Dear Editor,
This has reference to news analysis, “PPP/C natural resource law no different from APNU+AFC in relation to powers” (Jan 9) quoting Prof Tarron Khemraj. His analysis is not accurate. Prof. Khemraj should re-examine the new NRFA, and he would notice significant differences from the Coalition’s. In his comparison of the NRF of the Coalition’s and PPP/C, Dr. Khemraj errs in stating they are not different. There are major differences. The new NRFA is a drastic improvement over the Coalition’s. The PPP/C’s provides for greater transparency and accountability in the spending of the oil money. As an illustration, instead of the Minister of Finance being empowered as under the Coalition, the parliament is now empowered to oversee the fund. A Board of Directors has been empowered to administer the Fund. The President would appoint the Board on recommendation, after consultation with the private sector and the public, and must meet certain requirements. But regardless of which party is in government, the Coalition’s NRF and the PPP/C NRF, the ruling party has the majority on the board. That is how a democracy works.
There are other major differences. Under the new NRFA, there is an Oversight Committee just like under the Coalition’s, but reduced from 22 (persons) to nine. Their appointments are made from the religious body, private sector, labor unions, and the professions, it is the Public Accountability and Oversight Committee that is responsible for non-governmental oversight. Parliament will scrutinize spending. Money cannot be withdrawn without parliamentary approval and how the money will be spent will be queried in parliament by the Public Account Committee and the entire body. Under the Coalition, the amount of money to be withdrawn was not clear. With the new NRF, the amount to be withdrawn is clear. There is a sliding scale specific formula on how much money will be withdrawn annually. Over time, a smaller percentage of money is withdrawn and the amount in the fund grows for a rainy day. Overall, there are major differences between the Coalition and PPP’s NRFA. The PPPC’ NRFA seems more transparent and subjected to greater accountability with less ministerial and government control.
Sincerely,
Shriram Ketwaru
