Latest update November 15th, 2024 1:00 AM
Senior Petroleum Coordinator to face disciplinary action for Exxon’s US$214M audit fiasco
Kaieteur News – Senior Petroleum Coordinator within the Ministry of Natural Resources is expected to face disciplinary action for the unauthorized reduction of US$214M in questionable expenses by ExxonMobil to US$3M.
Gopnauth Gossai
Making this disclosure last evening was Natural Resources Minister, Vickram Bharrat following a probe that was done into the matter. Kaieteur News previously reported that an investigation was launched two weeks ago to understand who were the persons within the ministry that engaged in the reduction of the questionable sums that were first flagged by British company, IHS Markit. That firm was hired back in 2019 by the Guyana Government to audit ExxonMobil’s expenses in the Stabroek Block for the period 1999 to 2017 totalling US$1.7B. IHS later flagged US$214M in questionable sums which were given a no-objection by the Guyana Revenue Authority (GRA). Despite GRA’s advice to proceed with the closure of the audit at that sum, the ministry still engaged Exxon in the reduction of the sum.
In a missive to the media, Bharrat stressed that the position of the Guyana Government has always been that the Guyana Revenue Authority is the sole and final authority to determine the final outcome in relation to the audit of an oil company’s expenses. He said the Ministry of Natural Resource’s role was to oversee the process of conducting the audit as per the 2016 Stabroek Block Production Sharing Agreement (PSA), as well as, to facilitate the exchange of information and documentation among the relevant parties, including the Guyana Revenue Authority.
“However, based on advice from Mr. Gopnauth Gossai that the initial claim of USD$214,911,994 was reduced to USD$3,414,853.68, I wrote the Guyana Revenue Authority on the 28th of November, 2022 to confirm this figure by seeking a no objection,” Bharrat said.
As recently as July 2023, the minister said Gossai in a meeting with Vice President, Bharrat Jagdeo and himself reported that the initial sum was reduced to USD$11,497,140 then further down to USD$3,414,853.68. “Given that I had written the GRA since November, 2022 and it was established that the GRA’s involvement is necessary to finalize the audit, I was under the impression that the reduce figure was done in collaboration with the GRA,” the minister said.
Bharrat said he subsequently learnt that GRA did not agree with the position and the initial claim of USD$214,911,994 remains the same.
“I wish to restate that the position of the Government of Guyana today remains consistent with its original position that the only authority to make a final determination is the Guyana Revenue Authority,” the minister said.
He added, “Therefore, after examining all the facts, it is clear that Mr. Gossai acted without the requisite authorization to engage Exxon and provided inadequate advice and as such, I have asked the Permanent Secretary to take the necessary disciplinary measures.”
Minister Bharrat said further systems will be established to ensure no repetition of this lapse in the future. He said too that staff members will be advised to make full disclosure of all contact and sharing of information with stakeholders in the sector.
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