Not only will the Minister have the power to select the members of the Petroleum Commission, but he can also select and appoint the members of the Board, along with its secretary. In fact, the Minister can even disrupt the work of the Commission as he pleases.
Former Minister of Energy for Trinidad and Tobago, Kevin Ramnarine said that the Petroleum Commission is tasked with monitoring and regulating the efficient and environmentally responsible exploration, development and production of petroleum in Guyana.
He said that some of its main functions include; approving proposed exploration activity, carrying out estimation of reserves, promoting local content, overseeing third party access to infrastructure and providing information to tax authorities.
The former Energy Minister then brought to the audience’s attention, the control the Minister has over the appointment of staff for the Petroleum Commission. He noted that the Commission will have a Board of Directors (BOD) that is expected to govern or supervise the Commission. But all of the Board members would be appointed by the Minister.
According to the draft legislation, the Chairperson shall be appointed by the Minister while the Deputy Chairperson may also be appointed by the Minister. He noted that in the case of the chairperson, this is definite, while in the appointment of the deputy, it is optional for the Minister.
The Board is also directed by the Minister. Ramnarine also pointed out the fact that the Board would have a life of one year and the Minister has the power to terminate it at anytime.
The Minister can also perform the functions of the BOD if one is not appointed. He can even assume the Chairmanship in the absence of a Chairman.
Also worrying to Ramnarine is the fact that the Minister would have the authority to appoint a Chairman, the Commissioner, eight other directors, and the secretary to the board.
On the bright side, the former Energy Minister said that the draft legislation calls for the Board of the Directors to include one person from the parliamentary opposition and one from civil society or academia.
As it relates to recommendations, Ramnarine suggested that the term of the board be longer than one year. He and Ramkarran agreed that it is the Board which should appoint the Commissioner as well as its secretary. In relation to the later, Ramnarine noted, however, that the secretary should be an attorney with at least 15 years at the bar.
The former energy Minister agreed that there should be a Board member from the Opposition, but he or she should be appointed by the Minister, based on the written advice of the Opposition Leader.
He said, “I would suggest that the Board have a representative of the Environmental Protection Agency. This is what obtains in the Ghana Commission. The Board should include the Commissioner of Lands and Surveys. Significantly, decisions should not be made only by simple majority.”
Ramnarine continued, “Major decisions should require special majority or should require unanimous vote. Further, the Commission should be self funding any surplus funds should be deposited into the Consolidated Fund.”
The former Energy Minister added, “The Parliament should establish a Joint Select Committee on Oil and Gas. And importantly, the Commission should report annually to this Committee and it should be televised as is done in Trinidad and Tobago and the USA.”
Ramnarine concluded that in the next two years, Guyana has once in a lifetime opportunity to get it right and to create a tremendously prosperous future.
He said, “If you don’t get it right from the start it will be difficult, if not impossible, to change course after first oil in 2020. Getting it right means always doing what is in the national interest.”
The former TT Energy Minister emphasized that the national interest must always win.
Former Speaker of the House, Ralph Ramkarran agreed with Ramnarine’s points. He surmised that the legislation essentially gives the Minister “a heavy hand” in the staffing and operation of the Commission, when in fact he is only supposed to have “a light touch.”
Ramkarran said, “One can understand that the government wants control. I am not quarreling with this…but it is not normal for Ministers to be approving the secretaries of boards.”
The Attorney-at-Law asserted that what he also found peculiar is that the fact that the draft legislation speaks nothing of the size or the number of persons who would make up the Petroleum Commission. It is only specific that eight persons would make up the Board.
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