Parliamentary approval and independent oversight safeguard Guyana’s oil revenues—Minister Bharrat
Minister of Natural Resources Vickram Bharrat has underscored that Guyana’s oil revenues are insulated from misuse through stringent checks and balances embedded in the Natural Resource Fund (NRF) Act of 2021.
He emphasised that no government official can access the fund without parliamentary approval.
Appearing on the Starting Point podcast, Bharrat recalled that the previous framework passed under the APNU+AFC coalition was repealed shortly after the PPP/C took office.
“The old bill didn’t make sense because it was passed by the APNU+AFC after they were defeated by a no-confidence motion, and gave the finance minister all the power to use the [NRF] account,” he said.
“We repealed it and passed a bill with stronger measures and better control, with proper oversight. And we did that just over a year after we got into government.”
Explaining the mechanisms under the new Act, Bharrat clarified that the Natural Resource Fund is not held in any local bank account but is managed in a reserve bank in the United States. He noted that the government does not have direct access to the money, contrary to popular misconceptions.
The minister stressed that there are only two circumstances under which funds can be withdrawn: with approval from the National Assembly through the national budget process, or in cases of a national disaster of significant scale. In both instances, parliamentary approval remains mandatory.
According to Bharrat, the primary channel for accessing the NRF is through the national budget process. “It [the budget] is debated for an entire week, during which ministers are cross-examined and questions are asked in Parliament. Then you have the Auditor General, who will check on expenses. Then you have the Public Accounts Committee in Parliament, which also checks on these expenses. So, there are many layers of safeguards to ensure transparency and accountability.”
The minister added that a second route exists only in extraordinary circumstances. “The second way in which money can flow out of that account is if there is a natural disaster of national proportion and we need revenue to restore our people to where they were before. And again, it must have parliamentary approval.”
Bharrat also pointed to visible results from the prudent use of oil revenues.
“Managing the sector and ensuring that the revenue that flows from it trickles down to the people is important. And we have seen that. Everywhere you look in the country, there is a concrete road, there is a new highway being built, there is a new bridge being built. There is something being done in all parts of Guyana. And it is not only in Region Four; it is the same in the hinterland communities.”
The Natural Resource Fund, established under the 2021 Act, is tasked with ensuring long-term sustainability of Guyana’s wealth, stabilising public spending, protecting economic competitiveness, and securing benefits for future generations.
