Audit limitation

Apr 12, 2024 Letters

Dear Editor,

Recently, it was reported that the Auditors appointed by the Government of Guyana to audit the books of ExxonMobil Guyana Limited (EMGL) have been denied access to pertinent oil reports and associated cost information ((See Anand Goolsarran’s Report, “The audit report on Exxon’s post-contract costs (Final Part)”, https://www.stabroeknews.com/2024/04/08/features/accountability-watch/the-audit-report-on-exxons-post-contract-costs-final-part/). Similar difficulties were observed on a US$214.0 Million expenses that reduced Guyana’s profit share by at least US$107.0 Million. This amount could not be verified and arbitration, a costly exercise for Guyana, is the only pathway forward (https://kaieteurnewsonline.com/2024/04/11/us40m-in-materials-bought-by-exxonmobil-could-not-be-verified-govt-kept-in-the-dark-audit-report-reveals/).

This non-responsiveness by EMGL to deliver the reports is contrary to the stipulation as specified in the PSA, Article 23. 2, Page 55, where it is documented that: ‘The Minister shall have the right to audit the accounting records of the Contractor in respect of Petroleum Operations in accordance with Accounting Procedure’. And in Article 23.3, it is further specified that ‘Nothing in this Article shall be construed as limiting the right of Government or any officer of the Government pursuant to any statuary power to audit or cause to be audited the books of the Contractor (EMGL)’.

This unwillingness of EMGL to be transparent is palpably obvious, while in another case, EMGL showcased its willingness to mislead the Guyanese people by placing a billboard that falsely proclaimed that Guyana will receive 52 percent of the profit (OGGN: https://www.tiktok.com/@oggn_/video/7339658873780882694?_r=1&_t=8kBk1ad1Vtr). This billboard must come down, for this 52 percent profit share is not included in any of the Articles of the PSA.

Given the information presented above, it is clear that the Government of Guyana is not up to the task of protecting the interest of the Guyanese people; for this is evidence of the government sleeping on the job. Wake up Guyana!

Sincerely,

Dr. C. Kenrick Hunte

Professor and Former Ambassador

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Dr. C. Kenrick Hunte, ExxonMobil, Government, Guyana, Professor and Former Ambassador

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