Probe of breakdown on US$214M costs an insult to intelligence of Guyanese - Opposition

Probe of breakdown on US$214M costs an insult to intelligence of Guyanese – Opposition

Sep 23, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – The Opposition on Friday said it is opposed to the investigation ordered by President Irfaan Ali of the breakdown of the US$214 million in questionable costs to US$3 million.

Leader of the Opposition, Aubrey Norton

The discrepancies were flagged in an audit report conducted by British Consultancy firm, IHS Markit. The Guyana Revenue Authority (GRA) the authorized agency to monitor the process had signaled its no-objection to the US$214 million figure; however, it was reported that staff at the Ministry of Natural Resources Petroleum Unit engaged the oil company in an “unauthorized” breakdown of the sum.

With a full investigation to be launched into what took place, the political group in a statement to the media said, “Irfaan Ali’s decision to order an investigation to determine who authorized personnel at the Ministry of Natural Resources to directly negotiate with ExxonMobil is an insult to the intelligence of Guyanese from all walks of life.”

The Opposition believes any investigation would be a waste of resources since “the evidence and verdict are already starkly obvious”. It is adamant that there were no “negotiations” with Exxon on the breakdown of costs but rather “a submissive giveaway of the country’s revenue”.

The group argued that the breakdown of these costs submitted by the oil company could never have occurred without the knowledge of both the Head of State and Vice President. In fact, the Opposition utilized the opportunity to emphasize its discomfort with Jagdeo managing the petroleum sector.

“This audit scandal (audit-gate) blatantly exposes what we in the Opposition have been saying all along: Jagdeo is not only incompetent, but his incompetence is too costly politically, economically, and financially to the nation for him to wield the power his party allows him to. Does the nation have to wait for another US$200M to be squandered for him to be fired? Does the nation have to wait for another display of arrogance and executive lawlessness?”

It added, “No bogus probe into audit-gate will distract from these realities and imperatives. No bogus probe will fool anyone.”

On Friday, Kaieteur News reported that the Ministry of Natural Resources is set to conduct a thorough investigation into its Petroleum Unit regarding the mishandling of the audit into ExxonMobil’s US$1.7B bills for the period 1999 to 2017.

Vice President, Bharrat Jagdeo made this disclosure Thursday while engaging the media at Freedom House, Georgetown.

He said that the investigation aims to identify the individuals who engaged in an unauthorised reduction of questionable spending by Exxon.

Jagdeo said the ministry will provide a report to Cabinet for review and the appropriate action would be taken thereafter. The official also declined to disclose prior to the completion of this probe, the names of the persons that engaged Exxon. “I would want to await the full report from the ministry to Cabinet and the ministry would have to disclose that to the public too,” he said.

The Vice President said too that he agrees an investigation must take place, as was called for by Chartered Accountant, Christopher Ram and Opposition Parliamentarian, David Patterson. The call for a thorough probe was made after the Vice President revealed last week that the ministry’s unit engaged Exxon on reducing questionable spending first flagged by British Consultancy Group, IHS Markit and later endorsed by the Guyana Revenue Authority (GRA).

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Aubrey Norton, breakdown, British Consultancy firm, IHS Markit, Leader of the Opposition, President Irfaan Ali

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