Opposition condemns ‘slap on the wrist’ punishment for US$214M reduction

Oct 28, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – The political Opposition has called out the governing People’s Progressive Party (PPP) for instituting what they described as a “minor reprimand” over the unauthorized reduction of some US$214M in questionable costs to US$3M. The costs were flagged in an audit report compiled by British auditor, IHS Markit. It was hired to review U.S oil major, ExxonMobil’s US$1.6B expenses incurred between 1999 and 2017.

The audit process revealed that the Government of Guyana (GoG) could dispute just over US$214M of those costs being claimed by the oil company. Subsequently, it was revealed that the questionable sum was reduced to US$11M and then to US$3M. An investigation carried out by the Ministry of Natural Resources (MNR) concluded that the Senior Petroleum Coordinator, Gopnauth B. Gossai Jr. had engaged Exxon in an unauthorized reduction of the costs, contrary to the advice of the Guyana Revenue Authority (GRA).

On Thursday, government informed this newspaper that the Senior Petroleum Coordinator received a written warning for his actions, while 15 days’ pay will also be deducted from his salary. To this end, the opposition reasoned that such a minor reprimand demonstrates that the government was never serious about this issue. It said, “If their own internal investigation, which we believe does not hold accountable the relevant senior figures, has led to such limited action, it is clear the government has no interest in this issue.” The party was keen to note that former President, Donald Ramotar had pointed to the need for the responsible officers to be sent packing.

In fact, Ramotar expressed alarm that no one has faced job repercussions for these questionable expenditures, emphasizing the potential ramifications for Guyana’s future. The Opposition contended that an independent probe, which many have been calling for would have been the appropriate response to the fiasco since Guyanese were about to lose US$100M or approximately $100,000 per household.

It noted, “That the police did not open an investigation is also a sign that the PPP is attempting to brush off this issue, rather than deliver the kind of accountability the Guyanese people deserve.” The Opposition added, “Going forward, Guyanese should wonder whether they can expect further shenanigans at the Ministry and by the government. If this first audit is not being taken seriously, will any audit be taken seriously? This nonchalant attitude will cost Guyanese tens of billions of USD over the life of our oil industry.”

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.

ExxonMobil’s, Gopnauth B. Gossai Jr., IHS Markit, People’s Progressive Party (PPP), Senior Petroleum Coordinator

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Opposition condemns ‘slap on the wrist’ punishment for US$214M reduction

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