Baishanlin and missteps

No matter how long they have been in opposition, it takes a while for new governments to find a rhythm in how they govern and to develop frameworks on their agenda, policy matters and controversial issues like the affairs of the logging company Baishanlin. Indeed, a long spell in the opposition can become a significant liability as vocal politicians, Mr Harmon is a good example, would have adopted severe and unremitting stances on a whole range of matters such as Baishanlin, the Amaila project and the speciality hospital, which positions usually come back to haunt them while in occupation of the seat of power. This is exactly what has happened. The rhetoric of politicians, particularly while in opposition, advances far ahead of the main force and is often cut off and left directionless.

What the APNU+AFC government needs urgently is a clear framework within which to navigate and which its many coalition constituents understand, abide by and respect. The government has gone astray on a number of issues, the most glaring being the ill-advised increase in salaries for its ministers. That decision showed how separated the government was from its manifesto promises and the principles it waxed lyrical about while trying to secure votes. It also exposed the self-serving nature of the new government and unfortunately for it, the fallout from this misstep will continue as the unions and other bargainers will milk it for everything it’s worth.

The surprise announcement last week by Finance Minister Jordan that a new feasibility study will be done of the Amaila Falls Hydropower Project must leave many citizens wondering about the government’s real position on this matter. When he presented the 2015 budget in August this year, Minister Jordan stated:  “Mr. Speaker, I should like to remind this House that the identification of Amaila Falls as a potential site for hydropower dates back some 40 years, and that this Government would welcome the diversification of our energy matrix to include clean, sustainable and affordable sources. However, it must make financial sense! We know now, that as configured currently, the cost of financing is too high, and that unless the price tag can be substantially lowered, we cannot proceed. In this opinion, we are strongly supported by the experts at the Inter-American Development Bank, who had considered the project to be too risky to attract the Bank’s financing.”

It was clear from this and other subsequent utterances from government officials that the project was dead in the water. More than three months later, the government has now acquiesced to Norwegian pressure to decide again whether there is merit in this project. This is more time wasting in the quest for clean, renewable energy and another exemplification of the absence of a framework. If indeed the government had a clear idea of where it was going with renewable and green energy and had set out a framework for decisions, it should have been able to encourage Oslo to consider options other than Amaila.

The India-financed Specialty Hospital is another example of the stuttering on major projects and policies. Does the government want the Specialty Hospital or not? If it did why did it write off the project and seek to reapportion US$14m originally assigned to the specialty facility towards primary health care at three hospitals? If it is simply the case that more money was being offered by New Delhi then it signals that major policy is being directed by opportunism more than anything else. If the government’s mantra is that primary health care has to be given absolute priority then a state-linked Specialty Hospital at this point seems out of kilter.

Which brings the discussion to Baishanlin. On assumption of office, there should have been continuity by the government with the pre-election concerns which were raised. This would naturally have led to initial steps such as insisting that all of the documents underpinning Baishanlin’s relationship with the state were tabled in Parliament for evaluation by the natural resources committee and auditing the financial transactions between the state and Baishanlin, taking cognisance of bizarre developments such as the company’s involvement in the building of a completely useless parking lot for the Guyana Revenue Authority, its connections with a housing scheme and planned foray into gold mining.

Initial strong rhetoric from government officials -including Minister Trotman – warning of stiff sanctions has now unexpectedly metamorphosed into sympathetic noises about the company needing another two years to restructure before it can finally keep its many broken promises to begin adding value to the logs ripped out of the forest. This case was again the epitome of a disconnect between the government’s policy, or lack thereof, and the expectations of the people based on its statements while in opposition and even on entering government. The country waits to see how Baishanlin’s issues will be addressed considering the myriad questions about its activities here and its failed promises.

Six months may not be a lifetime for this government but it surely is enough time for it to define and put into motion a framework which makes sense and is beyond reproach.