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Sam Hinds says lack of ring-fencing benefiting Guyana Oct 14, 2024 News …urges Guyanese to “pray for patience” as flow from oil money set to increase Kaieteur News – As Guyanese and independent global organizations continue to call on government to implement a ring-fencing provision, to allow the country to enjoy the early proceeds from the petroleum sector, the former President and Prime Minister of Guyana, Samuel Hinds has said that the lack of this key clause works in favour of the nation. Former President, Prime Minister and Guyana’s Ambassador to the United States, Samuel Hinds Guyana’s Ambassador to the United States in a letter to the editor Kaieteur News on Saturday continued the conversation on an article that was published by the newspaper indicating that Guyana should have received US$10B to date but has only received US$4.4B. Hinds said he believes that the additional money Guyana should have received was affected by taxes and ring-fencing. After explaining that governments usually accept royalty and profit payments in the place of taxes, he shifted his attention to ring-fencing. Ring-fencing in the petroleum sector would simply require each project to pay its own development costs. Guyana did not implement such a provision, leaving Exxon to use the revenues from projects producing oil to invest in other developments. In this manner, the proceeds available as profits are significantly reduced. Hinds is adamant that this current arrangement not only works in favour of the oil companies, but the government of Guyana as well. The former President wrote, “One should also note that the lack of ring fencing (if ring fencing was unilaterally enforceable) facilitates further rapid exploration and development of the field. Yes, it may be argued that it is like us financing further and faster exploration and development of the Stabroek block.  That benefits Exxon and benefits us too.” With oil prices likely to drop in the future as the world transitions to cleaner energy sources, Guyanese have been relentless in urging government to ring-fence the projects for Guyana to see the flow of greater deposits into the Natural Resource Fund (NRF) or the oil account. Ambassador Hinds however explained that, “As long as there is a certain level of continuing discovery and development, today’s foregone payments would in time be received by us. True, there is the issue of “delayed” payments and the time value of money.  Certainly, these considerations quickly become complex and complicated – where lawyers and accountants make their money; but after all of that, a judgement has to be made on what would turn out better for us.” He therefore called on Guyanese to drop the “emotional interpretation” of his words and “pray for patience” as the flow from oil is “steadily growing much larger”. Presently, Guyana could have been receiving a greater share of profit from the three projects producing oil- Liza One, Liza Two and Payara. This, as Exxon has since recovered over US$19B from the Stabroek Block, well above the cost for the three projects. Related Similar Articles

Biker crushed by truck Oct 14, 2024 News Kaieteur News – A man yet to be identified was on Sunday afternoon crushed by a truck while riding an electric bike along the East Bank Demerara (EBD) Public Road. Police said the accident took place around 14:03 hrs. at Bagotstown. The truck and the electric biker were reportedly heading in the same direction towards Georgetown. Just before crossing over in the vicinity of Car Care Enterprise (auto dealership), the truck reportedly knocked the bike from behind. The biker fell off his bike and was crushed by the truck. An ambulance was summoned but the medical crew onboard pronounced him dead at the scene. His body was subsequently taken to the Memorial Gardens Funeral Home. Meanwhile, the truck driver has been taken into custody to assist with investigations. Related Similar Articles

Bandits bagged $500K during attack on Chinese supermarket Oct 14, 2024 News One of the Jin Run Fa Supermarkets located on the East Bank of Demerara (Eccles) Kaieteur News – Three unmasked gunmen on Saturday night robbed the Jia Run Fa # 2 Chinese Supermarket in Nandy Park, East Bank Demerara (EBD). They reportedly stormed into the building around 20:30 hrs while it was still open for business, police said. Jinhua Li, 34, a Chinese National and the supermarket’s owner was at the cashier’s counter at the time. Police said they held him at gunpoint and demanded he hand them everything.  Fearful for his life, he allowed them to take whatever they wanted. They bagged off $500,000 in cash, Jinhua Li’s cell phone, a quantity of Digicel and One Communications phone cards among other valuables. In an effort to make sure police never catch them the bandits took the security cameras’ DVR before leaving. Related Similar Articles

World Bank calls for independent and well managed oil fund Oct 14, 2024 News Kaieteur News – The World Bank’s Chief Economist for Latin America and the Caribbean (LAC), William Maloney, has underscored the need for Guyana to ensure that its Natural Resource Fund (NRF) is well-managed and independent. Chief Economist of Latin America and Caribbean (LAC), William Maloney Monies earned from oil sales and royalties from ExxonMobil Guyana Limited (EMGL) operation in the Stabroek Block is deposited into Guyana’s NRF (oil fund). During a press conference held on Wednesday, Maloney highlighted the country’s promising future due to its petroleum sector, but cautioned that managing these resources will present significant challenges. Maloney pointed out that the primary concern will be to prevent overvaluation of the local currency and inflation, issues that could arise if oil revenues are not properly utilized. “Guyana clearly have a bright future in terms of revenues coming from petroleum and I think the challenge is going to be to use those revenues correctly in such a way that (they) don’t drive overvaluation of the currency and drive inflation in the country,” Maloney said. He emphasised the importance of ensuring that these funds are used in ways that promote long-term economic stability. The World Bank official added, “That’s gonna mean having a very well-run and independent sovereign wealth fund. I think that’s gonna be a big challenge going forward.” Moreover, he also noted that the World Bank is working with Guyana to ensure that the country’s oil investments are environmentally sustainable. Recently, the Government of Guyana (GoG) withdrew $62.3 billion from the oil fund, bringing its total withdrawal to date for the year to $239.176 billion. Kaieteur News had reported that concerns have been raised about the management of the NRF. Recently the Chairman of the National Assembly’s Public Accounts Committee (PAC), Jermaine Figueira called for transparency when using Guyana’s oil money. He even cited the need for possible amendments to the Act.  Section 16.2 of the Act states that “All withdrawals from the Fund shall be deposited into the Consolidated Fund and shall be used only to finance: (a) national development priorities including any initiative aimed at realizing an inclusive green economy, and (b) essential projects that are directly related to ameliorating the effect of a major natural disaster.” To date, the government has budgeted approximately US$2.6B in oil money through 2022 to 2024.  Revenues earned from oil are transferred to the Consolidated Fund, blurring tracks of expenditure. Government is yet to identify the “national development priorities” being funded by oil revenue. This is particularly concerning because the legislation features no penalties for misuse of the funds. Figueira however, pointed to the need for transparency when using resources from the sector. He noted that the NRF Act is clear on how the funds should be spent. “…we require more specifics because the Act is very clear with regards to how those funds should be spent and if you just lump sum it into the consolidated fund, we need to know definitely of those funds that were transferred into the consolidated fund that are they being used for the specific purposes with regards to what the Act speaks to.” Amendments to the NRF Act The Parliamentarian said the NRF Act may require amendments to justify transfers to the Consolidated Fund for spending across the board, rather than for specific purposes outlined in the Act. These amendments according to him are crucial to ensure there is absolute conformity with the legal requirements. He said, “Given how it is being transferred and the unknown of how it is being utilized it therefore requires some additional amendments to give greater clarity on the direction of how these funds should be directed and used.” Figueira is adamant that the public must know how much of the Fund was used for any specific project. According to him, this can be done through the Budget documents in order to certify that the funds are being utilized in accordance with the act. He also shared the view that the oil money should be subjected to a separate audit. Figueira explained, “This is the most important sector and therefore a lot of attention should be directed specifically to these funds. We want to ensure that the country doesn’t suffer from the Dutch disease and therefore, these funds should be dispersed in a manner that is very responsible and therefore special attention should be directed specifically to that sector to manage the fund.” Dangers International Financial Analysts worry that the revenue may not be used to develop Guyana and improve the lives of its impoverished citizens because there is little transparency regarding the use of the country’s oil wealth. For instance, Director of Financial Analysis at the Institute for Energy Economics and Financial Analysis (IEEFA), Tom Sanzillo had pointed out that the government has not been prioritising saving the funds generated from the industry like Norway but has instead embarked on a massive infrastructural and energy development scheme which may very well benefit its partner, ExxonMobil more than the citizens in the country. Meanwhile, the government previously said that money from the oil account is transferred directly to the Consolidated Fund which blends the various revenue streams. This means the government is unable to say what specific projects were funded by those earnings. Related Similar Articles

De biggest crook in Guyana… Oct 14, 2024 Dem Boys Seh, Features / Columnists Dem boys seh… Kaieteur News – Dem boys seh de greatest thief ain’t de one who tief money from de treasury or tek bribes under de table. Nah, dem seh de biggest, baddest thief is de one who rig an election. When yuh rig election, yuh ain’t just tekking a little change. Nah man, yuh tekking a whole country. Is like yuh put yuh hand in everybody pocket same time and snatch dem vote. And worse yet, yuh want fuh tell dem that they ain’t feel de hand in dem pocket. When yuh rig an election, yuh stealing more than just votes. Yuh stealing people’s hopes, dreams, and faith in democracy. Is like yuh mekking people think they got a chance fuh choose, but really, yuh done decide who gon win long before they even mark de ballot. Dat is disrespectful to de core, like a slap in de face to every man, woman, and child who believe that dem voice matter. But dem boys seh de real trickery does come after. Because after yuh done rig it, yuh does tun round and force de people fuh live with it. Is like yuh tief dem house, mek dem sleep outside, and den yuh want dem fuh seh “Thank you, boss!” Dem seh it’s like givin’ a man de wrong medicine and then telling him he got to drink it and like it too. Rigging an election ain’t just about winning. Is about forcing people to accept a government that they ain’t pick. Dem boys seh, when yuh do dat, yuh mekking people feel like dem voice is just noise, like it don’t matter what dem want, yuh gon do as yuh like. It’s de kinda thing dat does kill people spirit and mek dem give up on believing in any kinda change. So when yuh hear people talk about corruption, dem boys seh don’t forget de one dat does start de whole mess—rigging election. Cause dat is de kind of tiefing that don’t just rob de country today. It rob de future too. Talk half! Leff half! Related Similar Articles

This is wrong! Plain wrong! Oct 14, 2024 Features / Columnists, Peeping Tom Kaieteur News – The recent announcement of a $200,000 cash grant per household has generated waves of excitement. But in the shadows of this populist spectacle, another measure quietly slipped past the public’s scrutiny. It is the government’s plan to introduce a universal healthcare voucher of $10,000 per child, set to roll out next year. On the surface, this policy may appear as a benevolent gesture, a part of the government’s effort to address the healthcare needs of some 500,000 children. But in reality, it is a thinly veiled maneuver that will cost taxpayers a staggering $5 billion and represents an audacious contradiction to the government’s self-proclaimed mission of building up public healthcare. This is no mere policy tweak; it is a calculated transfer from the public purse to profit-seeking private healthcare providers—a move that should outrage any citizen concerned with the integrity of public services. In his address to parliament, the President announced that some $60 billion has been earmarked for cash grants, a direct transfer to households. Yet the healthcare voucher, though more subtle, represents a different kind of transfer—a siphoning of public funds into the coffers of the private healthcare sector. The puzzling question arises: why would a government, committed to the expansion of public healthcare, offer these vouchers when public hospitals and clinics already provide free healthcare services, including diagnostic tests? Why introduce a voucher that can only be redeemed at private healthcare facilities? The answers to these questions lie buried beneath layers of rhetoric. If a child can walk into a public hospital and receive these same tests without cost, then the issuance of a $10,000 voucher could only be for private healthcare use. Is this a backdoor subsidy to private clinics and hospitals? This cannot be about empowering families to seek better care; it is about redirecting taxpayer money to for-profit entities. It is a deliberate effort to boost the revenues of private healthcare providers at the expense of a robust and accessible public system. And what a generous boost it is—$5 billion worth of taxpayers’ money, a sum that could instead have been used to enhance diagnostic capabilities at public hospitals, making such tests more accessible and efficient for all citizens. But more troubling than the financial gymnastics is the contradiction inherent in this policy. Only months ago, the government paraded its grand vision of a modernized public healthcare system. The plans were ambitious: constructing 12 new hospitals, upgrading regional health centers, and expanding the suite of diagnostic services offered at public facilities. These initiatives, we were told, were meant to strengthen the public healthcare infrastructure, to ensure that all citizens—regardless of income—could access quality care. The promise was one of transformation: a network of public hospitals and clinics that would reduce reliance on private providers, making essential medical services universally accessible without a price tag. Yet now, with the stroke of a pen, the universal healthcare voucher program undercuts that very vision. This is not a policy that empowers public hospitals, nor does it reduce the burden on families seeking care. It does the opposite, channeling money into a parallel system where private facilities will reap the rewards of public largesse. This is not merely an inconsistency; it is a betrayal of the government’s own stated priorities. The very act of offering a voucher that can be used outside of the public system sends a clear message: the government’s investment in public healthcare may be grand in rhetoric, but it lacks the conviction of true reform. It is worth examining the necessity—or rather, the lack thereof—of the tests that these vouchers will fund. A battery of basic diagnostic tests for children is proposed, yet the majority of children, likely over 90%, will pass these tests without issue. Only a small fraction—perhaps 10% at most—will exhibit any concerning results. This means that the majority of the tests will serve no urgent medical purpose; they are, in effect, unnecessary. They represent a pretext, a contrivance to justify the outlay of funds that will ultimately enrich private clinics. A more efficient approach would have been to enhance screening capabilities within public hospitals, using existing resources more judiciously and reserving private sector engagement for truly specialized cases. Instead, the voucher scheme pushes all children into private facilities, ensuring that $5 billion is funneled into the hands of those already profiting from the weaknesses of the public system. The irony of this approach is bitter. If the government truly believed in the efficacy of the public system it is building, it would be touting those 12 new hospitals as the solution. It would be bolstering the capacity of public clinics to handle a wider range of diagnostic tests. It would be expanding free services, not quietly subsidizing private ones. Instead, this voucher program suggests that the government has more faith in private providers than in its own institutions. This should be a source of indignation for every citizen who has been told that public healthcare is a priority. The idea that $5 billion of taxpayer money is being funneled into private healthcare is an abomination. It raises critical questions about who benefits from such decisions and whether the public interest is truly being served. Are these vouchers a clever way to provide children with better care, or are they simply a windfall for private clinics? It is a question of priorities—of whether public funds are best used to support a healthcare system that serves all citizens equitably, or whether they should be used to pad the profits of private entities that cater to those who can afford more. This is why citizens should be alarmed, and why they should speak out against this policy. It is not merely a benign policy choice; it is a reflection of a broader trend where public services are allowed to wither while private interests are allowed to flourish on the backs of public money. It is a signal that even as the government professes a commitment to building new hospitals, it is quietly shifting resources away from the public system and into private hands. It is a form of creeping privatization, and it should be resisted at every turn. Related Similar Articles

Venezuelan man found wounded on Vergenoegen roadway Oct 14, 2024 News Kaieteur News – On Saturday night, a 29-year-old Venezuelan man was found wounded on the roadway in Vergenoegen, West Coast Demerara (WCD). Kaieteur News understands that the police from Leonora Police Station received a call around 10:30 p.m. from an unknown caller, reporting the discovery of the injured man. When officers arrived at the scene, they found the man, later identified as Dickson Sanchez of Tuschen, WCD, lying motionless with blood covering his body. Sanchez was found with a swollen face, a chop wound, and an injury to his left hand. He was rushed to the Leonora Cottage Hospital, where he is currently receiving medical treatment. CCTV footage is being reviewed as part of the investigation. Police have not yet disclosed what lead to Sanchez being injured. Related Similar Articles