Nigel Hughes Calls for Strengthened Rule of Law to Bolster Investor Confidence in Guyana

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What You Need To Know: Alliance For Change (AFC) leader Nigel Hughes emphasized the importance of law and order in attracting foreign investment to Guyana during an appearance on Alliance on the Move on October 19, 2024. Hughes warned that ongoing scandals within the Guyana Police Force and inconsistent government policies are undermining investor confidence, which is vital for economic growth. He criticized the recent abrupt shift in the government’s $200,000 household cash grant policy, calling it a sign of instability. Hughes also highlighted the need for reforms in the police force, accountability, and the judiciary, advocating for hiring foreign judges with specialized knowledge in oil, gas, and finance. He stressed that the rule of law and a trustworthy legal system are essential to Guyana’s development as an oil-rich nation, particularly as the country prepares for the 2025 elections.

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Alliance For Change (AFC) leader and Attorney-at-Law Nigel Hughes has emphasized the critical importance of law and order in fostering foreign investment in Guyana, during an appearance on Alliance on the Move, aired on October 19, 2024. Hughes warned that persistent scandals within the Guyana Police Force and inconsistent government policies are undermining confidence in the country’s legal framework and overall governance.

“Investor confidence in any country is critical for the development of your economy,” Hughes stated. He stressed that no country can rely purely on domestic investment for growth, citing the examples of China and India, which became economic superpowers through foreign investment. “One of the most important aspects of foreign investment in any country is the rule of law and the confidence of the investor that their investment in the country will be protected,” Hughes added.

However, Hughes expressed concern over the repeated scandals plaguing Guyana’s police force, which he described as eroding public trust and discouraging investors. “The police force is now embroiled, and has been embroiled for the longest possible time, with the most awful scandal, one after the other,” Hughes remarked. He noted that such scandals not only diminish local citizens’ trust in law enforcement but also deter international investors. “How can you possibly have these scandals… and seriously talk about having people come and invest here on the basis of law and order?” he asked.

Hughes also highlighted recent governmental missteps, particularly the abrupt revision of the $200,000 household cash grant announced by President Irfaan Ali. He criticized the lack of planning and the sudden shift from a household-based grant to an individual-based one, which was announced just days after the President’s speech to the National Assembly. “You would expect from a modern, rapidly developing country like ours, that before the President makes any announcement… whatever he does say is well researched and is a fixed position upon which you can rely,” Hughes commented. He added that such policy reversals send a negative signal to potential investors, who may view the government as unstable or unprepared. “The impact that has internationally is that people think you’re not serious… You can’t have your head of state making these statements and… changing them the next day.”

Hughes’ concerns about law and order align with broader issues identified in the 2023 Annual Report of the Police Complaints Authority (PCA). The report revealed that the Guyana Police Force continues to face significant challenges, including improper conduct, lack of knowledge of the law, and the failure to follow procedures during investigations. The PCA noted, for instance, that many police actions, such as arrests and detentions, were conducted without “reasonable suspicion,” a violation of the Constitution. The report also highlighted the absence of sufficient resources within the PCA itself, which has hindered its ability to thoroughly investigate complaints.

“The PCA’s work is crucial in holding the police accountable, but without adequate resources or proper training, both the police force and the Authority face severe limitations,” the report stated. It recommended filling investigator vacancies, appointing legal officers, and implementing rigorous training for police officers and the public alike to improve knowledge of the law and citizens’ rights.

Hughes, echoing similar concerns, argued that strengthening Guyana’s judiciary should be a priority as the country moves towards becoming an oil-rich nation. “We have to make sure that we have in place, first of all, the best possible judiciary available to us,” Hughes said. He advocated for bringing in foreign judges with specialized knowledge in areas such as oil and gas, finance, and international contracts. “We have to expand the source from which we hire our judges. It’s not a matter of national pride, it’s a matter of reality,” he asserted, pointing out that regional neighbors like Belize have successfully hired foreign Chief Justices to improve their legal systems.

As Guyana continues to attract attention from international investors, particularly in the oil and gas sector, both Hughes and the PCA underscore the urgent need for reforms to strengthen the rule of law, improve police accountability, and ensure that the judiciary can handle the increasing complexity of cases. For Hughes, the success of Guyana’s economic future depends on the confidence investors have in the country’s legal system. “We need specialist judges with specialist knowledge,” he emphasized, adding that it is essential to have a judiciary that investors respect globally.

With elections approaching in 2025, the call for reforming Guyana’s legal and law enforcement institutions is likely to be a central issue, as both local citizens and foreign investors look for signs that the country can maintain stability and integrity as it develops.