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Glenn Lall makes final submission in oil tax waiver case
Kaieteur News – Final submissions have been filed by attorney for Kaieteur News Publisher, Glenn Lall, in the case where he challenged the Government of Guyana’s (GOG) decision to grant massive tax waivers to the oil companies and their affiliates.
Kaieteur News Publisher, Glenn Lall
In the final document submitted to the Court, Lall’s lawyer Mohamed R. Ali deposed several parts of the agreement between ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) violated certain provisions of the Petroleum Exploration and Production Act as well as the Financial Administration and Audit Act.
Against this background, he submitted that any exemptions referred to in Article 15 of the Petroleum Exploration and Production Act, purporting to extend concessions to persons other than the licensees is in conflict with the law.
Citing the exploitation of Guyana’s most valued natural resource under the agreement, the final submission contends inter alia, that the issue falls within the ambit of judicial review—the power of the courts of a country to examine the actions of the legislative, executive, and administrative arms of the government and to determine whether such actions are consistent with the constitution.
In the legal document, the lawyer set out main and alternative orders that can be granted under Judicial Review. Lall was granted an extension to file his final submissions in September.
Justice Nareshwar Harananan, the presiding Judge, had instructed that after the submissions are made, oral arguments into the case will be conducted on December 12, 2022 and set February 22, 2023 for the ruling.
The GoG had filed, through the office of the Attorney General, a response highlighting its contentions. The government said that Lall’s application raises several contentions for the court’s consideration including whether the agreement between the Government of Guyana and ExxonMobil are subject to the principles of private law or public law; whether the acts of the Minister of Natural Resources and certain sub-articles of the Petroleum Agreement were ultra vires and in breach of sections 10 and 51 of Petroleum Exploration and Production Act (PEPA), sub-sections 1A and 1B of section 6 of the Financial Administration (and Audit) FAA; and whether upon its proper interpretation the PEPA permits the payment of taxes due on behalf of licensees.
In its response, the government submitted that the Minister responsible for petroleum may enter into an agreement with the oil company as it relates to any matter related to development and exploration in Guyana.
“It is clear… that the Minister had a power both at common law and in statute to enter into the Petroleum Agreement,” the government said in its submission.
Further, the government contends that the Minister was assigned responsibility for Finance, by order, which is subject to the affirmative resolution of the National Assembly.
Additionally, the Government contends that Lall exercised undue delay in filing the court action while adding that Lall provided no reason for the six years hiatus in bringing these proceedings before the Courts.
“…The lapse of five years in seeking such redress amounted to inordinate delay in the absence of any cogent explanation. It is in the public interest that claims do not become stale…,” the Government had said in the document.
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