SUNDAY SPECIAL

Feb 04, 2018 News

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ExxonMobil hands Guyana US$460M bill covering pre-discovery operations

Guyana is now hurrying to put measures in place to monitor and assess cost recovery claims. However, it has already tied itself to the repayment of US $460,237,918M. This is according to the 2016 Production Sharing Agreement (PSA) that Minister of Natural Resources, Raphael Trotman signed with ExxonMobil.

Annex C of the contract speaks to Cost Recovery. The list of items to be included in this aspect is vast.

One of the many expenses that Guyana will have to stand is what is referred to as “pre-contract cost.” The pre-contract cost is referred to in the contract as the “cost incurred by contractor with petroleum cooperation carried out pursuant to the 1999 Petroleum Agreement.”

The PSA said that this sum shall be “included” in the pre-contract cost.  The PSA states that the pre-contract cost “shall include four hundred and sixty million, two hundred and thirty seven hundred thousand and nine hundred and eighteen United States Dollars (USS 460,237,918) in respect of all such costs incurred under the 1999 Petroleum Agreement prior to the year ended 2015,

“and (2) such cost as incurred under the 1999 Petroleum between January 1, 2016 and effective date which shall be provided to the Minister on or before October 3, 2016 and such number agreed on or before April 30, 2017. For purposes of this paragraph, the term pre-contract cost includes contract costs, exploration costs, operating costs, service costs, and general and administrative costs and annual overhead charge as those terms are defined in the 1999 Petroleum agreement.”

According to ExxonMobil’s website, even though the agreement was signed since 1999, the company only initiated oil and gas exploration activities in Guyana in 2008, collecting and evaluating substantial 3-D seismic data that led to the company safely drilling its first exploration well in 2015.

Wikipedia states, “Oil exploration is an expensive, high-risk operation. Offshore and remote area exploration is generally only undertaken by very large corporations or national governments. Typical shallow shelf oil wells (e.g. North Sea) cost US$10 – 30 million, while deep water wells can cost up to US$100 million plus. Hundreds of smaller companies search for onshore hydrocarbon deposits worldwide, with some wells costing as little as US$100,000.”

The PSA signed by Trotman also ensures that Guyana stands the cost of even the interest added to loans taken by ExxonMobil for the purpose of the operation.

Sugar talks lead to bitter internal fallout in PPP

Komal Chand prepared to back workers over party affiliation
President of the Guyana Agriculture and General Workers Union (GAWU), Komal Chand, said Saturday that he will continue to place the needs of workers above political considerations.
Chand, a Member of Parliament for the opposition People’s Progressive Party (PPP), has come under criticisms for leading the union in a meeting with Government on January 19, last, to discuss the way forward for over 7000 workers who were cut from the Guyana Sugar Corporation (GuySuCo).
“I have always stood with the workers. GAWU is a mass organization. We are not affiliated with the PPP as we were in the mid-70s. I have always stood very firm with the workers. My loyalty first is with the workers,” Chand told Kaieteur News.
President David Granger, and members of his Cabinet, met with GAWU and the National Association of Agricultural, Commercial and Industrial Employees (NAACIE) at the Ministry of the Presidency to discuss the future of the sugar industry.
A Government release stated that after more than two hours of discussions, the parties were able to find common ground and the Unions agreed to fully cooperate with the Government to find a solution, which can benefit all stakeholders.
Chand stated that the meeting was based on a request from the membership which wanted to get certain matters clarified, including the payment of severance.
At a press conference Saturday, Opposition Leader and General Secretary of the PPP, Bharrat Jagdeo, expressed personal issues with the statement in the press release of the parties working on common grounds.
He said that the Government scored public relations points from the meeting and questioned the common grounds which were agreed upon between the two parties.
“The unions came away with nothing and the Government came out with a wonderful statement. We met, big photo [opportunity] around the world; they agreed with the union to work on a common ground for the future. What is this future?” Jagdeo questioned.
The Opposition Leader’s criticisms followed an article published in the Guyana Times that called for Chand’s removal as president of GAWU. The Times newspaper is owned by Jagdeo’s best friend, Dr. Ranjisinghi ‘Bobby’ Ramroop and has over the years been labeled as a mouthpiece of the PPP.
Several political analysts believe that the meeting has angered the leadership of the PPP and attempts are being made to have Chand removed as the union’s president.

GRA drops hammer on questionable vehicle auctions

-yanks licences of several private Customs warehouses
Frauds at the Guyana Revenue Authority (GRA) over the years have been many with all kinds of schemes discovered. As a result, the state would have lost, over time, billions of dollars in revenues, especially from import duties. From under-invoicing to imports being listed under the wrong codes to reduce the quantity of taxes due, GRA have been uncovering them, one by one.
In the wake of this, staffers would have been sent home. In fact, GRA has admitted around 100 staffers sent home in the last 18 months alone under new management led by Commissioner-General, Godfrey Statia.
The complaints ranged from collusion with businessmen to absenteeism.
One type of fraud from within its ranks that GRA had been battling is a major scheme involving ‘Want- Of-Entry’ vehicles and other imports. These are items brought in and left on the wharves because of various reasons.
However, GRA has been discovering cases where staffers were colluding with businesses and others to sell those vehicles below values, netting the state little revenues. In some cases, persons wanting high-end vehicles that attract millions of dollars in duties and taxes, would conspire with GRA staffers.
The vehicles are brought in and deliberately left on the wharves for a while until GRA announces an auction.
At the auction, the businessman would bid for the vehicle and normally wins, because that bid would invariably be the highest. However, that is where the trick is, officials explained. The amount that was placed as a bid during those auctions is not what is eventually recorded in the books of GRA. A lower amount is entered and nobody is the wiser. The GRA staffers would normally get a kickback and the businessman walks away paying a pittance for the vehicle.
In other cases, persons are alerted to high-value goods left uncleared on the wharves and same thing happens.
GRA would have auctioned scores of vehicles and other items it has been seizing or left on the wharves over time. The value of those taxes and duties if correctly collected would amount to tens of millions of dollars for the state.
MONDAY

The Oil and Gas Sector…Joint ministerial committee formed to address cost recovery – Trotman

A joint ministerial committee has been established to examine matters related to cost recovery. This was recently revealed by Natural Resources Minister, Raphael Trotman.
He was at the time, responding to questions from this newspaper regarding the agency that would be mandated to examine cost recovery claims by ExxonMobil, when training is expected to commence regarding auditing skills and whether government would be contracting the help of international experts for this new field.
It was at this point that the Minister revealed that there is a joint ministerial committee comprising officials from the Ministries of Finance and Natural Resources. He said that one of the co-chairs for the committee is Finance Ministry Budget Director Sonya Roopnauth.
“They are looking at the fiscal and revenue side of things and they are meeting quite often.”
The Minister also noted that the Guyana Revenue Authority and the Bureau of Statistics are involved, along with financial agencies such as the International Monetary Fund (IMF) and the World Bank. Trotman also noted that a team from the World Bank is expected to be here soon.
He added, “I know training has started and workshops are being held. All systems are in place for production to be monitored when it commences in 2020.”
The Guyana Revenue Authority has commenced the review of cost recovery claims by USA oil giant, ExxonMobil. This was recently confirmed by GRA Commissioner General, Godfrey Statia.
Statia explained that based on the contractual arrangements, ExxonMobil is allowed to recover 75 percent of its costs in a given year. He explained that expenses which are not recovered for that year are carried forward to the following year.
Statia said, “So what you need to do is audit those costs …It is important to do a proper audit because a failure to do so can have implications for the government’s cut of the pie. The higher the expenses, the smaller the take could be, so the audits need to be effective. But we have started the review of the costs incurred thus far by ExxonMobil. The audit of the claims by ExxonMobil started last year.

Cops pursuing prime suspect in Monica Reece investigation

– person of interest being monitored, ordered to inform police of overseas travels

 

The detectives seemed to have everything: key witnesses, and a popular individual who they were so certain is the killer, that he had to tell them whenever he travelled overseas.
But yet the investigation into the heinous Good Friday murder of 19-year-old Monica Reece appears to have stalled once again.
Questions are now being asked as to, Why this is so?
“There is an individual that is being pursued and that is why the investigation was reopened,” a source told Kaieteur News, while quashing any suggestions that the case may have been compromised.
It was in July 2016, that former Crime Chief, Wendell Blanhum revealed that police had reopened their investigations into the April 1993, Monica Reece murder.
On August 26, 2016, Acting Commissioner of Police David Ramnarine dropped another bombshell.
At a press conference, Ramnarine stated that “an unprofessional course of action took place at the time when the investigation was ongoing.”
The first review (of the case) revealed that an unprofessional course of action was taken in that year, and that period, when that matter was under investigation.”
However, the acting Top Cop had refused to be drawn into identifying the culprits.
The investigation was placed in the hands of the much vaunted Major Crimes Unit, whose ranks had solved several cold cases, including the killing of Babita Sarjou.

Hit-and-run driver leaves girl, four, with memory loss

After spending excruciating weeks in the Georgetown Public Hospital, a four year old, who was struck down last year by a heartless hit-and run driver, is happy to be home.
But things are not quite right just yet with little Vanessa Rampersaud.
Vanessa, of Coverden, East Bank Demerara was crossing the public road at Success, East Coast Demerara with her father on the evening of November 17 last, after attending a friend’s birthday party, when a speeding car without lights struck her down. The driver did not stop.
She was rushed to a private health institution and subsequently transferred to the Georgetown Public Hospital after doctors discovered that the child had a fractured skull and spine, broken collar bone, brain haemorrhage and reportedly broken ribs.
She spent several days in the Intensive Care Unit before being transferred to the hospital’s Paediatric Ward.
The child was verbally unresponsive for quite a few weeks, before finally speaking a few words to her parents.
She was discharged from the Hospital in the latter part of December last, following much tears and prayers.
Her father, Yougnauth Jadunauth told Kaieteur News Sunday, with excitement in his voice, that he is unable to express just how happy he is that his daughter is alive and is still recovering.
He said she is playing with her siblings as normal but fails to remember certain things and has to be taught, or in this case, reminded.
TUESDAY            

Contract reveals… Guyana to foot bill for litigation brought against ExxonMobil

Should ExxonMobil be taken before the courts in Guyana or even before a regional or international court for any reason that has direct relations to the company’s operations in Guyana, the cost incurred for all legal fees or judgment handed down will be paid by Guyana.
This is stipulated in the 2016 Production Sharing Agreement (PSA) that Minister of Natural Resources, Raphael Trotman signed with ExxonMobil Vice President, Erik Oswald.
Under Annex C of the contract, there is a vast area that deals with cost recovery. This is the range of items the cost for which will be recovered by ExxonMobil before Guyana can see profits.
Annex C has a subheading “Legal expenses.” This states that all legal expenses incurred by ExxonMobil for any matter in direct relation to operations in Guyana shall be included in cost recovery.
The PSA specifies, “All costs and expenses of litigation and legal or related series necessary or expedient for the procuring, perfecting, retention and protection of the contract area and in defending or prosecuting lawsuits involving the contract area or any third party claim arising out of the activities under the agreement or sums paid in respect to legal services necessary or expedient for the protection of the interest of the parties are recoverable. Where legal services are rendered in such matters by salaried or regularly retained lawyers of the contractor or an affiliated company of the parties comprising contractor, such compensation will be included instead under sub-section 3, 1 (B) or 3.1(D) above as application”
Subsection 3, 1(B) speaks to labour and associated labour costs and 3, 1 (D) speaks to third party contracts.
If there is an oil spill and ExxonMobil is sued, Guyana will pay the price. This annex in the contract harmonizes with what environmentalists have been saying about the provisions of the Environmental Impact Assessment (EIA).
It was earlier reported that the Environmental Protection Agency (EPA) accepted an EIA from the oil giant that is weak compared to that given to some other countries.
The impact of an oil spill could be major for Guyana and its neighbours.

GAWU defies Jagdeo… Union vows to continue sugar talks with Govt.

The Guyana Agricultural and General Workers’ Union (GAWU) on Monday stated that it will continue to engage the coalition government on issues of employment facing workers in the sugar industry which is reeling from the closure of estates.
GAWU came in for severe criticism on Saturday from General Secretary of the People’s Progressive Party (PPP) and Opposition Leader, Bharrat Jagdeo, for meeting a Government delegation led by President David Granger.
The National Association of Agricultural, Commercial and Industrial Employees (NAACIE) also attended the meeting on January 19 at the Ministry of the Presidency.
“It is dismaying that our union is singled out for this sort of criticism, recognizing that several organisations are engaging the state on matters of concern. Why is a different yardstick being applied to GAWU?” the union questioned.
Jagdeo took GAWU and its leader, Komal Chand, to task, since in his opinion the government won big on the public relations front. Jagdeo stated that nothing was achieved, although a statement on the meeting concluded that common ground was achieved between the union and the government.
“It seems maybe Mr Jagdeo misunderstood the conclusion of the meeting, as both GAWU and NAACIE undertook to work with the government in reaching common ground. We did not advise that common ground was reached,” the union noted.
Chand, who is also a PPP Member of Parliament, clapped back at Jagdeo, telling Kaieteur News that he will stand with the more than 5000 workers affected by the estate closure, over party politics.
GAWU, despite its leadership being aligned to the PPP, seemingly backed Chand. The union believes that it should use every arena and leave no stone unturned to further the struggle of the sugar workers.
“Engagement with the government is one such plank. In fact, GAWU is no stranger to engaging Government on workers’ matters. In our years of association with the sugar industry, the GAWU has engaged every Head of State from the late President L.F.S. Burnham,” GAWU stated.

Freed after 4 years, accused in Agricola housewife murder rejoices

Abiola Jacobs looked dazed. She hurried out of the prisoner’s dock when the jury returned a unanimous not guilty verdict.
Jacobs called Abby, 27, of Evan Phillips Park, Agricola, East Bank Demerara, had been on trial before Justice James Bovell-Drakes for the January 31, 2014 murder of 55-year-old Agricola housewife Donna Taylor, who was her former mother-in-law. According to reports, Jacobs had shared a relationship with the woman’s son, Bertram Taylor Jr.
Donna Taylor’s bound body was found at the back of her Lot 16-17 Public Road Agricola, East Bank Demerara home. She was found with her hands bound behind her back, a slit throat, and a piece of cloth wrapped around her neck. The mother of four was said to have been attacked in her bed and slain after she was dragged to her backyard.
The other occupant of the rented upper flat at the time, Samantha Sabat, was subsequently found lying unconscious in the front yard. The British-based Sabat was a guest of the Taylors. She reportedly escaped by removing the panes from her bedroom window and jumping to the ground from the top flat of the two-storey structure.
Monday, at around 16:00hrs the jury returned with its verdict after a few hours of deliberation.
State Counsel Mandel Moore gave oral notice of the state’s intention to appeal.
But Justice James Bovell-Drakes refused to accept the notice of appeal stating that it has to be done in the proper manner. Also appearing for the state was Prosecutor Lisa Cave.
Jacobs was represented by Attorney-at-Law Adrian Thompson.
After the judge informed Jacobs that she was freed, the former murder accused slipped on a pair of sunglasses and blew a kiss at the jurors before rejoicing with her family and friends who were waiting for her on the court corridors.
Jacobs, who was attired in all black, with a pair of high-heeled shoes was almost hit by a motorcycle as she made her way across South Road, Georgetown.
The young woman began dancing with her relatives who hugged and kissed her.

 

WEDNESDAY

UN mediation fails… Guyana heads to Int’l Court to settle Venezuela border controversy

In what is being seen as a huge victory for Guyana, and after another year of failed border settlement talks between this country and neighbouring Venezuela by the United Nations, there is heartening news.

Guyana is now heading to the International Court of Justice (ICJ) for a final resolution on the border controversy.

The outcome would be what Guyana has been insisting for…a settlement once and for all for a huge swath of mineral-rich Essequibo that Venezuela has been claiming for the last century.

The decision was widely anticipated since earlier this month with both the Government of Guyana and the United Nations on Tuesday issuing separate statements.

Guyana’s push to have the matter settled finally in the ICJ would come after Venezuela suspended a lucrative oil-for-rice deal with this country in 2015.

That date would be significant as the Coalition Government took office in May 2015, immediately facing the loss of the rice market and learning that a huge quantity of oil had been discovered in the Stabroek offshore block by ExxonMobil.

Venezuela immediately published maps too claiming the offshore areas where the oil was found.

In late 2015, President David Granger appealed to the United Nations for a peaceful resolution, signaling this country’s intentions to have the matter handled by the respected ICJ.

Welcoming the decision of the UN Secretary-General, Antonio Guterres, the Ministry of Foreign Affairs on Tuesday disclosed that the matter has been referred to the ICJ.

Jagdeo says…Crime wave COI will expose political operatives, intellectual authors

– calls period “era of PNC-inspired killings”

With hours remaining for the swearing in of a Commission of Inquiry into one of the bloodiest periods in Guyana’s history, the political mud-slinging begun between Government and the Opposition.
There is now the sparring about who orchestrated the mayhem that left hundreds dead and many others unaccounted for.
On Tuesday, Opposition Leader, Bharrat Jagdeo, called on the COI to focus on the ‘political operatives’ of that era, as well as the role the People’s National Congress allegedly played in lending support to  some of the criminals during this period of violence.
He suggested that a “credibly constituted Commission of Inquiry, staffed by international jurists, will expose the intellectual authors behind the crime wave of the 2000s, including the political operatives who were involved.”
According to Jagdeo’s statement, he, like other Guyanese, “recognises that the Granger-led Government only raises this issue when it is cornered on its incompetence and corruption in office.”
“I have noticed the moves by the state-owned Guyana Chronicle to dub the Commission as the ‘Jagdeo-era killings CoI’.
“However, I am of the view that a more apt description would be a ‘Commission into the PNC-inspired killings of the 2000s’.
I have also noticed Minister Harmon’s comments about several inquiries, as opposed to a comprehensive CoI into the crime wave. I believe that no inquiry will be complete unless there is a comprehensive review of what took place and who the operatives were, particularly the political operatives.”
According to the Opposition Leader, if what Minister Harmon has said is to be taken at face value – “this is about issues of fact and for the Commission to determine what happened, when it happened, who was involved and, therefore, what action needs to be taken.” – then there are many questions that have to be answered.
ExxonMobil/Guyana oil contract spells disaster for Guyana–Ramon Gaskin

Political commentator Ramon Gaskin said Tuesday evening that there are glaring loopholes in the contract Guyana Government signed with USA oil giant ExxonMobil and its affiliates.
To a modestly sized audience at the National Library, Gaskin concluded that the “terribly flawed” contract spells nothing but disaster for this nation.
Among the many faults, Gaskin was quick to point out that the APNU+AFC Government had a golden opportunity to correct a grave wrong that was committed by the PPP Administration in 1999.
During the PPP’s time, ExxonMobil was given 600 blocks. This is ten times more than what the law stipulates. The nation’s rules and regulations also specify that at every request for a renewal, the company is expected to relinquish half of the oil blocks it started with. But the PPP made an adjustment to the contract, thereby allowing the company to hold on to the 600 oil blocks.
In the new agreement that was signed last year under the Granger administration with ExxonMobil, Natural Resources Minister, Raphael Trotman failed to address or redress the aforementioned problem.
Gaskin is also of the opinion that the government in missing such an opportunity has allowed ExxonMobil and its affiliates to have control of some of the main oil producing blocks offshore Guyana.
The Chartered Accountant was also critical of the fact that the Government is yet to release the Bridging Deed. While the Government has released the petroleum contract it has with ExxonMobil, the Bridging Deed was one of the key documents it failed to make public. The purpose of the Deed is to replace the 1999 Agreement and the 1999 Petroleum Prospecting Licence.
Gaskin reminded that former President Janet Jagan signed the 1999 Agreement in violation of the Petroleum Exploration and Production Act (the Act) to the extent that the company (Esso Exploration and Production Guyana Limited) was granted approximately 600 blocks instead of the 60 blocks permitted by law.
The Chartered Accountant said that the 1999 Agreement and Prospecting Licence appears to have been contained in a single package and included in it is a full description of the blocks and a map of the area allotted to the oil company. However, the 2016 Agreement merely states that a Petroleum Prospecting Licence was granted for an initial period of four years.
With the Bridging Deed not being published, Gaskin said that the Government is operating in contradiction of the nation’s petroleum laws.

 

THURSDAY

Venezuela rejects referral of border controversy to Int’l Court

-insists on political negotiations

Neighbouring Venezuela has backpedaled on its recognition of the United Nations’ authority to determine the next step on territorial controversy with Guyana.
Wednesday, in a strong statement, Venezuela, which has been slapped with sanctions by a number of countries because of ongoing turmoil and human rights abuses, made it clear that it prefers political dialogue than going to the International Court of Justice (ICJ), which is the principal judicial organ of the UN.
A statement read by Venezuelan Foreign Minister, Jorge Arreaza, disclosed that his Government has ratified the Geneva Agreement, signed in 1966, which “recognized” the sovereignty of Venezuela over the Essequibo and declared the Arbitral Award issued in 1899 in Paris as “null and void”.
“That is the treaty that governs the territorial controversy,” said the Venezuelan Foreign Minister, who demanded that sovereignty be respected, according to reports in the media from that country.
“The Government of Venezuela, faithful to its historical tradition and in accordance with the Bolivarian Diplomacy of Peace, reiterates its willingness to defend the territorial integrity of our homeland and maintain political negotiation based on the Geneva Agreement,” the foreign minister said.
Venezuela said that its statement was in response to correspondence it had received from the Secretary General of the UN, António Guterres, who has agreed for the matter to be settled once and for all at the ICJ.
In late 2015, the new Coalition Government, acting on a number of incidents which highlighted a seeming threatening posture of Venezuela, took the matter to the UN.
Outgoing Secretary General, Ban Ki-moon, committed to have the matter looked at.
In February last year, new Secretary General Guterres appointed Norwegian ambassador, Dag Nylander, as his personal representative to mediate on the territorial controversy.
Both Guyana and Venezuela agreed that they would attempt, until the end of 2017, to reach a resolution, failure of which the matter would be sent to the ICJ.
It will be recalled that Venezuela’s aggressions took a more strident tone in 2015 when the new government under President David Granger took office, and when it was announced that Guyana has found oil offshore.
Venezuela immediately laid claim to the waters where the oil was found. The country also suspended an oil-for-rice deal with Guyana.
There are thousands of Guyanese living in Venezuela with daily protests and food shortages facing that country. However, there has been a growing cross-border trade in oil and food items.

 

Despite IMF’s advice…Trotman says Petroleum Commission will still meddle in revenue collection

Even though the International Monetary Fund (IMF) suggests otherwise, it appears that the government is still going to maintain that the Petroleum Commission be given fiscal powers. This was recently confirmed by Minister of Natural Resources, Raphael Trotman.
He was at the time, responding to questions from Kaieteur News. This publication asked the Minister to confirm if all revenue powers in the petroleum sector would go to the Guyana Revenue Authority (GRA) or if it would remain split between that entity and the imminent Commission.
Trotman said, “There are some grey areas…like the Guyana Geology and Mines Commission (GGMC) collects all fees which are paid, licensing fees etc. The intention is for the (Petroleum) Commission to collect licensing fees. Revenues which are earned from petroleum will be handled by GRA. So that matter will be better defined… The commission will collect fees and penalties charges.”
The Petroleum Commission Bill which is before the National Assembly will pave the way for the establishment of a regulatory body for the oil and gas sector. The Bill sets out various functions and duties of the Commission, one of which includes revenue collection and other fiscal powers.
According to the Bill, the Commission shall: ascertain the cost oil or gas due to operators; participate in the measurement of petroleum to allow for estimation and assessment of royalty and profit oil or gas due to the State and be responsible for the approval of the exercise; provide the necessary information to the relevant authority for the collection of taxes and fees from petroleum operations; be responsible for the collection and recovery of all rents, fees, royalties, penalties, levies, tolls and any other charges payable under the Petroleum (Exploration and Production) Act and any other revenues of the Commission; and advise the Minister of Natural Resources in the negotiation of petroleum agreements and in the granting, amendment, renewing, extending, and revocation of licenses.
But the International Monetary Fund is opposed to this idea. It is of the view that the Commission should only stick to being a sector regulator and not meddle in revenue collection matters.
The Fund said that the GRA should be dealing with such matters. The IMF said that the Government also agrees that the tax entity should be the only revenue-collecting agency for the oil and gas sector. The IMF said if the intention is to have the GRA as the single revenue collection agency for the petroleum sector, the Bill should be amended.

 

FRIDAY

 

Trees on 10-acre plot earmarked for ExxonMobil begin to die

– Approval for lease still to be granted

 

The thick vegetation that once occupied the 10-acre plot of land that has been earmarked for oil giant, ExxonMobil, is starting to diminish.
Since last year, ExxonMobil “expressed interest” to Ogle Airport Inc. (OAI) for the lease of 10 acres of land at the Eugene F. Correia International Airport.
OAI has told Kaieteur News that it is still in discussion with ExxonMobil for the lease of the land. However, this newspaper understands that the deal had already been made and that the holdup is with Guyana Lands and Surveys Commission.
The Commission has the mandate, under the master lease agreement, to approve every sublease to be made by OAI.
The Commission is however uncomfortable with OAI leasing land for longer periods of time than the master lease prescribes—25 years. As a result, all leasing of land has been stalled; even the leases that OAI granted to Jags Aviation and Hopkinson Mining are still to be approved by the Commission.
OAI said that the Lands and Survey Commission is looking to renew the master lease before it can approve the new leases of 50 years.
Despite OAI not being able to grant finalised leases, ExxonMobil seems to have otherwise been assured that it can move forward as efforts are already underway to utilise the land. Suddenly, the trees are beginning to die.
While this newspaper has been told that ExxonMobil wanted to erect living quarters, a training school, a helipad, along with its headquarters, OAI recently told Kaieteur News that ExxonMobil is only interested in erecting its headquarters on the 10-acre land.
Asked why a company would need 10 acres of land upon which it will build its headquarters when it said that its onshore staff will be minimal, OAI said that foreigners have a different way of doing things.
One of OAI’s original investors, Michael Correia, said, “We may see 10 acres as a lot but it is not really.” He said ExxonMobil will use a few acres of land for parking alone. “Then those people will want to have proper landscaping and so on. So you have to consider all of that.”
He said that ExxonMobil plans to employ Guyanese for the construction of the headquarters.

GRDB defendants served with over 2,000 statements

The Guyana Rice Development Board (GRDB) matter continued Thursday in the Georgetown Magistrates’ Courts before Principal Magistrate Judy Latchman.
When the matter was called, Special Organised Crime Unit (SOCU) Prosecutor, Patrice Henry served the defendants with 2,000 copies of statements.
The two officials charged are former General Manager of the Guyana Rice Board Development Board, Jagnarine Singh, and former Deputy General of GRDB and People’s Progressive Party Civic (PPP/C) Member, Madanlall Ramraj.
It is alleged that between 2011 and 2012, at Lot 16-17 Cowan Street, Kingstown, they omitted to enter, or to make true entries of over $4.2M into the company’s ledger, knowing that it was contrary to standard operation procedures.
Other charges state that during the same timeframe, the two officials are alleged to have fraudulently taken $5.1M or applied the money for their own use and benefit or any use and purpose, other than that of the GRDB.
The prosecutor told the court that the investigation into the matter was completed and that he would be serving both defendants with statements. He had to be assisted with getting the reams of statements into the courtroom since there were several parcels.
The defence lawyer, Glen Hanoman, upon seeing the reams of statements said “the prosecutor’s intention is for this trial to go on until 2020.”
 

SATURDAY

Vegetation on land earmarked for Exxon discoloured from natural causes – OAI

“I am not sure what the concern is, but if the concern is that the trees have been sprayed, be assured that they haven’t.”

This was the response given by one of the main investors in Ogle Airport Inc. (OAI), Michael Correia, when asked about the trees that have suddenly begun to die on the 10-acre plot of land earmarked for ExxonMobil.

OAI is the private sector company that controls the Eugene F. Correia International Airport.

The company has been in negotiations with ExxonMobil for the subleasing of 10 acres of prime land at the airport. OAI claims that it is still in discussion with ExxonMobil and is yet to sign any documents. However, ExxonMobil claims that it has signed, “An agreement with Ogle Airport Inc. expressing mutual interest in potentially sub-leasing approximately 10 acres of land for an extended period”.

What is very clear, however, is that the Guyana Lands and Surveys Commission has not given OAI the go-ahead to sublease the land to ExxonMobil.

Nevertheless, the thick vegetation that once covered the 10-acre plot that was earmarked for ExxonMobil has started to diminish. A large portion of the area is no longer green.

On Friday, Correia said that there has been no attempt, as yet, to get rid of the “overgrown vegetation.” He said that the vegetation seems to have become discoloured from natural causes. Also, Correia said that he has requested that OAI’s in-house environmental officer investigate the matter and report the cases to him. He posited that in any case, the vegetation will eventually have to be removed for development.

Whatever the reasons for the discolouration of the vegetation, it is only occurring on the land earmarked for the oil giant.  Since last year ExxonMobil “expressed interest,” in land at Ogle.

 

Suspected carjacker nabbed with woman’s stolen vehicle

–               showed cops ‘valid’ registration when stopped

Police appear to be slowly gaining the upper hand against the perpetrators of recent carjackings.

The most recent success occurred Friday, after police were able to link a man who was implicated in a number of recent carjackings to one which occurred last year.

The victim, a 66-year-old woman, was about to drive into her yard at Irving Street, Queenstown, on November 4, 2017, when three men held her at gunpoint.

The bandits then drove off with the woman’s Toyota Allion.

“Today (yesterday) the woman positively identified her stolen vehicle, which was impounded recently at an ‘A’ Division Station,” police said.

“Her registration matched that of the engine and chassis numbers, with the only exception being the (vehicle’s) colour, which was changed.”

“The said vehicle was found in possession of a male who claimed ownership and even produced a valid registration, but police had their suspicions and impounded the vehicle, pending further investigations.”

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