Finance
Singh unveils trillion-dollar budget: Finance Minister Dr Ashni Singh last Monday announced that the budget for this year amounts to a historic, whopping $1.146 trillion when compared to $781. 9 billion last year. He made the announcement during his marathon budget presentation themed “Staying the course building prosperity for all” at the 71st sitting of the National Assembly that saw frequent, sharp clashes between him and opposition hecklers. According to Singh, Guyana’s real gross domestic product (GDP) is projected to grow by 34.3 per cent this year, while the non-oil economy is projected to rise by 11.9 per cent. In the fiscal plan under the category macro-economic highlights, sectors such as agriculture, forestry and fishing are projected to increase by 10.4 per cent. “The sugar growing subsector is projected to accelerate its recovery with a rigid growth of 66.1 per cent”, the minister told the National Assembly. The rice industry is expected to grow by 6.2 per cent while other crops are projected to achieve an expansion of 11.6 per cent. The forestry sector is projected to record a growth of 3.9 per cent. Turning his attention to the extractive industries, the mining and quarrying sectors are projected to increase by 43.6 per cent. Support services in the oil and gas sectors are expected to expand by an estimated 44.7 per cent. The other mining and quarrying subsectors are projected to increase by 19.3 per cent. The gold and bauxite mining subsectors are expected to grow this year by 15.7 per cent and 57.2 per cent respectively. Sugar manufacturing is expected to increase by 66.1 per cent according to the minister. The construction sector is projected to grow by 23.4 per cent, Singh disclosed.
`Budget all about spending and borrowing’: Chartered accounting firm Ram and McRae has criticised the trillion-dollar 2024 budget as being all about spending and borrowing and not addressing the cost of living crisis that has snared thousands of people in the lower brackets. In its annual budget review for Stabroek News which is carried as an insert in today’s edition, Ram and McRae said: “This Budget makes history, not all for the right reasons. It is the largest Budget ever – by far -much of it in capital works. It is all about spending and borrowing. The Minister has given no explanation for the levels of spending and borrowing. Even if this Government can bring inefficiencies down to 10%, we will have a loss over 100 billion dollars, before any later supplementary provisions”. The firm said that because of a change in how the Estimates are constructed, the exact starting balance in the Consolidated Fund cannot be determined. “In other words, the Government will be spending from a fund whose balance is unascertained. The Ministries, Departments and Regions have demonstrated no financial capacity or capability to handle the kinds of sums for which the Minister seeks parliamentary approval”, the review said. It added that the Capital Budget is now $666.1 billion dollars or US$3.1 billion, without an independent planning authority. It said that Volume 3 of the Estimates identifies close to 400 projects many of which bear nebulous names and descriptions. “One common factor is that many of them have not been subjected to any serious evaluation. Indeed, many bear the hallmark of slush funds”, the review said. It cited some examples. It said that regional economic transformation is allocated $5 billion while Community Infrastructure Improvement Project is allocated $13.4 billion. The Low Carbon Development Programme is allocated $50 billion while the Amerindian Development Fund is allocated $4.6 billion dollars, even though it is highly unlikely that such a fund in fact exists. Another $3.3 billion for Industrial Estates and Payment of Retention is assigned under the Ministry of Tourism while under Agriculture there is the Integrated Agriculture Development Programme for $6.7 billion to cover enterprise and agriculture development initiatives. The budget review argued that the massive Gas to-Shore project is facing an uncertain funding situation, and “having so committed itself, the Government may have to rely on the Natural Resource Fund for salvation”. The review argued that the legislative performance of this Administration is sorely lacking.
Oil & Gas
EPA, Exxon opposing bid for proof of court-ordered US$2b oil spill guarantee: An application for proof that ExxonMobil has lodged a US$2 billion guarantee which is intended to indemnify Guyana against an oil spill and associated perils, is being resisted by the Environmental Protection Agency (EPA) and the oil company, which are contending that the court has no jurisdiction to so order. Senior Counsel Seenath Jairam who represents the Applicants asking for proof that the guarantee has indeed been lodged, described the actions of the EPA as tactics intended to delay; stating that “this dilly-dallying has to stop.” An incensed Jairam declared that ExxonMobil was “playing with fire,” while stating that he will bring contempt proceedings against the oil company for non-compliance and that he was prepared to go all the way to the Caribbean Court of Justice (CCJ) if he has to. The action concerns the landmark case over an unlimited guarantee from the parent company of ExxonMobil which was filed by applicants Frederick Collins and Godfrey Whyte who had secured an historic win back in May of last year, when High Court Judge Sandil Kissoon ruled that ExxonMobil was in breach of its insurance obligation. That judgment has since been appealed by the EPA and is pending before the Guyana Court of Appeal. Currently engaging the attention of Justice of Appeal Rishi Persaud, however, is a summons brought by Collins and Whyte, who have asked for proof that the US$2 billion guarantee has indeed been lodged with the Registrar of the High Court as ordered by Justice Kissoon. ExxonMobil has claimed it has done so. When the matter came up before Justice Persaud yesterday morning, attorney for the EPA, Sanjeev Datadin, argued that it is beyond the jurisdiction of the court to order the EPA and Exxon’s affiliate—Esso Exploration and Production Guyana Limited—to produce a copy of the US$2 billion guarantee. Following a hearing on December 19th last, the Court of Appeal directed Collins and Godfrey’s legal team which is led by Senior Counsel Jairam, to follow-up with the Registrar with regard to obtaining that proof. Datadin submitted to the court yesterday that the EPA will be resisting the application “at this time” that proof be provided. According to him, the entire Board has to first meet and discuss the way forward, but that this has not yet been done. Notwithstanding that, however, Datadin said that it is the resolute position of the EPA that the Court has no jurisdiction to make the order being sought by the Applicants. In response, Jairam decried the length of time the matter has been pending even as he argued that counsel for the EPA has certain obligations under the Legal Practitioners Act which must be adhered to.
Investment
Ramps among companies behind regional ferry service: Upturn Funds Caribbean in partnership with Pleion Group Inc. will be unveiling the new private sector-led ferry company which will provide the Caribbean with solutions aimed at revolutionizing maritime transportation. In a release yesterday, Upturn Funds informed that the launching event of the Caribbean Ferry Ser-vice Company will be held on Tuesday, January 23rd at the Wisdom Center Auditorium, Roebuck Street Bridgetown, Barba-dos. Chief Communications Officer of Upturn Funds Jennifer Highland told Stabroek News yesterday all she can say at this point is that the ferry service is “a private sector-led joint venture”, which involves private consortiums in the Caribbean. According to the press release, Upturn Funds said that in collaboration with its partners, the company is thrilled to share the groundbreaking joint venture that has facilitated the establishment of a company that will pioneer the ferry service tailored to the unique needs of the Caribbean region. It noted that “This strategic partner promises to bring about a new era of connectivity and accessibility, positively impacting both local communities and regional economies and opening of new markets for regional entrepreneurs, whilst helping to close the gap that has prevented real Caribbean integration”. The release noted that the press briefing slated for Tuesday will feature key representatives from Upturn Funds Caribbean and other partners, who will provide insights into the vision, objectives, and anticipated outcomes of this joint venture. The key players in this joint venture are Chief Executive Officer and Founder of The Caribbean Israel Leadership Coalition (CLIC) Dr. Andre Thomas, Chairman of UPTURN FUNDS New York, Raphael DeAngelis, CEO of Windward Ferries Limited
Security
Gov’t to use facial recognition to track criminals – Jagdeo: Vice President, Bharrat Jagdeo recently said that the government is working on a biometric project that will allow the authorities to use facial recognition software to track people with criminal records and pinpoint their exact location at any given time. As such he said the new Brickdam Police Station which is being built will assist in bolstering the country’s security plan. Use of facial recognition software globally has attracted grave concerns that it could result in a breach of privacy and be abused if in the control of unaccountable authorities. The Guyana Police Force (GPF) and the Ministry of Home Affairs on Tuesday hosted a sod-turning ceremony for the commencement of construction of the new Brick-dam Police Station which is estimated to be completed in 30 months. The 12-storey structure will be constructed by R. Bassoo & Son’s Contracting Com-pany in partnership with Qingjian Guyana Group Company Inc (CNQC) for US$28,140,000. A demonstration in 2019 of how the licence plate location history search system component of the CCTV Surveillance system works. On Thursday, Jagdeo at his weekly press conference stated that his government has a “master plan” to improve security in the country and to do that there must be better-trained police officers “which we are working on separately but we also need a whole range of facilities and technology and upgrade of the environment.” In defending the government’s decision to build a 12-storey Brickdam Police Station, Jagdeo said, “You need that building which would be a central police station that can do a large number of things, not just policing.” He pointed out that in other countries security operations are done differently and while the station will be 12 storeys it will be the “nerve centre” for crime fighting across the country.
In the court
Judge orders that deductions from striking Linden nurses be repaid: Despite a ruling by Justice Nareshwar Harnanan in November last year that deductions illegally made from striking Linden nurses in 2021 be repaid by December 31st 2023, the state has not complied and it says it will appeal the decision. The state says it will also seek a stay of the ruling. Its non-compliance with the judge’s decision could lead to contempt of court proceedings. Since the judge’s ruling on November 2nd last year, the nurses’ representative the Guyana Public Service Union (GPSU) has sought to have the deductions repaid to no avail. The GPSU was the claimant in the case and the Permanent Secretary (PS) in the Ministry of Health and the Attorney General were the defendants. According to a press release dated January 11th, 2024 from the Union, it wrote the PS of the Ministry of Health the day before, advising of the order made by the court on November 2nd last for the repayments to have been made no later than December 31st, 2023. The Union had by then already written a previous letter to the PS dated December 28th, 2023, urging compliance. The GPSU said that in response to its latest letter, however, the PS sought to advise that the Attorney General (AG) had filed a notice of appeal and was also in the process of filing a notice of application for a stay of proceedings. Against this background, the PS, the Union said, sought to further advise that based on instructions coming from the Chambers of the Attorney General, no repayments would be forthcoming at this time. According to a copy of the letter signed by PS Malcom Watkins which was seen by this newspaper, it advises, “I wish to inform you that I am aware of the order of the court, however, I was advised, and I verily believe that the Attorney General of Guyana has filed a notice of appeal and is preparing to file a notice of application for stay of proceedings.”
City council
Residents complain of waiting time to pay rates at City Hall: Residents have been complaining about the amount of time it takes for them to pay rates and taxes and transact other business at the Mayor and City Council’s (M&CC) office. In an attempt to gain greater insight into the issue, Stabroek News conducted an observation exercise last Tuesday, and saw that citizens had to wait for some 30 minutes to an hour before being able to complete their rates and taxes transaction. Persons could be heard mumbling, complaining about the long wait. It was also observed that there was no system in place to let persons know their position in the line. Stabroek News spoke to a few individuals who had to wait for at least 30 minutes before being able to transact their business and they relayed their frustrations. “I have been here since nine this morning and had to wait here close to an hour; that is why I paid for two years in advance because year go year come, it is the same stupidness,” one person said. Although there were three cashier booths, only two were in operation, with a crowd of some 30 persons awaiting service. The unrest grew as a result of the cashiers taking quite some time to complete transactions. Also, one cashier would leave their booth for a period of time, and upon their return, the other would leave and this process would be alternated, resulting in the inevitable slowing of the process. “Some people are paying for nine persons at once; this is madness; the guy in front of me has been standing there for the last 40 minutes I have to go back to work. This nonsense has to stop,” a disgruntled person was heard to say. Another person was seen getting into an argument with a senior citizen over their position in the line, with many fretting that their tight schedules would result in them losing money. Senior citizens, meanwhile could be heard vehemently protesting at the time they were being made to wait. “They set us back 50 years with this process; this is not even a proper waiting area, it is hot, I am a senior citizen, and this is not healthy for me to be out here in this heat.” One person related that she got her business completed quickly, but noted that what usually causes the holdup is persons who are paying for several accounts at one time. Stabroek News contacted Mayor Alfred Mentore and told him of its observations. The Mayor expressed surprise and promised to look into the matter. “We have another cashier upstairs but I will check to ensure that what happened does not reoccur,” he said.
Oil & Gas
Proposals invited for gas infrastructure to support upstream developments: Even as construction continues in Region Three at the site for the proposed Gas to Energy (GTE) Project, the government yesterday advertised Requests for Proposals (RFP) for the Design, Finance, Construction, and Operation of what it called a Gas Infrastructure to Support Upstream Developments. This newspaper understands that it is a different operation from the GTE project, though its exact purpose is unclear. Nebulous too, is if this facility will also be located at or near to the GTE project site on the West Bank Demerara. Efforts to contact Minister of Natural Resources Vickram Bharrat, to gain clarity on the notice, were futile as messages went unanswered. On the Ministry of Natural Resources website, the notice states that it is inviting companies to submit plans on how they would build and operate a centralised gas connection, storage and transport facility for all natural gas accessed and produced by all oil companies operating in Guyana. “The Government of Guyana (GoG) is seeking the safe and timely development of its gas resources as well as creating an open-access infrastructure system for all existing and future upstream participants to support current and future upstream developments in Guyana,” the notice states. It explained that “upstream” means the upstream oil and gas developments including the necessary pipelines to connect, as needed, to such gas infrastructure required to monetize upstream gas. It pointed out that applicants, “shall evaluate the commercial, technical, and environmental feasibility for the necessary infrastructure (‘the project’). “… In order to be considered, all interested parties must respond to this RFP. This project will be strictly financed and owned 100% by the private sector. As part of this RFP process, the selected applicant, if any, with the most optimum solution for the project, will have exclusivity to negotiate with the GoG for its entitlement of gas to ensure the viability of the project and the overall value chain,” the notice reads.
Major groundwork ongoing for gas to energy project: Even as government awaits funding on the US$759m gas-to-energy (GTE) project, works are forging ahead at the West Bank Demerara site with pipe laying, constructing of internal roads and a materials offloading wharf, pile driving, as well as land preparation and other tasks. And while sources state that only 5 per cent of the 200 kilometres of pipelines to be laid for the completion of the project has been done to date, work continues daily on that process, but “a lot of groundwork is happening.” GTE project lead, Winston Brassington, told the Sunday Stabroek that approximately “443,000 m2 or 44.30 hectares” of land is being cleared onshore. Breaking down the works he said that at the integrated site plant (IPS), 403,930 m2 have been cleared; at the Materials Offloading Facility (MOF), 18,000 m2; at the Lay Down Area, 19,238.25 m2, and the Heavy Haul Road (HHR), 17,900 m2. On Friday, the Sunday Stabroek visited the site which is about five miles from the former Wales sugar estate. The once desolate and bushy backdams have been cleared, with service roads constructed for transporting sand, stone and other materials to the main site. Large buses were parked at the site, and it was explained that they transport workers daily to and from work. A wharf is being constructed on the bank of the Demerara River and persons are restricted from going to the site of works without clearance. Security guards informed that photos could not be taken or persons permitted on the property, as per the directions given by the project contractor.
Politics
Patterson still authorised to speak on oil and gas: Leader of the Opposition Aubrey Norton said that Shadow Minister of Public Works David Patterson is still authorised to speak on the oil and gas sector, though this new role has been given to People’s National Congress Reform (PNCR) Chairperson Shurwayne Holder. The seasoned politician relayed this information to the Sunday Stabroek following his recent shadow Cabinet reshuffle ahead of tomorrow’s reading of the 2024 National Budget. Patterson previously served as Shadow Minister of Natural Resources. The Alliance for Change (AFC) member, at his party’s press conference on Friday, January 12, at the Centre for Change in Kitty, Georgetown said that he and other parliamentarians were issued a formal list by Norton which stated their portfolios. According to Patterson, the list read “David Patterson Shadow Minister with responsibility for Public Works/Oil and Gas”. AFC Leader Khemraj Ramjattan and Chairperson Catherine Hughes said this was confirmed by Norton. However, Norton’s reshuffling did not sit well with PNCR member Jermaine Figueira who expressed disenchantment at how this was done. Figueira, who formerly served as shadow Minister of Culture, Youth and Sport and has been replaced by Nima Flue-Bess, expressed astonishment at the decision, stating that he was not previously informed about it. The MP said that this put him in a difficult position since he had been preparing to present at the upcoming budget debate as he has been doing for the past four debates. “At least you could’ve given me a heads up,” he lamented, adding that a one-on-one conversation with Norton before the announcement would have been good. Nevertheless, Figueira said that he was not offended by his replacement, since Flue-Bess was passionate and capable of doing the job; rather, it was the level of disrespect he felt he was dealt with by the Leader of the Opposition. In a lengthy letter addressed to the Central Executive Committee of the PNCR, Figueira highlighted his extensive work and accomplishments in representing and assisting his constituents in Region Ten, including social and economic initiatives.
Tragedy
Cane Grove woman dies after hit by car driven by son: A 63-year-old housewife, Ena Seecharran, died last Wednesday after she was struck by a vehicle that was being driven by her son. He is now in police custody. The crash occurred at her home at Lot 8 Saywah, Cane Grove, East Coast Demerara. Police investigations revealed that the victim’s son, Haimnauth Basdeo, was in his car, HD 1726, which was parked on his parents’ driveway and preparing to leave. He started the vehicle and drove forward, crashing through the gate and striking Seecharan, who was standing behind the gate, and directly in front of the vehicle. The left side of the car ran over the woman causing injuries. The vehicle ended up on a concrete wall in the yard and came to a standstill. The woman was picked up by her husband and rushed to the Mahaicony Public Hospital where she was pronounced dead on arrival. Basdeo fled the scene, according to the police.
