“I can only tell you what you know”

Jan 18, 2023 News

– Pres. Ali tells KN reporter when asked for update on long overdue oil audits

Kaieteur News – “Well I can only tell you what you know,” is what President, Dr. Irfaan Ali had to say yesterday when asked by Kaieteur News for an update on the audit of ExxonMobil’s US$7.3B Stabroek Block bills.

During a press conference held at State House, the Head of State spoke extensively about his recent visit to India and the business opportunities that arose for collaboration in the areas of health and wellness, agriculture and the oil and gas sector.

President Irfaan Ali

Following his presentation, and that of other members of the private sector who were part of the Guyana contingent to India, Kaieteur News asked the Head of State for an update on the audit of ExxonMobil’s expenses for the 2018 to 2020 period. The update was sought as it was he who announced last year that the results would be received from Auditors in December 2022. This was published in Kaieteur News and other media entities. (See clippings attached.)

The President only said, “Well I can only tell you what you know. So I know that there’s the work that was ongoing, work was received so I don’t know what update I can give you but what I can say to you is that I am very pleased that the audits have commenced, that we have audits now, and the audits will continue.”

Kaieteur News also reminded the President of his promise that these audit reports would be released for public scrutiny and if the public can still look forward to this. He said, “The public can look forward to a lot of things and I’m not a person who walks back on my commitment to this country.”

It was on May 24, 2022, Government had inked an agreement for a four month review of the bills handed to it by ExxonMobil Corporation’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL).

The consultancy was awarded to VHE Consulting which is a registered partnership between Ramdihal & Haynes Inc, Eclisar Financial, and Vitality Accounting & Consultancy Inc. The Local Consortium is supported by International firms- SGS and Martindale Consultants for the ‘Cost Recovery Audit and Validation of the Government of Guyana’s Profit Oil Share’.

The audit will cost Guyanese some US$751,000. Like President Ali, Minister of Natural Resources, Vickram Bharrat, had assured that the findings of the audit would be made public.

Clippings of three news entities which carried articles on the audit in question.

This is particularly important as the public is also unaware of the outcome of the audit of the US$460 million pre-contract costs, which was done by another firm, IHS Markit. The contract to the UK firm had cost US$300,000. It was awarded back in 2019.

Bharrat had told media operatives that Government will rely on the findings and recommendations of the Report to take ‘appropriate steps’. While qualifying the Government’s decision to use foreign companies on the Review Committee, the Minister explained, “The technical company is needed because our local Auditors might be very familiar with the auditing (of) basic expenses (such as) fuel, meals, transportation, but when we are talking about jumpers and risers and Christmas trees, FPSO (Floating Production Storage and Offloading vessel) and these technical terms obviously, will need that kind of technical knowledge and expertise onboard to assist them to have a thorough exercise being done.”

He added that there will be new arrangements for future audits even as the Government seeks to conduct annual and even bi-annual cost reviews for ExxonMobil.

After the contract was signed last year, Opposition Economist, Elson Low noted that once completed, the Report on the US$7.3 billion audit of ExxonMobil’s expenses should be made available for parliamentary scrutiny. He said that this is particularly important as the four months timeframe to complete the audit, remains questionable.

In fact, Low said that not only should the audit be made public but the Parliamentary Oversight Committee such as the Public Accounts Committee (PAC) should be privy to the details of the expenses so that the National Assembly can publicly debate its findings.

He said that this is the level of transparency and accountability that will leave no question about Exxon’s oil spending unanswered.

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Elson Low, Esso Exploration and Production Guyana Limited (EEPGL), IHS Markit, Opposition Economist, President Irfaan Ali, Stabroek Block bills

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