Dear Editor,
I write with reference to a Press Statement, emanating from the Ministry of Finance, titled “On the Budgetary Presentation of Climate and Oil Revenues.
OBFUSCATION
The minister stated that “substantial literature” is “readily available” to support his, and the Vice President’s position, of not earmarking government revenues to finance specific projects. He also cites the Constitution of Guyana, the Fiscal Management and Accountability Act, and the NRF Act to justify the deposit of NRF funds into the Consolidated Fund. I am perplexed as to why all of this was said. These facts, laid out in great detail by the Minister, have no bearing on the key issue. The main issue is that Section 16 of the NRF Act specifies that NRF funds must only be used to finance national development projects and essential projects to mitigate the effects of a national disaster. It would be obvious to anyone that compliance with this Section demands some reporting on how these specific funds are spent. There was never any argument about the general practice of not earmarking revenues to projects or whether the NRF funds are to be deposited into the Consolidated Fund. In the Press Statement, we find the Minister prosing away for eight paragraphs on issues irrelevant to the debate. At no point, does he even mention Section 16 of the NRF Act which is the focus of the public criticism and concern.
DEPLETION OF NRF RESOURCES
Seemingly incensed by my comments on the rate of depletion, Mr. Singh reminds us that this rate has been approved by Parliament and suggests that I have no “rigorous basis” for my views.
I am on public record, during a presentation at the Turkeyen Tain Talks, in October 2017, as calling for the NRF to be embedded into the Constitution of Guyana. My reason for doing so was to prevent the Coalition and future governments from tinkering with the withdrawal rates, and other issues regarding the investments and administration of the fund. My warning was prophetic, as the PPP government has made amendments twice in three years! The second amendment dramatically increased the rate of depletion to the point that almost all of our earnings from oil are being withdrawn annually. No rigorous argument is required to support my criticism. Any housekeeper will advise you to save for a rainy day. The literature on sovereign wealth funds recommend saving for economic stability and for intergenerational transfers. The local pseudo-economist, Joel Bhagwandin, notes that Norway established their Sovereign Wealth Fund nearly two decades after they started producing oil, but context is critical. Norway started producing oil in 1971, this was the era of “King Oil”. Today, there are significant threats to both the use and pricing of fossil fuels. One problem for the Minister, and his “rigorous basis” criticism, is that his own hero, VP Jagdeo, recently stated that oil money is “not guaranteed” next year. If ever there was a time to listen to Terrence Campbell, and the housekeepers, that time is now!
RECKLESSNESS
I recall well that a huge error, a bloop, in the National Accounts of Guyana was reported in the 90s in the Financial Times of United Kingdom. This humiliating event took place whilst Mr. Singh was a very senior official in the Office of the Auditor General.
I remember well that the minister and his hero, VP Jagdeo, ate “humble pie” and were forced to table legislation in 2008 to correct illegal concessions. These concessions had been approved for Queen’s Atlantic Investment Inc, a company owned by a close friend of Mr. Jagdeo!
A review of judicial decisions from 2015, unearthed a ruling from the court that Mr. Singh acted illegally when spending G$4.5B from the Treasury.
The sadness I felt in 2018 seeing Mr. Singh in handcuffs (his dad and I were very close friends in the late 80s and the 90s), before the court on the Pradoville issue, remains with me as if it took place yesterday.
Every Guyanese, over six years old, saw a continuation of Singh’s recklessness last week. The Budget Speech provided for a lowering of the personal tax rate from 28% to 25%. The next day, Singh’s ministry advised of a new measure lowering the higher rate from 40% to 35%. Some argue that the omission of this new measure from the Budget Speech was a careless one. Others suggest that it was not a careless mistake, but yet another example of superficial policy making, policy making bereft of “rigorous” analysis. How could a government that claims to be concerned about the cost of living, that claims to be concerned about the underprivileged and the vulnerable, give a bigger tax cut to the rich when compared to that given to the poor?
I wish to submit that this PPP government is both careless and uncaring. This is why we have the rapid depletion of NRF funds and the massive contracts given to friends and family. Upon a careful review of his entire professional career, I came to the conclusion that the Honorable Minister, with a penchant for recklessness, should be the last person to attempt to “school” me on fiscal implications of the Laws of Guyana.
THE POLITICS OF TERRENCE CAMPBELL
I was taken aback that my politics would be, in part, the subject of a Press Statement from the Ministry of Finance. Mr. Singh has developed a professional habit of turning technical issues into political matters. The 2025 Budget Speech is a good example of this.
I will forgive Mr. Singh for his lack of knowledge concerning my position on the issue of what is a half of sixty five, the 2020 election and the embedding of the NRF into the Constitution. Mr. Singh was, supposedly, enjoying a life of luxury in the Maldive Islands, Dubai and the USA during this period. Most of my public utterances are made via Facebook so please permit me to share the following. On June 18th, 2019, I stated that the default computation for a majority would be “a half rounded up to the next whole number”. On March 16th, 2020, I cautioned, those who would listen, that we have all “been greatly diminished by our conduct during the elections and even in the month’s prior. So diminished that our Caricom brothers and sisters” were forced to intervene. On April 08, 2020, I supported Secretary Pompeo’s call for a nationwide recount. The election, and subsequent recount period, coincided with my doctoral thesis submission, defense, and correction. Consequently, my comments on the elections, and its aftermath, were limited and I seek forgiveness from Mr. Singh if he expected more.
On August 2nd, 2020, I received a call from a young man around 6:30 AM. The young man indicated that he wanted to call two hours earlier but did not want to disturb my sleep. That young man would be sworn in later that day as the 10th President of the Cooperative Republic of Guyana. I doubt that young man had any issue with my conduct or utterances during the 2020 election fiasco.
Minister Singh, and the PPP, are mortally afraid of my entry into politics. I can’t be painted with corruption so they have now tried racism and support for electoral malpractice. Both attacks were destined to fail miserably.
CONCLUSION
The Press Statement issued by the Minister of Finance never addressed the key issue of compliance with section 16 of the NRF Act. Even if the minister does not see the need to comply, the Statement also failed to address whether reporting on the use of the natural resource funds could not follow the same pattern as what was done with the LCDS funds. Similar reporting would demonstrate not only good governance, but also respect for the people of Guyana.
I was surprised that, on his return to Guyana, Mr. Singh accepted a position that was essentially a demotion. He previously served as Minister of Finance and now he is simply the Minister in the Office of the President with responsibility for Finance. In some way it all makes sense when one considers his well documented history of recklessness and current refusal to comply with section 16 of the NRF Act. The truth is that I was barely able to see his slip since he now hides under what he believes is the constitutional immunity of the President’s “skirt tail”. He should be mindful of the experience of William Calley at My Lai, superior orders does not always succeed as a defense.
Sincerely
Terrence Campbell
