No citizen owes Exxon $9M
Vice-President, Dr. Bharrat Jagdeo
Vice-President, Dr. Bharrat Jagdeo

— no debt guarantee issued to Exxon by Guyana, says VP Jagdeo

VICE-President, Dr. Bharrat Jagdeo has clarified that Guyana has not issued a guarantee for any debt contracted by ExxonMobil, and therefore neither Guyana nor any citizen owes any money to the company.

Speaking at a press conference on Wednesday at the Office of the President (OP), the Vice- President sought to clarify the issue surrounding a report in another section of the media, which quoted a financial analyst who claimed that citizens would end up owing Exxon.

“I’m hearing they’re saying that ultimately the debt becomes that of the government. How does that happen? It’s the company’s debt,” the Vice-President said.

Dr. Jagdeo explained that notwithstanding having shares in a limited liability company, there is no recourse to any assets when no personal guarantee was extended.

Guyana has not given such guarantee.

“Now if I own a company. If I have and I invest as an individual, I invest in a company that someone owns, which is a limited liability company, if I don’t give a personal guarantee, which we have not done, the State has not issued a guarantee for any debt contracted by Exxon, then if that company has to pay back a debt they don’t have recourse to my assets. I don’t have to payback that debt. How would I have to pay back that debt? Because it’s a limited liability company,” Dr Jagdeo reasoned.

According to the Vice-President, if the company does borrow, they would do so on the strength of the company and it is not a liability to the investors.

“So although I have shares in it, once I don’t give a personal guarantee, my liability is limited to that company,” he noted.

Dr Jagdeo as such rejected assertions that “every citizen of the country owes Exxon $9 million”.

“I don’t owe [any] $9 million, nor does any citizens of this country owe $9 million that has to be paid back by the company,” Dr Jagdeo said.

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