The controversial passage of the Natural Resource Fund (NRF) Bill in the National Assembly on December 29, 2021, highlights the desperate need for constitutional reforms as well as the review and updating of the Parliamentary Standing Orders, according to Deputy Speaker Lenox Shuman.
The sentiments were expressed in what would have been Shuman’s contribution to the NRF bill’s debate in the National Assembly had the A Partnership for National Unity+Alliance For Change (APNU+AFC) coalition not disrupted the sitting. The APNU+AFC through its Members of Parliament, particularly Annette Ferguson, snatched the ceremonial mace in their bid to protest the bill.
They were calling for the bill to be sent to a special select committee for broader consultations and input but the government was having none of it. The PPP/C government had indicated that it would forge ahead with the passage of the bill using its one-seat parliamentary majority.
The opposition’s protest led to the bill being passed without any debate and amid chaos. Nevertheless, President Irfaan Ali assented to the bill, making it law, on December 30, 2021, without the fanfare that formed part of the signing of the Local Content Bill into law the following day.
Several civil society organisations had called for the passage of the legislation to be delayed so as to allow for input from civil society since the government took a non-consultative approach in crafting the bill. However, it did consult with Ghanaian energy officials before taking the bill to Parliament on December 16, 2021.
The major contentions with the NRF Act revolve around the fact that a Board of Directors would be appointed for the management of the fund along with the provision for the government to empty the fund in the first year. Stabroek News has been pressing the government to say who selects the Directors but has yet to receive a clear answer. Finance Minister Dr Ashni Singh, who has ministerial oversight for some matters pertaining to the fund, has said that the President will appoint the Directors.
“The Natural Resource Fund Bill gives no clearer an example of why we are in need of constitutional reform. It also points to why the Standing Orders are in desperate need of review and updating so that bills can be laid in Parliament well in advance of their passage. The fact that we are sitting here going through a motion of quasi-debate when the decision is already made on such an important issue as our patrimony should give reason for national pause,” Shuman said during a Facebook live session following the passage of the bill.
He read what would have been his presentation had the debate gone ahead as planned.
The Deputy Speaker agreed that such legislation is needed but criticised the manner in which it was brought to the House. He pointed out that Parliament was given only 13 days to consider such an important piece of legislation and it occurred over the Christ-mas holidays. He added that four of the 13 days were considered as “holidays” which meant that the legislature was given 8 days, minus the dates of presentation and debate, to comprehensively analyze the NRF bill with 47 provisions.
The Liberty and Justice Party leader said that the rushing of the NRF bill is not in keeping with the PPP/C’s promise of good governance, adding that he had hoped the administration would have been more inclusive.
“(I anticipated) that the government would have engaged a more consultative process in preparing this important piece of legislation as it affects all Guyanese. That a clear nonpartisan process of selection, hearing and confirmation would have been stipulated with only professionals of the highest integrity being considered and a term limit of not more than two consecutive terms to be served on any board of the Fund,” Shuman said.
“The flouting of the procurement laws as recently reported in the media should be flagged as reasons for concern in relation to the NRF. It is commendable that the Government of Guyana is going the route of a National Resource Fund (NRF). The benefits of the oil and gas industry should (accrue) to all citizens of Guyana and the NRF should be part of the machinery which facilitates this. The ad-hoc manner of doling out financial aid should now be done through a mechanism or structure developed specifically for that purpose and given parliamentary assent to driving towards a welfare state,” the Deputy Speaker added during his live broadcast.
He noted that it is vital that the integration of the oil and gas sector into the macroeconomic framework does not cause disruption to the financial and structural stability of the country. He warned that the injection of large amounts of money into an economy can either bode well or present the perfect recipe for disaster depending on the management model employed.
The former Vice-Chairman of the National Toshaos Council posited that good management practices dictate the development of a macro-development plan for the country through a Planning Commission.
“Spending on economic development by way of the public financial mechanism must be well planned, costed and sequenced in their implementation. The imperative criteria for spending must consider the priorities of the items the money is being spent on and how much is being spent…Proceeds of the other extractive sectors should also be integrated into the Natural Resource Fund as we have mining and forestry funds that should also be considered as derived from Natural Resources and integrated into any Natural Resource Fund,” he argued.
Distancing
Following the chaos in Parliament on Wednesday last, Shuman distanced himself from his Opposition colleagues saying “the conduct was not only unparliamentary but also unbecoming of members elected to the honourable and esteemed house. It is my firm belief that in such an environment, it becomes difficult to foster dialogue and have meaningful engagements to ensure all of Guyana is represented. Such behaviour does not permit the public a full understanding of the merit of any debating points, stands as an affront to the Standing Orders and violates longstanding parliamentary principles. The public must never look at this behaviour as acceptable and as an example to follow.”
He added that there are ways of ventilating displeasure in the House while explaining that the tripartite agreement with ANUG and TNM – through which they hold one seat in Parliament – would have seen him abstaining from voting on the NRF bill since the other two parties provided no input as per their agreement.
