Finance Minister Dr Ashni Singh yesterday denounc-ed the reasons given for the withholding of $5.8 billion (€25 million) in budgetary support by the European Union (EU) stating that Parliamentary oversight remains intact and unimpaired.
Singh told Stabroek News that the while the EU cited the absence of budget oversight as one of the reasons the funds have been withheld it has no credible basis. He reiterated that in September while the budget support committee was meeting, the local EU delegation had already recommended to Brussels that the funds be released.
He said that the prorogation of Parliament, which he noted was provided for under the Constitution, occurred in November, well over a month after the recommendation was already made to Brussels. Stabroek News understands that grants once approved can be released almost immediately.
Observers however point out that though the EU might have granted the fiat for disbursal it would have become aware of the likely Parliamentary suspension as by this time the House was still to be brought out of recess. It was not until November that it was clear that Parliament would be summoned only to be suspended on the very same day. It is still to be reconvened meaning that it has not met for more than six months. This would have likely influenced Brussels’ concerns over budget oversight.
Singh stated that it was up the EU to provide a comprehensive basis for why the money has yet to be released.
During the commissioning of the GuyOil service station on Regent Street yesterday, the finance minister lambasted the political opposition for not condemning the EU’s decision to withhold funding that was “earned”. He said that one could not be a political patriot and not condemn such an action highlighting that all political parties should act in the national interest.
The EU action would be seen as the first tangible evidence of loss of support to the economy from the prorogation of parliament and an act that could attract similar measures from other areas.
Singh had stated last week that “no credible reasons” have so far been given as to why the EU has not made the payment to the government. Instead Singh stated that there have been “spurious” reasons, but there had been no indication prior that the EU would be withholding any funds.
Days later, the EU responded stating “The latest partial payments related to these two programmes have been temporarily put on hold until all eligibility criteria, inter alia budget oversight, are satisfactorily addressed”. One of the key functions of the National Assembly is oversight of the budget. The Assembly was prorogued by President Donald Ramotar on November 10, 2014 and it remains suspended.
The EU statement drew a sharp response from the government. The government released an email from the EU mission, dated September 8, 2014, which it said indicated that Guyana had met the eligibility criteria required to qualify for disbursements totalling €25,858,025. The EU mission had also recommended disbursement of this sum to the EU Budget Support Steering Committee in Brussels, which was due to meet on September 17, 2014, the government statement noted.
Last week Luncheon lashed out at both the EU and the British High Commissioner accusing both parties of conspiring to dishonour the longstanding budgetary support agreement between the EU and the Government of Guyana.
UK High Commissioner Andrew Ayre at an earlier press briefing had stated that the suspension of Parliament here was a violation of the Common-wealth Charter and UK aid could be affected.
“Without a parliament there is no parliamentary oversight of development assistance…clearly the appetite to send money to a country that has no parliamentary oversight is much reduced,” he had said.
The EU has two on-going budget support programmes in Guyana, one for the sugar sector (€28.9 million) and one for sea defences (€ 14.8 million). Last year €34 million was allocated to Guyana under the 11th European Development Fund.
