The Commonwealth Secretariat yesterday made a proposal to the Guyana Government on the establishment of a Sovereign Wealth Fund (SWF) which puts Parliament at the apex of its management.
A release from the Ministry of the Presidency said that Minister of Natural Resources, Raphael Trotman along with Finance Secretary, Dr. Hector Butts and other officials from the Finance Ministry and the Guyana Revenue Authority (GRA), yesterday met with Economic Adviser at the Oceans and Natural Resources Division of the Commonwealth Secretariat, Dr. Daniel Wilde who proposed a model for Guyana’s SWF. The meeting was held at the Finance Ministry’s boardroom.
The release said that some of the key aspects of Dr. Wilde’s proposal dealt with the amounts that could be withdrawn from the SWF annually, how the fund should be managed and what it should be invested in.
Based on his proposal, the release said that Parliament would be at the top of the management hierarchy, where it would be responsible for passing the laws and outlining the roles and responsibilities of all of the other related institutions. The Ministry of Finance would then be tasked with the drafting of a detailed investment mandate, while the Central Bank would have the responsibility of managing all of the investments.
Trotman said in the release that the Government has received many offers for proposals relating to the setting up of the SWF, having had engagements with the United Nations, the United States and Canadian Governments and there is also a possibility for collaboration with the Government of Mexico.
Trotman added that Guyana shouldn’t wait for oil before it acts. Instead it should start saving from the revenues of all its resources, particularly gold. This way, he said, the country would be better prepared when oil revenue comes on stream.
