OPINION: Anatomy of a genuine leader, teacher

Last Updated on Saturday, 17 August 2024, 14:49 by Writer

by GHK Lall

A leader is there: trusty as an old shoe or broken-in toothbrush. A leader guides through tough times, shares in the good times. A leader that is a straight arrow counsels and carries when unique challenges arise. A leader that is exemplary in authenticity criticizes without condemning (or criminalizing); he or she does all these things, sets these standards, without having to resort to commanding and controlling. People believe. They rely. They respect. It is not a textbook definition and will likely not win any honors. But it is what I have, and where I have left out significant elements, which is sure to be the case. Thus, it would be appreciated if the more learned, the honest learned in Guyana, could fill-in the blanks.

What kind of a leader do Guyanese have in Bharrat Jagdeo? I ignore, leave out, reject all the negatives. Try this little test drive of a question, and it says so much for the range of answers received: what is the interest rate that Exxon is charging Guyana on its multibillion-dollar offshore oil investments? It is zero, he said, and he was as right as right could be. But he knew more, and he should have continued to do what a real leader does. Share what he knows, once there is no stepping out of bounds (breach). He still does have a duty to Guyanese first, doesn’t he? The first inklings came from Mr. Alistair Routledge, a stickler for the facts, when to do otherwise would be detrimental to Exxon’s interests. His clue came in two words: equity investments. A peek, for sure, but one of lightning flash of brilliance. When the money for offshore activity is from company equity, there is no such thing, convention, practice as interest per se. It is called different names. Return on investment is a good one, lots of warmth. Another is return on capital, cool and comforting it is, especially as the number climbs. And one more, if I may be indulged, return on equity. Two words of my own should be Britannica: company money. Company savings aka company retention. I thank Mr. Routledge for his clarity on that one. Why not? What better marketing tool, selling point for the prowess and glories of Exxon?

Since I am in this questioning mode, the same is done for Guyana’s leader: what was so difficult about answering the interest rate charged question with pointing to that state? Sometimes, the shifty and tricky can be a bit too rich, regardless of the source, and particularly considering the circumstances of this capacity-deficient country. As promised, neither slur nor derogation of Vice President Jagdeo, a man who I like to remind all and sundry was a former head of state. If he will allow the liberty, I shall venture to place some words in his mouth, which are the inspirations from my admittedly limited mind. ‘Look there is no interest rate to talk about, because Exxon is using its own money.’ Not Shakesperean by any measure but possessing an unerring and revealing truth. What would have been the harm, the loss? Dr. Jagdeo having opened the door and pointed the way, Guyanese had to do the number crunching from there by working with whatever financials from Exxon (EMGL) were available.

In positioning this in the public domain, I see a leader who had an opportunity to be a revealer, a teacher. When he said that there was zero interest rate, what we call technically and literally and accurately and factually all apply. The courtesy of a thanksgiving moment is extended to Dr. Jagdeo. The wish is that there are grounds for more of those. I have always said and written, as insights deepened, that if it is not interest charged, then what and how and where and when? Exxon must make money on its money. I abandon the standard convention of interest being the cost of money. Exxon is entitled to earn interest/rentals/returns/rewards on its invested equity capital. I stand there, with what is part of my DNA. Hence, zero interest rate charged left a void. Being inside a vacuum is not my idea of an inspiring place. Then, one of Dr. Jagdeo’s chosen slipped a shade on Wednesday during the Ministry of Natural Resources “comprehensive half year report.” Gratis, Minister Bharrat. I don’t think it was Martin P, more like Bobby G, both of whom I was hearing for the first time. A learning experience it was. Thanks gents. The besuited male presenter spoke of “zero interest.” Gotcha! despite the hedged language of “Stabroek Block operations”. Then came what I interpret to be a momentary blunder: ‘zero equity charge(s)’. I shrugged it off as youthful flair and exuberance. There was the qualifier of a pivotal word: ‘now’ or ‘currently’ relative to equity charges. Not so, Dr. Jagdeo who hastened the very next day to make right the record. It was when the tale of equity return took off and is still to land. It is the shortened version of what Dr. Jagdeo made sure stuck in Guyanese’s minds: interest charges, no; equity returns, oh most definitely. He echoed some of what I asserted about who must make money on their money invested. Incidentally, he said it is “massive.” I am gratified beyond expression, a rare condition for me, that Dr. Jagdeo gave Guyanese a peek at the leader and teacher that he could be.

Chartered Accountant and attorney Chistopher Ram rolled up his sleeves, fixed his monocle, and grunted through the heavy lifting. It is an astounding 96% ROE for Exxon. God bless Mr. Ram and SN for his column of June 14, 2024. A special prayer for Mr. Routledge for “equity invested”. A blessing for Dr. Jagdeo and his revelation about “massive” return for Exxon. The dawn comes, and with that there are these gleaming rays of understanding about why the 50-50 profit numbers are so, shall I say, numerically sophisticated, fractionally leaning and deployed? I ask fellow Guyanese, one would do, to pray for me.