ExxonMobil took US$58.5M from Guyana oil money in 2020 for COVID-19, while Guyana borrowed US$95M for COVID-19 relief

Oct 24, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – During the challenging times of the COVID-19 pandemic, Guyana found itself navigating a fiscal paradox. The nation had to secure substantial loans to bolster its healthcare and other sectors, totaling an eye-watering US$95 million, all aimed at fortifying this country’s response to the pandemic in 2020.

ExxonMobil Guyana President, Alistair Routledge

However, while Guyana was accumulating loans to combat the public health crisis, ExxonMobil, the American oil giant, presented Guyana with a bill of US$58.5 million under the umbrella of COVID-19-related expenses. In 2020, the year when Guyana recorded its first COVID-19 case, the country tapped various sources for financial support. Guyana secured loans from the Inter-American Development Bank (IDB), totaling US$57.4 million, and an additional US$7.5 million from the World Bank in 2020. The IDB loans were part of the Contingent Credit Facility for Natural Disaster and Public Health Emergencies, aimed at financing expenditures necessary to contain disease transmission and mitigate its health and economic repercussions in various countries.

The global health crisis had placed immense pressure on Guyana to fortify its healthcare system while grappling with financial and liquidity constraints that hindered its capacity to invest in bridging gaps and building preparedness and response capability.

Recent revelations by this publication, indicate that a team of local and international auditors, scrutinising ExxonMobil Guyana’s expenses for the year 2018 to 2020, uncovered that a significant portion of the US$58.5 million in COVID-19-related bills was allocated to chartered flights, amounting to US$18 million. The auditors concentrated solely on the initial year, 2020, when the COVID-19 pandemic first hit Guyana.

The auditors discovered that the COVID-19 costs incurred were not confined to Guyana alone but extended to locations including Houston, the United Kingdom, and Trinidad and Tobago. The costs were meticulously catalogued in separate files, notably including Houston Facility costs, United Kingdom (UK) Facility costs, Flights, Guyana Facility, and more.

It was unveiled that 90% of the COVID-19-related costs were charged to the Stabroek block account, with Canje and Kaieteur (a block from which ExxonMobil had walked away earlier in the year) shouldering the remaining 10%.

Further insights into the breakdown of charges reveal that Exxon billed approximately US$9 million for recoverable hotel and hotel-related costs, with a substantial portion allocated to the Atlantic Hotel (Marriott) in Guyana, encompassing blocks of rooms, whether occupied or vacant. Other hotel-related expenses covered Cara Lodge and Pegasus Hotel in Guyana, in addition to hotels in Trinidad, the United Kingdom, and the U.S., all used for quarantining individuals before their journey to Guyana.

President of Guyana, Irfaan Ali

Exxon’s charges also extended to approximately US$18 million for COVID-19-related chartered flights, covering elements like travel voucher taxes, pre-flight COVID-19 tests, aviation fuel, and in-flight catering. Chartered flights from London, executed by British Airways, accounted for US$1.3 million, while flights from Houston, operated by United Airlines, incurred US$1.2 million in expenses.

The auditors further exposed that Exxon billed approximately US$2 million for various medical staffing and supplies, including test kits, nurses, masks, gloves, and hand sanitizer. Additional charges totaling around US$11 million were allocated to staging employees for operations, encompassing coordinators, security personnel, medical support, and catering specific to operations.

Notably, Exxon also registered charges of around US$210,000 for facility management expenses, encompassing janitorial services, tent rentals, electrical and generator repairs, and various sanitization supplies. Moreover, approximately US$1.3 million was assigned to employee or affiliate costs related to standby, quarantine, and staging.

The contract to audit ExxonMobil’s bills totalling US$7.3B for the period 2018 to 2020 was awarded last May to Ramdihal & Haynes Inc., Eclisar Financial, and Vitality Accounting & Consultancy Inc. The local consortium was supported by international firms- SGS and Martindale Consultants. The audit report prepared by the team is yet to be released to the public. It is in the process of being reviewed by the relevant authorities.

Importantly, the audit process did not scrutinize every single bill within the US$7.3 billion expenditure. Auditors only reviewed a sample of the bills. The local and international team of experts was given a four-month deadline to complete the audit.