It will soon be six months since the PPP/C government has been in office, a period etched deeply by the unrelenting march of the COVID-19 pandemic and a country trying to come to terms with its oil future. It has equally been a period in which trends and patterns have begun to emerge which could foretell how the rest of the term of the government will unfold and what lies in store for the crisis-wearied citizens of the country.
First, a word about COVID. When the PPP/C took up office on August 2nd last year it would be fair to say that COVID-19 had already surged into all nooks and crannies of the country. Initial attempts by the previous government at a limited lockdown were not successful. It therefore meant that the elderly population and the medically vulnerable were at the mercy of the behaviour of their relatives and neighbours as it related to whether adequate precautions were taken. Irresponsible conduct continues to be the order of the day as evidenced by the recent steep rise of COVID cases. The government must step up its public awareness and enforcement campaign in all parts of the country in the hope that the young and the reckless will take stringent measures to protect the elderly and those with underlying conditions.
Exiting the pandemic requires herd immunity via vaccination of 70% to 80% of the population. With the mad scramble and squabbling by the north for every available vaccine, it doesn’t seem that Guyana and CARICOM will see sizeable amounts of approved vaccines very soon for health care workers and the vulnerable. Without undermining CARICOM solidarity or the COVAX arrangement, it behoves Georgetown to begin exploring with friendly countries or manufacturers the possibility of tapping supplies of vaccines more quickly.
President Ali and many of his ministers have shown enormous energy in grounding with people in all parts and constituencies of the country and trying to identify urgent problems that have to be confronted. There can be no faulting of this approach and it sets the tone for the rest of this term. That said, there are troubling aspects of the last six months that need to be taken account of.
It is evident that the government intends to spend heavily this year on a range of high-ticket items in anticipation of burgeoning oil revenues. This was apparent even before Minister with responsibility for finance Dr Ashni Singh tabled orders in Parliament on Thursday seeking astronomic elevations in the domestic and external debt ceilings. One of the classic afflictions of newly oil-moneyed countries is unrestrained expenditure on rosy and perilous assumptions about the oil industry. This usually entails massive budget deficits and ill-advised borrowing. Having emerged from a sordid indebted past where write-offs had to be importuned from all and sundry and complicit multilateral financial institutions had to be relied on for relief, it will be the height of intransigence for this government to proceed on runaway expenditure that isn’t tethered to the earnings of the country and the jeopardies such earnings may face in the future.
The refusal of the government activate the Natural Resource Fund Act or to alternatively present new legislation is a harbinger of what is to come. Much will be revealed in Dr Singh’s budget but the portents are not good as it relates to observing the fundamental tenets of balanced budgeting and spending within the framework set by a sovereign wealth fund operating in accordance with the Santiago Principles. The talk making the rounds in government circles about not tapping the US$200m in oil revenues accrued last year would not fool a school child. Citizens will undoubtedly welcome heightened spending to meet their priorities but it cannot come at the cost of sharply rising and possibly unsustainable debt.
Accountability and openness are the ultimate hallmarks of good governance. A pall has already been cast over this by the furtive and subterranean issuing of two trawling licences by this government to persons unknown. The issuing of those licences were done in breach of a pre-existing agreement with the Guyana Association of Trawler Owners and Seafood Processors and without any concern about the possible undermining of international sustainable fishing certification. The government has tried to obfuscate and cover up the issuing of the licences. The clearest evidence of this was the refusal of the Minister of Agriculture Zulfikar Mustapha on Thursday to answer a clear question as to the identity of the holders of the trawler licences. Such gross disrespect of a question posed in Parliament cannot be countenanced and the government must provide the information, state clearly how the licences were granted and to revoke them if there was impropriety.
There is also the question of the gas-to-shore project which the government says it intends to proceed with this year. This will be a hugely expensive undertaking that could be rife with all types of pitfalls not to mention the risks to the environment and humans along its path. The government is yet to provide documentary evidence that would support the initiation of the project much more the choosing of a site for it. The government must release supporting documentation which can be carefully scrutinized by the public and the Natural Resources Committee of Parliament.
President Ali is yet to engage with the Leader of the Opposition, Mr Harmon. This is most unfortunate particularly in the backdrop of Venezuela’s stepped up belligerence which has seen the seizure of two fishing vessels in Guyana’s waters and the detainment of their crews. In the wake of the reprehensible escalation of the absurd by Caracas there has been a consultation between the Minister of Foreign Affairs Hugh Todd and the APNU+AFC foreign affairs shadow, Amanza Walton-Desir. Surely, that engagement underlines the need for similar accord between the President and the Opposition Leader and the eschewing of trivialities that stand in the way of this and other important consultations that must be held such as on the long outstanding confirmation of a Chancellor of the Judiciary and a Chief Justice.
There have been other faux pax of varying orders that should be addressed. Two will suffice for the moment. The Minister of Local Government, Nigel Dharamlall who has won kudos for his stance on the rehabilitation of City Hall and the preservation of the century-old rubber trees at Mabaruma, made the error of suggesting that central government could dictate to local authorities on matters such as rates and taxes. Local government reforms, painstakingly crafted, have paved the way for greater autonomy for local authorities that put them out of the reach of the Minister’s influence. The Minister may be completely opposed to raising rates and taxes in X or Y village but apart from the political influence he might bring to bear, these local government bodies have full autonomy to manage their own affairs. Minister Dharamlall should take heed.
Last week, a reporter from this newspaper was denied entry to the Guyana National Stadium as a new protocol for access had been established by the Minister of Culture, Youth and Sport, Charles Ramson Jnr. It now transpires that in the wake of what the ministry described as a false report on the state of the stadium ground that the Minister has established a new procedure for reporters wanting to inspect the ground. They must write to the ministry and a visit will be “facilitated expeditiously”. That is a non-starter. Reporters must have access to sports facilities to discharge their duties in a timely manner. The Minister has overreacted to what he perceived to be a negative report and his actions constitute both censoring and censuring of reporters going about their normal business.
The budget and the ensuing months will enable the public to better judge the progress being made by the government and the outlook of its senior functionaries.
