No reason for hiding info on ExxonMobil…we are trying – Harmon

Jul 21, 2017 News

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Many questions about the deal being negotiated between Government and ExxonMobil on Guyana’s natural wealth remain unanswered. The media continues to dole out a plethora of articles reflecting serious issues surrounding Guyana’s

oil, but the government has to date remained mum.
The question was asked of Minister of State, Joseph Harmon yesterday as to whether there is a specific reason Government has been so silent on issues of such importance; he said no.
Harmon told the media, “There is no reason for hiding information.” He admitted that the media has been putting out tremendous information about oil and gas. “Every single day in the newspapers there is statement or a report about oil and gas.”
Harmon also admitted the importance of keeping the media, and by extension the public, informed on the nation’s resources. He even referenced IMF’s take on the issue. “Yes! The IMF (International Monetary Fund) team did speak about that. What they said is that the way to build confidence in your governmental processes is to ensure that there is transparency; we believe in that and agree with it.”
Harmon continued, “If you check today’s and yesterday’s paper you will find a department under the Ministry of Natural Resources, GEITI (Guyana Extractive Industry Transparency Institute) having public hearings and consultations across the country.” Harmon said that information is being given out via that means.
“We are putting out information and getting advice on these issues, so I would say yes, I agree with IMF’s position; it is correct and we are doing our best to ensure that the Guyanese people are kept informed at every stage.”
In its most recent report on Guyana, IMF shared its view about the critical nature of information-sharing between Government and the public about oil-related issues.
The view shared by the IMF is similar to that expressed by many in Guyana. They all are saying that the free flow of information from Government to the general public as well as the media is crucial.
IMF said, “Communication with the general public is a critical part of maintaining legitimacy domestically, as well credibility internationally.”
The body continued, “Informing the general public about the characteristics of the investment strategy and the risks that are taken should contribute to making the implementation of the strategy more robust in times of high market volatility.”
IMF also linked the importance of public information to the setting-up of a Sovereign Wealth Fund (SWF). The body said that it is “common for many SWFs to organize educational seminars, engage with the media, and maintain an active website with up-to-date information on the SWF’s activities.”
There has been a deficit of information in the public domain about many oil-related issues.
Guyana is seeking to become a member of the Extractive Industries Transparency Institute (EITI). However, engagement with the public, particularly civil society is also critical for membership to that body.
Nevertheless, efforts by civil society so far to get information out of the government about matters related to the oil deal have been futile.
The Transparency Institute of Guyana Inc. (TIGI) tried to get information out of the government in this regard. It had written to the Minister of Natural Resources, Raphael Trotman, seeking information. However, the body had to turn to the media after Minister Trotman refused to even acknowledge receipt of the letter. To this day, the body cannot get the information it is seeking.
The Guyana Oil and Gas Association (GOGA), also another non-governmental organization wants information from the government that it is not getting.
One of the Association’s Directors, prominent lawyer Nigel Hughes, delivered a presentation in Trinidad and Tobago. He noted that the government has failed to give information about key concerns of the Guyanese people, including whether there is a ceiling for cost recovery in any given year. Hughes also pointed out that there has been no indication whether cost recovery is a percentage of revenue.
Hughes noted, too, that Guyanese are yet to be told how the government intends to validate the costs ExxonMobil has incurred. This is important, as the possibility of inflated cost cannot be ruled out.
Hughes said, “There is also an absence of any information on key variables, including life of the project in years, the total investment, the annual fixed cost per year, estimated cost of a barrel of oil for the project, and whether any duties, tax concessions were granted.”
During his presentation, Hughes spoke about the call made by the Working People’s Alliance (WPA) for more information to be put in the public domain.
He said, “One of the parties in the Coalition called on the government to publish the contract.” He said that the Chairman of the WPA, in a letter to President David Granger said, “There is no justifiable reason for not publishing this contract. Seeking public comment on it is our democratic obligation. And engaging the widest possible sharing of views can only help the coalition government to make wiser decisions.”
The media, which also forms part of civil society, has been asking questions but still cannot get information.
For instance, the Minister of State was asked to disclose the names of the lead negotiators that have represented Guyana’s interest so far. His response was, “Those names are still under wraps.”

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