Latest update November 15th, 2024 1:00 AM
Bobby Gossai was only given a warning and 15 days no-pay for role in US$214M audit fiasco
Kaieteur News – The Ministry of Natural Resources has decided to deduct 15 days pay from the salary of Senior Petroleum Coordinator, Gopnauth B. Gossai Jr. and gave him a written warning for his role in the unauthorised reduction of US$214M in questionable expenses by ExxonMobil to US$3M.
Earlier this month, the Ministry of Natural Resources announced that Gossai would face disciplinary action after an investigation found that he had engagements with the oil major that was never approved.
In a notice from the ministry published on Thursday it was stated, “A review of the facts emanating from the investigation has confirmed that the discussions were never approved at any of the mandatory levels.” Notably, it was stated that Gossai was disciplined, according to Public Service Rules for the offence of negligence. Accordingly, the maximum fine of 15 days’ pay has been imposed on Gossai, along with a formal warning, the ministry said.
Senior Petroleum Coordinator within the Ministry of Natural Resources, Gopnauth B. Gossai Jr.
The ministry had initially launched an investigation to identify the individuals within the ministry involved in reducing the questioned sums, flagged by British company, IHS Markit. This firm was hired in 2019 by the Guyana Government to audit ExxonMobil’s expenses in the Stabroek Block from 1999 to 2017, totaling US$1.7B. IHS Markit identified US$214M in questionable sums, which received no objection from the Guyana Revenue Authority (GRA). Despite GRA’s recommendation to conclude the audit at that sum, the ministry continued to negotiate with Exxon for a reduced amount.
During his press conference on Thursday, Vice President Bharrat Jagdeo responded to questions about whether the disciplinary actions were sufficient, stating, “I said to Vickram Bharrat (Natural Resources Minister) to deal with that matter, he has dealt with it and he sent out a document to that effect.” He emphasised, “The statement captures our position, the ministry’s position.”
Minister Bharrat in a statement earlier this month had emphasised that the Guyana Government’s position is that the GRA is the sole and final authority to determine the audit’s outcome. The ministry’s role was to oversee the audit process as per the 2016 Stabroek Block Production Sharing Agreement (PSA) and facilitate information exchange among relevant parties, including the GRA.
Minister Bharrat explained, “Based on advice from Gossai that the initial claim of USD$214,911,994 was reduced to USD$3,414,853.68, I wrote to the Guyana Revenue Authority on November 28, 2022, seeking their no objection.”
As recently as July 2023, Gossai reported in a meeting with Vice President Bharrat Jagdeo and Minister Bharrat that the initial sum had been further reduced to USD$11,497,140, and later down to USD$3,414,853.68. However, it was subsequently revealed that the GRA did not agree with this reduced figure, and the initial claim of USD$214,911,994 remained unchanged. Minister Bharrat reaffirmed, “The only authority to make a final determination is the Guyana Revenue Authority.” He also pledged to establish systems to prevent such lapses in the future and advise staff members to fully disclose all contacts and information sharing with sector stakeholders.
- audit fiasco, expenses, Gopnauth B. Gossai Jr., Ministry of Natural Resources, Senior Petroleum Coordinator
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