Diaspora News - December 28, 2013 - January 3, 2014

8/13/2019 Diaspora News - December 28, 2013 - January 3, 2014

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APNU PROPOSES A NEW SOCIAL CONTRACT

A Partnership for National Unity is proposing a new social contract in order to promote nationalunity, ensure human safety and foster economic development. The Peoples Progressive Party/

Civic administration has demonstrated that it is incapable of solving the countrys current crises onits own.

The economic crisis has lowered workers standard of living. Protests by two of the countrys larg-est trade unions the Guyana Public Service Union and the Guyana Agricultural and GeneralWorkers Union have demonstrated how labour relations between the state and its workers havedegenerated. The ranks of unemployed young people are increasing. Poverty is rampant.

The World Bank, in its 2014 World Development Report, rated Guyana as the second poorestcountry in CARICOM. The Report showed that, with a Gross National Income (GNI) of US$3,410per capita, Guyana compared unfavourably with The Bahamas at US$21,280 per capita, Suriname

at US$8,480 per capita and, indeed, with all other CARICOM states except Haiti.

The security crisis has disproportionately hurt the poor. Guyanese are pained by the surge in seri-ous crimes last year, 2013. There were 1,038 reports of robbery under arms at the end of Novem-ber 2013, representing a seven per cent increase over the same period in 2012. There was an in-crease in the number of armed robberies involving the use of firearms by 16 per cent. Other seriouscrimes including banditry in the hinterland, murder, piracy, fatalities on the roads and interper-sonal violence proliferated.

APNU, therefore, proposes a new social contract by which the major sections of society includ-ing the government; political opposition; trade unions; private sector and civil society can come

together to seek agreement on a broad national programme to move the country forward.

A social contract could be the main means of combining the talents of a wider constituency and ofcreating the conditions for social cooperation and economic progress. The three-fold purpose ofsuch a contract would be to reach a broad consensus on the goals of national development; to es-tablish a sustainable institutional architecture and to create effective policy instruments for theachievement of the objectives of the contract.

APNU AT WORK

A WEEKLY SUMMARY OF EVENTS

KEEPING THE DIASPORA INFORMED

December 28, 2013 January 3, 2014

Vol. 22


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APNU now calls on the PPPC administration to honour its obligations to:

undertake and continue tripartite consultations with workers and employers organisations inorder to promote increased production and productivity in accordance with The RevisedTreaty of Chaguaramas Establishing the Caribbean Community;

establish, in accordance with CARICOMs Charter of Civil Society for the Caribbean Commu-nity, a framework for genuine consultation among the social partners in order to reachcommon understandings on and support for the objectives, contents and implementationof national economic and social programmes and their respective roles and responsibili-ties in good governance; and,

strengthenthe mechanisms for tripartite consultation in accordance withILO Convention No.150 on Labour administration, 1978 thatprovides for an effective system of Labour Admin-istration. These functions and responsibilities can be coordinated properly with the partici-pation of workers and employers and their organisations.

APNU calls on the PPP/C to seriously re-examine the prospects for the future relationship betweencitizens and the state. It proposes that a new social contract be agreed upon in order to addressGuyanas pressing political, economic and social problems and to foster greater unity, security and

progress.

On basis of per capita incomeWorld Bank ranks Guyana se-cond poorest in Caricom

Stabroek News, December 31, 2013

With a Gross National Income (GNI) of just US$3, 410 per capita, the World Bank in its 2014World Development Report rated Guyana among the least wealthy in CARICOM.

This figure is in stark contrast to that of Guyanas fellow CARICOM country, The Bahamas,whose GNI is recorded as US$21,280 per capita, making it the wealthiest CARICOM country.

According to the World Bank, Guyana is the second poorest country in Caricom but far ahead ofHaiti, which has a GNI of US$760 per capita. For 2012, the economy expanded by 3.7% downfrom 4.5% in 2011 and 4.4% in 2010. The Bank however noted the economys expansion in 2013which it attributed to increased activity in rice and gold production, as well as improvement in themanufacturing sector.

The Bahamass economic prosperity, on the other hand, is attributed mostly to its vast tourism sec-tor which accounts for over 60% of the Bahamian Gross Domestic Product (GDP), and creates jobsfor more than fifty percent of the countrys workforce.

The islands financial services sector is the second most vibrant and accounts for about 15% of itsGDP.

Guyana was also outperformed by Trinidad and Tobago which registered a GNI of US$14,400 percapita. In fact, the twin-island state has been doing so well that the Organisation for Economic Co-operation and Development (OECD) in 2011 removed it from its list of developing countries.


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The countrys economy is driven by its petroleum industry, although its manufacturing and tour-ism sectors are also very important.

St Kitts and Nevis also did well, registering a GNI of US$13,330 per capita. Tourism and manufac-turing are the main drivers behind the twin-island federations development, after sugar cultiva-tion, owing to growing production costs and falling world market prices, was reduced. The tourismsector has been doing particularly well, and the island has seen tourist arrivals expand from379,473 in 2007 to 587,479 in 2009.

It is also tourism which helped Antigua and Barbuda attain its US$12,640 GNI per capita. Thecountrys tourism sector accounts for more than half of the GDP, although the growing medicalschools and its students make very large contributions to the economy.

Guyanas CARICOM and South American neighbour Suriname achieved a GNI of US$8,480 percapita although its economy fell on hard times during the 1990s. The countrys ability to beat backeconomic hardships and register such a relatively high GNI is a result of government initiatives todiversify the economy, and decrease dependence on Dutch financial assistance.

Bauxite mining couple with exploration and exploitation of oil contributes substantially to the

countrys GDP, although agriculture and ecotourism are important components.

Ranking closer to Guyana was Jamaica and Dominica with GNIs of US$5,140 and US$6,460 percapita respectively. About 50% of Jamaicas economy is built on income generated by tourism-related services. At the same time, Jamaicas economy is a fair mixture of state enterprises and pri-vate businesses, while agriculture, financial and insurance services, manufacturing and miningplay integral roles in the countrys economy.

Meanwhile, Dominica, whose economy historically depended largely upon gains from its bananaand other agricultural endeavours, came back from the brink of a financial crisis in 2003 and 2004to experience growth levels of 3.5 percent and 4.0 percent in 2005 and 2006 respectively.

Growth in 2006 in particular, was said to be the fruit of macroeconomic reforms pursued by gov-ernment, which saw new ground gained in construction, tourism, offshore services and some sec-tors of the countrys banana industry.

GuySuCo in deep financial crisis- owes creditors $10.5B No turnaround unless industry fixesagri problems GAWU warns

Kaieteur News, January 1, 2014

Government, this year, will be scrambling to find solutions for the countrys sugar industry as pro-duction fell to an embarrassing 23-year low in 2013. Production at the eight estates in Berbice andDemerara closed on December 21, the last day of grinding, at a dismal 186,807 tonnes. This wasbelow the 190,000-tonne figure that had been targeted and which had been revised again andagain from the original 260,000 tonnes at the beginning of the year. The situation has now left theGuyana Sugar Corporation (GuySuCo) owing banks and suppliers in excess of $10.5B, union offi-cials confirmed yesterday.


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Last month, the National Assembly approved a $4B bailout to help pay its 16,000-plus workersand meet other critical expenditure. However, according to Seepaul Narine, General Secretary ofthe Guyana Agricultural and General Workers Union (GAWU), the largest sugar workers union,the $4B will not be enough. Once the sweet king, earning the hogs share of foreign exchange, sug-ar has slid to third, behind gold and rice.

Already, the Corporation is facing the squeeze from its suppliers, with a number of them refusing to extend more cred-it. Hard-hit are supplies of spares and fertilizers.

Insiders have been blaming GuySuCos agriculture and technical problems, at especially its flagship Skeldon factory, asthe biggest contributor to the decline of the industry.Almost $200M has been spent to build the new factory in East Berbice and develop new lands toaccommodate mechanical harvesting.

Kaieteur News was told that a cash-strapped GuySuCo took the decision to reduce its fertilizerquantity on the canes and is now paying the price with lower-than-expected yields. The Skeldonfactory itself remains a major problem. While it had targeted 43,482 tonnes at the beginning of theyear, actual production at December 21 was a miserly 25,380 tonnes. The problems at the factoryhave been known since being commissioned in August 2009, more than four years ago. A key puntdumper, critical to taking the canes from the waterways into the factorys conveyor systems, has

been malfunctioning.

So too had other areas in the factory. Several faults have been fixed by the Chinese contractor, but

with the defects liability period over, GuySuCo had turned to South Africas Bosch Engineering this

year to help address some of the issues.

With more than US$8M ($1.6B) reportedly being spent on Bosch, GuySuCo and union officialshave admitted that the remedial works have not gone so well. Workers are now attempting to fixthose repairs. Yesterday, Narine called for a collective effort in solving what is now turning out tobe crisis.We are saying to management and workers that the industry is at a crucial stage. It callsfor understanding and cooperation between management and workers.

GuySuCo has been blaming poor weather, strikes and workers absence as the biggest factors in theslide. Turnout has on average been below 50% and has been that way for the last few years. Work-ers have been finding a more permanent fixture in the construction and mining fields. Yes, labourremains a big issue. They (GuySuCo) have been using the bell loaders and mechanical harvesters.But this is still not enough.

GuySuCos report of 2012 has told an alarming story. Factories stood idle most of thetime.GuySuCo, to meet its European quota of 190,000 tonnes, has been sacrificing its packagingarm at Enmore. However, the European quota is not likely to pose such a big issue, as under theagreement, the year runs from October to September, union officials said yesterday.It is still notclear whether Guyana will be importing sugar to meet local demand.While GuySuCo has been say-

ing technical problems have forced tonnes of cane to be carried over to the new year for the newcrop, union officials yesterday claimed that in an effort to meet the 190,000-tonne target in De-cember, young canes were cut. So we were actually cutting young canes, a GuySuCo official ad-mitted yesterday.


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The industry has been an embarrassing one for the Government with problems carried over fromthe Bharrat Jagdeo administration to the Donald Ramotar government. Despite a promise to re-vamp the Board of Directors, there have not been any significant moves. This year, industry offi-cials say that GuySuCo is mulling a 260,000-tonne target but this also seems a little too high.

The Opposition has criticized Government on what seemed to be a reluctance to take action, de-

spite the poor run of performance of GuySuCo. Last month, the ruling Peoples Progressive Party

(PPP) expressed worry over the industry, calling on all

stakeholders to redouble their efforts to turn things around. Sugar is still the largest employer oflabour and any further decline in production could have disastrous effects on the livelihood andwellbeing of sugar workers and their families.

The Alliance For Change has called for the immediate sacking of the entire GuySuCo board and re-placing of management.Last month, after days of strike action, GuySuCo agreed to pay its workerstheir annual production incentive. This will be done in two parts, during the first quarter of thisyear. The Opposition, during the 2013 National Budget debate, had demanded an updated recov-ery plan for GuySuCo to be laid in the National Assembly.

Make 2014 Guyanas Year for Workers Granger

Stabroek News, January 1, 2014

Let us, therefore, make the new year 2014 Guyanas Year for Workers as we all work togethertowards providing a good life for all Guyanese. This was the theme of the New Years message ofBrigadier David Granger, Leader of the Opposition. He stated, Guyanas Year for Workers mustdawn on 1st January 2014. This countrys economic future lies in their hands. Many of our workingpeople, however, are underemployed and unhappy and are not as productive as they could be.

Workers face unsatisfactory labour relations in the sugar and mining industries and in the publicand private sectors. Artisanal fisherfolk, craftsmen, small farmers and miners found themselves indifficult circumstances during 2013. Life must be better for all in 2014.

The statement said that Guyanas Year for Workers must be one in which our working peopleshould be able to look forward to a good life. It should be one in which they could look forward toliving in safety, to working for living wages to cope with the cost of living and to enjoying ade-quate social protection in their old age.

Granger continued, Guyanas Year for Workers must be one in which workers can feel free to join

trade unions of their choice; in which collective bargaining agreements between their employersand their unions will be respected and in which the state will enforce labour laws fairly but firmlyto protect them from adversity and from delinquent employers.


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The recent IMF-Guyana Article IV Consultation

Stabroek News, January 1, 2014

By Tarron Khemraj

The press release on the Article IV consultation between Guyana and the IMF raised several important points, some ofwhich dovetails nicely with the theme of unity and human development. Of course, the government press and the Guy-

ana Times engineered through oligarchic manoeuvring emphasized the favourable macroeconomic figures refer-enced by the IMF. If we assume the GDP data are credible (I take it with a heavy dose of scepticism), theGuyana economy is projected to grow by 4.8% in 2013 after recording a similar rate for 2012. Iftrue it represents a respectable rate of growth, although based on two volatile foundations.

First, the rice market in Venezuela is hanging on the string of a left-wing alliance between theMarxist-Leninist PPP (according to the partys constitution) and President Maduro of Venezuela.Second, the price of gold has declined significantly in 2013 and we should expect it to fall further in2014 as the Federal Reserve reverses the excessively easy monetary policy and starts to increasethe benchmark target rate by end 2014. Other long-term interest rates are already increasing asinvestors take these expectations into account. Whether the price will fall below the marginal cost

of producing an ounce of gold somewhere around US$800 for the large mines is yet to be seen.The small gold mines will have a higher marginal cost.

Government policy, guided by Minister Ramsammy, clearly accounted for the unprecedented suc-cess in rice production. However, it is yet to be seen how the barter arrangement will impact theexchange rate. Short-term exchange rate movements are determined by the flow of hard currenciesthrough the market. As at October 2013, the Bank of Guyana stepped up interventions into theforeign exchange market, no doubt in an effort to curtail further depreciation of the Guyana dollar.I have to wait until the data are released before I can connect further the rice barter and the recentforeign exchange depreciation. Some of the data are usually released by now.

In spite of recent depreciation of the exchange rate, most of the macroeconomic indicators appearsolid. The banks, except for rising loan concentration, are in good systemic shape. Non-performingloans are low, capital requirements adequate, and there is ample excess liquidity. It would be inter-esting to know the extent of the loan concentration exposure to the rice sector. An earlier rice sec-tor boom due to the Other Countries and Territories (OCT) market in the late 1990s left the sectorand the banks heavily exposed requiring the government to intervene when the OCT market wasclosed.

Notable praise went towards the VAT for helping to stabilize the fiscal deficit. The VAT is likely tobe the most favourable long-term legacy of President Jagdeo and his administration. The con-sumption based tax does not affect investor or worker productivity. It is a crucially important tax

in an economy like ours with such a large underground economy where the participants evade pay-ing income taxes. Those operating underground must consume, often luxury and entertainmentgoods, thus they pay the VAT. Guyanas VAT is certainly not the highest in the Caribbean. I neverthought it was a good idea to cut the VAT. It makes more sense to give tax breaks on the incomeand profit tax side. Also the issue is more one of making sure that the goods and services con-sumed by the very poor are exempted from VAT.


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The government news agencies and Guyana Times completely ignored the other side of the IMFpress release. The release calls on the government to promote more inclusive growth and to safe-guard more even distribution of the benefits from economic growth. Readers will recall that amajor theme of these columns is the growing inequality in Guyana; inequality, furthermore, that isrooted in the pernicious political process. I am not here speaking about the situation in Parlia-ment. I think the result of the November 28, 2011 election is a significant step in the right direc-tion. I am not as pessimistic as some commentators about the election result. Without constitu-tional reform, a minority government is perhaps the best outcome.

One scholar, Eric Uslaner, proposed the idea of an inequality trap. It says that inequality results in diminished social

trust, which in turn leads to corruption that engenders more inequality hence the trap. This idea is cer-tainly applicable to Guyana given its constitution that promotes ethnic distrust instead of coopera-tion. In-group trust takes over, while trust for the other ethnic group declines. Some people haveclose friends only from one ethnic or religious group. Ethnic divisions are hardened when out-group trust is low. I have tried to model the low out-group trust with a prisoners dilemma gamethat provides the prediction of entrenched ethnic voting, the virtual impossibility that a third partycan win the election, inequality and below potential economic performance.

Much of the out-group distrust stems from the constitution and electoral process that promotes

ethnic competition instead of cooperation. Once one ethnic group wins the election in-group net-working takes over and entrenches inequality even more. Contracts, high level jobs, and small pro-jects at the NDC level flow in a skewed manner to mainly supporters of the ruling party. No localgovernment election in 20 years implies that the party faithful have infiltrated the local bodies.These local bodies may very well be functioning today as a redistribution mechanism for faithfulparty activists. I know of a few villages in which this is indeed the case.

Only last week the government signalled its position on constitutional reform, which is crucial forpromoting out-group trust and cooperation. Denouncing the recent pro-democracy initiative fund-ed by USAID, Dr Luncheon declares that he fears the project could influence constitutional reform.He is therefore providing an insight into the deep distrust the government has for a constitution

that promotes equity and a better democracy. Of course, President Ramotar in the past said hesees nothing wrong with the present mildly tinkered, but pernicious, Burnham constitution.

The IMFs press release also encourages the government to improve data collection and dissemina-tion. The importance of data cannot be overemphasized. Only through data analysis can there beeffective policy implementation. Only data can tell us who benefits and who loses from specificgovernment policy. It appears like the population census data set is a national secret. Labour mar-ket statistics are not collected. We cannot say for certain what is the unemployment rate or the la-bour force participation rate. We do not have unbroken measures of inequality and poverty. Quar-terly GDP is unavailable. These are just a few of the essential statistics that are needed for effectivemanagement of the economy.


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Legal action among strategies in fight against arbitrary 5% increase

street protests continue next week

Kaieteur News, December 31, 2013

The Guyana Public Service Union (GPSU) has indicated that legal action will be among the various

strategies that the body intends to use to fight the annual arbitrary imposition of wage and salaryincreases on public workers by the government.

The public servants representative has indicated further that come next week intense protest ac-

tion will resume in resistance of the five percent increase that was given to state workers this year.

The unions First Vice President Mortimer Livan, told this newspaper yesterday that following the

holiday season, the union will return to the streets against the increase. He charged that the union

will continue their actions until the government hears them.

The union had earlier in the month declared that it would march the streets of Georgetown until

the New Year in defiance of the imposed percentage. The picket marches however saw a poor turn-out, thus giving way for action at the close of the holiday season.Livan added that apart from legal and protest action, the union has called on international bodiesto lend their support towards public servants. The union executive said that they have petitionedthese foreign bodies and will be seeking ways to aid the situation.

Affiliates of the Caribbean Public Servants International (PSI) have already started to express theirsupport of the local unions with unions in the island national of St. Lucia being the latest body toexpress solidarity with not only the GPSU, but also Guyana Local Government Officers Union(GLGOU) which is also facing a dilemma involving public servants.

Amidst the contention, Livan informed that there has been no contact or approach by the Admin-istration in any attempt to solve or even soothe the matter. Livan opined that, that attitude dis-played disregard and a lack of care for the public workers. They (government) just dont care, hesuggested to this newspaper.

The government through the Finance Ministry has failed to provide a requested paper trail to showthe purpose for the no more than five percent increase. The government has argued that moniesfor wage and salary increases could be no more than five percent across the board for all publicservants, but the Opposition has countered that funds allocated in the budget for this specific rea-son should have seen the workers receiving no less than a 10 percent increase.

The Opposition had also requested a paper trail of the funds spent, especially since it is their beliefthat the Administration may have used the public servants increase to fill areas where the Opposi-tion would have cut funds from last years budget.


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Finance Minister Dr. Ashni Singh has stated, however, that the use of funds allocated for the public workers is a mat-ter of public record. He said that every year the purpose and use of the funds is explained and it is voted on. It is fur-

ther viewed and audited by the Auditor General, returned to the parliament, and put before the Public AccountsCommittee (PAC), where it is scrutinized, he continued.However, public servants have for more than 10 years been receiving arbitrarily imposed sumsfrom the government. This is without the procedural collective bargaining agreement; thus sidelingthe union, executives have stated.

Chairman and Shadow Labour Minister of A Partnership for National Unity (APNU), Basil Wil-liams, stated however, that GPSU has legal grounds to seek recourse over the arbitrary five percent increase that was imposed on the public workers.

He highlighted a challenge to the union since there is no Industrial Court to address the matter.Williams had also expressed the need for the revitalization of the Public Service Appellate tribunaland called for that body to be reconstituted so that appeals by public servants could be fast tracked.

Both the Alliance for Change (AFC) and APNU have already expressed rigorous checks of sums al-located for public workers and plan to ask tough questions to ascertain what became of the fundsfor the increases of public workers at the next budget presentation 2014.

Kamarang schools need some attention Teachers


Teachers operating in the small Amerindian village of Kamarang in Region Seven complain of feel-ing neglected. The community has two schools- the Kamarang Nursery which houses 46 childrenand its Primary Section with 189 pupils. According to the teachers, the two schools have needs thatseem to be neglected by the relevant authorities.

According to one Nursery school Teacher, it is sad that the small and active young minds at herschool cannot yet benefit from any outdoor or sport facilities. The small children need stuff likeoutdoor swings and sports equipment and so. It is part of the curriculum. We talk to a couple peo-ple but nobody saying anything to us, the teacher lamented. Another educator explained thatteachers in the Region are not motivated to work, especially since stationary and other learningmaterials are limited. She expressed some amount of dissatisfaction, noting that it appears asthough schools in the far flung areas are being overlooked. During an earlier interview with Kaie-teur News, officials of the Guyana Teachers Union (GTU) called for a level playing field for schoolsall across the country, since it was realized that those located in the rural areas are being somewhatignored, while some are completely forgotten.

According to General Secretary of the GTU, Coretta McDonald, teachers operating in schools locat-ed in the rural areas have been complaining of feeling as though they are being overlooked by theMinistry of Education. McDonald explained that among some of the things that may cause teach-ers to feel this way, is the fact that in certain parts of the country, teachers have not been receivingsupplies which would enable them to execute their duties in an effective manner.


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The woman added that teachers are, in some cases, faced with the challenges of supplying them-selves with cardboards, pens, pencils, markers, chalks, and other materials to conduct their les-sons. This, the GTU believes, is unfair, especially since most teachers are not being paid as theyought to be. We keep in contact with these teachers, and in some cases we ask the parents to as-sist, McDonald said. She added too that the schools that are most in need of supplies and atten-tion are the ones that are being particularly disregarded. She pinpointed a few areas where this ismost prevalent. They included Matthews Ridge, Paramakatoi, Port Kaituma, and Leguan.

It was established that in the case of school counselors, they visit mostly the fancy Georgetownschools, despite the fact that those are not the schools that are seriously in need of these visits. TheUnion said that the particular case of teachers not receiving adequate supplies to conduct their les-sons lies with the delinquencies of Regional Education Officers, an issue that the GTU is also seek-ing to have the Ministry of Education address.President of the GTU, Colin Bynoe, had described these officers as being too attached to theirdesks and not doing any actual ground work. If they do more of these ground work, they wouldknow what the teachers need, and they can provide them with these, and things would be better forthem, which would then be better for the students, he said. The GTU head noted also that theschools which are being strongly catered for by the various alumni should be given less preference,

since there are those that are dependent solely on the assistance of the government.

Tripartite budget talks in limbo againOpposition warns of in-

creased scrutiny


Opposition parliamentarians are once again accusing the government of sidelining them frombudget preparations. According to Opposition executives, next years budget, which at this time ismore than likely completed or is in its final stage, saw no input, advice or concerns of the one seatmajority Opposition.

A Partnership for National Unitys (APNU) front bencher, Joseph Harmon, along with Alliance forChanges (AFC) leader Khemraj Ramjattan have both explained that absolutely no tripartite talkswere held in putting together the national budget for the upcoming year. Both parties have ex-pressed that this move by the Peoples Progressive Party (PPP) led government is only a recipe fordeeper scrutiny of budget figures and its allocations. It is against this backdrop that the oppositionside has indicated that travesties like the poor increases for Public Servants exist. While the AFC,in an earlier report expressed the partys commitment to questioning every seemingly questionablesum earmarked in the budget, APNU has noted that given the governments actions in past budg-ets, they are in a better position to eye and point out doubtable figures.

Harmon said, We will be giving a much harsher look at the issues in the budget. The governmentwill be hard pressed again to deal with issues of transparency and accountability. We are going tobe very, very detailed and precise about the questions we can ask now, because we have had since2011, two budgets and I think we are in a better position now to be able to debate the governmenton these issues. We are going to ask for much more details as we are better prepared with ques-tions because we have details and facts on where the Ministers have been silent and where they aretrying to hide things


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Harmon explained that, budget arrangements are usually completed by this time of year. The2014 budget is presented no later than March of 2014. At this time, (December 2013), there arehardly many changes that are made. A budget cycle starts sometime within June of the old year forthe new year. We are already in December and by now all Ministries and Government Depart-ments would have submitted their budgets after meetings and so on. And there would be a fair ideaby now what the 2014 Budget would look like.

However, Harmon stated, the fact of the matter is that we have actually submitted some proposalsto the government in relation to the Tripartite Budget Committee, which really has not come offthe mark as yet. The work which should have been done in the Tripartite Committee has not beendone, and I believe Mr. Carl Greenidge, who is our Shadow Finance Minister, wrote to Dr. AshniSingh, basically stating that the commitment which we were given by the Leader of the Oppositionand the President, cannot be met because you have not done what you are suppose to do and it isalready late into it. We are in December going on to January.

Following the first cutting of the National budget, Opposition Leader David Granger and PresidentDonald Ramotar had agreed that the Tripartite Committee would be formed for the input of allsides. The Leader of the AFC Khemraj Ramjattan is also of the view that it is too late for tripartitetalks. He said that he is also not convinced that any talks will be held at this time.

The Opposition has noted also that before any drastic moves, they will examine what is placed intothe next budget. Harmon said parliamentary members sometimes have some two weeks to perusethe budget ahead of the debate. What we will do, is examine all these figures when they comewhen estimates are presented in the National Assembly. Against this background of the Ministerrefusing to provide relevant information, we will be paying very close attention to all these things.When the Committee of Supply meets; where the Minister has to give explanation for things done,we definitely will seek to have more answers for unanswered questions, Harmon indicated.

In the past, the Opposition has given advice on the National budget, but had no real input into thespending framework and has thus resorted to cutting funds where it was felt necessary. This has

landed all parties before the court where it is still to be determined what powers the Oppositionhas.

The ombudsman

Stabroek News, December 30, 2013 [Editorial]

The announcement by the government of the appointment of former judge, Mr Winston Moore asOmbudsman is most welcome. In societies like this one, rife with a panopoly of concerns aboutinjustices by officialdom against those marginally able to represent themselves, it is vital that therebe an Ombudsman to inquire into such claims and pursue relief on behalf of the aggrieved. Mr

Moores appointment will be well-received across all divides on the basis of his public roles.

This long-awaited appointment does not efface the stain on the government for so flagrantly disre-garding this important constitutional office. The abandonment of it following the departure of Jus-tice S Y Mohammed in 2005 at the height of the Jagdeo administration was an early signal ofthe then Presidents and his governments inveterate disregard for the institutional checks and bal-ances that fledgling democracies rely on to even the chances for the ordinary person and to culti-vate accountability among government officials. It has taken the Ramotar administration twoyears to right this egregious wrong.


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While this newspaper has full confidence in the ability of Justice Moore to execute the task he hasbeen entrusted with, it is far less certain of whether he will have the wherewithal to achieve his ob-jectives. Aside from being respectfully treated by the public offices and officers it will be engaging,the ombudsmans office will face the problems of re-introducing itself to the public and acquiringthe requisite resources to discharge its functions. Given the absence of this office for the last eightyears, the Ombudsmans office would have to assiduously make members of the public in all partsof the country aware of its functions and capacities. The office will also require the resources to getto the disparate parts of the country and to conduct detailed investigations of the complaints be-fore it. The success of the office will pivot solely on its ability to produce results for those who seekits intervention.

The offices scope is wide and is addressed on eight pages of the 247-page constitution. In the mainas set out in article 192 of the constitution: Subject to the provisions of this article, the Ombuds-man may investigate any action taken by any department of government or by any other authorityto which this article applies, or by the President, Ministers, officers or members of such a depart-ment or authority, being action taken in exercise of the administrative functions of that depart-ment or authority.

Optimism for the optimal functioning of this office would not be high when one considers the fateof similar bodies. The Police Complaints Authority (PCA) is a classic example. Launched under theHoyte administration this important mechanism has functioned for close to 25 years with the ma-jor defect that it is unable to conduct its own investigations into alleged abuses by the policeagainst members of the public. Each investigation has to be conducted by the police. It is well ac-cepted that the abilities of the police are suspect in any investigation much more in relation to theircolleagues. Despite administration after administration accepting that there is a major flaw in howthe PCA functions nothing has been done about it.

While it has undoubtedly produced results in its many years of operation, the PCA is ultimately be-holden to the police to investigate their own and its fortunes have varied depending on the Police

Commissioner in office. Needless to say there have been significant delays in investigations, a lackof response in some cases and aggrieved members of the public will not have the level of confi-dence in the authority that they should.

The polices own internal investigative arm, the Office of Professional Responsibility (OPR) has notinspired the public to believe that misbehaviour by the police will be taken seriously and therehave been many shocking examples of the police letting each other off. The most glaring exampleof this is the forgiving of senior police officers who were involved in corruption as regards the ac-quisition of a boat for the police force. Numerous other investigations have been launched by theOPR without the public ever being advised of the results. Given these circumstances, it is hopedthat the ombudsmans office will be given a budgetary allocation commensurate with the scope of

its mandate and the demands on it.

The appointment of the Ombudsman is but a small step on the road towards restoring credibilityin watchdog institutions and making officials accountable. The Auditor Generals Office thepremier watchdog on accountability- would now be considered a satellite of central government asopposed to a fearless champion of financial rectitude.


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The governments hold on this constitutional office through upper level appointments has serious-ly eroded its independence as evidenced by its increasingly innocuous annual reports on govern-ment accounts and the lack of investigation of major and questionable expenditures by the govern-ment.

The Integrity Commission which is meant to ensure that the public officials covered under its actare not engaged in illicit and corrupt acts to enrich themselves has not functioned in many yearsand it is clear that the Jagdeo administration had no interest in its enlivening. Its present formwould be considered an embarrassment in any self-respecting democracy and there is no sign of animminent change in its condition via the Ramotar administration.

Government continues to stonewall on the Public Procurement Commission while questionabledeals like the awarding of radio licences to a favoured few, the specialty hospital, the invitation forthe setting up of a waste recycling plant, the Muri survey permission and the DY Patil MOU contin-ue to advance through various artifices and shortcomings in the accountability framework. Thegovernment doesnt want to operate in a fully accountable framework yet wants the benefits frompretending that it is.

The continuing absence of the Public Service Appellate Tribunal, an Access to Information Act that

inspires confidence and whistleblower legislation further dilutes the varied mechanisms throughwhich the public can gain confidence in government and exact answers. The appointing of the Om-budsman is a hopeful sign but one that can easily become mired in a vortex of official actions toprevent its effective functioning.

Kamarang residents plead for more jobs


We dont have jobs, and it aint look like anybody care. This was the sentiment expressed by resi-dents of Kamarang, Region Seven recently. They maintain that the unavailability of jobs has been amajor issue, and a factor contributing significantly to the rapid decline in the communitys stand-ard of living.

In speaking with this newspaper, a teacher of the Kamarang Primary School said that the situationhas been especially affecting young people, since its hindering them from being able to progressinto young professionals. She emphasized too that young people are not motivated to do muchwith their lives.

In explaining, the teacher said that All they know about is mining and cleaning shops, so our chil-dren are somewhat stifled from dreaming big and achieving much. On the coastland, it is easy for

young people to embark on the life of a young professional. There are avenues for them to becomedoctors, lawyers, journalists and so on, but not here in Kamarang. Here, the only thing our chil-dren can do is mining, become housewives, and work in dem lil community shops. Its not nice,the woman stressed.


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It was explained that upon completing their primary education, students are forced to leave theircommunity to pursue a secondary education. After obtaining their certificates, the only hope forour children is to leave and go to the city to look for jobs, the teacher said. She further noted thatdoing this is not always easy, since it requires teenagers and young adults moving to the city alone.Usually people dont want to send their children to the city, because many times, the troubles thatthey does have to face dont be nice, especially when it comes to our girl children, the teacher said.

While the boys are allowed to move and take up jobs in the city, the females usually end up beinghousewives and cleaners, since other key positions such as nurses and teachers have beenfilled.Before, things were better, so we have a few nurses and teachers already working. But now,life in Kamarang has changed, and although the roles of women have evolved, our daughters areunable to, the teacher explained.

Another resident Carl Williams, complained of the high cost of living. He explained that althoughKamarang is a mining community, miners are still finding it hard to make a living. Imagine thegold that I used to sell for $18,000, we, the miners got to sell for less than $10,000. Life aint easyup here at all, Williams said. He explained that although the prices aint fair, we aint get a choicebut to sell, because we need to live, and transportation to leave Kamarang expensive. Dem air-crafts expensive, and just as it aint easy for us to live here, it aint easy for us to leave either, so its

hard for us. We did ask the people at the region office already to find out if the government canhelp us with airfares, but nobody never tell we back nothing, Williams told Kaieteur News.The small Amerindian village of Kamarang is home to about 500 persons, the majority being belowthe age of 14.

New River Triangle debacleMuri Brasil misled nation on amount of land availablefor mining


Financial Analyst, Christopher Ram, has accused Muri Brasil Ventures Inc of misleading the na-tion with regards to the amount of land to which it will have access for mining when its explorationactivities have been completed. In its statement the company said, Much has been made of thefact that the area covered by the PGGS is some 2 million acres. This area is for exploration not oc-cupation or prospecting. Also the PGGS provides that the area is reduced by one quarter at the endof every year for its life of three years so that at the end of the three years only 25 percent of theoriginal area remains. According to Ram, who made his views known through his chrisram.netoutlet That is incorrect.

Ram said that under a clause Relinquishment, is stated: On or before the first anniversary, thePermission-holder shall relinquish at least 25 per cent of the said area after the first year.He said

that there is no commitment for any other year and only that the permission is for a period of thir-ty-six months.Where then is the Maths that 25 per cent will remain after three years? Unless the company hasbeen given some private assurances by the Minister, after three years the concession goes underthe Clause that states: There shall be no extension or renewal of the terms and conditions of thisPermission.


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Ram said that by now, the company should have indicated whether it has given up at least twenty-five percent of the said area after the first year.He asserts that it is the duty of the Minister, aswell as an obligation of the company to tell the country and the security forces the precise coordi-nates of the area which was given up on or before November 7, 2013.He reminded that the com-pany states that the area for a prospecting licence is an average of 12,000 acres so that 18 prospect-ing licences will extend over about 216,000 acres.

According to Ram, This is and was no doubt meant to mislead. He pointed to Section 33 of theMining Act which clearly states that a prospecting licence may be issued over several parcels,which are themselves subject to two extensions.There is no limit to the number of parcels overwhich a licence can be issued.

Ram also alleges that the company is apolitical. He said that surely, it is public knowledge thatYucatan Reis, one of its directors, worked closely with Minister Robert Persaud during the 2011elections campaign. Ram said, too, that his fellow director (Dean Hassan) never misses an oppor-tunity to boast of his connections and influence over the politicians including the Prime Ministerand at least one security agency. Guyana is a strange country in which the word corrupt seemspreferable to political!

The Financial Analyst points out too that apart from its statement, we learn that the company isawaiting permission for the construction of an airstrip to facilitate its workPerhaps the companywould be good enough to state which clause in the Permission gives it a right to construct an air-strip. He also called on Minister Robert Persaud to tell the nation how much it will cost the GRA,the Police Service and the GDF to effectively superintend the operation of an airstrip near the bor-der with Brazil.

According to Ram, Muri represents a security threat, an erosion of our border and the possibilityof substantial expenditure in return for US$85,000What makes these risks more serious is theopacity of the deal entered into but scarcely acknowledged by the Minister, the silence of the Secu-rity Forces on their duties under Article 197 A of the constitution and the self-serving and orches-

trated defence of the deal. He suggested that the only body with the authority to have a thoroughexamination of the deal is the National Assembly. It must have this done as a matter of urgent na-tional interest.

FIU: A toothless poodle Whose fault?Stabroek News, December 29, 2013 [Opinion]

By Clive Thomas

Introduction

This is my final column for 2013 and also the last in the series on the risks of money-laundering,terrorist financing, and proliferation. In the course of this series, several readers have indicated tome that there will always be money launderers and tax evaders, even from among those who shoutand scream against them, so why bother!

A simple analogy might perhaps help to show why we do need to bother. Consider that there willalways be accidents and people will always die; this does not mean we should have neither trafficpolice/regulations nor doctors/hospitals.


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The realistic goal is to contain the damaging impacts of accidents, sickness and death, not to totallyeradicate them, as this is impossible; by so doing we improve the quality of life for all.Todays concluding column will address two considerations. The first is, the Ministry of Financesresponse to Guyana having missed the drop-dead date of November 18, 2013; and secondly, briefobservations on the operations of the Financial Intelligence Unit.

Ministry of FinanceAs would be expected the Ministry of Finances statements after the passing of the drop-dead datehave been more directed at the economic ramifications/implications of CFATFs decision, thanthose made by the Attorney-Generals office, which has emphasized the political/legal aspects.Nonetheless, the Finance Ministry has endorsed the Attorney Generals expression of Grave con-cern at the decision by CFATF to encourage its member countries to consider implementing coun-ter measures to protect their financial system from ongoing risks of money laundering, terroristfinancing and proliferation emanating from Guyana (my emphasis).

Alongside this supportive statement, the Ministry of Finance has identified several likely adverseeconomic effects. First, CFATFs decision would negatively impact Guyanas international market-ability. Presumably, the concern is that close surveillance of the economy would deter foreign in-vestors and tourism. Second, close surveillance would raise transactions costs for all individuals

and businesses operating in Guyana. These increases would flow from delays, interruptions, in-creased charges and processing fees. Thirdly, it would negatively impact remittances and moneytransfers.

Remarkably, while offering no comment on the impact of this development on legal migrants theministrys statement refers to the adverse impact on illegal undocumented residents who would beunable to provide proof of name and identity before conducting business with Guyana from over-seas!

Fourth, the ministry states that ties between foreign and local banks would be severed, going fur-ther to claim that online, credit, and debit card transactions involving Guyana would be interrupt-

ed. All these effects would add to the overall costs of doing business in Guyana and thus drive upthe prices of all imported goods (fuel, food, medicines and so on) and services (insurance and trav-el), as well as discourage exportation.

Readers should recall two earlier observations which I made. First, with or without CFATFs deci-sion, increased surveillance of Guyanas financial transactions has become an absolute inevitabil-ity. CFATF is seeking to do via the Action Plan what is necessary to enable Guyanas anti-moneylaundering regime. Secondly as I indicated, under FATCA, a far more stringent US-led regime tocontain tax evasion (and by implication money laundering) in Guyana and the wider Caribbeanwill be in effect from July 1, 2014, no matter what the Government of Guyana says or does.

Financial IntelligenceUnit (FIU)

At the centre of the public dialogue on these matters is the FIU. Until recently very little has beenheard about it, reflecting I believe the level of official commitment to countering the risks of moneylaundering and terrorist financing. Most Guyana analysts have derided the FIU as an ineffectivetoothless poodle. Even if this harsh judgment were true, I do not blame the FIU, either solely orprincipally, for this outcome.


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First and foremost, because the FIU is embedded in a state structure that has little, if any appetite,for disrupting criminal endeavours led by an entrenched cabal of political leaders, captains of busi-ness, and organized criminal groups.

Under the pressure of recent public debates, a little more information on the operations of the FIUhas been forthcoming, and it would be useful to wrap up this series by briefly indicating some ofthis.

The FIU proudly describes itself as an autonomous body, established and operating within theambit of Anti-Money Laundering and Countering the Financing of Terrorism Act (AMLCFTA)2009 and its Regulations. It has the broad mandate to facilitate the detection, prevention anddeterrence of financial crimes under the 2009 Act. Its broad mission is to help protect the integ-rity of Guyanas financial system. Despite this broad responsibility, the FIU is heavily under-capacitated, in terms of its financial, technical, human, and other resources. Thus at the end of2012 it reported it had six staff, with only two financial analysts/investigators attached to it!

Under the 2009 Act reporting entities/international travellers are required to report monthly ontransactions above certain levels: for licensed financial institutions (LFIs) above US$10,000; forcambios purchases above US$2000 or sales over US$5000; for money transfer agencies (MTAs)

above US$1,000, and for foreign travellers above US$10,000. For 2012 the number of reportedcases respectively, was 8,807; 2,976; 29,849, and 1,003. These were comparable to the number re-ported for 2011.

The number of reported suspicious transactions to the FIU for 2012 was: LFIs, 7; cambios, zero;MTAs, 795; and foreign travellers 3. These figures are modestly down on those reported for 2011. Asuspicious transaction is defined by the FIU as one that causes a feeling of apprehension or mis-trust based on its size and/or pattern.

ConclusionAt the end of this series of columns, the original options as posed by the Leader of the Opposition

remain valid. Government and the National Assembly can either embark on producing appropri-ate/effective legislation to deal with financial crimes in Guyana or they can settle for version 2 ofthe present anaemic ineffective 2009 legislation.Happy New Year to readers all!

A project for 2014

Stabroek News, December 29, 2013 [Editorial]

There can be few places on the planet where it is more frustrating to live than Guyana. Of course,everyone hopes that 2014 will usher in a new spirit of co-operation and amity in the political firma-

ment; that miracles will be performed with the citys drains and trenches; that the garbage crisis inall parts of the country will be miraculously confronted; that there will be a dramatic reduction inthe crime rate; and that a commendable impact will be made on any number of social perversions,anomalies and pathologies but we all know it is not going to happen, or at least, not much of it.


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There are so many things which seem obvious to the ordinary man or woman, any one of whomcould say what needs to be done in a given area, but unfortunately what is straightforward for thelayperson, is the equivalent of scaling Mount Everest for the authorities, whose senses are addledby all kinds of political irrelevancies. But just suppose that for the year 2014 they set themselvesone primary achievable goal (if they manage others too, all well and good), and that this goal is notcomplicated, doesnt require sophisticated policy decisions or the passage of a parliamentary billand whose results will be obvious to all when completed.

There are many candidates that meet these criteria, but the most obvious is City Hall the build-ing, that is, not the institution, which is an altogether more knotty affair. There was a tiny pinprickof hope on the horizon last year that this heritage structure would be saved, but it vanished againon account of the sulphurous political atmosphere. It wasnt that certain moves in the right direc-tion werent made, it was that there was no convergence of aims or co-ordination of any kind be-tween the groups which had the capacity to effect change.

The year began with the Mayor of Georgetown calling a meeting about the state of the buildingwhich resulted in the setting up of a technical committee comprising engineers and the musicianEddy Grant, among others. Following that, two consultants paid for by generous business personscame down here to look at the decaying structure, and the report they produced made depressingreading. Apart from the fact that they said the greater part of the deterioration was a conse-quence of water leaks, they also recommended the disconnection of City Hall from the grid toavoid the risk of fire because of the exposure of electrical lines to water contact.

They had various other critical things to say as well, that have been reported more than once, buttwo of the recommendations were that an independent action committee be set up and given theauthority to guide the restoration project through, and that immediate work should be done to stopthe leaks and remove a water tank. Has this happened? Needless to say, it hasnt, for the usual lab-yrinthine reasons. Well, we got to the stage of the first consultants because of the efforts of theMayor, and it was then the turn of the government.

In October, the Minister of Culture announced that City Hall had been accepted for inscription onthe World Monuments Watch List. Gina quoted Ms Nirvana Persaud of the National Trust as de-scribing it at the launch as more of an international promotion or advertisement to attract funds.Minister Anthony was reported as saying that a broad stakeholder committee was needed to pushfor repairs at City Hall, and that this had to be done along with the Georgetown City Council. Hesright about that without any question, but has this happened? Needless to say, more than threemonths on we are still waiting. And where are the initial efforts to attract funds?

Will somebody high up there in the deep recesses of government take a decision preferably onJanuary 1, 2014, which marks the start of the125th anniversary year of City Hall to contact theMayor & City Council about setting up an independent action committee. This does not need to be

done in the glare of publicity; when it is done, then it can be announced. There should be no bigquibbles about who should be on it; this isnt about politics, its about heritage, and the primarycriteria for inclusion are those who are knowledgeable and those who have the relevant skills.Then let the committee draw up the draft of a plan for how to proceed, identifying in the first in-stance the emergency work that has to be done as priority.


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Exactly what kind of mechanisms will be necessary to achieve a comprehensive restoration with aminimum of local friction will have to be worked out, but once the government commits to the pro-ject in principle then it behoves the two parliamentary opposition parties to give their unequivocalsupport. To date, neither has had a word to say on the subject, despite the fact that one of them isled by a historian. While some money for specific areas could be raised locally, the larger sums willhave to come from international agencies, and approaching these institutions comes definitelywithin the ambit of the government.

And nobody wants to be belaboured with diatribes from the government about the Mayor & CityCouncil; the latter will not be executing the larger project, although clearly their cooperation willbe necessary. However, from all the evidence to date, this will be forthcoming. Where immediaterepairs are concerned, then a more critical person would be the current Town Clerk Carol Sooba.She, of course, answers to the ministerial duo in the Ministry of Local Government, so whoever inthe higher echelons of the deep recesses of government sets all of this in motion, would have togive the two Ministers and by extension, the Town Clerk a detailed explanation of its im-portance and urgency. She should also be asked about the $15M left over from the $20M allocatedby former President Jagdeo in 2011 for City Halls immediate rehabilitation, and which could bepressed into service now.

On the night of January 31, 2013, President Ramotar will address the nation in his usual avuncularstyle; talk vaguely about unity; possibly take a swipe at the opposition in relation to parliament;and maybe even mention the words local government elections. But will he commit his admin-istration to ensuring that City Hall is saved?Dont hold your breath.

P N C R H O S T S S P I R I T E D C H R I S T M A S C O N C E R T

Guyana Times, December 30, 2013

The Peoples National Congress Reform (PNCR) headquarters was the scene of a lively and spiritedChristmas concert just over a week ago.

T h e e v e n t , w h i c h w a s h o s t e d b y t h e C e n t r a l E x e c u t i v e C o m m i t t e e o ft h e P N C R , a t t r a c t e d a w i d e c r o s s - s e c t i o n o f c i t i z e n s , i n c l u d i n g AP a r t n e r s h i p f o r N a t i o n a l U n i t y ( A P N U ) m e m b e r s o f P a r l i a m e n t( M P s ) ; m e m b e r s o f t h e d i p l o m a t i c c o r p s ; t h e P r i v a t e S e c t o r C o m -m i s s i o n ; r e g i o n a l d e m o c r a t i c c o u n c i l l o r s f r o m s u r r o u n d i n g r e g i o n s ;a n d r a n k a n d f i l e m e m b e r s o f t h e P N C R .

A c c o r d i n g t o a r e l e a s e f r o m t h e p a r t y , s e v e r a l w e l l - k n o w n a r t i s t sa n d g r o u p s e n t e r t a i n e d t h e c a p a c i t y c r o w d . T h e r e w e r e p e r f o r m a n c -e s f r o m t h e L i n d a G r i f f i t h D a n c e S c h o o l , t h e S u c c e s s E l e m e n t a r yS c h o o l C h o i r , C i r c l e o f L o v e , t h e W o o d s i d e F o l k G r o u p , S t e e l P a nm u s i c , a s w e l l a s a v i o l i n s o l o b y C h e e C l a r k .
http://www.guyanatimesgy.com/?p=44477http://www.guyanatimesgy.com/?p=44477


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P N C R C h a i r m a n a n d p a r l i a m e n t a r i a n B a s i l W i l l i a m s e x p r e s s e dg r e e t i n g s o n b e h a l f o f t h e p a r t y ; M P C h r i s t o p h e r J o n e s d e l i v e r e dC h r i s t m a s g r e e t i n g s o n b e h a l f o f t h e G u y a n a Y o u t h a n d S t u d e n tM o v e m e n t ( G Y S M ) , t h e y o u t h a r m o f t h e P N C R ; a n d C h e r y l S a m p s o nb r o u g h t g r e e t i n g s o n b e h a l f o f t h e N a t i o n a l C o n g r e s s o f W o m e n( N C W ) , t h e w o m e n s a r m o f t h e p a r t y .

A P N U l e a d e r , r e t i r e d B r i g a d i e r D a v i d G r a n g e r t h a n k e d a l l t h e p e r -f o r m e r s a n d w i s h e d a l l p r e s e n t a M e r r y C h r i s t m a s . I n e x t r e m e l yb r i e f r e m a r k s , B r i g a d i e r G r a n g e r s a i d i t w a s h i s w i s h t h a t g o o dt h i n g s w o u l d c o m e t h e i r w a y f r o m t h e N a t i o n a l A s s e m b l y i n 2 0 1 4 .

T h e e v e n t w a s h e l d i n t h e H a l l o f H e r o e s a t t h e P N C R S e c r e t a r i a t ,C o n g r e s s P l a c e , S o p h i a , G e o r g e t o w n .

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