Latest update February 10th, 2025 7:48 AM
Free fuel scandal…GuyOil “cooperating” with investigators
One day after shocking news that former Government officials, their families and friends were collecting free fuel at the Guyana Oil Company (GuyOil), that entity says it is cooperating with investigators.
Guyoil’s head,
Badri Persaud
“This is being done with the full cooperation of the management of GuyOil with the objective to reduce and eliminating such malpractices. As soon as the investigation is completed, GuyOil will issue a follow up statement,” a statement from the entity’s Company Secretary disclosed yesterday.
There were no denials that breaches may have occurred.
GuyOil was defensive of its credit facilities with Government ministries and agencies.
“Government ministries and agencies are granted monthly credit by GuyOil in purchasing fuel at the company’s service stations and terminals, for which strict procedures have to be adhered to for the supply of fuel.”
The state-owned company said that a ministry or agency has a number of officers who are authorized to sign fuel orders.
“The names and specimen signatures of these officers along with a specimen of the fuel order are sent to GuyOil’s H/O (Head Office), copies of which are made and lodged at each service station and terminal.”
GuyOil insisted that its management also requests the registration numbers of the vehicles authorized to be sold fuel, but its primary focus is on the authenticity of the fuel order and the authorized name and signature therein.
“Upon receipt of a fuel order from a ministry at the service station the officer on duty verifies the name and signature of the authority with the specimen in place and if they confirm fuel is sold to the vehicle and an invoice is issued.”
Guyoil said that copies of invoices are sent from the service stations and terminals to the Finance Department at its Head Office where they are processed and a statement is generated and sent to the ministry or agency every month.
“The government ministries and agencies are generally prompt with their payments and are among the better customers of GuyOil in that regard.”
State-owned Guyoil yesterday said it is cooperating with investigators.
Government officials yesterday disclosed that various ministries and agencies were alerted to the discrepancies after noticing some strange vehicle numbers.
“We have sent a list of the vehicles we don’t know about to the Guyana Revenue Authority (GRA) and we will know soon. We will be sending them the bills.”
On Wednesday, Minister of State Joseph Harmon disclosed that the Ministry of the Presidency has ordered GuyOil to ensure that no gas was being delivered to unauthorized persons. This was after evidence emerged that several former Government officials, and even some friends and family, abused the credit facility, racking up millions.
According to Harmon, there was enough evidence to suggest that the credit facilities were heavily abused.
The Ministry of the Presidency has since asked GuyOil to submit its invoices along with statements. Persons found guilty will have to pay.
While not naming the persons, Harmon during his weekly press briefings, made it clear that the issue is a matter that is being addressed and falls into a pattern of “serious abuse by the previous administration.”
“It is simple,” he said, “the monies will have to be paid by the guilty persons.”
The various ministries and agencies are now handling the issue and have been advised on how to proceed, Harmon disclosed.
Government would not have been leaving GuyOil and its management without some of the blame for the abuse. The entity is handling billions of dollars in gas sales and distribution, but there have been accusations of wrongdoing in its operations over the years.
With the life of the Board of Directors expected to expire at the end of the month, the new administration will likely not be looking to sack the members and its chairman, but rather to replace them.
A meeting with senior officials of the coalition Government is expected as early as tomorrow to determine the new management and the Board of Directors of several state companies, including that of GuyOil.
The company’s Managing Director, Badri Persaud, has himself been under pressure to resign. He was a candidate for the People’s Progressive Party/Civic ,which suffered defeat in the May 11 General Elections after 23 years in power.
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