Why is PPP Govt. defending the tax lawsuit for the PNC giveaway that pays the oil companies’ taxes?

Mar 13, 2022 Letters

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Dear Editor,

National Hero Glenn Lall’s case against the Government paying the oil companies taxes is now on trial. All of Guyana should have been there in the protests to show support for Glenn Lall. Many lawyers should have joined in “amicus” to support Mr. Lall and young attorney, Mr. Mohamed R. Ali. After all, it’s “Our Wealth, Our Country.” If Exxon wins in our own courts, all Guyana loses. Why is the PPP government defending this case? It is now Glenn Lall for the people of Guyana on one side versus the PNC contract, the PPP Government and the oil companies on the other side. The government is siding with ‘Big Oil’ to rob the country of much needed cash, at a time when people are crying out and catching hell because of daily increases in the cost of living. How will this play out in the campaign ads of 2025, that our PPP working-class Government is siding with the oppressor to milk our nation? Look at the Black Bush rice farmers now battling with the police in protests there because they are losing income.
For the little people, the Government takes your taxes every time you get a pay cheque. It is called PAYE (Pay As You Earn). They can’t wait to get their hands on your taxes; they take out the taxes up front. The rich oil companies do not have to do PAYE or corporation profits taxes. We the people do it for them because we love them so much. When you buy anything, you pay VAT right away. The rich oil companies don’t have to pay VAT. In addition to VAT, we the people have to pay enormous customs duties on vehicles, income tax, value-added tax, excise tax, duty, fees, charges or other impost. The rich oil companies don’t have to do that.
Can the oil companies tell us which other countries in the world are paying their taxes, the way the Guyana Government is writing fake receipts pretending to receive their taxes (from the oil companies)? Next door in Suriname, the tax rate on oil companies is 36 percent. In Ghana, the tax rate is 35 percent. They said we made US$607 million income in the Natural Resource Fund. If we actually deducted taxes from that amount, one estimate says our real oil income would be about US$240 million less.
So, does the PPP Government want Glenn Lall’s lawsuit to fail and let this bad provision of the worst contract in the world to continue? Why is that? At least, the AG has sense to send other people to argue against Glenn and Guyana, or else it would be bad for him if he ever becomes a Presidential Candidate to have to explain why he defended the case himself. If the PPP Government is defending the lawsuit and fighting Glenn, is the PPP side now saying the PNC did nothing wrong when it told Trotman to sign the “gift of deed” contract that gave away the national patrimony? Is that why both the PPP and PNC promised Exxon they will not renegotiate the contract?
KN Radio released a conversation making its way around social media where the PPP Presidential Candidate said if elected they would “review and renegotiate” the contract that “Guyana is getting the short end of the stick.” The interviewer said to the Candidate, “Two things – burning questions that are affecting people…we got 5 minutes and I need these 2 questions answered. People are asking these questions. The oil contract: Do you agree with the US$55 billion ‘Signed Away Global Witness Report,’ will you revisit the oil contract? The Presidential Candidate said, “We have made it very clear, that we can never agree. How can, how can, I don’t think any Guyanese agree with this. No Guyanese, except the government that is defending it. We have made it very clear, that we have to go towards, we looking at these contracts, renegotiating these contracts, looking at contract management and all of these things. Everything we have to relook at because we have to ensure that our country does not get the wrong end of the stick.” Interviewer said, “Everything is on the table for review as it relates to the oil contracts?” Candidate said, “Everything is on the table, available for review and renegotiate.”
Not only is that a “promise made, promise not kept.” Now we have the PPP Government essentially saying in Court that the Guyanese people paying the oil companies taxes is legal and OK, that Trotman did no wrong, and that Glenn Lall fighting for the people of Guyana is wrong to challenge the tax giveaway.
We should note that the Organisation for Economic Cooperation and Development has reported a global deal to ensure big companies pay a minimum tax rate of 15 percent and make it harder for them to avoid taxation. This agreement by 136 countries calls for countries to bring it into law in 2022 so that it can take effect by 2023.
Nation, let’s support Glenn Lall who fights for the people while our PPP Government is now hand in glove with the big oil companies ripping off our poor country while our people live in persistent poverty. Wake up Guyana! It’s “Our Wealth, Our Country.”

Sincerely,
Dr. Jerry Jailall

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