DIASPORA DISAPPOINTED WITH GOVERNMENT

Apr 23, 2018 Editorial

Following its victory in the May 11, 2015 election, Guyanese in the Diaspora were ecstatic as they congratulated the new government, especially Mr. Granger on his elevation to the Presidency.
But it was not long after that the Coalition supporters in the New York Diaspora became disappointed with the government for not creating a Diaspora Department and appointing a Member of Parliament for Diaspora Affairs as promised during the elections campaign.
The release of the oil contract last December has caused many in the Diaspora to be upset. They, including some oil and gas experts in the Diaspora like several prominent persons and organizations at home, including the privately-owned Kaieteur News have raised serious concerns about the Production Sharing Agreement between the Government and ExxonMobil.
Guyanese in the Diaspora, including supporters of the PNC are truly upset that the Government had signed such a lopsided oil contract that would benefit the company more than the people of Guyana. They claimed that the government was already under fire for not releasing the contract which in their view, is a horrible document in which Guyana would receive only two percent royalty and a 50/50 share in profit after all legitimate expenses are deducted by ExxonMobil. They are concerned that the government has absolutely no system in place at the moment to verify what constitutes legitimate expenses. They contend that without a single drop of oil being pumped, it is ridiculous for ExxonMobil to saddle Guyana with a pre-contract operations bill for US$460 million, while it offered the government a meager US$18 million signing bonus.
According to the Diaspora community, the government is bent on making costly mistakes because it knew that its negotiators lacked the talent, skill-sets and experience to negotiate such a contract with the U.S. oil giant, ExxonMobil. There are several highly qualified Guyanese in the diaspora who were willing to offer their services free of cost, but they were not consulted. The government has even refused help from international oil and gas experts to renegotiate the contract.
Many in the Diaspora have resented the black-mailing of Guyana by ExxonMobil which has brazenly stated that any attempt by the government to renegotiate the contract would make Guyana look terrible; and it would turn away investors because they would see that the country is not a stable place to do business. They are offended that some ministers in the government have publicly declared that the contract is good for Guyana and that the people should be appreciative of it. They feel that the government should heed the advice of the IMF to close the fiscal loopholes in the contract in order to secure greater revenues for Guyana from its oil resource.
In fact, the IMF has confirmed that Guyana did not get its fair share because the terms offered in the contract are generous to ExxonMobil and would reduce Guyana’s share of the profit. The IMF has concluded that Guyana should have consulted with other countries that have already entered into contractual agreements with ExxonMobil before negotiating the contract. This view is shared by several international oil experts who believe that the contract is one of the worst ever negotiated between a conglomerate and a country in the modern era.
If ever there is an ideal time for the government to review the contract it is now. But instead of recognizing their mistakes and taking responsibility for their actions, several ministers have heaped praise on ExxonMobil. Such attitude is typical of the last administration, which was obsessed with power and too arrogant to accept responsibility. That said, members of the Diaspora have called for a renegotiation or at least for the government to close the loop-holes in the contract mentioned by the IMF. But it seems that the government has tunnel-vision and would have none of it. In fact, the government has made it clear that it has absolutely no intention to renegotiate the contract. Members of the Diaspora are disappointed with the government.

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