Dr Jagdeo defends NRF transfer of oil revenue

General Secretary of the People’s Progressive Party, Dr Bharrat Jagdeo has maintained that effective systems are in place to guarantee transparency in the transfer of oil revenue from the Natural Resources Fund to the Consolidated Fund.

Dr Jagdeo was at the time addressing the criticisms made by businessman Terrence Campbell in relation to the management of the NRF, during his weekly press conference at Freedom House.

The Natural Resource Fund (NRF) Act, which was amended in 2021, dismantled the previous framework enacted by the last government, which entrusted sole authority to manage the NRF to the finance minister.

The current legislation allows for the fund to be managed by a Board of Directors, which is responsible for reviewing and approving the policies of the fund and monitoring its performance, thereby completely separating the management of the fund from the minister responsible for finance.

“They complain about the board of directors, [saying] they don’t have enough information. They are making it seem as though the board of directors to manage the fund is less transparent than the minister having all the power,” he said.

The GS said that this Board holds members of high integrity, and is more transparent than the previous model where the Minister of Finance had sole discretion over the management of the NRF.

Dr Jagdeo underscored the critical role that the National Assembly plays in scrutinising and approving the spending of oil revenues, ensuring that the budgetary process reflects the national development priorities.

In fact, the law requires the government to seek annual Parliamentary approval for withdrawals from the NRF as stated in Section 19 of the NRF Act 2021.

He also reminded that the government uses the formula-based approach for determining the withdrawal ceiling from the NRF, rather than allowing the Minister’s discretion.

“Outside of this annual withdrawal, which is captured by a ceiling now and a formula, the government can draw down money for one specific additional purpose, in case we of a national emergency, for example, a major flood disaster,” he said.

He explained, “[In this case] we would have to give the projects and the specific use of the fund if you trigger that provision of the law. That provision has never been triggered, never been triggered, because we have never utilised money under that head.”

The GS said that this is the only instance in which the details of expenditure are required by law.  

He highlighted the duplicitous and hypocritical nature of these opposition operatives to now express such passionate views about accountability and transparency, while staying silent in the face of blatant corruption under the previous government.

“We can all recognise that the PNC model was a model to keep stealing the money, as they sought to do with the 18 million because they didn’t have to put their money in, and…charge expenditures directly on the fund, without any approval from parliament. The minister could have transferred all the money from the fund with no upper limit in his own discretion or judgment, not based on a formula or the law. That was the PNC model,” Dr Jagdeo reminded.

He further rebuked what he termed a racist comment made by Campbell in a letter to a local newspaper.

In his letter, Campbell stated that the vice president has a “genetic predisposition to eating his cake and having it”.

“So, Nigel Hughes reposted the same thing, [about] my genetic predisposition. And I saw Jordan said something along a similar line, as though it’s coordinated, that [they] believe only one type of people can manage the country. So, this view exists in, I think, in what I said before, the urban elite. It’s a racist view,” he said.

Dr Jagdeo clarified that his “genetic predisposition” allows him to connect with people from all walks of life, treating everyone with respect and appreciating the value of hard work.

“I think I am genetically predisposed to calling them out for what they are. They are hollow, fake intellectuals with a great deal of pretense and they lose ground particularly when people poke behind this sophisticated veneer that they cultivate over the years,” he asserted.