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Campaign financing – What Guyana needs Jul 01, 2024 Features / Columnists, The GHK Lall Column Hard Truths by GHK Lall Kaieteur News – Guyana needs robust campaign financing laws. Laws without loopholes. Laws that mean business. The Hon. Attorney General, Mohabir Nandlall, SC knows this, and much more. He must move with all the energy and acumen and urgency that he can summon. A bill, a law, a new era of applying tight campaign financing law(s) across the board. I say to hell with the Opposition PNC and AFC if they will not get fully onboard. Not just onboard, but fully so. And if the PPP/C with all the power and drive at its fingertips, as manifested so consistently, cannot bring itself to do so, then may it be damned to answer to the Americans and fail miserably at it. I start with scripture and ask pardon of nonbelievers. “The love of money is the root of all evils.” Straight from the Bible, and it is not money. It is the love of money. That insatiable greed, that uncontrollable compulsion, like a terribly and dangerously hung-over binge drinker. Are you still reading and absorbing, Mr. Nandlall? The government must be done with the schemes and stratagems re: campaign financing. Get a law that has teeth. In a cash intensive society, campaign financing is one of the killers of clean governance. It is the easiest matter for anyone who can afford it in this country to slip a hundred million, or a half billion, into the hands of a political party. For Guyanese who think that GY$500 million is a staggering sum, know this: it is not for those who give such sums (or close to them, or more than that). It is what comes back from a victorious government and leaders who are deeply indebted due to financing favours extended before, during, and after elections. In any campaign/political financing law that has meaning; there must be limits and no secrets. Full disclosure and buttressed by full documentation. Records kept by givers and records by receivers. A flaw is recognized right away: how to account for under the table, cash transactions, dark money donations. Men with bags, trusted couriers with suitcases, of cash. It is that kind of society in Guyana, and it is not changing anytime soon. This is what fuels political parties during elections, helps them to propagandize and proselytize. TV messages are expensive, and so also are what must be paid to foot soldiers and fence sitters. Or those in the opposition that must be bought to secure either electoral triumph or a special kind of bureaucratic partnership. Ever think why, outside of the mass of politicians, why the public service at very high levels has earned such a dubious reputation, an ugly distinction that many in the public domain suspect, but only those in government know. After elections is crucial for donors and financiers. The bigger ones anticipate the biggest rewards. They get it by truckloads, and those rewards are part of a vicious and destructive cycle. A cycle is a circle, and it works like this. The campaign financiers give big and get the biggest plums. The people’s (budgeted) money is channeled via contracts to campaign financiers, even if such contracts must be forced to favour them. Criteria and conditions can take a hike, be damned. There are all those unanswered and unsettled questions about the tender board, the procurement watchdogs, and the way that business is executed. Guyanese read about those who get public work contracts that they shouldn’t have. Lost in the shuffle are those who failed to win a contract, though they qualified. I contend that this is how campaign financing corrupts the tender award process, when the inexplicable happens, and when leading political stars pass those hot potatoes to others to run with the fallouts. It is part of the game that commences with campaign/political financing. Estimates that have no basis. Winning bids that mock honesty and principled duty. Then, the flow of political kickbacks that keep the circle of corruption going, and which began with campaign financing. From giver to taker. From political leadership taking to government giving to successful recipient returning a portion of what feeds the machine, the beast. Again, I say it: campaign financing, political donating, is a leading component in the culture of corruption that consumes this country and its taxpaying citizens.What starts out, or is naively interpreted, as feathering one’s nest is much more treacherous and costly than what is held as a standard commercial practice. Despite its layers of laws, checks and balances, and company of honest watchdogs, even a mighty society as the United States has its challenges with campaign/political financing, and it is a way less cash-centered country. Guyana as it is presently, therefore, is open territory for the worst excesses of campaign/political financing. My understanding is that both major political parties have their ideas of what strict campaign financing law(s) should look like. It stands to reason why that is so. Take away the easy millions (hundreds of such) and the television and podium must be foregone for the muddy streets and distant villages. It is heavy going with much foot slogging, tireless handshaking and appealing and selling oneself. In person. Rich campaign financing and overflowing party coffers allow outsourcing, media spinning and deceiving, and little leadership accounting. Guyana needs to get some basics in place: limits. Disclosure. Documentation. Penalties for violators. For both donors and receivers. All of Guyana’s political leaders need to stop talking through their noses (or their back ends) and start giving honesty a try. Start with a clean and comprehensive political financing law. Then enforce it to the fullest. Campaign financing: do something, let it be the real thing. (The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.) Related Similar Articles

Region 6 RDC driver freed of drug trafficking charge Jul 01, 2024 News Kaieteur News – A driver attached to Region Six’s Regional Democratic Council (RDC) was reportedly freed of drug trafficking charges brought against him in 2022. Dexter Nicholson, 38, of First Street, Edinburgh Village, East Bank Berbice (EBB) was freed last week after making an appearance at the Albion Magistrates’ Court before Magistrate Peter Hugh. He was represented by Attorney-at-Law Senior Council Murseline Bacchus who argued in his submissions that prosecution did not have sufficient evidence to convict his client. The magistrate agreed and dismissed the case.Police in December 2022 had accused Nicholson of trafficking marijuana after they found a large quantity in a red Nissan X-trail he was driving at the time. The vehicle belonged to the Health Department located at Courtland Village, Corentyne, Berbice and was carrying three passengers when police stopped the driver at roadblock set-up along the road at Number 19 Village, Corentyne, Berbice. Attorney Bacchus maintained his client’s innocence noting that the drugs could have been placed in the vehicle by any of the other drivers who used the vehicle or possibly by a passenger of the vehicle. Related Similar Articles

Is there a shortfall in Royalty and Profits in 2023? Jul 01, 2024 Letters Dear Editor, Kaieteur News – Having received copies of the 2023 Financial Statements of ExxonMobil Guyana Limited (EMGL), Hess, and CNOOC, with ownership rights in the company of 45 percent, 30 percent, and  25 percent, respectively, I decided to undertake a brief analysis of the 2023 financial information. But before doing so, it is important to state that the Government, in consultation with the Institute of Chartered Accountants of Guyana (ICAG), should introduce a standardized format for the presentation of the oil companies’ financial statements. For example, only EMGL had an entry for royalty of G$21,922,725,604, while Hess and CNOOC did not report separate entries for royalties. To overcome this lack of information, the 2023 Annual Report for the National Resource Fund (NRF) reported that a total of G$45,471,968,000 was received as royalties; and therefore, one can assume that the difference of G$23,549,242,396 was the amount paid by CNOOC and Hess. Because of the lack of disaggregated royalty information, the submitted financial data for Hess and CNOOC will be combined in the presentation below, while the submitted EMGL financial information will be presented as a separate entry. It is also recommended that all future financial reports of the Consortium must include the number of barrels of oil sold. As a result, the data of 141, 657,000 barrels of oil sold, as reported in the Bank of Guyana 2023 Annual Report, will be included in the analysis below. According to the published financial data by the three companies, a total of G$2.69 trillion (or US$12.9 Billion at an exchange rate of US$1 = G$208.5) in total revenue was earned, with Hess and CNOOC’s total revenue amounting to G$1.58 trillion and EMGL’s total revenue being G$1.11 trillion (Table 1). The total cost in 2023 recorded in the financial statements and linked with the sale of 141.7 million barrels of oil, is G$1.03 trillion; this  yields an average cost per barrel of US$34.97. The average selling price of a barrel of oil is US$91.09, assuming an exchange rate of US$1.00 = G$208.50 for both the price and cost for a barrel of oil in US dollars. It is important to note that the total cost (TC) of the oil extracted and sold is only 38.39 percent of total revenue (TC/TR = G$1.03Trillion/G$2.69 trillion), and not 75 percent of total revenue (TR) as stated in the Production Sharing Agreement (PSA): Total Cost (TC) = 75%TR; instead, the actual cost derived from the 2023 financial Statements is: TC = 38.39TR. Consequently, the total profit after taxes in 2023 is G$1.66 trillion (US$7.95 billion), of which Guyana’s profit share at 50 percent isG$874.3 billion (US$3.98 billion). According to the 2023 NRF Annual Report, Guyana only received US$1.39 billion. Should a reconciliation exercise be undertaken? Meanwhile, it is more than likely that the average cost of a barrel of oil can be less than US$34.97, given the findings by the auditors of the unauthorized expenses in the recent audit report covering the period 2018-2020 https://www.stabroeknews.com/2023/12/24/opinion/letters/questions-abound-about-this-us7-3b-cost-recovery-audit-report/; and also, the misuse of funds due to the absence of ring-fencing. This cost will be further reduced when the capital cost has been repaid in full, once the appropriate audit is undertaken, and there is no spending on new projects with the profits from the existing operations. In the Natural Resource Fund (NRF) Annual Report 2023, a sum of G$45.5 billion in royalty payments was deposited into the NRF account. However, since royalty payments are based on 2 percent of total revenue, the amount of royalty payments must be G$53.8 billion, given total revenue of G$2.69 trillion. Consequently, a reconciliation exercise should be completed to correct what appears to be a significant shortfall in the royalty that Guyana should have received. A similar exercise should be completed with the profit share for Guyana, given the profit amount recorded in the financial statements of the companies. The total taxes which should have been paid in 2023 by the companiesareG$306.8 billion, and this amount is 11.403 percent of total revenue of G$2.69 trillion (Table 1). Unfortunately, and in keeping with the 2016 PSA, Guyana has this bizarre responsibility of paying the taxes from its share of oil revenue to the Guyana Revenue Authority; and thereafter to issue a fake tax receipt to the companies for money the Government never received. This is fraud and no government should be paying the taxes for any company, as this is a horrible act against the sovereignty of Guyana. In other words, this outcome repudiates contract sanctity, for companies cannot be bigger than countries. Equally distressing is the notion that the royalty paid (G$45.5 billion) is less than the income tax of G$306.8 billion (11.403 percent of total revenue) that is owed to Guyana; and that Guyana is paying out of its oil earnings to satisfy a clause in the 2016 PSA. In fact, the tax G$306.8 billion, equivalent to US$ 1.47 billion that Guyana pays on behalf of the oil companies, is more than the total value of exports in 2023 of US$1.15 billion from the combined export earnings from sugar, rice, bauxite, gold and timber. Can you imagine what that these two baskets of money- the true profit share, and the taxes owed- can do to end the poverty and hunger experienced by half of the Guyanese population? That sum would also reduce the need for government borrowing that will be the bitter inheritance of future generations, if corrections are not implemented. Guyana has to stop being a ‘packoo’ (pacu), the fish in Guyanese Creole that identifies spinelessness. Policymakers must act! Sincerely, Dr. C. Kenrick Hunte Professor and Former Ambassador Related Similar Articles

A Boon for Farmers: Adventure Pump Station in Berbice Operational Jul 01, 2024 Letters Dear Editor, Kaieteur News – The agricultural community in the Black Bush Polder areas has a significant reason to celebrate with the newly operational Adventure Pump Station in Berbice. This critical infrastructure, aimed at enhancing the drainage system, promises to be a game-changer for local farmers who have long struggled with water management issues. Despite initial skepticism and criticism, the project has been completed within the contractual time frame, marking a noteworthy achievement in the region’s agricultural development. The Adventure Pump Station stands as a testament to resilience and forward-thinking. With the capability to significantly boost the drainage system, it will provide much-needed relief to farmers who rely heavily on efficient water management for their crops. The station will ensure proper drainage of the main canals, mitigating the risk of flooding and water logging that can devastate farmlands and livelihoods. This improvement is expected to lead to increased agricultural productivity and sustainability, offering a brighter future for the farming community. The soon to be commissioned by the Minister of Agriculture, Zulfikar Mustapha, the pump station is more than just an infrastructural project—it represents hope and progress. Minister Mustapha’s involvement underscores the government’s commitment to supporting the agricultural sector and addressing the critical needs of farmers. The commissioning ceremony not only marks the beginning of the pump station’s operational phase but also highlights the collaborative effort between the government and the local community. The completion of the Adventure Pump Station within the stipulated time frame is particularly commendable given the initial doubts expressed by naysayers. Critics questioned the project’s feasibility and its potential impact. However, the successful and timely completion of the pump station stands as a rebuttal to these criticisms, showcasing the effective planning and execution capabilities of the involved stakeholders. In conclusion, the operational Adventure Pump Station in Berbice is a significant milestone for the Black Bush Polder areas. Its benefits will extend beyond immediate drainage solutions, fostering long-term agricultural development and stability. As the farming community looks forward to reaping the advantages of this new infrastructure, the project serves as a reminder of what can be achieved through dedication and strategic planning. Sincerely, Ron Fields Related Similar Articles

Guyanese owe a debt of gratitude to the Carter Centre Jul 01, 2024 Letters Dear Editor, Kaieteur News – The visit of the Carter Centre to Guyana on the invitation of the Guyana Government is a welcome development. The Centre played a key and critical role in the restoration of democratic rule on October 5, 1992 after twenty-eight years of rigged elections and PNC dictatorial rule. With election due next year, this pre-assessment visit of the Centre is important in terms of confidence building measures in the electoral process. The Centre, founded by the late US President Jimmy Carter, has played a key role in the promotion and consolidation of democracy and democratic rule in several other countries of the world. In his engagement with the team, President Dr. Mohamed Irfaan Ali has given assurance of his administration’s full commitment to the democratic process, the rule of law and respect for the will of the people. Guyanese owe a debt of gratitude to the Carter Centre for the role it played in the restoration and consolidation of democratic rule in Guyana. Following the restoration of democracy in 1992, the Centre was also instrumental in the mobilization of developmental assistance to the country. The March 2020 General and Regional elections have demonstrated that our democracy is still fragile and must not be taken for granted. Hence the importance of international observers of which the Carter Centre is an important component. Hydar Ally Related Similar Articles

Guyanese and the First Presidential debate of 2024 Jul 01, 2024 Letters Dear Editor, Kaieteur News – Guyanese Americans watched the Presidential debate last Thursday evening. Guyanese Americans are divided between the Republican Trump and Democrat Biden, perhaps two to one in favour of the latter. There was no dispute among all of them and almost every non-Guyanese American that Trump won the debate. Guyanese and others said Biden under-performed and came across weak physically; it was a pathetic display of mental acuity and physical strength while Trump was himself – very dynamic in speech and appeared physically strong. Clearly, Biden did not show that he has the mental acuity and stamina to handle another four months of a grueling campaign that requires traveling to different locations daily. Biden is 81 years old while Trump is 78. Yet the very next day, he demonstrated alertness, cracked self-deprecating jokes, and showed a physical prowess that was missing Thursday night. Right after the debate and continuing till now, a large number of Democrats, including almost every Guyanese, are urging Biden to drop out of the race because of the demonstrated physical weakness and ineffective mental acuity. Anyone who follows and knows Biden’s entry and immersion in politics, would tell you that he was among the best Senators and Vice President of the USA – very sharp, witty, brilliant in the Senate and as a Presidential candidate not only in 2020 but in his two earlier runs. The fear among the Democrats is that if Biden loses, the races in down positions for Congress, Governor, Assembly, and other positions could be impacted. The coat-tail effect could potentially hurt Democrats nationwide causing them to lose the Senate and denying a good opportunity to recapture the House of Representatives. Analysts, including this writer, felt Biden lost the debate but that Trump didn’t win. Nevertheless, Biden did not quelch doubts about his physical wellness to be President for another four years whereas Trump did. It is not likely that Biden will drop out. That is also the view of several Guyanese. It is unchartered territory on how to replace a Presidential candidate (nominee) who wins the nomination democratically in some fifty-five contests opts to drop out of the Presidential race. Biden’s White House staff and his family seem to want him to labour on. In terms of the debate performance on poll numbers, there does not seem much movement on the needle. One poll findings that was released the day after the debate said it did not affect how they will vote. However, Biden’s favourability ratings dropped one point while Trump’s went up one point. Both had unfavourability of some 59% going into the debate. Before the debate, 27% of likely voters rated Biden as good or excellent on mental fitness to be president. Following the debate, that level dropped to 20%. In terms of the Guyanese factor on the outcome of the November 5 elections, their vote only matters in the swing states like Georgia, Pennsylvania, and Florida. There are a handful of other swing states like Michigan, Wisconsin, Nevada, and Arizona but there are few Guyanese settled there. Most Guyanese live in New York where Biden leads by double digits and in Florida where Trump leads by a few percentage points. A few other states close have close races like Minnesota, Virginia, and North Carolina where there is a sizeable Guyanese presence. Biden leads comfortably in all three although he is still campaigning in all of them. Trump is targeting North Carolina and Virginia and the battleground states. The Guyanese vote is divided in every state with Trump’s share larger in the South than in the North. Four months are a long way off to determine the winner. But with last Thursday’s debate performance, Trump is likely to inch up in the polls though no Guyanese is convinced to swing from Biden to Trump. Yours truly, Vishnu Bisram Related Similar Articles

 Is the US Government testing the Guyana Government Jul 01, 2024 Editorial Kaieteur News – In communications between countries, there are protocols and procedures to follow.  Things, such as requests for information, must go through specific channels.  On the surface of it, this is what the US Government is adhering to in its dealings with the Government of Guyana.  It is the matter that has ensnared three Guyanese now blacklisted under the umbrella of Specially Designated Nationals, as issued by the US Treasury Department’s subunit Office of Foreign Assets Control (OFAC). What came out of OFAC was remarkable for its reach in Guyana, the swift responses it generated from the highest levels of the PPP/C government, and the terse comments of the US Ambassador to Guyana, Ms. Nicole Theriot.  Now the US government is directing the Guyana Government about the course of its next steps almost three weeks after the news of three blacklisted Guyanese made headline news in the local environment and other places. The sanction imposed on three Guyanese have already had their local consequences on the individuals named.  One has resigned from her top public service job.  The father and son duo have felt the negative impacts in different ways.  A Cambio license has been yanked in a matter of a few days.  And the son’s racing team is now barred from participating in events related to that sport.  Now the Guyana Government is asking for information related to the sanctioning of the three individuals, and the US Government is directing it to the US Justice Department.  When the local responses and actions are aggregated, they raise several tricky questions about what is happening. On what basis did the Guyana Government act so quickly against the three Guyanese?  Was it solely on the sparse release from Treasury’s OFAC, with details now belatedly sought?  How can this be considered due process for the named citizens?  Before that, what does this say about Guyana’s sovereignty and the PPP/C Government being the first determinant of how our laws unfold and apply?  Was what has been meted out to the senior public servant and two of this country’s leading business names, driven by what was a tight release by OFAC, and little else?  What else is there left to conclude?  Considering that the PPP/C Government is now moving to gather further information to decide on its next steps against the three individuals?  What the US has called a “network” of corruption, bribery and a suitcase of other serious allegations?  Moreover, why has it taken the government this long to get on this matter and get as much information from the US? Aside from these concerns and worrying questions, there seems to be a disconnect between the two governments.  It is surprising that the Guyana Government has not moved on this matter with more urgency.  Surprising also is that some of the leading players in the government here have to have their hands held, almost lectured, on where they must go for information that is needed.  We appreciate that the US Government machinery is vast and complex, but surely the Attorney General should have known that matters of this dangerous nature must be directed at the US Justice Department, while also including OFAC in all communications.  Also, the responsibilities of signatories to different mutual assistance pacts are defined with processes outlined. This latest development only inspires more questions. Which government is playing games in this situation, the US’ or Guyana’s?  Are the relevant US authorities still harbouring significant doubts about the sincerity of its local counterpart? And how much it can be trusted with highly compartmentalized and sensitive information?  What is the Guyana Government up to with this delay?  Is it dragging its feet and buying time so that friends who are in the US net can take evasive measures?  And, last, is the US Government watching keenly to detect what the PPP/C Government is really about on the corruption issue, possibly even setting it up? The credibility of the PPP/C Government where corruption is concerned is up in the air.  Because it is so widespread.  Because leading government officials and their supporting network are not looked upon with confidence by the US.  Because reality now challenges the government here to step up or get stepped upon. Related Similar Articles