Would Jagdeo have done any better?

Nov 06, 2023 Features / Columnists, Peeping Tom

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Peeping Tom

Kaieteur News – Sometimes, you wonder whether Bharrat Jagdeo does not appreciate how absurd he sounds when he tries to wriggle himself out of accepting responsibility for his failings. In response to the contention that he did not object to the fiscal terms offer to ExxonMobil under the Production Sharing Agreement, Jagdeo gave a most ridiculous response.

Jagdeo first tried to contend that the agreement was signed in June 2016, while the Order seeking affirmation of the fiscal measures took place in August. Just what was the relevance of this, is hard to contemplate.

There is nothing unusual or irregular about government signing an agreement and then laying over an Order guaranteeing fiscal terms. It would be unusual if the opposite was true: laying over an Order for fiscal concessions without an agreement in place.

As was pointed out during the debate on the Order on the 8th August 2016, this practice was done before (under the PPPC government  in relation to YPF Guyana Ltd., Order No.9/2010; CGX Resources Inc., Order No. 10/2010; and Canacol Energy (Guyana) Inc., Order No. 11/2010.

Jagdeo has also sought to obfuscate his party’s negligence in not objecting to the fiscal terms of the Production Sharing Agreement 2016 by asking what if the Order had not been approved by the National Assembly. The Order was required to be approved by affirmation. It was therefore bound to pass given the majority of the APNU+AFC government. But that does not obviate the failure of the PPP/C to object to the fiscal terms.

The PPP/C could have done so during the debate on the Motion seeking affirmation of the Petroleum (Exploration and Production) (Tax Laws) (Esso Exploration and Production Limited, CNOOCNexen Petroleum Guyana Limited and Hess Guyana Exploration Limited) Order 2016 – No. 10/2016.

The Order was laid before the National Assembly on Thursday, 4th August, 2016. The Motion for the affirmation of this Order was moved, four days after on Monday 8th August 2016.

During the debate on that Motion, then Finance Minister, Winston Jordan told the National Assembly that following approaches by ExxonMobil and its partners, his government took the opportunity to review the 1999 agreement.  That agreement had been signed under the Janet Jagan administration.

Jordan went on to state that the review was aimed at strengthening the terms and benefits for Guyana and entailed hard bargaining. It was also reported to the National Assembly that on the 29th June 2016, the Government and the joint venture [partners], signed a production sharing agreement.

What it means is that as at 8th August 2016, the then Opposition Leader, Bharrat Jagdeo ought to have known that the government had signed a new Production Sharing Agreement with ExxonMobil and its joint venture partners. As Glenn Lall has asked in one of his recent programmes why did Jagdeo not ask for the agreement.  Or why did he not ask that it be made public so that the National Assembly can assess the full ramifications of the agreement including the fiscal concessions contained therein?

Two persons spoke on behalf of the PPP/C during the debate: Hon. Odinga Lumumba and Hon. Gail Texeira. Mr. Lumumba complained about the short notice that was given. Texeira also bemoaned the inadequate notice and asked about the period during which the production sharing agreement would be valid.   She went on to ask how would Guyana benefit during the pre- and post-production period.

But there was not an immediate demand for the Production Sharing Agreement to be laid in parliament immediately. This was strange indeed.  As Leader of the Opposition and the General Secretary of the Party, looking to form the next government, it would have been in his interest to read the Production Sharing Agreement of 2016 or to demand that it be made public.

It was only after public outcry over the royalties that public agitation for the agreement to be made public became pronounced. It took a full 18 months for that agreement to be made public.

The key part of the puzzle to be solved is whether Jagdeo had knowledge of the terms of the PSA prior to August 8th 2016, and if so whether he was satisfied with the then existing terms and this is why no demand was made during the debate for the Agreement to be made public.

If indeed he did have prior knowledge, it would lend plausibility to the proposition that had it been Jagdeo who had to sign that PSA, the terms would have been less favorable than the lopsided ones that now exist.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions and beliefs of this newspaper and its affiliates.)

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• Bharrat Jagdeo, Peeping Tom

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