Week in review

May 05, 2019 News

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SUNDAY

GUYANA’S FIRST REPORT REVEALS…SLOTH OF LEGAL REFORM STIFLING PROGRESS IN OIL SECTOR

The absence of modern legislation to guide the oil and gas sector does not augur well for the nation’s future. In fact, it is stifling progress in the sector. This point was noted in the first report on Guyana since it became part of the Extractive Industries Transparency Initiative (EITI) fold. The document notes that Guyana’s upstream oil and gas sector is governed by the Petroleum Exploration and Production Act (1986), and the Petroleum and Exploration Regulations (1986). It states that the Government of Guyana is currently undertaking several reforms in the preparation for the emerging oil and gas sector such as the Petroleum Exploration and Production Bill, which will repeal and replace the current Act and Petroleum Environmental Production Pollution Control Regulations as well as the Petroleum Health and Safety Regulations, which are currently being reviewed.
The report noted, “The oil and gas sector in Guyana is currently in the production phase, which is expected to start in the beginning of 2020. However, to date, the reform of the Petroleum Exploration and Production Act is still in progress. This situation does not allow a favourable investment environment for petroleum companies to carry out intensive exploration and production activities.”
In order to promote a favourable legal environment for investment and in a bid to boost the confidence of private operators in the country, the report strongly recommended that the Multi-Stakeholder Group of the local EITI Chapter follow up with the Department of Energy at the Ministry of the Presidency in a bid to accelerate the reform of the petroleum legislation and to address any technical barriers delaying the process.

E’BO COAST HAS NEW BACKUP POWER AS $1.8B PLANT COMMISSIONED

Residents on the Essequibo may finally see an end to the blackout woes, now that the brand new Anna Regina 5.4 MW Power Plant was commissioned last week Saturday.
This publication understands that the demand for power on the Essequibo Coast had greatly increased some eight to ten months ago, when the two Wartsila engines that powered the entire Essequibo Coast finally retired, after more than 20 years of service.
It is believed that the newly commissioned power plant will satisfy the new peak demand for power on the Essequibo Coast, with enough reserves to spare.
Present at the commissioning Saturday was the Minister of Public Infrastructure, David Patterson, who said, “I was reliably informed that the electricity supply has vastly improved. The peak demand for generated power is 5.1 megawatts and we’re producing 5.4 megawatts, so there is a reserve.
“Also, we have on standby, three caterpillar sets, which will give an additional five megawatts. So in all Essequibo has about 100% redundancy, which is even better than Demerara.”
Minister Patterson also pointed out that the three generator sets are a permanent solution to solving the blackout woes. He also stressed the need for proper maintenance so that the engines can see their 20 years life span.
Whilst giving an overview of the project, project engineer, Mr. Hugh Peru said that a new control building was erected in the compound for control staff.
The project cost of some $1.81 billion, he said, was financed by the company’s own financial resources, to meet the growing demands for power. The three-diesel and turbo engines, which is believe to be amongst the top three classes, were supplied and installed by Turkish company, iLTEKNO.
During the past years, many concerns were raised on the manner in which the power company disposed of its waste products.
Divisional Director of GPL projects, Ryan Ross revealed Saturday that the facility now has an incinerator, which will enable its operations to be more environmental friendly.

MONDAY

REPORT REVEALS…ABUSE OF GGMC’S ALLOCATION OF LICENCES AND PERMITS COSTS GUYANA MILLIONS$$$$

Guyana’s first report to the Extractive Industries Transparency Initiative (EITI) has exposed the rampant abuse of systems at the Guyana Geology and Mines Commission (GGMC) which govern the allocation of licenses and permits.
The report notes that in a number of instances, an operator is able to acquire several medium scale mining permits. But a closer look at the location of the permits revealed that they were granted in the same area and run one after the other. If they were added, the plots would have exceeded the 1,200-acre threshold and would therefore be required to be categorized as being “large scale tenures.” The report notes that large scale tenures involve paying higher rental fees. Such a licence award also has a different procedure that requires further approvals from other Government Agencies.
By cheating the system, the report notes that the nation is losing significant revenue since the annual rental fees due by large scale operators is USD$3 per acre as opposed to USD$1 per acre for medium scale mining operators. In light of this, the report recommended that GGMC considers taking into account the combined acreage of the permits when awarding them to the same applicant and when the plots are continuous. A call was also made for GGMC to conduct a review and an update of the list of current active mining permits in order to comply with the definition of the large scale mining licence given that several of them cover neighbouring plots for the same extractive entity and exceed 1,200 acre when combined.
Furthermore, the report notes that the Mining Act (1989) allows GGMC to conclude agreements with applicants through direct negotiation without any requirement to follow any tendering procedures.

GUYANA GOLD FIELDS (AGM), TROY RESOURCES GUYANA INC. AMONG 19 COMPANIES WHICH REFUSE TO DISCLOSE PERSONS WHO BENEFIT FROM THEIR PROFITS

Guyana Goldfields (AGM) and Troy Resources Guyana are among the 19 mining companies which refused to disclose the names of persons who benefit from its profits, which would have been subsequently revealed in the nation’s first report to the Extractive Industries Transparency Initiative (EITI).
The document has a special section which is dedicated to “beneficial ownership”. This is in keeping with the reporting requirements of EITI. In fact, one of the EITI Standards stipulates that implementing countries must maintain a publicly available register of the beneficial owners of the corporate entity(ies) that bid for, operate or invest in extractive assets, including the identity(ies) of their beneficial owner(s), the level of ownership and details of how ownership or control is exerted.
Guyana does not have such a register. And efforts by the Independent Administrator, Rached Maalej to obtain this information for Guyana’s first report were not entirely fruitful.
The companies which refused to communicate the names of beneficial owners are: Innovative Mining, R Mining Inc., Azeem Baksh, Gold Target Export, Milburn Mahadeo, Grey Wolf Resources, Tesouro Resources, J&D Mining, New East International, Higgins Winslow Theophilus, Wal Jays Mining, Harpy Investment, Bauxite Company of Guyana (Rusal), BOSAI Minerals Group (Guyana) Inc, El Dorado Trading, SSS Mineral Trading Ent, and Adamantium Holdings.
The only companies which displayed no resistance to naming its beneficial owners are Excel Minerals Inc., Dinar Trading, Pure Diamond Inc., and Mohamed’s Enterprise.
Speaking with Kaieteur News Thursday, Head of GY-EITI, Dr. Rudy Jadoopat explained that the companies were asked to submit the information regarding beneficial ownership but many of them opted not to.
He said, “And I don’t want to speculate or get into what are the reasons for the companies refusing to do so.”

U.S DEPT. OF JUSTICE SLAMS GUYANA’S JUDICIARY FOR ALLEGED CORRUPTION

Occasional allegations of bribery, shortages of trained court personnel, postponements at the request of the defence or prosecution, poor tracking of cases, and police tardiness in preparing cases for trial, highlights a recent report by the U.S. Department of State on Guyana’s humans rights practices.
According to the report, “The law provides for an independent and impartial judiciary in civil matters, and the government generally respected this provision. Individuals can access the court system to initiate lawsuits seeking damages for, or cessation of, human rights violations. The magistrates’ courts deal with both criminal and civil matters.”
The report noted, “Delays, inefficiencies, and alleged corruption in the magistrates’ court system affected citizens’ ability to seek timely remedies in civil matters, and there was a large backlog of civil cases. Citizens have the right to appeal adverse domestic decisions to the Caribbean Court of Justice.” The judiciary is a powerful weapon against corruption and the delivering of justice. Under the constitution of Guyana every citizen is guaranteed fairness in the judicial system. But within the justice system there are a number of organizations that could be involved in corrupt practices before a case reaches the courts. These include the police force, lawyers and prosecutors.

TUESDAY

LIZA PHASE TWO TO PRODUCE 6.6M BARRELS PER MONTH
-GETS GREEN LIGHT FROM LOCAL AUTHORITIES FOR PROJECT DEVELOPMENT

ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), has received approval from the Environmental Protection Agency (EPA) to develop the second phase of the Stabroek Block Liza discovery. It is expected to produce over 6 million barrels of crude oil per month.
According to EPA documents, oil production from the Liza Phase Two Development is expected to last at least 20 years. EEPGL will drill approximately 35-40 wells offshore to support extraction of the oil from below the sea floor. Each well will be drilled to a depth which is over 5,000 metres (m) below the sea floor. EEPGL will then install some of the oil production facilities on the sea floor at approximately 1500-1900 m (4900-6200 ft) water depth. These subsea facilities include various types of pipes and hardware. The subsea facilities allow the oil from the wells to be gathered and moved t o the surface of the ocean for further processing.
Kaieteur News understands that EEPGL will install other oil production facilities on a vessel, which floats on the surface of the ocean. The vessel is called a Floating Production, Storage, and Offloading (FPSO). The FPSO will be moored on location in approximately 1,600 m (5250 ft) of water depth and will remain on location throughout the life of the facility.
Further to this, oil production facilities on the FPSO will further process the oil extracted from below the sea floor. The FPSO will have the capacity to produce approximately 190,000 to 220,000 barrels of oil per day. During the early stage of production operations, the FPSO is anticipated to produce an average of approximately 5,700,000 to 6,600,000 barrels of crude oil per month. At peak, EPA documents note that EEPGL will utilize approximately 1,200 personnel offshore during the stage where the wells are being drilled and the offshore oil production facilities are being installed. Kaieteur News understands that this number will decrease to less than 200 personnel during the production operations phase. A smaller number of personnel will then be utilized at the onshore support facilities.

U.S. EMBASSY REBUKES NATIONAL ASSEMBLY FOR HONOURING “CONVICTED TERRORIST” ABDUL KADIR
– GOVT. SAYS IT’S ALL A MISINTERPRETATION…IT IS A TRADITION

The US Embassy in Georgetown Monday issued a stinging rebuke of the National Assembly’s motion last Friday, which paid tribute to the late Member of Parliament (MP) Abdul Kadir’s service to the Parliament of Guyana.
In its statement, the embassy said that the resolution was insensitive and thoughtless, and would leave a stain on the legacy of the country’s law-makers. However, the Government of Guyana, in a statement hours later, said it is all a big misunderstanding…that is a tradition in the National Assembly to honour Members of Parliament who have passed away.
The motion was presented by former Minister within the Ministry of Communities, Valerie Patterson-Yearwood.
The statement from the US Embassy said it is condemning the resolution by the National Assembly, reportedly honouring the life and work of convicted terrorist Kadir.
Kadir, who was 66 when he died in a US prison last year, was sentenced to life by a court after being found guilty of plotting a 2007 terrorist attack at John F. Kennedy International Airport in New York.
“Members of the National Assembly, therefore, chose to honor a man who conspired to kill innocent people from across the United States and around the world. This resolution is an insensitive and thoughtless act, which demonstrates the National Assembly’s disregard for the gravity of Kadir’s actions,” the US Embassy said.
The embassy pointed out that while speaking at an International Peace Conference recently, U.S. Ambassador Sarah-Ann Lynch held up Guyana as “a model to the world on religious tolerance and understanding.”
The National Assembly’s resolution of April 26 would draw into question that reputation, said the embassy.
“It also comes on the heels of Guyana’s historic cooperation with the United States on the extradition of an alleged murderer.

CHINA’S BELT AND ROAD INITIATIVE SHOULD ONLY GO WHERE IT IS NEEDED AND SUSTAINABLE- IMF HEAD

While China’s Belt and Road Initiative (BRI) has the potential to stimulate infrastructural development, Managing Director of the International Monetary Fund (IMF), Christine Lagarde says it should only go where it is needed and where countries can “sustainably” handle the debt that will follow.
Lagarde made these and other remarks to nearly 40 world leaders and other high-ranking officials at China’s second Belt and Road summit in Beijing. The three-day event ended on Saturday. The summit sought to encourage discussions on opportunities for growth that are possible for nations involved in the Belt and Road Initiative. There were also talks on ways to further promote trade, foster greater financial inclusion, and facilitate more people-to-people connections through BRI.
Lagarde’s presentation however, was focused on exposing that BRI is only successful in countries that need it and can subsequently service the debt that will be incurred.
The Managing Director said, “To borrow from a Chinese proverb, ‘It is easy to start a venture —the more difficult challenge is what comes next.’ That is where we find ourselves today, at the more difficult challenge. The BRI is clearly having an impact. From stimulating infrastructure investment to developing new global supply chains, some of the promises of BRI are being realized.”
Lagarde added, “Consider Kazakhstan, where a new manufacturing zone is beginning to unleash previously untapped economic potential. Or look at Senegal, where robust economic growth of over six percent in each of the last four years was supported partly by BRI-linked investment projects, including the construction of a new highway linking the airport to three large cities.”
At the same time, the IMF Managing Director alluded to the fact that other nations have not been so lucky. She said, “History has taught us that, if not managed carefully, infrastructure investments can lead to a problematic increase in debt. I have said before that, to be fully successful, the Belt and Road should only go where it is needed. I would add today that it should only go where it is sustainable, in all aspects…”
But this is not the first time Lagarde has warned about the debt risks that come with the BRI. Last year April, the Financial Times reported that the IMF Head cautioned Chinese policymakers about taking “unneeded and unsustainable” BRI projects in countries, which already heavy debt burdens.

WEDNESDAY

DEMTOCO’S UK PARENT COMPANY ACCUSED OF HIDING PROFITS FROM GUYANA

British American Tobacco (BAT), the parent company of the Demerara Tobacco Company, has been accused of depriving developing countries of hundreds of millions of dollars in tax by using “financial manoeuvring” to shift profits to a UK subsidiary.
The Tax Justice Network estimated that London-based BAT, the world’s largest tobacco company, would avoid paying $700m (£540m) between now and 2030 in Bangladesh, Indonesia, Kenya, Guyana, Brazil, and Trinidad and Tobago, according to the http://www.theindependentbd.com. It said that in 2016 alone BAT managed to shift $941m, roughly 12% of its group pre-tax profit that year, from overseas companies into its British subsidiary, BAT Holdings.
This, it said, reduced the company’s tax bill, partly because UK corporation tax is charged at 19% – lower than many of the countries in which BAT sells cigarettes.
There is no suggestion that any of the methods allegedly used are illegal and BAT said it complied in full with tax legislation in the countries where it operates.
But in a detailed report entitled Ashes to Ashes, the Tax Justice Network said BAT’s practices “fly in the face of tobacco companies’ claims to be essential tax providers to low and middle income countries where 80% of the 1.1bn smokers worldwide live”.
The campaign group’s chief executive, Alex Cobham, said, “Cigarettes not only impose massive human costs, those who profit from them are actively depriving lower-income countries of the public funding they need to provide people with health services.
“At a minimum, Governments must require tobacco companies to publish country by country reporting to make sure profits are taxed in the communities where they were raised, not in the tax havens they were siphoned off to.”
The organisation said BAT had managed to shift profits from developing countries to its UK subsidiary, which pays relatively little corporation tax using a variety of methods.

$100M SPENT TO “UPGRADE” NATIONAL PRINTERS YET
…EDUCATION MINISTRY BYPASSES LOCAL PRINTERIES TO SOLE-SOURCE FROM T&T

In November 2016, President David Granger visited the La Penitence facilities of the state-owned Guyana National Printers Limited (GNPL).
Over the years, it had been critical in producing exercise and text books for distribution in schools; birth, death and marriage certificates, Official Gazettes and other parliamentary documents including the budget estimates, calendars, labels, other forms and cardboard boxes.
However, despite celebrating 80 years in operations, a lack in investments and mismanagement has been bleeding the operations.
In late 2016, during the visit, the President promised that he will assist in facilitating a cash injection to help reverse the losses.
Reportedly, $100M was plugged into the operations to upgrade and modernize the printery.
A used printing press was acquired from overseas and installed early last year but it has failed to deliver.
Since last year, GNPL has been engaging suppliers in
Trinidad and Tobago to produce exercise books and text books.
There is little evidence that the tenders were even advertised so that local printers could bid.
What has made the matter even more troubling is the fact that local printers are saying they have the capacity to print for way cheaper than what is being produced and shipped from Trinidad to Guyana.
They have been bypassed.
“Let me make it clear for you. The purchase of books for the Ministry of Education is big business. It involved hundreds of millions of dollars.
“We have capacity in Guyana to produce cheaper despite we have to pay the taxes on every raw material brought here. The fact is, based on our information, GNPL is paying way more than what we could get it done for,” one printer insisted.
The situation is one of a growing number of cases of sole sourcing by government entities, which have sidelined legitimate companies, in favour of friends, and for kickbacks.

CITY COUNCIL TO PROBE LANDS LEASED BY KING, OTHERS

The Georgetown City Council is taking stock of lands leased by the previous administration of the city.
The decision to probe comes after former Mayor and City Council (M&CC) Town Clerk; Royston King, found himself under investigation for leasing land not owned by the Council to a shipping company.
The matter was the subject of the recent Commission of Inquiry into the operations of City Hall.
The inquiry revealed that on April 5, 2016, King affixed his signature to an Industrial Wharf Lease Agreement granting the company permission to lease the location at Lot 1 Mudflat, Lombard Street, Georgetown.
The premises was later discovered to be owned by the National Industrial and Commercial Investments Limited (NICIL)
According to a missive sent out by Public Relations Department of the municipality persons who have leases are urged to visit the office of the Town Clerk; to examine the current status of lands leased by the Georgetown City Council.
The council had noted that that several lands that were leased by the Georgetown Municipality, are either unutilized or the agreements have expired.
In order to advance the process of ‘Transparency and Accountability’, it is important that the Council address this matter with urgency.
The statement added that several lands that were formerly owned by the Council is currently under the stewardship of Guyana Lands and Survey Authority.
“It is important that the Council engages citizens on this matter. Mayor and Councillors of Georgetown and the Guyana Lands and Survey Authority will be meeting in the very near future to discuss the status of reserves and other public spaces within the city,” the statement added.
The CoI, revealed that King leased a Sussex Street property to Quick Shipping Incorporated, a private shipping company.
Information had previously surfaced that King had leased the riverfront property -reportedly not the property of the Georgetown Mayor and City Council (M&CC) – to the company.

THURSDAY

THREE YEARS LATER…GOVT. NOW SEARCHES FOR CONSULTANT TO MODERNISE LAWS FOR OIL SECTOR

With first oil just around the corner, the APNU+AFC Administration is now looking for a consultant to modernise laws needed for the efficient governance of the oil and gas sector.
With funding provided by the World Bank, the government via an advertisement said i t needs a consultant to provide advisory services and technical support on legal and regulatory frameworks for the oil and gas sector to the Government, through the Department of Energy (DoE), under the Ministry of the Presidency.
According to the present Terms of Reference, the Consultant will be required to prepare draft revised legislation and regulations required to support the update of Guyana’s legal and institutional frameworks for the governance, management and oversight of the oil and gas sector, including but not limited to petroleum laws and regulations pertaining to operations, occupational health and safety, environmental management, maritime operations, etc. This would be done on the basis of existing institutional, legislative and regulatory gap analysis and revision documentation.
The Consultant is also expected to provide general advice on legal and contractual matters arising from the administration/management of existing Petroleum Agreement(s), including matters concerning assignments, terminations, events of default, force majeure, disputes, dispute resolution and cost recovery audits, etc.
The official will be expected to support the Attorney General’s Chambers in the review, assessment and re-drafting necessary to ensure the draft legislation is in good order for presentation to the National Assembly for passage into law.
The Consultant will be required to prove legal advice on the marketing of crude oil to ensure that the marketing will be transparent, efficiently organized and that marketing agreements are in place prior to first oil; advise on and provide a framework detailing the legislation and regulations required for the comprehensive development of a petroleum downstream sector and support the drafting of such legislation and regulations initially focusing on the use of associated gas; and provide ad hoc legal advice on and recommendations concerning matters arising from DoE’s governance and management of the petroleum sector.

SHOPKEEPER SHOT DEAD BY SUSPECTED BANDITS

A 46-year-old shopkeeper was shot dead in his Parika Backdam, Essequibo home on Tuesday night, allegedly after handing over a small quantity of cash to two men who had asked to see him. Somdat Ramgobin, called ‘Rakesh’ was reportedly shot in the stomach by one of the intruders, who had ordered him and a 17-year-old friend to lie on his bed.
The bandits reportedly fled in a white Toyota Premio without taking any money from Ramgobin’s shop, even though he had allegedly told them that there was cash inside.
An eight-year-old boy and the 17-year-old friend were the only other individuals who were at Ramgobin’s residence at the time. They were not harmed.
A relative of the slain shopkeeper said the circumstances under which Ramgobin was shot suggest that robbery was not the men’s primary aim.
“To me, they deliberately go there to kill him,” the relative said.
Kaieteur News understands that Ramgobin and the 17-year-old were cooking in the kitchen when the killers arrived. At the time, an eight-year-old boy was outside the shop. It is alleged that the men asked the child, “where the boss man deh.”
After being told that Ramgobin was inside, the men reportedly entered via the open door.
The 17-year-old told Kaieteur News that one of the men pointed a gun at them and ordered them into Ramgobin’s bedroom. They were told to lie on the bed. The men then demanded money and jewellery and struck Ramgobin with a bottle when he didn’t comply.
The shopkeeper reportedly then gave the robbers a small sum of cash from one of his pockets. However, rather than going to the shop, the men shot Ramgobin in the stomach. They reportedly then escaped in a white car.
The teen said that he then ran outside and shouted for assistance. Ramgobin was pronounced dead on arrival at the Leonora Cottage Hospital. The relative who spoke with Kaieteur News said Ramgobin had no dispute with anyone. He suggested that the killers may have been in collusion with individuals who are familiar with the community.

WORKERS PRESENT UNITED FRONT AS 100 YEARS OF TRADE UNIONISM OBSERVED

Every year, Guyanese public servants parade through the Garden City in celebration of the achievements of trade unions and friends of workers, in defence of workers’ rights. Notably, the first trade union in the Caribbean, the British Guiana Labour Union, was formed by Hubert Nathaniel Critchlow in 1919. According to Trade Unionist, Lincoln Lewis, “the trade union was the forerunner mass-based organisation in society; it came before the political parties were birthed.”
This year, Guyana celebrates 100 years of trade unionism, and the formation of the International Labour Organisation (ILO).
A united front was presented by those in attendance at Wednesday’s May Day rally. Under the theme, “A long journey for social justice — Together we can achieve,” the Labour Day parade was constituted by 17 unions, marching from Parade Ground to the National Park. Leading the procession were the Federation of Independent Trade Unions of Guyana (FITUG) and the Guyana Trade Union Congress (GTUC).
Some of the other trade unions, which were represented included the Guyana Labour Union (GLU), Guyana Agricultural and General Workers’ Union (GAWU), Guyana Local Government Officers’ Union (GLGOU), Guyana Postal and Telecommunication Workers’ Union (GPTWU), Guyana Public Service Union (GPSU), Guyana Teachers’ Union (GTU), General Workers’ Union (GWU) and the Guyana Bauxite and General Workers’ Union (GB&GWU).
Workers braved the intermittent showers to march the streets of Georgetown.
The march was accompanied by music and laughter, from a sea of workers, all dressed in red, and carrying banners of their respective of the various unions.
Some workers carried plaques with messages of encouragement to fight against corruption. Some signs read “Up the tempo – Jail for the corrupt ones”; Cohesion makes victory sure” and “Oil Reserves are good, but oil spills can be bad”.

FRIDAY
BELT AND ROAD PROJECTS MUST BE SUBJECTED TO TRANSPARENCY, ECONOMIC ASSESSMENT
–OPPOSITION LEADER

Any project Guyana pursues via China’s Belt and Road Initiative (BRI) must be subjected to a transparent process and a rigid economic assessment says Opposition Leader, Bharrat Jagdeo. Jagdeo, who is also the PPP General Secretary, made this declaration during a press conference at his Church Street Office Thursday.
There, Kaieteur News asked the Opposition Leader if he agrees with recent statements by the Managing Director of the International Monetary Fund (IMF), Christine Lagarde on BRI. The official noted that BRI should only go where it is needed and where it is sustainable.
Jagdeo told this publication that he agrees with Lagarde. Asked to say if he believes BRI is needed in Guyana, the PPP General Secretary said, “It depends on what you use the resources for… You have to use resources to either increase welfare so that the social return is greater than capital or use it in a manner that it can give you an economic return.
“So definitely, a careful examination of the Public Sector Investment Programme (PSIP) (is needed), looking at all the investment needs, mapping this out…”
He added, “We are supposed to have a rolling PSIP that is supposed to be four years ahead. And it should be underpinned by a vision of where you want to go and unfortunately, this government has had an ad hoc approach to the PSIP.”
The Opposition Leader said he is in favour of any initiative that is designed to help develop investment capital but how the country develops those resources is important. He emphasized however that it must be done transparently and an economic assessment must be conducted.
SUSTAINABILITY
While China’s Belt and Road Initiative (BRI) has the potential to stimulate infrastructural development, Lagarde says it should only go where it is needed and where countries can “sustainably” handle the debt that will follow.

SOLE-SOURCING OF EXERCISE, TEXTBOOKS…

EDUCATION MINISTRY BLAMES NATIONAL PRINTERS FOR IRREGULARITIES BUT FAIL TO ADDRESS PAYING HIGH PRICES

The Ministry of Education (MoE) has distanced itself from the multi-million-dollar purchasing of exercise and other books from overseas for government schools.
The statement came after disclosures this week that local printers were complaining bitterly about being bypassed as the Guyana National Printers Limited (GNPL) doled out hundreds of millions of dollars to producers and printeries overseas. There were little or no advertisements. Local suppliers said that they were not told of the orders.
The exercise and textbooks are given out to students of the government-run schools.
According to the ministry in its statement, Thursday, it has taken note of an article published in the Wednesday, May 1, 2019 edition of Kaieteur News with the headline “$100M spent to ‘upgrade’ National Printers yet… Education Min. bypasses local printeries to sole-source from T&T”.
The MoE said it wishes to advise that the printing of exercise books and textbooks produced locally is contracted to the GNPL which is a state-owned entity, located at 1 Public Road, La Penitence, Georgetown, Guyana.
“The Education Ministry has no arrangement for printing of local text and exercise books with any other company as is inferred in the article,” the statement said.
However, glaringly absent from the statement is the price that the ministry paid GNPL for the books. It appears, too, that MoE did not determine what price GNPL was paying for each book or worse yet, did not care how taxpayers dollars are being spent.
It would be pertinent in determining if the country got value for its money.
In any case, from all indications, GNPL appeared to have breached all the protocols when it came to procurement.
Thursday, GNPL’s General Manager, Trevor Bassoo, when contacted, said he was not prepared to speak.
Rather, he said, a statement would be forthcoming. He did not say when.

DETAILS ON LOCAL CONTENT ABSENT FROM GUYANA’S FIRST EITI REPORT
– MINISTER TROTMAN PROMISES IMPROVEMENTS

Guyana’s inaugural report that was submitted to the Extractive Industries Transparency Initiative (EITI) does not contain details on the extent to which companies here utilize local goods and services for their operations.
Speaking at a press conference Thursday at the GY-EITI’s Main Street Office, Natural Resources Minister, Raphael Trotman, sought to remind that this is the nation’s first report and improvements will be made going forward.
He said, “I think there was an expectation that everything under the sun would have been captured in the first report and that was just not possible given the time we had. The Multi-Stakeholder Group (MSG) took a decision as to what it would include as quickly as possible and what it could get.
“So it is not that local content is not important to Guyana but …in our second, third and fourth reports, they will be more illustrative of what is happening in every area including local content.”
Trotman added, “We treat it seriously and I am sure that this is something that will occupy the attention of the MSG.”
Turning his attention to Guyana’s EITI history, the Minister noted that on May 12, 2012, the Government of Guyana signed a Memorandum of Understanding (MOU) with the Extractive Industries Transparency Initiative signaling its intention to pursue membership in the body.
On December 22, 2015, following Cabinet’s approval, Minister Trotman reminded that he had publicly announced the coalition government’s intention to continue Guyana’s commitment to EITI implementation and in February 2017, the GYEITI Multi-Stakeholder Group (MSG) was officially launched with representation from civil society, extractive entities and government agencies.
Trotman said, “I am proud to say that this Multi-Stakeholder Group has equal representation, in true Article 13 fashion, as the government chose not to seek to exercise dominance on and of the group.”

SATURDAY

SEPARATE AGREEMENT ALMOST COMPLETE TO ENSURE ACCOUNTABLE MEASURING OF GUYANA’S OIL
– Govt. Advisor says document will be made public

Guyana’s contracts with some of the world’s major oil operators are utterly silent on how the extracted oil will be measured to ensure accuracy. It appears, however, that all hope is not lost. According to Petroleum Advisor to Government, Matthew Wilks, a separate agreement is being worked on to ensure the accountable measuring of Guyana’s crude.
Wilks made this revelation during a press conference that was held Friday at the Ministry of the Presidency. There, Kaieteur News pointed out this major weakness that is present in all of Guyana’s contracts and challenged the Advisor to say if this will be addressed in the nation’s model Production Sharing Agreement. Wilks said, “Procedurally, yes.”
He said, too, that a Crude Lifting Agreement is being worked to ensure the precise metering of the oil.
Wilks said, “…That agreement contains all the metering checks and that document is in an advanced stage of preparation and it is almost complete. What we are going through now is a process of getting various agencies within Guyana ready for crude lifting because one of the things going out to tender right now is for a Crude Lifting Advisor …to assist us in arranging a marketing arrangement for the government’s share (of its oil).”
The Petroleum Advisor added, “But in terms of the accuracy of metering, how you meter, who checks…that is all contained in the Crude Lifting Agreement. And that will be signed by all parties.”
Asked to say if the document will be made public, Wilks said, “There is not an issue to making it public. We are quite happy to make it public.”

EXXON’S LIZA PHASE 2 TO COST US$6B

Texas-headquartered ExxonMobil on Friday said that it is steaming ahead with its Guyana operations, pumping US$6B into the second phase of the Liza development. The decision followed recent Government and regulatory approvals of the second phase development.
Guyana is expected its first commercial oil early next year with the floating platform, Liza Destiny, to be here in the third quarter of this year.
“Liza Phase 2 will produce up to 220,000 barrels of oil per day and further capitalize on the significant development potential of the Stabroek Block, where ExxonMobil estimates producing more than 750,000 barrels of oil per day by 2025,” ExxonMobil disclosed in a statement.
The oil giant, which announced a major oil find early 2015, shortly after the Coalition Government took office, said Liza Phase 2 received government and regulatory approvals, and remains on track for mid-2022, producing up to 220,000 barrels of oil per day.

RAMJATTAN TO CHALLENGE NAGAMOOTOO FOR PM POST

Moses Nagamootoo, Guyana’s current Prime Minister, was nominated to serve in that post by the Alliance for Change, after an agreement laid out in the Cummingsburg Accord saw to it that the AFC would have the right to name the ruling coalition’s prime ministerial candidate.
In 2015, when the coalition won the General and Regional Elections, Nagamootoo assumed the position, and has been serving for four years. He has also temporarily assumed the duties of the President when President David Granger left the jurisdiction.
But the AFC’s chairman, Khemraj Ramjattan, has signaled his intention to challenge Nagamootoo for the post. The two ministers are both former members of the People’s Progressive Party (PPP) who, dissatisfied with its leadership, left to work on nurturing a credible, political third-force.
During an AFC press conference Friday at the Centre for Change, Ramjattan said “I have already indicated my interest.”
He is prepared, however, to vie against other members of the AFC for the post, as well.
“There are others, I’m certain, who have indicated their interest,” noted the party’s chairman
“And so, it is going to be interesting, and it is good to have – inside of political parties – the regular rivalries between leaders.”

TERMINATIONS, TRANSFERS TO FOLLOW SOCU AUDIT REPORT

There will be disciplinary action taken to remedy the issues laid out in the Special Organised Crime Unit (SOCU) audit report, according to Minister of Public Security, Khemraj Ramjattan. That will include terminations for some, and transfers for others.
An audit of the financial records of the SOCU had uncovered serious irregularities, including the falsification of records.
That audit was ordered by Police Commissioner Leslie James in February, following claims of grave mismanagement. It has recommended immediate transfers and a fraud investigation of several of the discrepancies.
The PPP had demanded not just that the unit be investigated with intent to prosecute, but that Ramjattan resign immediately.
In a release, the party had stated that it has been publicly complaining about SOCU for some time now, that the unit of the Guyana Police Force is removed from its mandate of combatting organised crimes and money laundering, and that it has been reduced to a rogue unit “carrying out political directions to witch hunt PPP leaders and shake down the business community under the pretext of crime fighting.”
According to Ramjattan, “Action will be taken by the commissioner. I have seen the report. It is not a very nice report, and the commissioner has told me that he is going to take action.”
However, Ramjattan said that he is not well informed on the details of that action.
“A minister must not indulge in [operational matters]. He ordered an audit after coming by information. That audit has been completed, and [the commissioner] will take action.”
Ramjattan added: “Institutions can get rotten. What a government does is, through its leadership at the various units, ask for audits, get the things right and move on. And put the correct people in places, [who] could remedy the defects that were occurring. That is what you do in any institution. That is the self-redeeming feature of institutional democracy.”

CGX, FRONTERA ENERGY GET GOVT.’S APPROVAL FOR STRATEGIC JOINT VENTURE

Head of the Energy Department, Dr. Mark Bynoe, announced yesterday that the Government has granted approval for the Strategic Joint Venture between CGX Energy Inc. and Frontera Energy Corporation. The agreement covers two shallow water offshore Petroleum Prospecting Licenses in Guyana for the Corentyne and Demerara Blocks.
The Corentyne Block contains 1,125,000 net acres offshore Guyana in shallow water, adjacent to the ExxonMobil Stabroek Block, which has encountered 13 discoveries since May 2015. CGX’s Utakwaaka well must be drilled by November 27, 2019 in this block, with an additional exploration well to be drilled by November 27, 2022.
The Demerara Block contains 750,000 net acres in shallow water and is also adjacent to the ExxonMobil Stabroek Block. An exploration well is required to be drilled on the block by February 12, 2021 with a further exploration well by February 12, 2023.
Under the terms of the farm-in joint venture agreement between Frontera and a wholly owned subsidiary of CGX, CGX Resources Inc., Frontera will acquire a 33.333% working interest in the two blocks in exchanged for a US$33.3 million signing bonus, paid by way of offset of $24.6 million of debt payable to Frontera by CGX plus a cash payment of US$8.7 million paid by Frontera to CGX. Frontera has agreed to pay one-third of the applicable costs under the joint ventures plus an additional 8.333% of CGX’s direct drilling costs for the initial exploratory commitment wells in the two blocks. CGX is the operator assigned to the blocks.

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