By Samuel Sukhnandan
Attorney-at-Law and Chartered Accountant Christopher Ram says that the Government of Guyana has failed, to date, to put a very serious, robust, and well thought-out plan in place that would govern the country’s emerging petroleum sector in light of the newly-found oil and gas resources.
Ram believes his position is justified because the Government has not been able to state what exactly it hopes to do to ensure that this sector is efficiently managed and how the resources it will gain could be utilised. He said that this level of unpreparedness could lead to multiple issues that could result in damage.
“There are so many things that need to get done but which one? The Government is not addressing anything. It seems as though the approach by Mr (David) Granger is once he feels he is doing something, that’s enough. Well doing something is not enough. You have to do the right thing… Where is that plan? If there is one. There is none,” the prominent accountant told Guyana Times on Sunday.
He argued that the policy direction Government has taken with regard to this industry seemed to be dictated by the oil companies and they decided on the depreciation rates. To add to that, Ram pointed to the recent development where the Japanese Government has developed an ‘oil and gas master plan’ for Guyana that was submitted by Mitsubishi Corporation and Chiyoda Corporation.
“I think the Government lacks any policy on the petroleum sector and nothing makes that more obvious than the fact that the Japanese will come in and give us some master plan. That’s an insult to our sovereignty and independence,” he said, objecting fiercely to this proposal.
Asked whether he believes Guyana has the skillset here to do the studies, Ram told this newspaper, “I don’t think we should judge the entire population by the Government. Just like how we wouldn’t judge the entire American people by Donald Trump. We shouldn’t make the mistake… but there are people who are calling for sane policies for the petroleum sector.”
He continued, “Our problem lies not with our people, but with our politicians and they are the ones who have to formulate policies and for them to contract out policy making is an insult to the entire country, doesn’t make any sense…. They need to realise that there are competent people to do the work.”
The Attorney also offered his opinion on the recent decision taken by Government to have a Department of Energy placed under the ambit of the Ministry of the Presidency, and removed from the Natural Resources Ministry.
“I think it’s just a measure of the chaos and confusion that surrounds this Government’s whole understanding and approach to the petroleum sector,” he said.
According to the Department of Public Information (DPI), Government is now reviewing the ‘oil and gas master plan’. The plan has as key objectives the development of Guyana’s domestic oil industry, the creation of a balance in the domestic usage and exportation of products from indigenous oil and gas, and the harmonisation of the industry in keeping with Guyana’s ‘green’ development agenda.
Aside from this proposal, however; Government has been juggling with other issues related to the oil sector. While work has started on creating a local content policy, a Petroleum Commission and a Sovereign Wealth Fund, there has been no definite plan released or completed so far. However, there have been criticisms of almost all the draft policies and there has been a deep level of concern to have these issues ironed out way before oil production is set to begin in 2020.
However, the Opposition has been very vigilant and has rigorously questioned Government’s moves. It has also upped pressure on the Administration ever since it was brought to the public’s attention that the Government kept secret a US$18 million signing bonus it received from ExxonMobil in 2016.
