‘Green’ paper includes plan to establish Sovereign Investment Committee
─ committee will assist in effective management of Natural Resource Fund
─ committee members to be persons with substantial experience, training and expertise in financial investments and financial portfolio management
DPI, Guyana, Thursday, August 16, 2018
The Government’s ‘Green’ paper on the Natural Resource Fund (NRF) proposes the establishment of a Sovereign Investment Committee to advise Minister of Finance, Winston Jordan on the Investment Mandate as it relates to the management of the NRF.
The committee will comprise seven members appointed by Minister Jordan.
Among the members, a representative of the Finance Minister, an ex-officio representative nominated by the governor of the Bank of Guyana, a representative nominated by the Institute of Chartered Accountants of Guyana, a representative nominated by the Opposition Leader and a Senior Investment Adviser and Analyst.
The ‘Green’ paper specifies that the committee members would be persons with substantial experience, training and expertise in financial investments and financial portfolio management.
A minimum of a postgraduate degree from a reputable university in the fields of finance or economics or an equivalent professional qualification is required.
The Senior Investment Adviser and Analyst would also be recruited via international open tender and would be responsible for assisting Minister Jordan in drafting the Investment Mandate and report. This individual will also monitor the financial performance of the NRF, among other duties as determined by the minister as well as the Sovereign Investment Committee.
According to the ‘Green’ paper, the National Assembly would be responsible for passing the NRF Act, approving the annual National Budget which would include the annual withdrawal from the NRF and reviewing the annual report.
The Bank of Guyana would be the Operational Manager of the Fund and is required to manage it in accordance with the Operational Agreement and the Investment Mandate.
Quarterly reports and annual accounts and procurement of Private Managers, draft Management Agreements and Investment Instructions will also fall under the bank’s purview.
The Private Managers would manage the overall investment portfolio in accordance with the Management Agreement and Investment Instructions and submit reports to the Bank of Guyana.
By: Stacy Carmichael