INVESTMENT DISCLOSURES

Kaieteur News editorial, Friday 09 May 2008
http://www.kaieteurnewsgy.com/editorial.html

INVESTMENT DISCLOSURES

It will help calm a great many fears if the appropriate disclosures are made
in respect to major investments taking place in Guyana. The absence of
disclosures fuels the rumour mill and leaves open the doors for all manner
of ill-speculation and unjustified concerns.
At present there is major hotel investment in the pipeline in Kingston area.
An international hotel is expected to be built. Battery Road, Kingston has
been dug up and new sewage pipelines are being laid to the tune of hundreds
of millions of dollars. In the process of facilitating this investment,
property belonging to the State has been ceded and public expenditure
incurred.
Surely this must warrant, at the minimum, some disclosure of the names of
the investors involved and the proposed level of investment.
It would enhance the investment climate if investors feel secure in the
knowledge that during investment negotiations, regard is shown for the
non-disclosure of confidential information. While it is accepted that at
critical stages of negotiations it is important for some amount of
confidentiality, in the case of the hotel project at Kingston there surely
can be no need at this stage for the secrecy over the investors.
Considering the work that has been done, there can be little harm in
releasing those behind what is considered a major investment project in the
country. We urge the government, therefore, to make known at the earliest
opportunity the names of the investors and general details of the proposed
hotels.
There have also been announcements in the foreign media and on the Internet
about investments by major companies in Guyana. This past week it was
announced that a Michigan firm was granted logging rights to close to one
million acres of forests in Guyana, subject to an environmental approval.
There has, however, been very limited information available about whether
the company will be allowed to export logs or will be required to engage in
downstream processing. A great deal of controversy has been raised over the
export of logs and therefore it would be instructive if the Ministry of
Agriculture indicates whether the exportation of logs forms part of this
investment.
Just yesterday news broke that the Spanish company - Repsol-YPF and Canada's
CGX are expected to begin exploration next month to look for oil in a
jointly held concession off the coast of Guyana. Not much details are
available about the terms and conditions under which these companies have
been given exploration rights in Guyana and what happens if the explorations
are successful, that if oil in commercially viable quantities is found.
These are all important and significant investments which are taking place
in Guyana and for which there should be greater disclosure. While it is the
duty of the media to go after such details, the media is frequently
criticized for only highlighting the negative aspects of investment deals.
This criticism takes place despite the fact that it is often not easy to
obtain information, from official sources, about the numerous investments
taking place in the country.
We urge in the circumstances that greater disclosures be made by those
government agencies responsible for specific investments. It surely would
allay a great many fears if Guyanese have the first lien on news about
proposed investment rather than having to read about these things in the
foreign press. It would also demonstrate a commitment to openness and
transparency, something that cannot be over emphasized.
For too long many investments have been completed in secrecy. To this day
the Guyana Bank for Trade and Industry still believes that it is a state
secret to disclose how much money it paid for the prime property across the
road from the United States Embassy.
That piece of property was purportedly acquired following a public bid. Why
then is there the secrecy?
There was also a lot of secrecy surrounding the Berbice River Bridge. To
this day some aspects are still secret.