PNCR criticises PPP for poor financial oversight on oil revenues, cites corruption and mismanagement

By Mark DaCosta- The People’s National Congress Reform (PNCR) has voiced significant concerns regarding the impending third audit of offshore oil expenditures, calling for rigorous standards to ensure transparency and accountability. The party’s detailed press release, dated October 29, 2024, comes in light of growing frustration among citizens over the People’s Progressive Party (PPP) government’s handling of the oil sector, with the PNCR emphasising the necessity of this audit to avoid repeating the shortcomings of previous assessments.

The PNCR criticises the PPP for its perceived negligence regarding auditing practices and financial oversight related to oil revenues, which have been marred by allegations of corruption and mismanagement. “The PPP has shown a totally unpatriotic attitude towards the management of our resources,” the party stated, urging that the upcoming audit must interrogate expenses linked to the controversial Gas to Energy project pipeline. The PNCR insists that the dramatic increase in pipeline costs, which reportedly tripled in a short period, must be accounted for transparently.

The press release outlines several minimum standards that the PNCR believes should guide the third audit:

1. Clarity and Accessibility: There should be a concise summary that is easily understandable for the average Guyanese.

2. Addressing Critical Issues: Key questions regarding whether interest is being charged on disputed costs must be thoroughly examined.

3. Separate Assessment of Pipeline Costs: Costs related to the Gas to Energy pipeline should be addressed distinctly and robustly, given the project’s rapid escalation in expense.

4. Handling Disputed Costs: There must be a clear process for addressing disputed costs, enabling swift action in case arbitration becomes necessary.

5. High Standards for the Operator: The operator of the oil operations must provide comprehensive and prompt responses to auditors’ inquiries.

6. Reasonableness of Costs: The audit should evaluate the reasonableness of costs rather than merely confirming their eligibility for recovery.

7. Defined Timeline: A specific timeline for the completion and publication of the audit results should be established.

The PNCR argues that if the PPP is genuinely committed to responsible governance and safeguarding national resources, it should adhere to these standards, even if it necessitates re-engaging auditors to revise the audit’s terms of reference. “Billions of USD are at stake,” the PNCR asserts, stressing that a robust audit culture is essential for the nation to reap the benefits of its oil wealth.

In addition to concerns about oil audits, the PNCR has raised alarms about the current state of the Guyana Police Force (GPF), characterising it as a potential national security risk. The party claims that the top leadership of the GPF is embroiled in criminal activities and that the force has become a source of leaks and cover-ups benefiting criminal elements.

Guyanese will attest that recent media headlines illustrate the gravity of the situation. The PNCR cites instances such as a senior officer implicated in a significant cocaine bust without any subsequent investigation and claims that the GPF was notably absent during a major operation involving other security agencies. Such incidents, according to the PNCR, highlight the deterioration of the GPF’s integrity and effectiveness, with citizens losing faith in the police.

On the issue of Police Commissioner Clifton Hicken’s appointment, the PNCR asserts that it is unconstitutional. The party is particularly concerned about Assistant Police Commissioner Brutus, who faces numerous charges involving almost GY$1 billion. This raises questions about the mechanisms in place for monitoring financial activities within the police force. The PNCR warns that such widespread failure could jeopardize Guyana’s standing in international financial systems.

The PNCR contends that the systemic issues within the GPF and broader governance challenges cannot be resolved under the current administration. “The crisis of governance in Guyana cannot be addressed by the present government since it is one of the main sources of the extant crisis,” the party stated.

Additionally, the PNCR challenges claims made by Vice President Bharrat Jagdeo regarding the PPP’s increased spending compared to the coalition government. The PNCR asserts that the PPP’s higher expenditures are primarily funded by oil revenues, a financial resource that the previous government did not have. Since the coalition left office, the national budget has reportedly ballooned, allowing the PPP to request additional funding in the National Assembly amounting to over GY$90 billion, representing a 30 percent increase over the coalition’s total expenditures in 2019.

The PNCR highlights that increased borrowing, made possible by the influx of oil revenues, has allowed the government to finance its higher expenditures. By the end of 2023, Guyana’s external debt ballooned to approximately US$1.78 billion, marking a 13 percent increase from the previous year, while domestic debt rose nearly 25 percent to GY$2.73 billion. Against the backdrop of these huge financial inflows, the PNCR criticises the PPP for mismanagement, estimating that around 40 percent of its expenditures are wasted due to negligence and corruption.

Moreover, the party emphasises that the true measure of government success should be reflected in improved living conditions for citizens rather than merely financial statistics. The PNCR calls for accountability on issues such as poverty rates, unemployment, and overall quality of life. “The government has failed to reduce the high cost of living and improve the quality of life for ordinary Guyanese,” the PNCR stated, urging a more comprehensive assessment of the government’s impact on everyday life.

The PNCR’s press release may be interpreted as a rallying call for enhanced governance and rigorous auditing practices in Guyana’s oil sector and public institutions. With national elections on the horizon in 2025, the PNCR is advocating for a collaborative effort among political forces to address the systemic issues facing the country.