Govt. agencies, Oil companies submit unverified data for transparency report

Jun 18, 2022 News

Kaieteur News – Guyana has signed on to the Extractive Industries Transparency Initiative (EITI), a global Standard to promote open and accountable management of natural resources but in its third report recently concluded for the country, both government and oil companies have been found wanting in their submissions to the accountability body.

The Ministry of Finance on the other hand, for its part submitted unsigned reporting templates

Documented in that report, EITI (Guyana) observed that reporting templates signed by an authorized officer had been submitted for the Guyana Revenue Authority, the Guyana Gold Board, the Environmental Protection Agency and the National Industrial and Commercial Investments Limited. These accounted for some $59.6B.
It was found however, that the Guyana Geology and Mines Commissioner (GGMC) submitted partially completed reporting templates accounting for revenues to the tune of some $2.13B or about three percent of the total extractive revenues.
According to EITI, the Ministry of Finance on the other hand, for its part submitted unsigned reporting templates for Troy Resources Guyana Inc. and Aurora Gold Mine (AGM) for a total amount of $3.89 B or six percent of the extractive revenues.
Notably, EITI found too that all reporting templates that were submitted by Government Agencies had not been certified by the Auditor General.
As it relates to the Oil and gas entities operating in Guyana, EITI noted that only three (3) oil and gas companies submitted their reporting templates signed by an authorised officer at management level, while three submitted unsigned reporting templates.
The revenues reported by Government Agencies in respect of companies which submitted reporting templates not signed by management amounted to $12.34B representing 99.26 percent of the total reconciled revenue.
Additionally, it was found that Repsol Exploracion Guyana, S.A. submitted reporting templates without its audited financial statements.
EITI noted that the revenues reported by Government Agencies in respect of this company which submitted reporting templates amounted to $73M representing 0.59 percent of the total reconciled revenues.
Notably it was underscored that none of the companies submitted reporting templates certified by an external auditor.
As such, EITI concluded that given the significance of the matters stated, “…it was not possible to conclude that the financial data submitted by reporting entities and included in this report, were subject to audits that have been performed in accordance with international standards.”
The EITI framework—according to the local body—seeks to strengthen government and company systems, inform public debates, and enhance trust. In each implementing country, it is supported by a Multi-Stakeholder Steering Group (MSG), which comprises government agencies, extractive companies and civil society organisations working together.
The Initiative was first announced at the World Summit on Sustainable Development in Johannesburg in 2002 (the Earth Summit 2002) and was officially launched in London in 2003. EITI is currently being implemented in 56 countries in Africa, Asia, Europe and America.
The EITI Standard sets out of the requirements which countries need to meet in order to be recognised first as EITI implementing country and subsequently assessed against the EITI Standard. The Standard is overseen by the EITI Board, which comprises members from governments, extractive companies, and civil society organisations.