Referendum can be looked at after elections- VP Jagdeo

Nov 15, 2024 News

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Kaieteur News-Vice President, Bharrat Jagdeo has dismissed comments from Attorney General, Anil Nandlall that a referendum on the lopsided oil contract would be a waste of time, saying that the senior minister was speaking in his personal capacity and not that of the government.

Instead, Jagdeo said while there might well be issues regarding bringing ExxonMobil to the table even with a successful referendum, he would prefer to deal with the matter after next year’s general and regional elections.

A referendum is a general vote by the electorate on a single political question that has been referred to them for a direct decision. According to a Department of Public Information release, Nandlall speaking on his weekly programme “Issues in the News,” Tuesday evening criticised the Alliance For Change (AFC) and Working People’s Alliance (WPA) for proposing a referendum on an agreement they finalised without prior public consultation or input from the then opposition.

According to DPI, the legal affairs minister described the AFC’s push for public interference as “ridiculous” and hypocritical, arguing that “they (AFC) hid this contract for nearly two years without telling the people of Guyana that they have signed a contract that is perhaps the most important document ever signed in the history of Guyana.” Moreover, he said that the legal framework of the PSA explicitly states that it cannot be altered without permission from both parties, rendering any referendum powerless regardless of public sentiment.  “The contract itself says in about 10 clauses…that it cannot be altered unilaterally. It can only be altered with consent by both parties,” the minister said. Acknowledging the unfavourable terms of the agreement, Minister Nandlall declared that the government will honour the agreement to protect Guyana’s credentials as an honest investment destination until a renegotiation is made possible.

However, at his weekly news conference on Thursday at Freedom House, when Jagdeo was asked to comment on Nandlall’s statements and to say definitively whether he supports a referendum he said: “what Nandlall is expressing is not the view of the government. It’s a personal view, he’s expressing a personal view on the matter.” He underscored that while the possibility of a referendum could be discussed in the future, it was not a priority for the government at this stage.

Similar to comments made by the Attorney General regarding the effectiveness of a referendum giving the terms of the PSA, Jagdeo explained that a referendum would not be effective unless ExxonMobil also agreed to renegotiate the terms of the contract. “If they don’t agree to the renegotiation as per the contract that APNU (A Partnership for National Unity) signed, you are back to arbitration, you are back to court cases,” Jagdeo noted. “Having a referendum does not deal with the most contentious issue, which the contract says that the only way you can solve it amicably is to renegotiate the contract with the agreement of both parties.”

He reiterated that the Guyana Elections Commission (GECOM) should focus on preparing for the 2025 general elections, and that any discussions on a referendum could be postponed until after the elections. “We have time enough to deal with that after the elections. But right now, GECOM must focus on one question, which is holding elections within the constitutional prescribed timeframe,” Jagdeo said.

The Vice President highlighted that Exxon has made their position clear that they will not be up for a renegotiation of the oil deal. That deal waives all taxes and caters for it to be paid by the government out of its share. Guyana receives a 2% royalty; it allows Exxon and its co-venturers to recover up to 75% of production costs before the remaining 25% is shared between Guyana and the Stabroek Block partners. After accounting for the 2% royalty, cost recovery, and profit sharing, Guyana’s total take from the oil produced is 14.5% of the total value of the oil.

Jagdeo added that any Guyanese, including himself would want more out of the deal. “Would I like to have 75% instead of 52% in the future when all the costs are taken into consideration? We would love that. But the government of 2016 signed an agreement that says the only way you could have this amicably solved is with the agreement of the two parties,” he said.

Kaieteur News had reported the Working People’s Alliance (WPA) saying that it supports the call for a referendum on the 2016 oil contract with ExxonMobil ahead of the 2025 General and Regional Elections. The WPA said too that such a referendum must also cover the distribution of the oil resources to the people and a form of governance to be adopted as we transition into a petro state.  For its part, the Alliance For Change (AFC) said it too supports calls for a referendum on the deal. Chairman of the party, David Patterson in response to a question posed by Kaieteur News made it clear that the AFC believes that a referendum should be held prior to the 2025 elections. However, Patterson made it clear that oil and gas is not the lone issue that requires a referendum. He pointed to the need to make amendments to certain clauses in the Constitution and those proposed amendments should be put to a vote via a referendum.

In addition to the political parties, several commentators and ordinary citizens supported the call for a referendum. Chartered Account and lawyer, Christopher Ram weighing in on the matter has said that Jagdeo is looking for excuses to downplay calls for a referendum. In a recent column published in the Stabroek News titled, ‘Renegotiations, Referendums, and Reality–response to Ram & McRae’s Survey,’ Ram said that the Vice President has no power to decide whether Guyanese can have a referendum. “Let us be clear: it is not within any VP’s power to decide whether Guyanese can have a referendum. The Constitution establishes referendums as a democratic tool, with such decisions resting with the National Assembly and the President, not with a party official, however high up. While Mr. Jagdeo is the General Secretary of the ruling party, he is not even the First Vice President – that position belongs to Brigadier Mark Phillips by virtue of his position as Prime Minister.”

Additionally, businessman, and advocate for a better oil deal, Glenn Lall also joined calls for the referendum. Lall told this newspaper that the nation cannot sit silently and watch ExxonMobil, with the full support of the government and other leaders, haul away “our oil by the barrel, while handing us our share by the teaspoon.” He added: “how can we stay quiet, knowing that the PNC/AFC sold us out with such a lopsided deal and still keep on smiling through it all? How can we keep living with our mouths shut, watching the PPP, who once criticised and condemned that very deal, now sitting comfortably in office, embracing that same arrangement and accepting that same meagre teaspoon?”

(Referendum can be looked at after elections)

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• ExxonMobil, Legal Affairs Minister, political question, referendum, VP Jagdeo

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