Civil society up in arms over budget cuts

– opposition urged to reverse decision

Amid a flurry of condemnations from prominent civil society organisations and a number of other private individuals, the opposition is under pressure to reverse the budgetary cuts inflicted on the Guyana Power and Light Company (GPL), the Specialty Hospital and the Cheddi Jagan International Airport (CJIA) expansion project.

These calls have been made as the considerations of this year’s estimates come to a close. The Georgetown Chamber of Commerce and Industry (GCCI) in a statement on Wednesday expressed deep apprehension and disquiet over the developments occurring in the National Assembly, with particular reference to the amendments of the budgetary estimates.  The chamber pointed out that it was particularly uncomfortable with the effects the amendments are likely to have on the sustenance of a stable and conducive economic and social environment.

“The GCCI is deeply concerned and uneasy with the developments occurring in the National Assembly,” the statement said. It added that Guyana has enjoyed seven years of economic growth, stability, investors’ confidence, social and economic development and the expansion of private sector activities.

“The GCCI is therefore calling on the government and the opposition parties to actively engage each other, share information and make compromises that are in the best interest of Guyana’s development,” the business community added.

The chamber further highlighted and recommended several actions and initiatives that can work to stem and prevent any degradation to Guyana’s economic and social environment.

According to the GCCI, members of the business community would like to see the reinstatement of budgetary allocations to GPL, the Specialty Hospital, the CJIA expansion project, and the transportation budget for the Public Works Ministry.

The body also called for a resumption of talks between the government and opposition on the budgetary estimates. It further mentioned that opposition parties should engage with the management of the power company to gather information on its performance and the likely implications of the reduced allocations.

Dialogue

The GCCI is also encouraging dialogue on government’s commitment to sharing critical information with opposition parties as it pertains to public projects. The business representative body also called on government to commit to establishing and strengthening several institutions, including the Procurement Commission, the Integrity Commission and the Ombudsman Office. “These are important to ensuring greater transparency and accountability in the use and allocation of public funds,” the GCCI said.

The chamber stated that both government and opposition should establish an independent investigative commission to look into the management and performance of GPL and the Guyana Sugar Corporation (GuySuCo) and to proffer recommendations on making these entities efficient and sustainable.

“Now represents a critical junction in our country’s history and it is a time when our policy makers must rise above petty partisan political objectives and embrace approaches that contribute to national development,” the chamber emphasised. The combined A Partnership for National Unity (APNU) and the Alliance For Change (AFC) used their one-seat majority to slash millions of dollars off the national budget.

Adding his voice, Private Sector Commission (PSC) Chairman Ronald Webster was quoted in a section of the media saying that the PSC is very concerned about the cuts to the CJIA and money for the upkeep of interior airstrips. Webster said the budgetary estimates for the transport sector were already low since they were reduced when the budget was prepared. CJIA Chairman Ramesh Dookhoo was also quoted as saying that the sanctity of contracts now comes into question.

“This is a case where the government of Guyana signed a contract with an agency, and as a result of that contract, secured a loan, the funds for which you cannot get unless you have a valid contract. All of that was done and it is hard for this process to be reversed. I hope that the opposition can take another look at what they have done in terms of cutting the CJIA project,” he said.

Dookhoo said that this also does not bode well for the image of the country and adversely affects investor confidence.  “The reversal of a contract has serious limitations for a project of this nature. There is a cost associated with squashing this contract. The most expansive cost for me is the removal of the contractors from the site. Those are cost that can be associated with damages,” he pointed out

Humanitarian

Meanwhile, the Guyana Consumers Association is appealing to the representatives in Parliament and the executives to revise their decision relating to the budget cuts on GPL and the Specialty Hospital, taking into consideration the consumer and humanitarian perspectives.

“The funding of both projects will bring great relief and comfort to consumers and the general population of Guyana. If GPL does not function with required resources, this would result in extended and regular blackouts… and higher rates would inevitably have to be imposed on the hard-pressed consumer,” the association said in a press release while adding, “Because of the absence of varied specialist services, many sick persons cannot be properly diagnosed or treated and will be afflicted with quicker and avoidable demise… the Specialty Hospital would go a long way in meeting this need.”

The association is urging opposition leaders to view GPL and the Specialty Hospital through consumer lenses and make the required funds available to complete these two projects.

The release added that “consumers and the general population of Guyana would be deeply grateful and appreciative to our leaders and representatives for such a gesture and we humbly urge that this be done speedily so as to assuage the anxiety, fears and pessimism which have overtaken a large part of the population.”

The entire expenditure for the transport capital programme under the Public Works Ministry was cut by the opposition along with a $5.2 billion subsidy to the state-owned GPL. The utility company is worried that the cut could seriously hamper several large scale enhancement projects currently underway to improve its efficiency. It could also lead to the possibility of tariff increases for customers and impact financing by the Inter-American Development Bank (IDB) for the US$840 million-plus Amaila Falls Hydro project. The opposition also denied a $1.2 billion allocation for the construction of a Specialty Hospital to be built at Liliendaal, Greater Georgetown. Government claims that the budget amendments will severely hamper the prospects of the country’s medical tourism drive.