Latest update November 15th, 2024 1:00 AM
Gossai involvement in US$214M audit fiasco with Exxon not fatal to country
– says everyone makes mistake Minister Bharrat
Kaieteur News – Minister of Natural Resources, Vickram Bharrat during his ‘end-of-year’ press conference on Tuesday addressed the reduction of questionable ExxonMobil Guyana expenses by his staff, Senior Petroleum Coordinator Gopnauth B. Gossai Jr. and affirmed that Gossai’s action did not pose a fatal setback to the country.
Gossai was named as the person from the Natural Resources Ministry who engaged in the unauthorised reduction of questionable expenses by Exxon from US$214 million to US$3 million that was flagged by auditors.
Minister Bharrat acknowledged the unauthorised action by his staff, which resulted in a written warning and a 15-day salary deduction for Gossai. The minister stressed that the nation did not incur losses despite the mistake. Responding to criticisms, Bharrat stated, “The mistake was not fatal; we did not lose as a country. It’s not that we accepted it.” He reiterated the ministry’s stance at the original US$214 million, not the reduced amount.
Senior Petroleum Coordinator, Gopnauth B. Gossai Jr.
He continued, “I will not tend to discredit any of my staff, we all make mistake, I make mistakes, you make mistakes. If it was fatal that was a different story, but we have a good young bright team at the Ministry of Natural Resources and I would not even venture to discredit them because they work overtime.”
The ministry had launched an investigation initially 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$1.7 billion. IHS Markit identified US$214 million 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.
Minister of Natural Resources, Vickram Bharrat
Minister Bharrat 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 US$214,911,994 was reduced to US$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 US$11,497,140, and later down to US$3,414,853.68. However, it was subsequently revealed that the GRA did not agree with this reduced figure, and the initial claim of US$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 advised staff members to fully disclose all contacts and information sharing with sector stakeholders.
- Both President Irfaan Ali and Vice President Bharrat Jagdeo, Gopnauth B. Gossai Jr., Minister of Natural Resources, Senior Petroleum Coordinator, Vice President, Vickram Bharrat
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