Exxon subsidiary says AG legally tasked to defend public’s rights not KN publisher

Apr 02, 2022 News

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Court case filed over tax exemptions…

Kaieteur News – Exxon Mobil’s subsidiary Esso Exploration and Production Guyana Limited (EEPGL) has filed a response in the Court essentially contending that Kaieteur News Publisher, Glenn Lall has overstepped his boundaries “as a private citizen,” in his effort to legally challenge the Government to ensure that the oil companies pay their fair share of taxes.
The oil company has instead charged the Attorney-General (AG) with the responsibility for filing a civil action in the interest of the public.

In the affidavit in defence signed by President of ExxonMobil Guyana, Alistair Routledge, the company which was recently added as a respondent in the case between Lall and the government outlines what it termed “as reasons,” why the newspaper publisher is without jurisdiction to bring such a case against the government.
Lall is challenging the government over the discriminatory tax provisions granted in the Stabroek Block Production Sharing Agreement (PSA) for the oil companies.
The PSA between the oil giant, its partners and the Government of Guyana essentially states, “…no tax, value-added tax, excise tax, duty, fee, charge or other impost shall be levied on the Contractor or Affiliated Companies, in respect of income derived from Petroleum Operations with the Stabroek Block.”
The Stabroek Block is currently being drilled by Exxon’s subsidiary EEPGL, Hess Corporation and CNOOC Petroleum Guyana Limited.
In January, KN’s publisher, through his attorney, Mohamed R. Ali, filed an action in the High Court which outlined that the tax reliefs listed under Article 15.1 of the Petroleum Agreement, dated June 27, 2016, between the Guyana Government and the oil companies, violate the Petroleum Exploration and Production Act, the Financial Administration (and Audit) Act, the Prevention of Discrimination Act, and the Constitution.
In that court case, Lall is seeking declarations to have the provisions nullified and reversed.
But EEPGL, the Exxon operator is strongly opposing the application. In the document filed to oppose case, the company claimed it has no knowledge of the allegations contained in Lall’s application.
Instead, EEPGL said that the fact that Lall is a citizen of Guyana and the publisher of the National Media and Publishing Company Limited (Kaieteur News), does not entitle him to bring the present proceeding in his own name, in his private capacity for declaratory relief alleging breach of public rights.

“…Nor has the applicant (Lall) shown any special loss or damage he would suffer over and above the public so as to entitle him to seek the reliefs that he does,” EEPGL added in the affidavit.
The oil company explained that based on the advice of its attorneys, Lall as a private person is not entitled to seek the declaratory reliefs in order to prevent what are alleged public wrongs or to assert a right on behalf of the public in proceedings, which are not for judicial review, and are brought in the regular jurisdiction of the court.
The Exxon subsidiary argues further that it is a fundamental principle of Guyana law that public rights could only be asserted in a civil action by the Attorney-General of Guyana representing the public.
It explained that “Except where a statute otherwise provides, a private person could only bring a proceeding to challenge a breach of the law if his claim was based on an allegation that the breach constituted an infringement of his private rights or would inflict special damage on him. A private person was not entitled to bring an action in his own name for the purpose of preventing public wrongs. “
“Consequently,” the company continues, “the court has no jurisdiction to grant relief in such a proceeding as the present one and the proceeding brought by the applicant ought to be struck out forthwith.”
Additionally, the company claimed that the Petroleum Agreement (PA) that it has with the Government does not violate provisions of the Petroleum Act (PA), the Financial Administration and Audit Act, Prevention of Discrimination Act or the Constitution of Guyana.
The added respondent (EEPGL) specifically denies that PA does not extend or purport to extend concessions to persons in a manner that is inconsistent with sections 10 and 51 of the Petroleum Act, either as the applicant alleges or at all.
“The PA does not separately or cumulatively alter certain tax laws to grant remissions, concessions and waivers contrary to section 6 of the FAA Act…”
Further, the added respondent is of the view that the provisions of the PA do not and cannot alter a law.
“Only Parliament may do so by way of legislative device, which is recognised and given effect to by Article 15.14 of the PA…”

 

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