The Crumbling Political Machinery of the PPP/C: How Corruption Is Harming Guyana’s Progress

The dictatorial PPP/C government, which has ruled Guyana since its return to office in 2020, is definitely heading fast toward a political implosion under the heavy weight of scandals, allegations of corruption, and governance failures. Whilst the PPP/C has enjoyed a booming economy driven by the country’s growing oil sector, its internal instability, growing public dissatisfaction, and mismanagement are casting a long dark shadow over Guyana’s future. As the PPP/C’s tenure becomes increasingly defined by its dubious actions, there are very serious concerns about the consequential implications this will have on the nation’s economic development and social progress.

All Guyanese are aware that over the past four years, there have been numerous suspicious activities, misappropriations, and alleged corrupt practices within the PPP/C administration. These incidents have undermined the trust of the Guyanese people in the PPP/C government, exposing systemic flaws, and structural discrimination that prevent the equitable distribution of the country’s newfound wealth. Here are a few areas where bad governance practices of the government are visible:

1. Mismanagement of oil and gas sector. The massive oil wealth that has pushed Guyana’s GDP above many Caribbean and Latin America countries should have been the key thing to improving national infrastructure, education, healthcare, and poverty alleviation. However, the PPP/C has failed to ensure transparency and accountability in the sector. The government has been overly lenient with foreign oil companies, particularly ExxonMobil, in terms of tax concessions and production- sharing agreements. Guyanese citizens have seen very little return on the country’s natural resources, with billions of dollars in revenues unaccounted for, fueling suspicions of kickbacks and underhanded deals between government officials and multinational corporations.

In 2023, there was an attempt to reduce audited expense of ExxonMobil from US$214 million expense to US$3 million. Although the Guyana Revenue Authority (GRA) is the sole agency lawfully mandated to audit the expenses, someone, in the Ministry of Natural Resources went ahead and negotiated a drastic reduction of ExxonMobil’s audited expense. I am not sure if that refund was made to GRA by ExxonMobil.

2. The Kingston waterfront Project. The Kingston Waterfront development project, launched with much fanfare as a transformative urban renewal initiative, has come under scrutiny due to its massive cost overruns and lack of accountability. Investigations have revealed irregularities in the bidding process, with a handful of well- connected contractors linked to the PPP/C officials allegedly receiving inflated contracts. The project, which was supposed to boost local tourism and create jobs, has been criticised for its opacity, leading to questions about the diversion of public funds to private interests.
3. The Fiasco of the Belle Vue Pump Station. The Guyanese Critic-owned TEPUI Group Inc. company that was capriciously handed a contract to build the Belle Vue Pump Station has only completed 10 percent of the work even though the contractor had already collected some $182 million. The contract was first handed to that company on August 14, 2023 for the sum $865.544 million which had corresponded with the amount stated in the Contractor’s Bid Form and priced bills of quantities. However, this award was rescinded and a second award was made on September 15, 2023 to the same contractor for an increased sum of $870.564 million which is $5 million higher than the sum stated in the contractor’s bid.
4. The oil for Infrastructure’ Scandal. One of the most troubling allegations against the PPP/C government involves the so- called “Oil for infrastructure” deals. These agreements purportedly allowed the government to exchange a portion of the country’s oil revenue for development projects, such as roads, bridges, and schools. However, investigative reports suggest that these arrangements were rife with corruption. Key government figures are accused of receiving kickbacks from foreign firms contracted to undertake these projects, inflating costs and delivering subpar results while siphoning off public funds.
5. Massive Corruption in the Procurement System. Throughout the PPP/C’s time in power, Guyana has seen the politicization of the procurement process, which has been characterized by a lack of competition and favoritism toward politically connected contractors. Several public tenders have been marred by accusations of rigging, with contracts awarded to firms with close ties to high- ranking members of the party. This not only undermines the fairness of the bidding process but also stifles genuine competition, inflates project costs, and delays critical national infrastructure projects.
6. Allegations of nepotism and Cronyism. Another pervasive issue within the PPP/C administration has been the rampant cronyism and nepotism that have defined its hiring practices. Family members, close associates, and party loyalists have been placed in key governmental positions, bypassing merit- based hiring and reducing the overall effectiveness of the public service. This has led to inefficiencies and a growing culture of entitlement within the ranks of the PPP/C.
7. The Deterioration of the Judiciary. While the judiciary remains theoretically independent, there are reports of political interference in the courts. Alleged pressure from high- ranking government officials on judges has raised concerns about the impartiality of the legal system. The PPP/C has been accused of using its power to attempt to influence legal outcomes, especially in high- profile cases involving opposition members or critical media figures. This erosion of judicial independence further emboldens corrupt practices within the government. On top of that, without reason, President Ali has refused to substantively appoint the Chancellor of the Judiciary and the Chief Justice.

Now, the long- term impact of the PPP/C corrupt practices on Guyana’s development and progress is profound and potentially irreversible if not addressed swiftly. Some of the key consequences include:

1. Stunted economic Growth for Ordinary Citizens. Despite the massive wealth generated by oil, the average Guyanese citizen has seen little improvement in their standard of living. The country’s wealth has largely been siphoned off by the political elite and foreign entities, while the majority of the population remains mired in poverty. The lack of meaningful investments in education, healthcare, and social infrastructure has limited the transformative potential of oil revenues. Instead of lifting the population, corruption has deepened social inequalities.
2. Deteriorating Infrastructure and Public Services. Key sectors like healthcare, and education have suffered from the mismanagement of resources and fraudulent schemes. Projects intended to improve public infrastructure are either delayed or poorly executed, with taxpayers’ money funneled into the pockets of corrupt officials and their allies. Guyana citizens continue to endure inadequate roads, unreliable health services, and substandard schools, which undermines the country’s potential foe long- term sustainable development.
3. International Reputation and Investor Confidence. The growing reputation of Guyana as a nation riddled with corruption is damaging its international image. As foreign investors observe the political and financial mismanagement of the country, they are increasingly hesitant to commit to long- term investments in non- oil sectors. This could lead to a volatile and over- reliant economy, where the oil boom is not diversified into other sustainable industries, leaving the country vulnerable to global oil price fluctuations and geopolitical instability.
4. Erosion of Democratic Institutions. The PPP/C’s alleged misuse of power has also raised concerns about the future of Guyana’s democracy. Political opposition parties, civil society organisations, and independent media have increasingly come under pressure, with reports of intimidation, harassment, and political repression. If this trend continues, Guyana risks sliding into a political environment where dissent is stifled, the rule of law is undermined, and the foundations of democracy are further eroded.