Guyana: Critics Warn Development Bank Must Not Become Political Patronage Tool

Opposition figures and civil society representatives have expressed support for the establishment of a Guyana Development Bank. However, they caution that the proposed institution must be safeguarded from political influence and favoritism to ensure its success. During discussions on the proposed legislation, APNU Member of Parliament Dr. Dexter Todd, along with Vigilant Political Action Committee (VPAC) representatives Dorwain Bess and Francis Bailey, raised concerns regarding oversight, accountability, and the beneficiaries of the bank’s financing.

Dr. Todd stated, “We are not against the bank,” noting that the APNU had previously proposed the creation of a development bank. He expressed concern that the current legislation grants excessive discretion to government-appointed officials and lacks necessary safeguards for transparency and fairness. A significant issue raised was a provision that exempts the proposed bank from the Financial Institutions Act, prompting calls for stronger oversight mechanisms, especially since the institution will utilize public resources.

“Guyana is starting at the highest in the Caribbean in terms of investment capital for a development bank, but with the least regulation,” Todd remarked. He emphasized the need for greater involvement from institutions such as the Bank of Guyana and Parliament in monitoring the bank’s operations.

Bess and Bailey highlighted the absence of clearly defined lending criteria in the legislation. They argued that it is essential for the public to understand who qualifies for financing, the conditions for loan approval, and the standards applicants must meet. Bess stated, “The banking guidelines should also be published,” warning against leaving key lending decisions solely to the discretion of directors after the bank is established.

Bailey echoed these concerns, expressing that a lack of publicly available criteria could lead to uncertainty and frustration among potential applicants. He stated, “We don’t want a situation where half of you get your hopes up and then find yourself standing in line one day and get denied because there were no criteria that you could hold them to account for.” The trio also emphasized that critical issues such as collateral requirements and interest rates should be explicitly outlined in the legislation rather than deferred to future policy decisions.

“If this government is saying there will be no collateral and zero interest, then remove the ambiguity and put it in the law,” Todd urged. Despite their concerns, all three maintained that a Development Bank has the potential to significantly impact Guyana’s economy if structured properly and governed transparently. They also announced plans to engage in public education efforts to help citizens better understand the legislation and the proposed institution’s operations if established.

Source: hgptv.com