Local Content Policy must benefit Guyanese

The Local Content Commission recently handed over its work to the Government. As Guyanese await, not without suspicion to see what is in the Policy for them, faith is held that any disappointment will be minor, not severe. The trepidation is informed by the Government’s action of practically giving away the oil and gas resources to foreign capital and allies. It is only a matter of time when the truth will hit home how badly the Government of Guyana has let down Guyanese.

From the giveaway of the Stabroek and Canje blocks, valued at billions of United States (U.S) dollars, by the Donald Ramotar government days before the 2015 Election to the Ifraan Ali government signing away the US$9 Billion Payara deal less than a month after being sworn into office, things are not regular. The A Partnership for National Unity +Alliance for Change Coalition Government is not without responsibility in making mistakes but not to the severity of the People’s Progressive Party/Civic government. While the latter remains pig-headed about their dealings regardless of criticism, the former was more inclined to respond and change course.

The PPP/C government negotiated a one percent royalty. Guyanese cried foul, knowing full well Guyana deserves more. The Coalition Government responded and was able to negotiate an increase from one to two percent, reflecting a 100 percent increase. The problem with the negotiation is that from the beginning the bar was set too low. When efforts were made to improve the negotiation, as was being attempted before Guyana signed off on the Payara deal, Head of the Environmental Protection Agency, Dr. Vincent Adams was instructed by the government to immediately go on leave. He was  piloting the environmental element and had insisted Guyana gets a better deal.

The Ali government brought in Canadian consultant, former Alberta Premier Alison Redford to ‘review’ the deal and moved with haste to sign it shortly after. Guyanese later learnt, from another publication, that an Exxon subsidiary handsomely helped in financing Ms. Redford’s political ascendency. Jan Mangal, former Petroleum Advisor to President David Granger, repeated appeals to not approve the deal until Guyana got a better deal fell on deaf ears. Those who ignored the entreaty are the very people when in opposition said Guyana must get a better deal.

There is a Guyanese saying, ‘boat done gone ah falls’- meaning, the damage is already done and whatever the consequences are there is no choice left but to accept.  This is probably true for oil and gas. The deals, time will prove, were never for the benefit of Guyanese under the current regime. Special flights are entering Guyana, ever so often, with persons seeking to stake out the market and what they can take away.

The public relations stunts about these arrivals are no different to the U.S Secretary of State Mike Pompeo’s visit. Guyanese were deceived by the Government into believing Secretary Pompeo’s visit was not about Payara and the removal of Venezuela President, Nicolás Maduro. Within days the scales fell from our eyes and the truth recognised that those were the main reasons for Mr. Pompeo’s visit.

Practically, going by the happenings, Guyanese can only hope the Local Content Policy allows them the dregs (settlings) at the bottom of the barrel. Oil has been the greatest deception foisted on the people who have been misled to believe this government would be re-negotiating the original oil contracts; that this government would improve on its one percent royalty and better the Coalition’s two percent. It is proving to be a poly to control the apparatus of state in order to distribute the state’s resources to special interests. If the Local Content Policy is not strict enough to safeguard Guyanese business, Guyanese workers and some sections of society, many will become beggars and strangers in their own land.