Green paper puts Finance Ministry in control of natural resource fund

Ministry of Finance, Main & Urquhart St.

A long-awaited paper from the government on how revenues from oil and other natural resources will be managed, places the Ministry of Finance in overall control in a move likely to draw strong criticism.

Experts have said in the past that the best practice for management of a Sovereign Wealth Fund (SWF) is to keep politicians away from it. The model unveiled in Parliament yesterday by Minister of Finance, Winston Jordan effectively puts his ministry in charge and this will likely be met with staunch opposition.

The  paper lays out stringent fiscal rules for the management of the Natural Resource Fund (NRF) but with the Ministry of Finance as the overall manager and its minister having a key role in composing the  macroeconomic committee which would be responsible for determining how those funds are apportioned…..