Petroleum dealer alleges malicious prosecution by GEA

Jul 19, 2021 News

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…calls licence cancellation ‘vindictiveness’

Kaieteur News – The export of crude from the Liza oil field in the Stabroek Block offshore Guyana, has been the main focus of Guyanese since its discovery in commercial quantities back in 2015 and export began in 2019.

The import of refined oil, however, particularly diesel, gasoline, kerosene and such like, is a multibillion-dollar industry that accounts for Guyana’s single largest import bill and is a critical revenue earner.
The sector has in recent years been plagued by allegations of smuggling, illegal fuel markings and more recently, the pulling of a licence from an established petroleum service company providing transportation, retail, storage and other facilities with investments across the country to the tune of billions.
SBF International Inc.
With the Energy Agency coming under the limelight this past week, the principal for the Company—SBF International Inc.—Dorwain Bess, has come forward to lament what he insists is not only malicious prosecution, but also persecution by a person or persons inside of the Energy Agency.
This he posits is since his licence was cancelled over an infraction that he concedes should attract a minimum fine that he is willing to pay and move on. But when contrasted against the actions meted out to other dealers caught publicly robbing the treasury of billions of dollars, “it has to be vindictiveness or some other thing.”
He said too, the cumulative actions by members of the GEA have led to his conviction of being persecuted by vindictive individuals.
Bess in an interview with this publication noted that his licence was cancelled by the GEA on September 14 last year, and from then to now, he has been unable to conduct any business and his facilities are being left to deteriorate.
The genesis of the licence being cancelled is muddled, but officially begins with that of an altered date on a lease agreement, purportedly with the knowledge of the landlord—a senior executive of OMAI Gold Mine’s the company that owns the property in Christianburg, Linden.
Permission
As per regulation, companies are required to resubmit, on a regular basis, information related to the company such as tenancy agreements for a location where necessary.
Bess has since told this newspaper that at the time the documentation had to be submitted, the Omai Executive was out of the country but had given permission for the date on the lease be altered, in order to renew the lease between SBF International and Omai with the rental cheques being paid in the name of the landlord—the senior executive.
This was done in 2019, according to Bess and business continued.
The GEA in a subsequent investigation had claimed to be in possession of a letter from the Omai executive that said, he had no intention renewing the lease.
Bess’ counter, however, is that his company officials felt all was well since the landlord was accepting payments on the rented facility and was being provided with payment receipts up until April 2020.

This would mean that the same landlord that claimed to GEA he had no intention renewing the lease, in fact, collected payments for 13 more months to the tune of millions.
Rent at that time on the leased property was $1,590,000 per month.
“Our company in representation of fraud allegations issued by the GEA in 2020, explained what had transpired, but our explanations were disregarded by officials of the agency…Instead, the GEA deemed the matter as one of fraudulent nature, and on September 14, last year cancelled, our licence.”
Investigations
A criminal investigation was subsequently ordered by the GEA following its internal probe, and the matter handed over to the Criminal Investigation Department (CID).
This publication understands that not only did the police find there was no evidence to support any criminal charges, the Department of Public Prosecution (DPP) also recommended that no criminal charges could be laid. This was in December 2020.
According to the State’s Attorney at the time, advised that no charges be instituted and no suspension or revocation to follow.
The investigation by the GEA—conducted by the same officer currently under investigation—noted that SBF was in June last year requested to provide information on the continued use of the Linden facility since marking officers had difficulties accessing the facility on May 29.
The investigation by the now embattled officer said, it appeared that the fixed tenancy agreement appeared fraudulent.
The matter of altered dates in the lease agreement could not be proved, since this publication understands the landlord refused to present himself to CID to present a formal statement or to answer to any queries.
This did not stop the GEA head from pulling Bess’ licence in September 2020, and also filing private action against the company.
Sword of Damocles

Bess told this publication, he believes that the constant pursuit of court action against his company by the GEA is in order to hold them like a ‘sword of Damocles over his head, in order to ensure the licence is not returned to the company.
Qualifying his argument further of his perceived vendetta against his company, Bess drew reference to a spill at the facility earlier that year for which the company cleaned up and paid the fines to the Environmental Protection Agency (EPA).
According to Bess, “the GEA was hoping to shut us down as a result of the spill. When this failed they, through further administrative examination of our company during that period, had uncovered a contract for lease altered by the business and the lessor of the property.”
As with the case of an onion, with every layer peeled away another emerges and according to Bess, the actions by the GEA are, he believes, being facilitated by one of his own former directors, who just before his dismissal had attempted a ‘hostile takeover’ of the company, ordering that 80 percent of the shares of the business be signed over to him.
Vindictiveness
This was in the lead up to the GEA taking formal actions against the company where GEA officials refused to bulk mark the company’s fuel, and take steps to prevent the clearing of the company’s imported diesel before the lapse of 30 days allotted for company representation on the matter.
The GEA had in August 13 last written to SBF to ‘show cause’ why the licence should not be cancelled and at the same time, refused to clear fuel that had been ordered and paid for prior, and arrived in Guyana while the licence was still in force,

“If this is not vindictiveness, what is,” Bess questioned rhetorically, telling this publication “our company in less than two years has paid about $2B dollars in taxes to Guyana’s economy.”
He again questioned rhetorically, “look at those large companies that are not even Guyanese owned that are being caught robbing this country billions through all kinds of means and what happens to them, they get a slap on the wrist, you don’t hear GEA going after them, so why are they coming after me, a man who born in Belladrum, make a few dollars in the states and come home and invest it.”
He reminded of his investments now lying dormant across the country that includes two gas stations and a number of storage facilities including one recently constructed for the sole supply of a bauxite company, four oil tankers—a contract to the tune of millions that he has lost out on for one year now since the contract imbroglio.
Additionally, the jobs of some 100 persons have been left in limbo and a company now in debt with a number of investors and other creditors to be paid.
Bess has since exited the Omai facility and has already constructed another facility meeting all of the GEA’s requirements with vessels already certified to load at refineries.

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