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Kaieteur News
Friday April 19, 2019
Full disclosure of Exxon’s Procurement Strategy, Rules would be in Guyana’s interest- Tender Board Head By Kiana Wilburg ExxonMobil is expected to provide the Government with annual reports on the number of local goods and services it is using for its offshore projects. But how does one know if the procurement strategy and rules being employed by the USA firm allow for the maximum use of local content? Head of the National Procurement and Tender Administration Board (NPATB), Berkley Wickham, says he would support the full disclosure of ExxonMobil’s rules and strategy which govern its procurement of goods and services. Speaking with Kaieteur News recently, Wickham said, “If you have to report to the government on local content then it would be important to see if the rules you are using allow for the maximum use of locals. “In addition, we would have to put the necessary mechanisms to ensure that this happens too. This can’t be left hanging. There also needs to be a policy directive (on the procurement of goods and services by oil operators).” “We also need a mechanism to measure number of small businesses, for example, which are benefitting. And a mechanism to see in Year One
versus Year Two, what percentage of local content was used; if there was a decline or increase between the two years and reasons for those. “A measuring mechanism needs to be in place. So I do support the call for the procurement strategy of the oil firms to be made public not just for scrutiny but for national discourse.” The NPTAB Head added, “This has to be something for national discussion. Guyana needs to be able to be part of developing the strategy and say well ‘We want to attain a certain level by year X and therefore, we will measure it year by year. “And to achieve this, we can amend this part and that part of the oil company’s procurement rules so more locals are involved.” Wickham said he is a firm believer that there needs to be transparency on this matter but at the same time, local companies have to gear themselves up to deal with the demands of the new industry. He stressed that there are new standards and levels which they must strive to meet. IMPROVING THE PROCUREMENTACT Wickham had also told Kaieteur News that he believes the Procurement Act needs to be improved in an effort to ensure locals benefit
the most from contracts in the oil sector. In this regard, he said that Guyana’s procurement laws contain a provision called a margin of tenderer reference. The law states, “The procuring entity may grant a margin of tenderer reference not exceeding 10 percent to tenders submitted by domestic contractors or for the benefit of tenders for domestically produced goods, provided that such preference is specified in the tender documents.” “If the lowest evaluated tender was submitted by a foreign tenderer, the evaluating committee will apply the margin of preference to the prices submitted by all foreign tenderers, for evaluation purpose. “If, after applying the margin of preference, the lowest evaluated tender was submitted by a domestic tenderer, such tenderer shall be awarded the contract.” But considering the massive scale of Guyana’s oil wealth to come, Wickham, says that perhaps it is time for amendments to be made to this provision, among others, since they date back to 2003. Wickham said, “There needs to be a national discussion on whether the 10 percent is good enough. We are in the process of modernizing the current Procurement Act. We had a consultancy to do
PPP will not disclose campaign finances, this election cycle – General Secretary General Secretary of the People’s Progressive Party, Bharrat Jagdeo, has said that the party is not against publishing a register of campaign donations during an election cycle. However, the party does not intend to do so at this time. During a press conference at the Office of the Leader of the Opposition, Wednesday, the former President was asked whether the party would commit to declaring its campaign finances. “I said already that we are in favour of campaign finance reform, that – should we have a law – we’ll work towards it with the government.” He said that three years ago, when Kaieteur News asked him about campaign financing, he had said, “We are prepared to support legislation now to ensure that oil companies do not contribute to campaign.” It was suggested that the PPP could set an example for other parties by releasing a register of campaign donations without being compelled by law. Jagdeo was reminded that he has said that the PPP is an upright institution, separate from other par-
ties. To this, Jagdeo said, “We are separate. We have a better policy perspective. Corruption was minimal, compared to the others [under the PPP government] but we’re not stupid.” He said, “We are not doing it if the others are not doing it. Why should we, the People’s Progressive Party [do so]? Ask APNU. The last elections, they said they would disclose this. We never made that commitment.” He said that A Partnership for National Unity + Alliance For Change (APNU+AFC) coalition is not doing so. Hence, the PPP has no reason to. Jagdeo said that the PPP has stated before that it will support the establishment of campaign finance laws to compel political parties to declare such. In the meantime, the PPP will keep its finances private, and “when there is a law that we have to comply with, we will comply with it.” “[We can do it] like the US, where every donation made goes in a public register,” but the Opposition Leader said that he’s worried about what he describes as the vindictive
nature of the current government. “This is why, in that context, you can’t disclose people’s names because Amna Ally or Congress Place will harass those people.” He cautioned that such a register could be used to target donors. Asked whether he needs to have a law to compel him to do so, he said that he would support a pact between political parties. “We are prepared to do that, so that oil companies do not make any contribution to campaign. We are prepared tomorrow, and we don’t need legislation. We can sign something together.” This pact, he said, could make it so that all the parties commit to refusing campaign donations from oil companies. “We are prepared to do that now,” he said, “if you ask the others, ask the People’s National Congress and the Alliance For Change (AFC) if they are prepared to do that, then you can get an independent party to put it together. We’ll sign to that.”
that and we have reviewed the recommendations together with the Public Procurement Commission and those revisions are now with the Attorney General’s Chambers for drafting.” The Tender Board Head added, “And I would think thereafter, there will be a public process for stakeholder engagements to look at what was recommended for amendment. So there will be ample opportunity at that stage for the people to have a say on what they think should be included to promote more local participation for the oil sector.” Wickham had also emphasized that amendments to the Act are crucial to ensuring local businesses benefit the most from the sector.
NPATB, Berkley Wickham
He said, “This is very important. If we are talking development and the good life, then this is a necessary step. I would think, and I am not a politician, but it is only fair for the people of Guyana to
benefit as much as possible from the gains of the oil and gas sector. “So this is a crucial step to propelling local businesses, and particularly women-owned businesses.”