Guyana makes no use of UNDP report to avoid corruption, abuse in oil sector
In response to a request in 2016 to help Guyana arrive at good legal, regulatory, contractual and fiscal measures needed to keep corruption at bay, the United Nations Development Programme (UNDP) had commissioned an analysis to be done on the state of the nation’s governance systems.
The subsequent report on the review done was called “Rapid Analysis of the State of Readiness of Guyana’s Hydrocarbon Regulatory Framework.” It was produced by Trinidadian energy strategist, Anthony Paul. But, after four years of being in possession of this document, which proposes close to 100 critical recommendations on how Guyana must safeguard itself, nothing had been done. That report which was perused for years by Kaieteur News, was keen to note that the requirements and expectations of government to manage the sector, especially when one considers the magnitude of the resources discovered, are enormous. It notes that requests for new licences and exploration have accelerated, in spite of the drop in oil prices. In light of this, Paul noted in his analysis that reviewing, approving, and overseeing the implementation of the field development plans for oil projects and subsequent production will require very significant human and other resources. Paul pointed out, however, that Guyana has a very limited capacity in this area, while adding that its laws, contracts and institutions are outdated and under-resourced to meet the demands of upcoming activities. The industry expert was keen to note that improving the foundational components of the country’s petroleum governance system, that is to say, its legal and institutional frameworks are fundamental to managing oil money successfully. If the country fails in this regard, Paul noted that Guyana would be left wide open to risks of corruption and abuse as well as losing very significant value. Among his many recommendations was a call for the frequent use of Guyana’s parliamentary sectoral committees on natural resources and economics. Paul stressed that these committees can be effective regulatory tools for the sector.
(Kaieteur News)