Latest update November 22nd, 2024 1:00 AM
Latest News
- Exxon wants new oil block on own terms
- Indian companies eye Guyana’s oil
- ICC issues arrest warrant for Israeli PM Netanyahu for ‘war crimes’ in Gaza
- Developing countries should not be curtailed in exploiting natural resources- PM Modi tells Parliament
- Jagdeo was sold expired soft drink at Marriott Hotel
Petroleum Commission could have made Exxon’s US$214M audit fiasco worse – VP Jagdeo
By Kiana Wilburg
Kaieteur News – While some industry stakeholders argue that a Petroleum Commission could have averted the confusion that now plagues the audit of ExxonMobil’s US$1.7B expenses, Vice President, Dr. Bharrat Jagdeo disagrees. He believes that such a matter, in the hands of an independent body which is insulated from the say-so of policymakers, could have led to ExxonMobil having its way in reducing questionable sums from US$214M to US$3M.
Vice-President – Dr. Bharrat Jagdeo
The Vice President offered this perspective during a press conference held at Freedom House on Thursday. There, Jagdeo addressed concerns about the fact that the Ministry of Natural Resources’ Petroleum Unit deviated from advice to close the audit of Exxon’s US$1.7B expenses. The audit was initially done by British company, IHS Markit which flagged US$214M as being questionable expenses. The Government’s sole advisor on these matters, the Guyana Revenue Authority (GRA), also gave its no-objection on that sum.
Despite GRA issuing written advice on closing the audit at US$214M, the ministry deviated from the advice and engaged Exxon in the reduction of the sums to US$3M. Chartered Accountant, Christopher Ram contended that not only should there be a full investigation into the matter but that a Petroleum Commission would have averted this entire fiasco that has become a national embarrassment.
“The PPP/C has been promising a Petroleum Commission for years now but has done nothing about it. Too often there is an unhealthy relationship between politicians and public officers. When things go wrong, they cover for each other,” the lawyer told this newspaper.
Vice President, Dr. Jagdeo said he disagrees with such a line of argument adding that it is because of political oversight that the matter has been rectified with a reversal of the reduction. “Just imagine if there was no political oversight and the Petroleum Commission with just technical people [was handling this matter by itself] then this would have gone through because that is the converse of it. [If you have a] Petroleum Commission staffed with technical people [who are autonomous] and the politicians had objected and said let GRA intervene then what would have happened? So it could have been worse,” the Vice President reasoned.
The official also noted that government has not concluded the audit as yet, noting that the Natural Resources Ministry has to write Exxon to say the disputed sum is US$214M and the audit is closed.
He also noted that a full investigation is underway, under instructions from President, Dr. Irfaan Ali. Jagdeo said that probe, to be conducted by the ministry, will see a report being submitted to Cabinet for review and action.
Jagdeo also gave assurances that the audit fiasco that led to an unauthorized reduction in the disputed sums would not weaken the government’s position when it heads to arbitration to face off with Exxon on the disputed sums.
The Vice President is also expected to persuade his Cabinet colleagues to implement a policy for technical offers to not engage oil companies without the expressed permission of their subject minster. He said there is no room for maverick action in this government and that is why the administration’s position is to be transparent about its decision making.
“They must seek the explicit clearance from the ministry and they must report back on the nature of every engagement, almost a disclosure policy. It is something that I intend to propose to Cabinet because we may never know what discussions actually took place between the oil and gas companies and staff at the technical level,” the Vice President said.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
China-owned companies competing to build new West Dem. Hospital
The West Demerara Regional Hospital. (China-owned companies) Kaieteur News- Three Chinese companies who are no strangers... more
China-owned companies competing to build new West Dem. Hospital
The West Demerara Regional Hospital. (China-owned companies) Kaieteur News- Three Chinese companies who are no strangers... more
Weekend Cartoon
