In response to public concern about transparency in the disbursement of oil wealth, Vice President Bharrat Jagdeo said on Wednesday that no legislation would be enacted to regulate the distribution of cash grants to Guyanese.
Addressing the issue at his weekly press conference at Freedom House, Jagdeo argued that legislative oversight could lead to rigid recurrent expenditures, potentially hindering government flexibility in times of economic downturn.
The government recently settled on providing a cash grant of $100,000 to every Guyanese over the age of 18, including those resident overseas, who would have to be in the country at the time of distribution to collect it. This had been preceded by an initial announcement of $200,000 per household, by President Irfaan Ali, that was changed after many citizens lamented that it would not be equitable.
Nevertheless, disquiet continued to be voiced with regard to the distribution process including by US-based Guyanese elder Eusi Kwayana in a recent letter published by Stabroek News. Kwayana expressed the view that the distribution, “… should be backed by legislation and debated in parliament by all sides to contribute to the official debate, which is recorded in Hansard… often used by the office of the Auditor General in judging the legitimacy of official expenditures.”
Jagdeo countered Kwayana’s concerns thus, “It doesn’t make sense if you put legislation [in place] and… you cannot implement it. What happens next year if we don’t get any money from the oil sector?” He added that enacting legislation could be problematic if oil prices were to decline, noting, “… You are then stuck with big recurrent expenditures.” Jagdeo emphasized the importance of sustainable economic growth, arguing that the government must balance immediate assistance to citizens with long-term fiscal responsibility.
Kwayana also raised concerns about the transparency and oversight of these funds, suggesting potential challenges for future audits. He questioned, “How will the auditor general pronounce this distribution when it takes place?” adding that this disbursement model deviates from traditional parliamentary practices around financial allocations.
“There will be violations and weeping and gnashing of teeth,” Kwayana wrote. “Everybody wants those living below the poverty line and those above it to benefit from oil wealth.” He added that the current approach lacked sufficient oversight and may lead to financial mismanagement.
To be eligible for the grant, recipients will have to show proof of Guyanese citizenship by way of national identification card or Guyana passport. The modalities for payment are being worked on, and the payout process, because of the logistics of the country, could begin soon but take up to the first quarter of next year to be completed.
