Govt. wants audit of Exxon’s 2018, 2019 and 2020 bills completed in four months

May 22, 2022 News

By Kiana Wilburg

Kaieteur News – The Government of Guyana has a affixed a four-month completion timeline for the company or group it selects to audit the 2018, 2019 and 2020 cost recovery bills for ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL).

Financial Analyst and Accountant, Floyd Haynes

This was revealed by Business Professor and Accountant, Floyd Haynes, during his appearance on Kaieteur Radio’s Programme, Guyana’s Oil and You. While there, Haynes was asked to provide an update on the auditing contract which government had expressed interest in awarding since last year.
He recalled that Vice President, Dr. Bharrat Jagdeo and President, Irfaan Ali had decided that a consortium of local accounting firms should be part of the auditing process for ExxonMobil’s bills.
Haynes said, “I agree with that approach. Guyanese should be given an opportunity to protect their country’s interest. As a result, I was approached to put together a consortium and it initially included: Ram and McRae, Haynes and Ramdihal, Vitality Consulting, and Eclisar Financial and Professional Services. When we submitted the proposal, we came up with a cost and Christopher Ram felt it was too high, he said it was unconscionable.”
The accountant added, “I explained it is just to open the door. It is also a good negotiating tactic to start high and then go back. But I was the team lead and I was sad to see him go. He would have been a good part of it but he is unquestionably one of the best accountants in this country.”
Following Ram’s departure, Haynes said the consortium then evolved to Ramdihal and Haynes, Vitality Consulting, and Eclisar Financial and Professional Services. Kaieteur News understands that government subsequently asked for some clarifications from the group and those were provided. Haynes said the team is now awaiting word on if they won the bid to audit the 2018, 2019 and 2020 expenses for EEPGL. He said too that they will have four months to get this job done. “We have a dozen experts. And I have access to more in country. It is possible to get it done once all of the documentation is streamlined but Exxon is an organised firm,” Haynes said.
It should be noted that Haynes and team submitted a $340.7M bid to audit approximately US$9B in costs incurred in the Stabroek Block for the period 2018 to 2020.
Importantly, the public is unaware of the outcome of the audit of the US$460 million pre-contract costs, which was done by IHS Markit. The contract to the UK firm had cost US$300,000.
Natural Resources Minister, Vickram Bharrat had said earlier this year during a parliamentary sitting that the said audit was still ongoing.
Kaieteur News has reported on several occasions that the country has a limited two-year window within which it can audit EEPGL’s expenses or it would have to be accepted as correct.