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Home Letters

Disbursement of oil wealth

Admin by Admin
October 26, 2024
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Dear Editor,

Some weeks ago, I heard that His Excellency, the President of Guyana, appeared in the National Assembly to deliver a message in accordance with his powers and rights. This message was significant, giving thousands hope and encouragement. Based on the information I have, His Excellency announced the distribution of a share of the oil wealth to Guyanese citizens at large. I will refrain from providing specifics due to the absence of official documentation available to me. These may be new legislative methods with which I am unfamiliar, given my experience.
More recently, I listened to a speech by President Dr. Irfan Ali. It seems that, after consulting within his party, President Ali decided to change the mode of distributing a portion of the oil wealth, shifting from a distribution by household to one directed to individuals aged eighteen and above—a noteworthy age threshold. There were numerous public responses, including pushbacks and modifications. I was quite intrigued by the creativity and astuteness of the citizens of Guyana as they engaged in this ongoing discussion.

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I wonder whether it will be disloyal for government members to admit that the cash transfer disbursement plan first came from Dr Clive Thomas of the WPA.  When Dr. Thomas first raised the issue of the widespread distribution of oil wealth, it was new in Guyana. The vice president, Dr. Jagdeo, held a press conference soon after, and the press presented Dr. Thomas’s proposal to him in their own words. I heard Dr. Jagdeo say,” I will implement it. I will implement it.” Later, there seemed to be a shift from that position to one in which it was felt that implementing it would not be a healthy move.  Then came the other things like the appointment of the natural resources fund His Excellency, the president, made all the appointments. The opposition in the National Assembly chose one person.

I am wondering how this oil wealth, which has been assigned to something called The National Resources Fund with its various departments and personalities (even though they don’t have a place to meet).  For example, how could money from that fund be disbursed even advantageously to many without a piece of legislation? This is a new way of government. It is so transparent that many people see through it right on to a possible snap election, as suggested. No one is taking it for granted.

So here comes now the President with a large disbursement of funds to the public either to be by the household or by age without a piece of legislation. To some of my generation, not brainwashed by the British but growing up in the tradition that parliament is the controller of the public purse, ultimately, this is an amazing development, not a piece of legislation! How will the auditor general pronounce this distribution when it takes place? I have my suggestion for doing it, but I am not intruding into the Guyanese conversation. People on the spot or in touch with what is happening can get information instantly, as I can now not.

I am not trying to bring my notions into play in this issue. I am just saying that this is a new financial disbursement and should be backed by legislation and debated in parliament by all sides to contribute to the official debate, which is recorded in Hansard is often used by the office of the Auditor General in judging the legitimacy of official expenditures.

This is not an ordinary piece of legislation. It is comprehensive and ought to be bound by the basic principle of how expenditure is undertaken. We know that a few months ago, on the government initiative, the laws on quorum for the public accounts committee were amended so that the public accounts committee could not meet without the government’s consent. This body oversees by law and constitution the spending of every penny generated in the Guyana economy and lodged in the consolidated funds. Things must be restricted according to the rules or run into chaos.

Let me summarise what I have to say about this issue of disbursement of oil wealth. I find it a most worrying issue. The law of Guyana allows the president to address the national assembly with a message at any time of his choosing. The president appears to have used his power to legislate a disbursement of oil wealth in a manner decided on by a narrow circle of people who perhaps have some right but do not recognize a democratic voice or decision.  No legislation has been mentioned, promised, or hinted at so far. That is a serious matter. So, here we have one Guyana, one man, two messages, the second of which is expected to stand. When it comes to auditing and transparency, there will be problems.

Another observation I want to mention is that the decision is made, and it is generally welcomed by people. Everybody wants those living below the poverty line and those above it to benefit from oil wealth, and I can have no objection to that.

There will be violations and weeping and gnashing of teeth. The distribution is a positive step. Everybody welcomes it but it is not being done correctly. The parliamentary democracy we claim to have is based on the “voting of supplies” by the people’s representatives.

Yours sincerely.

Eusi Kwayana

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