…$21B in profit oil, $374M in interest payments in 1 month
President Ali meeting NRF Board Chairman Major General (retired) Joe Singh (2nd from right); Executive member of PSC, Ramesh Dookhoo (right); Dunstan Barrow (left); former CDB President Professor Compton Bourne (2nd from left) and Guyana’s Permanent Representative to the United Nations, Carolyn Rodrigues-Birkett at Office of the President on August 31, 2022
The Natural Resource Fund (NRF), which contains revenue received from Guyana’s profit oil, as well as royalty payments and interest earned, have a balance of almost $200 billion as of August 2022.
This is according to the monthly financial statement, which was released by the Bank of Guyana. According to the financial statement, the NRF had a closing balance of $198 billion or US$949.9 million as of August 31, 2022.
The financial statement also reveals that the Fund had an opening balance of $176.3 billion at the start of August. While no royalty payments were received for the month, Guyana did receive $21.3 billion in profit oil payments and $374.6 million in interest payments.
The report also notes that transfers to the NRF increased by US$198.3 million, to US$344.2 million in the first half of 2022. The first withdrawal from the Fund, of US$200 million for developmental projects, was also recorded in the first half.
It was only last week that President Dr Irfaan Ali officially appointed the Natural Resource Fund Board, saying that this would bring true value to the sector while adding that these positions must be undertaken by people who were not political in nature.
The Public Accountability and Oversight Committee and the Investment Committee were also appointed to serve in their respective roles after taking the oath of office.
The Natural Resource Fund Board will be chaired by Major General (Retired) Joe Singh. Other members are Guyana’s Permanent Representative to the United Nations, Carolyn Rodrigues-Birkett and former Member of Parliament (MP) for the People’s National Congress Reform (PNCR), Dunstan Barrow.
Longstanding executive of the Private Sector Commission (PSC), Ramesh Dookhoo and former Caribbean Development Bank (CDB) President, Professor Compton Bourne were also appointed. These appointees will serve for a period of two years.
United Kingdom MP with Guyanese roots, David Lammy was initially selected to serve on the Board. However, he was unable to take up the post and Dr Ali said that Guyana-born Professor Bourne was an excellent replacement.
Section 3 (1) of the NRF Act 2021, Act No 19 of 2021, which was assented to by President Ali on December 30, 2021, establishes the NRF to manage the natural resource wealth of Guyana for the present and future benefit of the people in an effective and efficient manner and in accordance with the principles of good governance, transparency, accountability, and international best practices, including the Santiago Principles.
Section 5 (1) of the Act provides for a Board of Directors of the Fund comprising not less than three and not more than five members, who shall be appointed by the President, inclusive of a Chairperson. In accordance with Section 5 (2), these Directors are to be selected from persons who have wide experience in legal, financial, business, or administrative matters, one of whom shall be nominated by the National Assembly and one of whom shall be a representative of the Private Sector.
The Public Accountability and Oversight Committee will be chaired by former Commissioner General of the Guyana Revenue Authority (GRA), Clement Sealey. The other six members are Wendell Jeffrey, Abu Zaman, Ryan Alexander, Dawn Gardener, Teni Housty, and Aslim Singh.
The Investment Committee comprises seven members who will advise the NRF Board on matters that concern investing the oil funds, in a way that maximises the benefits to Guyana.
Chairperson Shaleeza Shaw was sworn in with members Michael Monroe and Richard Rambarran. The other four members will be sworn in at a later date. Government is also awaiting a nomination from Opposition Leader Aubrey Norton, who has been engaged via correspondence.
This Committee must have a makeup of a nominee of the Minister to serve as Chairperson, a nominee of the Minister responsible for the petroleum sector, a nominee from the Attorney General, a nominee of the Opposition Leader, a nominee of the Private Sector and two ex-officio non-voting members. President Ali pointed out that they were awaiting the nomination from Opposition Leader Norton. (G3)
