THE State Assets Recovery Agency (SARA) is likely to seek external help as it investigates the alleged questionable award of oil blocks to companies by the People’s Progressive Party, in the dying days of its term in office.

On May 22, 2019 news broke internationally that the Agency is investigating conflicting received information regarding the awarding of oil blocks offshore Guyana to “junior” companies yet to begin noteworthy activities. Since then, the former People’s Progressive Party/Civic (PPP/c)-led Administration responsible for the awarding of the Canje and Kaieteur blocks now under much scrutiny, has taken to the media to distance themselves from the dots being connected. It is being reported that a short while before the 2015 General and Regional Elections, the PPP/C Administration signed over the awards for the blocks.

Ratio Guyana, which holds 25 per cent in the Kaieteur Block; JHI Associates Inc. (JHI) which holds 17.5 per cent in the Canje Block and Mid Atlantic Oil & Gas Inc. (MOGI) which holds 12.5 per cent in the same, have since been labelled as “inexperienced” in deep water exploration oil and gas experts. SARA is presently pursuing a complaint by Oil and Gas Consultant, Dr. Jan Mangal who questioned the Administration’s actions since in 2017. When the internal investigation is completed, according to an informed source, it is likely that SARA will seek out “whatever help we need”.

Mangal is among some who have recommended that SARA work along with independent experts to ensure that the investigation, “more complex than anything SARA has done before”, is successfully executed. The source told the newspaper that many are unaware that SARA already has international assistance and partners to serve in this regard.

In fact, in accordance with Article 54 (1) (c) of the United Nations’ Convention Against Corruption (UNCAC) under which the SARA Bill is guided, the Agency can seek out international mutual, legal agreements and persons qualified to assist in investigations.
Furthermore, the SARA Bill (2017) is designed to facilitate the recovery of illicitly obtained property through civil processes with the primary objective of reducing the consequential damaging effects of corruption on sustainable development. The source reminded that the Agency has worked in the past with world-renowned bodies such as the Caribbean Institute of Forensic Audit (CIFA).

CIFA, established in 2008, is the only Caribbean-based Institute dedicated to providing training in anti-fraud and forensic accounting throughout the region and has provided training to industry professionals in some 100 organisations in 11 Caribbean territories.
Until help is sought out, SARA will be investigating contradictions in information being presented on the awarding of the oil bocks.

Much of the investigation is fueled by the questioning actions of the former Administration.
The source reasoned: “Elections were on the 11th [of May 2015]; on May 8 the PPP said that oil had been found. In order for them to know that oil had been found on May 8, somebody would have had to tell them before. We’re trying to find out when did that happen. Was it on April 18th when we have a YouTube tape on them being on the rig talking to Exxon? But, they had to know that oil had been found and, if that’s the case…why would you then give the blocks away and why would you give them away just before an election?”

Former President, Donald Ramotar has since claimed that he had no knowledge that Guyana had oil before awarding the blocks. However, the informed source opinioned that the sequential occurrences seem “suspicious”.

Former Minister of Natural Resources Robert Persaud acknowledged the same in 2018 when he told the Stabroek News: “I know it looks suspicious but I thought we would have won the elections anyhow and that it was just the continuation of an already started process from 2013.” In a recent media release, Ramotar supported that applications for exploration in the Kaieteur Block came in 2012 while applications for the Canje Block came the following year. He said that they were processed and approved by the Guyana Geology and Mines Commission (GGMC), in accordance with the relevant laws and regulations around late 2013. However, the informed source questions this account stating given that JHI Associates Inc. (JHI), holding 17.5 per cent of the Canje Block, was only registered in May, 2015. At this stage, it is unknown how long the investigation will take. Nonetheless, upon completion, the courts will be the ones to decide on what becomes of individuals or entities found to be involved in fraud.