Opposition crafting strategy to bring Exxon’s bills for Parliamentary scrutiny 

Jan 14, 2023 News

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Kaieteur News – Given the absence of important information relating to oil sector spending, the Parliamentary Opposition intends to have the Public Accounts Committee (PAC) play a greater role in monitoring recoverable expenses submitted by ExxonMobil.

Opposition Member of Parliament (MP) and PAC Chairman, Jermaine Figueira told the Kaieteur News that the Opposition is aware of the section of the 2016 Production Sharing Agreement (PSA) which speaks to the submission of quarterly cost recovery statements to the Government by ExxonMobil affiliate, Esso Exploration and Production Guyana Limited (EEPGL), and is currently discussing the need to have the documents laid in Parliament.

Figueira said that while the Committee mainly interrogates the findings of the Auditor General, it can make requests for the oil documents.

“We can request any document and we can make that request via Parliament through questions and motions. We could put a motion for it to be publicized or to ask questions on it,” Figueira clarified.

He said too that when it comes to inspecting the financial documents, the PAC could also recommend having external assistance involved in the process to ensure the requisite expertise.

He explained that as a body, the PAC could make a recommendation to have additional assistance in handling financials. He said that “if the Audit Office has made it known that it is not in a position or it does not have the requisite skill set the PAC could recommend, the hiring of external support.”

Further, Figueira said if the cost recovery statements were to be placed with the PAC, the Committee could make recommendations to have the right team handle the documents since the Audit Office itself hires independent auditors to get some of its work done.

He said the Opposition is “deliberating” on the value of having the statements in Parliament and avenues that allow for that to happen.

So far international companies have led the way in auditing oil sector expenses. It is expected that the audited documents will subsequently be placed in Parliament and possibly deliberated on.

However, the cost recovery statements are quarterly statements to be handed over to the Government by the oil company. It is unsure how these documents are being treated or whether they have been received and within the stated timeframe.

Examining the need for the PAC in this regard and the role it could play in monitoring these important documents, is what is currently being looked at. Figueira said the public could look out for the Opposition’s position on the issue soon.

The deliberation on the cost recovery document is another attempt by the Opposition to put certain mechanisms in place to improve their access to oil revenue information. The Opposition has contended that the Government has given no clear means as to how they are protecting oil sector finances. They say too that there seems to be no urgency in getting Guyana to have its own in-house professionals qualified to audit oil company expenses, while receiving accurate, relevant and up-to-date information.

Opposition Economist and Youth Advisor, Elson Low had told the Kaieteur News that in light of another delay by the Government to deliver the overdue audited oil company financials, the cost recovery statements should be documents available to the Parliament.

Low opined that failure to complete the audits are “very alarming” as it highlights the country’s ability to manage the financial aspect of its oil sector.  He said that the cost recovery statements should be reviewed by the PAC as the statements are meant to give Guyana insight into the recoverable 75 percent cost oil, before the actual audits take place. He said the statements give a preview of what is to come and that is useful information the Parliament could have beforehand.

Low urged citizens to understand that expenses that are incurred in oil development and production need to be monitored as closely as expenses that come from building roads. He said Guyana building auditing capacity is imperative. Not auditing Exxon on time, and then potentially delivering a flawed audit, as well as failing to build auditing capacity are Government failures that should be made criminal, Low said.

Just days ago, former Health Minister and Opposition Member of Parliament, Volda Lawrence tabled several questions in the National Assembly to ascertain the financing arrangements in place for the US multi-million-dollar gas-to-energy project being pursued by the People’s Progressive Party Civic (PPP/C) Government in collaboration with ExxonMobil.

Low told Kaieteur News that financing for the pipeline is another matter that should be with Parliament.  He said that the Opposition is very concerned that no information, terms and conditions regarding that arrangement has been put to Parliament despite the gas to energy US$1.3B pipeline which is being built by Exxon eventually becoming 100 percent state owned. Stakeholders say the law does not allow Government to spend such sums without Parliament’s involvement even if the project itself is catered for in the PSA.

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• opposition, Parliament, pipeline, scrutiny, Wales

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