Category: Public sector

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Response to Gouveia

Dear Editor,

Captain Gouveia’s widely publicised open letter on Amaila in the dailies juxtaposes extracts from statements by Drs. Clive Thomas and Anand Goolsarran and the two signatories to this letter on the one hand, and statements made by the Government on the same or similar issue on the other. The Captain then requests the four of us to answer four critical questions. Ignoring the contribution to the debate by such committed Guyanese as Janette Bulkan, Alfred Bhulai, Tarron Khemraj and Sasenarine Singh, Carl Greenidge, Lincoln Lewis, Charles Sohan and M. Ali, GHK Lall and others, Capt. Gouveia sees the four as “the ones who killed the project”.

Capt. Gouveia did not invite the Government of Guyana to explain its conflicting claims about the virtues of the project or challenge it for underplaying the hydrological, geotechnical and exchange risks associated with the project. One must remember that the Government has so far not tabled in the National Assembly any of the critical documents for the project or sought the Assembly’s approval. Presented by the Government were two peripheral pieces to meet the requirement of a foreign agency. Were it not for that demand, the Government would not have come to the National Assembly and the project could have gone the way of the Marriot and slid away quietly and successfully like the camoudie.

For the benefit of readers, we address the issues under five headings: debt, tariffs, subsidies, fuel and savings, and cost. We now address those issues, make a brief conclusion and raise some questions to Capt. Gouveia.
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Money-Laundering not in recess

Amaila Update
Late on Friday evening, Mr. Winston Brassington, the Government’s point man in the Amaila Falls Hydroelectric Project (AFHP) announced that Sithe Global was exiting the project. Later that evening the President was reported as stating his Government would continue working to bring the Project to reality. Sithe would only say that it would issue a statement on Sunday August 11.

Meanwhile I had an initial but extensive engagement on Tuesday with Mr. Brassington, his two Amaila technical advisers and Mr. Kit Nascimento, PR agent of Guyana Power & Light Inc. on the scores of concerns I have had with the project. At the end of that session we agreed to meet again and in anticipation of that further meeting I sent a number of questions to Mr. Brassington. I had given an undertaking that I would reserve further statements on the project pending the meeting with Mr. Brassington and his team. Accordingly I am withholding any comments on the announcement of Sithe’s withdrawal from the project.

Introduction
The National Assembly has gone into recess leaving further consideration of the Anti-Money Laundering and Countering of Financing of Terrorism (Amendment) Bill before the Special Select Committee of the National Assembly until at least early October. The logic it seems is that if the deficiencies in the Act could have waited a year or two what harm can a couple of months do? Perhaps illogically, the answer is “a lot”. Trading blame by the various sides in the National Assembly does nothing to assuage the Caribbean Financial Action Task Force (CFATF), of which Guyana is a member, about Guyana’s consistent non-compliance with its obligations to have the appropriate legislative framework in place, supported by a strong regulatory body to oversee relevant bodies and enforce the legislation.

That the government has failed massively on each of these measures has not restrained the language used by Dr. Ashni Singh, Minister of Finance to describe the conduct of his colleagues on the opposite side in the National Assembly. In March this year, he described the AFC as “shamelessly irresponsible” accusing it of holding the nation “hostage” to derive concessions on, in his view, the small matter of the Public Procurement Commission. Of course many Guyanese regard the establishment of the Commission not only as a constitutional imperative but as a critical governance and anti-corruption matter. Now, as members of the National Assembly shut shop and head for their summer vacation their decision is being described as “unconscionable”.
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Plainly Speaking – Let us give Sithe the BOOT

Introduction
It is a measure of the public’s concern about it that news stories on the Amaila Hydroelectric Project overshadowed the goings on in the National Assembly. A consequence of the parliamentary contretemps is that the four Local Government Bills which, according to at least two of the parliamentary parties, would facilitate local government elections have been shelved. While it would be desirable for those Bills to be passed, I do not think there is any excuse for there to be no local government elections for another full year (2013). Let us use the existing legislation and give to citizens their constitutional right to choose their representatives in such elections. I am hoping that on the next occasion on which the Minister of Local Government brings a Local Government (Elections) (Amendment) Bill that one of the very attorneys in the National Assembly or indeed a citizen of Guyana will challenge the Bill for unconstitutionality. We cannot call this country a democracy and yet violate the Constitution with impunity. I believe however that measured by the yardstick of urgency and media coverage, the developments this week on Amaila take priority.
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Amaila Falls Hydroelectricity Project, terrorism and funeral

Plainly Business continues my writing on accounting, finance and economic issues previously appearing as Business Page in the Sunday Stabroek. Readers’ comments and discussions are welcome.

Introduction
President Donald Ramotar’s description of the rejection by the parliamentary opposition of a bill and motion dealing with the Amaila Falls Hydroelectricity Project as an act of terrorism is serious stuff indeed. It makes the earlier statement by Prime Minister Sam Hinds about the vote being the funeral of the project seem modest if not jocular by comparison. President Ramotar’s anger is understandable. His exaggerated description of the rejection and his incredible claim that Amaila will save us G$40 billion per year are not. The matters have to be placed in the context of the events in the National Assembly that evening but which are not entirely appropriate to this column.

President Ramotar’s administration inherited and pursued the prestige projects conceived by former President Jagdeo with evangelical enthusiasm. Jagdeo conjured up the Kingston Casino and Hotel Project and everyone followed him. He dreamt about the Airport Runway Extension and Expansion Project and no one questioned or cautioned him, about need, concept or cost. Someone must have told him about health tourism and he decided on a specialty hospital – no explanations sought or offered. But Amaila stands out as the big project; one that Jagdeo might still hope will cause the name Jagdeo to live in perpetuity, not for Pradoville 2 but for vision, not for corruption but for grandeur. Nothing is wrong with having vision and even grandeur, if they take into account that schools are failing and medical services are still Third World-ish.
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