Guyana must have database with all Natural Resource contracts-Dr. Jadoopat

By Kiana Wilburg

The natural resources of a country belong to the people. Therefore, it is only fitting that the citizens know the manner in which the resources of their country are being given to companies. In fact, they have a right to know if the companies are honouring their contractual obligations.

This argument was recently proffered by Dr. Rudy Jadoopat, head of the Guyana Extractive Industries Transparency Initiative (G-EITI) Secretariat. Dr. Jadoopat noted that at this point, G-EITI is in the process of completing Guyana’s first report which is due in April.

He said the process is one which requires comprehensive data collection on payments Government said it received from companies, as well as receipts from those entities showing what they paid to the State. The information will then be cross-examined for any irregularities.

While this is necessary for the report and for citizens to know, the G-EITI head said that contract disclosure is also essential to the process.

Dr. Jadoopat said that the Secretariat will be recommending to the government that there be a central database to hold all natural resource contracts. He commended the Government for initiating the process by releasing a number of petroleum agreements. He said that work in this regard must continue.

“Citizens have a right to know how the resources of the country are being given out, if companies are doing what they said they would based on the contracts, if we are getting value for money and so forth…And they can do this if contracts are accessible in one place. So that is one of the things we will be recommending…”

REVENUE WATCH

Revenue Watch, a non-profit policy institute that promotes the responsible management of oil, gas and mineral resources for the public good, has also called for there to be the practice of contract disclosure in Guyana and other emerging oil producers.

The grant-making organization has noted that Governments must be held accountable for all contracts they enter, be they for the provision of roads or the purchase of goods. And when the contracts concern non-renewable resources, Revenue Watch said that the need for scrutiny is even more pressing.

In this light, it said that the growing interest in mining, oil and gas contracts on the part of concerned citizens around the world makes a great deal of sense.

Given the history of government corruption and mismanagement of extractives, along with the environmental degradation, community displacement, violent conflict, and human rights abuses, Revenue Watch said it is no wonder that the calls for better government management of and more corporate responsibility in the extractive industries have never been louder.

Revenue Watch argues that contract transparency is critical to addressing better resource management and bringing contract stability to an industry that is notorious for corruption.

It said, “Over the long term, Governments will be able to negotiate better deals, as the information asymmetry between Governments and companies closes. In the shorter term, contract transparency will help government agencies responsible for managing and enforcing contracts, of which there are many, work in tandem.

“With contracts publicly available, Government officials will have a strong incentive to stop negotiating bad deals, due to corruption, incompetence, or otherwise.”

Revenue Watch continued, “Citizens will better understand the complex nature of extractive agreements if they are out in the open and explained by the contract parties.

“States and companies may not be hiding anything of great import, but so long as contract disclosure is scattered and leaked materials suggest hidden horrors, that perception will persist—providing easy fodder for demagogues and politicians to make calls for expropriation and renegotiation in cases where it is not merited.”

The organization added, “Furthermore, contract transparency will result in more stable and durable contracts, both because they are less subject to the population’s suspicions and because the incentives for governments and companies to negotiate better contracts will be increased.”

In short, the organization said that contract transparency is a necessary element of any effort to promote the responsible management of natural resources for growth and economic development.