INTRODUCTION

It is a truism that “man cannot live by bread alone”. So, when young, Minister Frank Anthony spoke, he took us momentarily to a celestial plane where our Guyanese civilization could bask in reflected glory in the finest tradition of literature and art.  His was a breath of fresh air, and I felt a soothing balm of hope that we could all discover our better Angels, and that we could, in our life-time, show “what Guyana sons and daughters can be”.

It is a lofty dream to enrich our civilization with cultural and intellectual values, whilst we pursue economic security. But, in this land of cuss-down politics, our masters “watch us sleep and aim at our dreams”, to paraphrase our national poet, Martin Carter.

Mr. Speaker, our dreams could soon become a nightmare if this government does not come off the cliff of delusion and bombastic boasts that Guyana has arrived, that Guyana is the land of milk and honey. Instead, we should wake up to the opportunity for dialogue and reconciliation, and rescue our Guyana from impending danger.

 

 

PRIME CATS

This budget by itself will not take us to the Promised Land though, indeed, it is being touted as a massive “goodies” budget of $208.8 billion and, deceptively, it paints subliminally the image of Guyana as an Asian Tiger or jaguar.

Look at the top, at the far left of the cover page of the budget speech. Ironically or cynically, we see what appear to be two cats – I am restrained from saying “fat cats”. They appear to be prime, plump, playful, cats (the proverbial PPP/C).

But, look again: you can see the sad, haunting, melancholic face of a school girl, the yellow-sand, Fip Motilall-like road to nowhere, a disabled oil rig with its only ray of light escaping beneath the platform, and the glorious, calloused hands of a rice farmer, and you know we are back in Guyana.

Indeed, this minority PPP government has tailored the budget to satisfy the insatiable appetite of the parasitic and bureaucratic, class. In defiance of this National Assembly, it has revised upwards and restored the cuts made for contracted employees, many of whom are the super-salaried, million and multi-million-dollar cats on sinecure employment. Last year, they got an additional $100 million. This year, government has up the lottery for contracted employees to $7.8 billion. The number of PPP activists on Office of the President payroll has increased.

Defiance is compounded with insult to this National Assembly, as cuts for the PPP propaganda machines – GINA and NCN – have not only been restored, but increased!

A gauntlet of arrogance and defiance has been thrown into these hallowed halls of the National Assembly!

TRILLION DOLLAR BUDGETS

This type of reckless use of our people’s money has characterized all post-Jagan PPP governments. They have spent money as if it were cheap as “bussie” (rice husks).

In the past 13 years between 2000 and 2013, this PPP Government proposed budgets allocations amounting to $1,588,000,000,000.00.  Over one and a half trillion dollars.

Assuming we have a dollar bill measuring 6 inches, and given that the circumference of our Earth is 1.6 billion inches (1,577,727,360 inches), the budget sums would dollar-on-dollar, wrap the circumference of the earth some 6,000 times (6,039 times).

What have we to show for this colossal amount? Today, the PPP comes here and boast that we are fixing old roads and building new ones; we are breaking old bridges and making new ones; we are scrapping the new airport and building a newer one; we are fixing our broken down sugar industry; we are fixing the failed electricity system.

This PPP is a “we bruk am; we fix am” government.

There is no doubt that our growth rate has been positive over the past few years, and averaged above 4% annually. I wish I could say the same about budgetary allocations. In the past six years (2007-2012) total budgetary allocations were $825 Billion as compared with $471 Billion in the previous six-year (2001-2006). These allocations increased by about $354 Billion or 75%. The least that could be expected was a reasonable return for the people’s monies and a 4% growth could, dollar for dollar, be a very modest, if not disappointing, return.

NEW PROJECTS

This year, they are asking for $208.8 Billion, $85 billion of which would be for new projects, without addressing concerns of transparency and accountability.

The AFC is not against projects, but we need to see the feasibility studies, and to know if these projects are the best alternative use for our money.

We have to ask the hard questions: Do we need a new airport costing $30 billion when only 12 years ago, we modernized the existing airport at a cost of $6 Billion? Should our government not try to get reliable and affordable airline services before pouring billions into a new airport? With Delta going soon, air transport would be a nightmare. Price gouging has started. Even with a new airport, not having a viable aviation plan, Timehri will continue to be an airline cemetery – Universal, Travelspan, Red Jet, Easy-Jet, and soon, Delta.

It is evident that the post-Jagan PPP governments lack vision, proper planning, and has abandoned all claims to a really sustainable development strategy. This government has plans that are eclectic, that shift and change, to suit prevailing opportunistic needs for enrichment of a few.

 CORRUPTION

The government wants support for its spending spree but has failed to deal effectively with corruption. It has not addressed the vexed issues of putting surpluses from NICIL, Lotto & Wildlife Funds, and moneys from dead bank accounts, into the revenue stream.

The Good Bishop spoke about a Code of Conduct for Ministers. Where is this Code? I call for appointment of a Chairman of the Integrity Commission, and for the Secretariat to be fully staffed and equipped to conduct investigation into the assets of all office holders. Let us make public these assets. A Code, not enforceable in law, cannot work! It’s a recipe for Cover Up!

We call for the composition of the Public Procurement Commission, for the appointment of an Ombudsman, for confirmed appointments to the posts of Chancellor of the Judiciary, Chief Justice and Commissioner of Police.

We need to implement the Anti-Money Laundering and Countering Terrorism Act, and to give teeth to the toothless poodle styled the Intelligence Unit. Not a soul has been investigated, much less prosecuted, for money-laundering and Guyana is wrongly being seen as a Haven for money-launderers, drugs trafficking, etc.

Minister Ali invited us to dream, but he ought to know that the sad story of failure to realize the Guyana dream has to do with lack of accountability, lack of transparency and poor governance practices. Prof. Clive Thomas in his article titled : UNCERTAINTY AND RISK: GUYANA’S TROUBLED PROJECTS (Stabroek News, March 24, 2013) identified as reasons for the failures “lack of systematic planning, poor project selection and design; even poorer execution and implementation; as well as weak monitoring and lack of transparency”, and he added waste, corruption and mismanagement.

PUBLIC SECTOR FAILURES

This PPP government has stolen the thunder of achievement in the traditional private sector, and re-packaged it as its own “progress” and “development”. They claimed credit for the hard-working rice farmers; and they snatched the golden trophy from the hands of miners.

We salute our miners and rice farmers and assure them of our support for their investment, risk and sacrifices.

The PPP Government should instead bark in its own yard – the state or government sectors. These are poised on the brink of financial disaster. Instead of progress, many public corporations are a liability to the people, estimated at some US$281,794,465 or G$57,204,276,395 (G$57.2 Billion) last year.

These failures include:

• Guyana Power and Light (GPL). The couple over the road from my Chambers selling water coconut, who travels every week from Charity to Georgetown, makes a profit. The young lady over the road who sells sweets and drinks off an old fridge, makes a profit. But the multi-billion giant, monopoly that sells electricity to all the people of Guyana, is broke! Guy-broke!

The PPP government guaranteed GPL loans amounting to $23 Billion for equipment and infrastructural works. (US$ 111, 706,921 by 203  = G$ 22,676,504, 963).

This is throwing water on duck’s back! GPL is a huge black hole of inefficiency, mismanagement, waste and squandermania!

Last year, taxpayers gave GPL a bail-out of $6 Billion. This year, the bail-out will be an additional $11.2 Billion. And there is no light at the end of the tunnel!

The PPP comes here and threatens us that if we do not pay up, consumers have to pay hike in electricity tariff. This is shot-gun, economic blackmail and banditry!

• GUYSUCO

This is another favourite duck – Guysuco (Sugar workers tell me it is “Guyfuco” – Guyana Funded Corporation)

The PPP has also guaranteed Loans for Modernisation/cogeneration in the tune of $29 Billion (US$ 141, 958,435 =G$28, 817, 562, 395) which, I believe, forms part of the estimated G$47 billion in support and recapitalization.

Last year the Minister promised that Skeldon Factory would run at full capacity by the second crop. Yet it is still limping. The Skeldon factory was grinding 196 tons of cane an hour, instead of 350 tons. It takes Skeldon 16.29 tons of cane to make a ton of sugar, whilst Albion takes 10.52 tons.

Instead of 100,000 tons, Skeldon produced 33,309 tons of sugar as compared to Albion with 54,022 tons.

In all, 218,069 tons were produced – the lowest in 20 years.

• NATIONAL FREQUENCY MANAGEMENT UNIT

At a time when there would be a proliferation of radio, cable and television operations, NFMU is hoping to earn $500 million this year, as compared to $476 million in 2012 and $699 million in 2011.

NFMU is a big spender. It $ 351 million in 2010; 604 million last year, and is projected to use up $1,959 million this year. It projects a deficit of $1.5 billion. Rates & Taxes and subvention to local authorities expenditures increased from $218 million in 2010 to $944 million this year? Then, other operating expenses jumped from $18 million to $21 million to $826 million, over the same period. Why?

• GGMC

GGMC is projecting losses of $ 1.6 billion. GGMC sits on a Gold Mine, that accounts for one-third of our GDP, the single most precious “production” about which this government boasts.

We exported US$716.9 million in gold, so why is GGMC projecting losses?

• Guyana Gold Board

This state entity is expected to make $102.5 million. But it would spend nearly 100 million on labour and other operating costs. The Gold Board would make a paltry $3 million this year, hardly much as a windfall from high gold production.

• GUYANA LANDS AND SURVEYS COMMISSION

This is a state body that mainly grants leases for state lands, and collects fees and rents. But, I am told that the cost of doing this is equal to the revenue it receives – $ 462 million. Why is this so? Is there bureaucratic lethargy here? Or, it’s just another manifestation of state paralysis and malaise?

• CHEDDI JAGAN INTERNATIONAL AIRPORT

The same sordid picture of inefficiency and mal-administration is seen at the Cheddi Jagan Airport.

The Airport Authority ought to collect enormous revenues, judging from the great unprecedented thousands of arrivals about which the government crows loudly. In 2011 CJIA collected $755 million, which went up to $1.1 billion in 2012. In $2013 the in-take will dip to $ 840 million whilst costs of operating the airport and providing services would be $739 million. So, why is the CJIA making only $100 million in 2013 compared to $241 million in 2012?

Surely, we cannot believe Minister Ali that Guyanese are returning, that there is re-migration, when the main door to Guyana is doing less business. Perhaps, the goodly Minister was referring to the re-migration of Deportees. The Guyana Times reported on January 10, 2013 that 750 deportees returned last year, from North America and the Caribbean. Re-migration, indeed!

• DEMERARA HARBOUR BRIDGE

The Demerara Harblour Bridge is another state-run business. There is no competition with DHB. In 2011-13, the Government diverted $1,120 million to maintain the bridge, of which $300 million will be spent this year. It makes no significant earnings, or any at all. Is this believable?

In the interest of equity, Government should at least allocate $150 million in subsidy for Berbice Bridge tolls.

• Transport and Harbours Department

It makes not a single, dull cent! And so is the Central Housing and Planning Authority.

The CH&PA gets $2.2 billion from operations but spends it all. Where has the money from sale of land gone?

The above, Mr. Speaker, points to the failure of this state in managing national resources. The state ought to be our shining example of financial rectitude, fiscal management, efficient organization, profitability, and so on, but as the saying goes, “ a fish rots from its head”.

REMITTANCES

Apart from gold, rice and sugar remain part of our raw-material, primary-producing tri-sector that keeps our GDP afloat.

One of our bigger exports is Guyanese. We “earn” consistently over US$400 million from this commodity, which helps us with a favourable balance of payments. Remittances from Guyanese in the diaspora accounted for US$469.3 million “production”, an increase by 13.9 %.

Though we have high gold price, Hugo Chavez, (may God bless his soul)  and our diaspora to thank for  our good luck last year, we should be advised that unless we have new markets, price sustainability and job security of Guyanese in the diaspora, we cannot be guaranteed that gold, rice and remittances would remain stable indicators of GDP.

RADIO LICENCES

The most dastardly example of this rot was the allocation in 2011 of radio frequencies to cronies of the regime. It is clear that the allocations were lawless and discriminatory and the process was not transparent.

The Broadcasting Bill was passed in this National Assembly on July 28, 2011, and assented to in September, 2011. President Jagdeo distributed the frequencies days before the November, 2011 elections.

One recipient, Telcor & Cultural Broadcasting Inc. was granted five radio frequencies in November, 2011. New Guyana Company Ltd., publishers of Mirror newspapers, got 5 frequencies.

This is the company for which I worked as a journalist for some 22 years. (It did not pay me superannuation benefits and it ripped off some of my NIS contributions). They said it was broke. Today, the press is non-functional. The Mirror has been out-sourced for printing by Guyana Times (Ramroop – Jagdeo’s friend) and the printery, hived off to Ed Amhad, a convicted felon in the USA, and friend of Mr. Jagdeo.

The NEW GUYANA COMPANY LTD was first registered on 30^th October, 1959 as Company No. 657.  All the original directors are deceased. But when last I was with Mirror, there were two other names associated with this company. One is Haripersaud and the other is DONALD RAMOTAR, who was named as Secretary.

Need I say anything more?

In addition, multiple frequencies have been allocated to Dr. Ranjisinghi Ramroop, Mr. Jagdeo’s friend. Then in 2010 there were cable licenses given to Brian Yong and Vishok Persaud.

Except a few, all the recipients are connected with the PPP, are themselves high state officials, and are associated with Government leaders as “comrades, friends or relatives”.

In all these allocations, there is a serious conflict of interest – it is disgraceful and scandalous. This is naked nepotism. These frequencies ought to be withdrawn immediately! There will be no compromise on this matter.

Mr. Speaker, I wanted to refer to what you in Stabroek News on March 24, 2013, that “decency, commonsense and good governance dictate a reversal of the allocations”.

The spectrum is our limited national resource, a public property. It could be a great money-earner. It must not to abused or given away willy-nilly. In India, auction of wireless broadband brought in US$12 billion in 2010. But before that, in 2008, 2G spectrum frequency allocation for mobile telephone was handed out to friends in a massive scam. Big people went to jail. The Stabroek News on April 2, 2013 reported that the Supreme Court of India declared the allocation “unconstitutional and arbitrary” and quashed all the 122 licenses issued in 2008. The court found that the Minister “had gifted away an important national asset”.

The scam of India is now haunting Guyana!

DEBT MANAGEMENT

Last year when I raised the debt sustainability issue in Parliament, albeit on the nominal Guyana dollar debt being the biggest debt ever in the history of post-colonial Guyana, all hell broke loose. The simple point that I made was that the nominal Guyana dollar debt was bigger that it was in the PNC days.

On September 30, 1992, the total public debt stood at G$263,086.5 million. At December 31, 2011, it stood at $350,574.81 million. By March 31, 2012 this jumped to $355,580.39 million.

Those figures were provided by the Finance Minister.

Last year, I was called all kinds of name – “mathematical dunce”, etc. but I was vindicated.  I leave you to judge, who is “civilized” and who is the ………!

This year, the debt external debt alone was placed at US$1.4 billion or more than G$280 billion. No figures were given for domestic debt, but I am informed that it was in June 2012 some $93 billion, and could reach as much as $100 Billion.

The Minister of Finance has since issued a rejoinder that the traditional measure of debt is the Debt to GDP ratio, and assured that our national debt is sustainable.

This government has a knee-jerk reaction to the debt issue, and discounts any notion that we could face the risk of debt distress. But we must take timely warning.

David Jessop, Executive Director of the Caribbean Council, in an article LESSONS FOR CARIBBEAN FROM EUROPE DEBT CRISIS wrote (Sunday Stabroek, March 31, 2013):

“The Caribbean is of course not Cyprus, but there are worrying signs that the indebtedness of an increasing number of Caribbean nations is now reaching crisis proportions… Government debt in the ECCU (Eastern Caribbean Currency Union) averaged 94 per cent of GDP last year, putting it as Moody’s stated “on par with distressed Euro area sovereigns”.

Moody is the US credit rating agency, Moody’s Investor Services, which has warned about Grenada’s current distress resulting in World Bank suspending disbursements to Grenada, and Tiawan has judgment against Grenada for US$32 million.

Alarm bells are ringing for tourist destinations such as St. Kitts-Nevis, Antigua, St. Lucia, St. Vincent and Dominica which have resorted to emergency credit facilities from the IMF.

In Guyana, external debt stood in 2012 at US$1.2 billion, which was 16% more than in 2011. That debt was 47% of GDP. Whilst no ratio was given in this budget, it is estimated at over 70%, and climbing. The last report I have seen was from Dr. Clive Thomas (Stabroek News 24^th February, 2013) when he stated that the debt to GDP ratio fell from 97% in 2006 to a low of 61% in 2010 and 67% in 2011. However, he added that official figures on Guyana’s outstanding public debt “are an unreliable indicator of its true indebtedness”.

Whilst government received hefty budgets amounting to $825 Billion during 2007 to 2012, it still could not balance the budget, resulting in more borrowing. The external debt stood at US$1.4 billion at the end of 2012, as compared to $719 million in 2007. Interest on external debt increased by 30% or US$787 million. This year debt servicing could exceed $10 billion.

When all new debts are computed, the total national debt is at par or has exceeded the 1992 level in US dollars. Literally, we are like a dog chasing its own tail. We are right back to where we started!

SUPPLEMENTS & WAGE INCREASES

Mr. Speaker, after our partially successful agitation last year on behalf of old pensioners, the government announced top up on supplements of $12,500 per month in allowances for water and electricity. Our MP Ulla Marcello already said that old people in Amerindian communities are left out.  And only few pensioners paying bills would get the droppings.

But it was most amusing how the regime tried to perk up the small perks. Minister Ali said the top up would give pensioners a total of $18,745. The maths don’t add up, Mr. Ali. Some pensioners may get $20,000 per year for energy and $5,000 for water. At most, it’s an average monthly subsidy of $2,085, which would give a supplement of $14,585. Then Bishop Edghill embellished the story, and added other supplements. He concluded that pensioners actually get above $50,000 monthly. Are these people for real?

We welcome the relief to first-time home owners who could claim income tax relief on interest paid on mortgage up to $30 million. The allowance would be paltry, but they would nonetheless be grateful for small mercies.

WORKING POOR

This budget is meaningless for people in the public service. They are the working poor. The public sector minimum wage in 2012 was $37.667. They got a 5% in 2011, which was about $1,700 more per month, or about $60 a day.

This year, they have goodies coming. Big goodies. With another 5% they would get $63 per day more, hardly enough for a green mango, or a bottle of water.

Government announced goodies in reducing the income tax rate from 33 and one-third to 30 %. For the person earning $60,000, he/she gets a discount of $333 or about US$1.70 per month. The person working for $80,000 gets a relief of $680 (US$3.40) per month.

Wow! This working class government must be having fun, dangling as a carrot tax allowances of between $300 and $600 per month! The security guards, store clerks, sales girls & boys, office assistants and sugar workers who earn $55,000 per month, could get $166 dollars discount on Income tax. Halleluelah!

PROTOCOLS FOR CUTS

Last year when he wound up the debate the Finance Minister recognized the right of this National Assembly to cut budgetary allocations. He said: “It is, indeed, the legitimate right of the Opposition to propose any change within the boundary of the Standing Orders, to any of these numbers. The PPP will always defend that right.”

The Attorney General thought otherwise, and hauled the National Assembly before the Courts. Now, we are in a legal and political mess, and the question to be resolved in the next few days, is whether to “approve or disapprove” the estimates.

For the AFC, there must be protocols guiding cuts. Unless forced to disapprove the entire budget, AFC would not cut allocations that are in the national interest, say, wages and salaries for the non-contracted public service, and for essential services including social sector spending for education, health, housing & water. We will cut bad project allocations, waste and extravagance.

We must ask, for example, why should we allocate more than $350 million dollars for presidential excursions overseas? Can we afford this?

Allocations that hurt the national interest, like subsidies for the state-run propaganda machines that continue to lock-out the opposition and refuse to give us fair and reasonable access, should not get a cent! A demand a priori must be for the opening up of the state media, and the recall of new radio and cable frequencies from cronies of this government!

GOVERNMENT LOST WAY

This minority government has lost its way. They seek their own interests even when it clashes with the national interest.

As I speak, my thoughts are with “Madiba” – Nelson Mandela who undertook his “Long Walk to Freedom” in South Africa for the people he served. Like the Mahatma, sacrifice is the duty of genuine patriots.

Then I think about what is happening here, in this House: Those elected to serve, with bombast and in shameless manner, claim credit for attending to the sick. People’s illness becomes a subject for vulgar boast by an insensitive regime, eager only for applause and approval. They see every project done as an act of benevolence, and every cent spent or allocated as coming from their personal purses. They see progress in the midst of poverty, and steal gains from those who sacrificed, sweated and suffered to achieve.

Many of us have long shared the dream of a free, united, loving and happy Guyanese people. I dared to dream even in the dreary, dead, decades of dictatorship and I still do, even under this extravagant and arrogant autocracy.

Our dreams, as far back as 50 years ago, were lofty.  Today, we are still dreaming. Only we are, as the song says, dreaming our lives away!

The clear streams of our dreams have become polluted. When we see in this very House, a challenge as to whether or not a Minister could drink water from the tap in Georgetown, our people have reason to feel unsafe. When we hear from sugar workers in Canje that they have to drink “blood water”, and we learn about water-borne diseases in the North-West District, our people are bound to feel insecure.

When we see the garbage pile up in our capital city, and grow indifferent to it, we must know that our country does not have caring, capable and visionary leadership.

It is time to open the doors to effective and efficient governance!

POLITICAL SOLUTION

On Friday I picked up “The Parliamentarian” (Issue Three/2012) and read a mind-disturbing, revealing article by Dr. Steven Ratuva, titled: “Fiji’s illusive Democracy: Paradoxes, Dilemmas and Hopes”. It referred to the Pope praising Fiji’s democracy in 1986, only to discover that the following year Fiji was to experience the first of many coups. Indigenous Fijians and Indo-Fijians were to engage in a zero-sum competition for power. Unlike Fiji, we have kept the lid on social explosion. But we too have to sit down and work out practical resolution of the Guyana ethno-national dilemma, which includes both constitutional reform and power-sharing.

We can use our national budgets to enlarge and make the elite comfortable. We could dish out social bribes, to carve out territory and make, as the Foreign Minister boasted, the whole of Rupununi PPP!

But this would not block the road to grid-lock.

In closing, I want to say something that I have bottled within my bosom for quite a while. I have been maligned and attacked but I say this: the 2011 elections was not a defeat for anyone. The people triumphed. They emerged victorious from their ethnic cocoons. They opened wide the political door.

The Opposition has placed several issues on the table. For the AFC, we remain firm on a 10% wage increase for public servants and sugar workers; reduction in VAT or enlargement of the zero-rated basket; reduction of the Berbice River Bridge toll, etc.

We need cooperation and we can do so over this budget. This is the time for real tri-partite engagement. Nothing else will do.

It is for us, as leaders, to map out a new Guyana political civilization based on negotiation, consensus and reconciliation. Cuss-down is not an option, not any more. This is only causing greater cynicism, apathy, withdrawal and alienation whilst our nation only marks time. For those who feel fresh elections is an option, you may find as well poor voter motivation.

We must heed the advice of former Speaker Ralph Ramkarran to fix our broken system of government (SN 24/2/13), and the time to start is now, if we can sit and talk.

Thank you.