Beneficial Ownership Transparency Initiative Takes Center Stage in Guyana’s Extractive Resources Sector

Guyana has taken a significant step towards enhancing transparency and accountability in its extractive resources sector by hosting a workshop on beneficial ownership disclosure measures. The event, organized by the Guyana Extractive Industries Transparency Initiative (GYEITI), brought together stakeholders from civil society, government, and the extractive industries to discuss key issues and identify solutions.

Importance of Beneficial Ownership Provisions

According to Francisco Paris, who leads EITI’s Latin America and Caribbean division, beneficial ownership provisions are crucial for ensuring transparency in the operators benefiting from Guyana’s extractive resources sector. Beneficial ownership involves identifying human owners of businesses, establishing ownership thresholds, and defining what constitutes control.

Current Challenges

However, experts pointed out that there is no law requiring companies in the extractive resources sector to disclose the beneficial owner behind the operation or the person or persons who have effective control of the company. This means that companies currently decide whether they provide this information voluntarily, leaving room for potential non-cooperation.

Need for Mandatory Disclosure

Stakeholders emphasized the need for making disclosures mandatory by passing or amending legislation. However, given the government’s caretaker status, it remains unclear whether new legislation can be passed in time for Guyana’s EITI validation assessment next January.

Proposed Solution from GGMC

A representative from the Guyana Geology and Mines Commission (GGMC) suggested that if the required information is communicated to the GGMC in a timely manner, this information can be obtained relatively quickly. The GGMC issues licences and permits annually, and the required information could be added to the form as a condition for receiving these documents.

Politically Exposed Persons

Emphasis was also placed on treating with politically exposed persons relevant to the extractive resources sector. Paris emphasized the importance of defining the term in local law and ensuring that the definition is wide enough to capture all relevant persons.

Gaps in Guyana’s First Report

Experts identified major gaps in Guyana’s first report, including:

Lack of a mining cadastral portal
Registry containing all operators in the extractive resources sector
Contract transparency regarding the mining sector

They called for enhanced transparency and the need for a policy on transparency in these areas.

The workshop also highlighted the need for improved data sharing between government agencies, particularly the Guyana Revenue Authority (GRA), to facilitate more accurate reporting of revenue received from specific companies.

Next Steps

As Guyana prepares for its EITI validation assessment next January, stakeholders emphasized the importance of addressing these gaps and ensuring that beneficial ownership transparency is implemented in a timely manner.