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GuyOil’s ‘free gas’ probe unearths other wrongdoings
A probe at the state-owned Guyana Oil Company (GuyOil) into fuel being distributed indiscriminately and illegally to people who were not supposed to be the recipients has unearthed other wrongdoings.
GuyOil’s Managing Director, Badri Persaud.
According to Minister of State, Joseph Harmon, there are indications of a conflict of interest situation. The administration is to pronounce on its findings shortly.
The spotlight started focusing on the company last month, after a number of Ministries were presented with bills for payments for persons and vehicles not authorized to collect gas but were somehow allowed.
Yesterday, Harmon disclosed that in some cases persons were collecting fuel in containers, sometimes up to 20 gallons per day.
At least three Ministries were asked to pay for fuel that were sold under the credit arrangements in place at GuyOil for Government entities- the Ministry of Natural Resources, the Ministry of Home Affairs and the Ministry of Tourism.
According to Harmon, the GuyOil fuel probe is a “very interesting matter” with the entity cooperating.
The Ministry of the Presidency has already received a list of names of the persons who collected fuel along with the vehicles.
There is a window of opportunity for the persons, who have been contacted, to pay the bills as there is a strong likelihood of the matter ending up in the police’s hands.
According to Minister Harmon, he has instructed the Permanent Secretaries of the various Ministries to be on the lookout as ultimately they will be responsible.
While not naming the persons, the Minister did disclose that the attention was being focused on five persons and their vehicles.
Last week, as details of the scandal came to light, GuyOil offered its cooperation with investigators.
“This is being done with the full cooperation of the Management of GuyOil with the objective to reduce and to eliminate 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.
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.”
According to Harmon last week, there was enough evidence to suggest that the credit facilities were heavily abused.
“It is simple,” he said then, “the monies will have to be paid by the guilty persons.”
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 expiring on June 30, the Government is expected to replace the members as well as install new management.
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.
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