Guyana Assembly legislates to strengthen autonomy of central bank

Wednesday, December 1, 2004

GEORGETOWN, Guyana: A Bill that will amend the Bank of Guyana Act by increasing the number of members of the Board of Directors to not less than four nor more than six was passed on Monday by the National Assembly. 

As he led the debate on the Bill, Finance Minister Saisnarine Kowlessar noted that the Bill is non-controversial and seeks to safeguard the autonomy of the Bank of Guyana..

Shadow Finance Minister from the main Opposition PNCR, Winston Murray gave his Party’s support of the Bill but said it could have had wider consultation. Murray also raised concerns about the specifications for persons to be named to the Board.

He was assured by Housing and Water Minster Shaik Baksh that only persons of the highest calibre will be appointed.

“The Government understands the important role of the Bank of Guyana and would not want to appoint persons not qualified,” the Minster said.

The Bank of Guyana Act provides for not less than two nor more than four members of the Board of Directors.

The Bill also seeks to amend the Act by stating that a quorum for a meeting of the Board shall be a majority of the members then in office. It also specifies instances in which a person may be disqualified from holding office as Director.

It proposes that Section 17 of the Principal Act be amended so that upon appointment and prior to assumption of duties as Director, or other officer or employee of the Bank, the person shall take an oath, or make a solemn affirmation of fidelity and secrecy.

The Bill provides for the establishment of committees to deal with issues within the competence of the Board and also for disclosures by Directors of likely conflict of interest on any issue which may be before the Board.

It provides that the Director shall disclose to the Bank in writing the nature and extent of the Director’s interest if he is a party to a material contract or transaction or one proposed.

He shall also disclose if he has a material interest in any person who is party to a material contract or transaction with the Bank and if he or a person so affiliated with, is likely to be affected by action taken by the Bank under the Financial Institutions Act 1995.

The Bill will add transparency to the Bank of Guyana

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