
According to the bill, a director may be removed if he or she engages in any act in the performance of duties that constitutes a wilful breach of duty or results in personal financial gain.
Removal may also occur where a director is found guilty of misconduct, neglect of duty, conflict of interest or any other cause that renders the individual unfit to continue in office.
Conflict-of-interest provisions feature prominently throughout the legislation.
Directors and officers of the bank will be required to disclose any direct or indirect interest in matters before the institution. Once such an interest is disclosed, the legislation provides that the individual shall not participate in any deliberations or decisions relating to that matter.
The bill also contains provisions governing the bank’s finances and lending operations.

Clause 21 provides that the Guyana Development Bank shall be exempt from the payment of tax on its profits and income, allowing the institution to retain earnings for lending and development activities.
Clause 24 places a cap of $3 million on loans issued to any individual or enterprise, although the minister responsible for finance may amend that ceiling through an order subject to the negative resolution of the National Assembly.
The legislation goes further by creating a number of offences aimed at protecting the integrity of the institution.
Under Clause 33, a person commits an offence if he or she provides false or misleading information to the bank. Offences are also committed where a person obstructs or hinders the bank in the exercise of its functions, falsifies, conceals, alters or destroys records relating to its affairs, improperly discloses confidential information obtained through the institution, or wilfully misapplies or misuses the bank’s funds, property or assets.
The penalties attached to those offences are substantial.
Any person convicted of an offence under the legislation would be liable on summary conviction to a fine of not less than $5 million and not more than $10 million.
Importantly, the bill extends liability beyond individuals.
Where an offence is committed by a company or other body corporate, the entity itself may be fined between $5 million and $10 million. Directors, managers, secretaries and other officers may also face personal liability where the offence was committed with their consent or connivance, or where it resulted from their neglect.
This means that corporate officers may be prosecuted and punished in addition to the company itself.
The legislation also seeks to ensure accountability through rigorous record-keeping and auditing requirements.
The proposed institution would be required to maintain proper books of accounts and records and prepare annual financial statements. Its accounts would be audited annually by the Auditor General, while annual reports and audited financial statements must be prepared and submitted in accordance with the Fiscal Management and Accountability Act.
Confidentiality provisions are also included in the bill.
Information obtained by the bank in the course of carrying out its functions would be treated as confidential and used only for purposes authorised under the Act. Improper disclosure of such information is specifically identified as an offence and could attract the same penalties as other violations.

Additionally, the bank will be required to adopt written credit policies governing loan eligibility, risk assessment, approval thresholds, monitoring procedures and recovery measures. Loan restructuring and write-offs would only be permitted in accordance with approved policies and under appropriate oversight mechanisms.
The Guyana Development Bank is intended to provide financing, technical assistance and other support services to small and medium-sized enterprises, with the aim of promoting business growth and economic development.
The bill establishes the institution with an authorised capital of $40 billion, to be subscribed and paid by the Government of Guyana in amounts and at times determined by the minister responsible for finance.
Earlier this week, President Dr Irfaan Ali described the proposed Development Bank as a catalyst for long-term business growth, noting that it would provide critical support for entrepreneurs seeking to transform ideas into sustainable enterprises capable of expanding and enduring over time.