Ramkarran defends statement on transfer of funds

Petroleum Commission Bill

The former Speaker of the National Assembly, Attorney-at-Law Ralph Ramkarran, has defended a recent statement he made about the Petroleum Commission Bill as it relates to the transfer of funds from the Commission and Government agencies to the Consolidated Fund.
He said it is regrettable that the current Government, like the previous one, treats mild criticism delivered with levity as contentious.
Referring to a newspaper article with the headline: “Ramkarran misleads on provisions for transfer of funds”, the former speaker said the Government, when in

Opposition, consistently argued that such payment is mandated by the Constitution, and is not subject to the whims of any official. He argued that the Bill provides that payment by the Commission is in fact subject to the whims of the minister.
“If the Government wants to hurl headlines, it should first explain why it speaks through both sides of its mouth, and from a high horse when cornered! This attitude to criticism is exactly what Guyana does not want at this stage of the development of the oil industry. Warning was given that everything must be done to ensure that the oil industry does not become a political football,” he added.
In his weekly Conversation Tree column, Ramkarran also urged Government to lead the way, and that a wider debate on the Bill must be encouraged. While he acknowledged that the Georgetown Chamber of Commerce (GCCI) has, around the country, initiated a public discourse on the legislation,b he still believes that the conversation must continue where a proper Bill is approved by the National Assembly.
“The business community is deeply interested in the Bill, because it seeks to establish the institutions that would oversee the oil industry and define the rules which would guide their functions and duties. Since it is likely that, when passed, the Bill would impact the business community by providing opportunities for its growth and development for decades in the future,” he added.
The prominent attorney said it is vital that not only business, but the people of Guyana take an interest in what is being proposed to maximize the potential for Guyana. He noted that the Minister’s powers under the Bill readily attracted headlines, to the exclusion of some of the other serious issues which were discussed. One such issue is not the Minister’s powers, but that they were so obviously and prominently entrenched, as compared to other similar legislation establishing regulatory commissions.
He said, “There was no dispute that the Government would want a majority of members on the Commission (the size and composition of which was not defined) and on the Board of Directors.
Through its control of the majority, it would be able to influence decisions, including the appointment of senior officials… In bodies such as these, Ministers reserve powers to set general policy…”
In relation to the Petroleum Commission, however, Ramkarran explained that the Minister has reserved power to issue instructions over a wide range of matters, and this detracts from the independence of the Petroleum Commission and the Board of Directors.
“It is understandable that in the newly emerging oil industry — which will be Guyana’s leading income earner for decades to come, and which has had no regulatory mechanism in place — the Government would want a high degree of influence. But the same powers which the Minister takes for himself could have been obtained by a far lighter legislative touch,” he said.
One major issue that came up for discussion was that of Local Content. This, Ramkarran said, was not highlighted, but businesspeople were very interested in how it would work and what benefits it holds for Guyanese.
Supplies to the oil industry would become a multi-billion-dollar industry, and it was highlighted that Guyanese business people need to take an interest in this issue now, and get on board with things.
He further recommended, “It was the view of the panel that the Government ought not to rely on moral suasion alone, because it is not likely to be successful. It was recommended that legislation enforcing Local Content would be more effective. The Petroleum Commission Bill sets it out as an objective.”
He also noted that the size of the Board of Directors — ten members — which is entitled to appoint committees, three of which were specified, is on the small side; and that 12 to 15 members would enable the Board to function more effectively.
Weighted majorities and unanimous decisions were also proposed for important decisions. It was suggested that an environmentalist be a member of the Board. It was also suggested that the Leader of the Opposition should choose the Opposition representative, rather than the Minister.
“It is a disappointment that the Bill has not been more widely discussed. The Government ought to take the initiative. It is not enough that the Bill is merely disseminated. The Government and the Bill will benefit from wider consultation, even if it does not agree with every proposal. There is wide interest in these issues,” he added.