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US$300M in mismanaged oil and gas revenue could fund Christmas cash grant – economist says
(Kaieteur News) – As government scrambles to keep another elections campaign promise to Guyanese, its costly decisions that led to a mismanaged oil and gas sector could possibly ruin the Christmas season for poor families.
Former advisor to the Leader of the Opposition, Elson Low in an exclusive interview with Kaieteur News expressed concern over millions of US-dollars wasted by government on the Gas-to-Energy (GTE) project as well as revenue the state is yet to recover from ExxonMobil.
He pointed out that Guyana was forced to pay US$100M to prepare the Wales, West Bank Demerara site for the project as government failed to conduct appropriate studies to determine suitability of the soil for the initiative.
Economist, Elson Low
In addition, Low highlighted that the administration is eyeing more development for the location which could cost another US$100M for further soil preparation works.
The Economist reasoned, “As those plants will feature heavy equipment and explosive materials they will each require a similar foundation to the current Gas-to-Energy plant, which we know cost USD$100M. That’s already US$200M of waste.”
Furthermore, he pointed out that the government is yet to recover over US$100M in questionable costs that were billed to Guyana by the operator of the Stabroek Block.
“There’s roughly another US$100M in arbitration disputes from the first audit of oil expenses which the government is still to resolve. This means that with better management of these key areas roughly US$300M could be saved and recovered,” Low noted.
He pointed out that US$300M would be sufficient to pay each adult Guyanese $100,000 as this was the cost of the previous cash grant.
The Economist argued, “Saving money and recovering what is owed to us is just as good as generating new revenue for the country, and the government has a duty to responsibly manage the country’s finances.”
While on the 2025 elections campaign trail, President Irfaan Ali hinted at a Christmas cash grant, rallying the party’s supporters that they would have a “bright Christmas”.
On Wednesday the Head of State announced a one-off $50,000 grant for persons living with disabilities.
In the meantime, poor families remain hopeful that the President would keep his commitment to ensure Guyanese enjoy the holiday season.
Recently, Ali assured that government needs no reminders of its commitments and will deliver on each of them.
“You don’t need to remind us about our commitments—whether it’s cash grants, incentives, subsidies,” Ali declared. “We know what our commitments are, and we are going to deliver every one of them, faster, better, greater.”
His comments came on the heels of calls by Opposition party, We Invest in Nationhood (WIN) for the administration to deliver the cash grants promised on the campaign trail.
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