maintains PPP/C gov’t made transparency possible in the oil-and-gas sector

GENERAL Secretary of the People’s Progressive Party (PPP) Dr. Bharrat Jagdeo on Thursday called for a full investigation into the unauthorised meeting between staff of the Petroleum Unit within the Ministry of Natural Resources, and ExxonMobil.
During a press conference at Party headquarters, Freedom House, he said: “I spoke to President Ali, and I agree that there should be a full investigation of this matter,” adding that the Minister of Natural Resources Vickram Bharrat will still have to submit a report on what occurred.
Addressing the cost-oil audit, Dr. Jagdeo maintained the government’s stance with the Guyana Revenue Authority (GRA).
“In our policy, there is no room for anyone to subsequently engage directly with the oil-and-gas companies for further clarification. If that is needed, then the GRA would write us,” he said, adding:
“We are not accepting this; we are not accepting anything that ExxonMobil sent subsequently to the closure of the audit by the GRA. And if the closure is $211 million, then that is it.
“So, we don’t know what they sent, and I am not really interested in it. I am more interested in who authorised this contact and why, after the GRA had said we are closing it at this stage.”
He also said: “I’ve seen a lot of comments on the audit issue, and these comments are justifiable… But the fact that we are debating this matter is only because of how this government has approached the oil-and-gas sector.”
Last week, Dr. Jagdeo pledged his full support of the GRA’s position on the matter of the findings from the cost-oil claims made by ExxonMobil.
The claims were highlighted by the British firm, IHS Markit, in its audit of pre-contract costs.
According to Dr. Jagdeo: “So, I thought that GRA was dealing with this matter totally… GRA should deal with the issue of audit; they should have a final say at the technical level.”
In an invited comment to the Guyana Chronicle, Minister of Natural Resources Vickram Bharrat echoed the sentiments of Dr. Jagdeo.
He said that staff of the Petroleum Unit within the ministry decided to act on their account, without his knowledge.
“My position is in sync with the Vice-President, and I strongly support the positon that GRA should be dealing with all audits of oil company expenses. Unfortunately, staff from the Petroleum Unit, without authorisation or without my knowledge entered into discussion with Exxon on the audits, which was not supposed to happen in the first place,” Minister Bharrat said, adding:
“This matter has, however, been rectified/corrected, and GRA is the body responsible for auditing.”
In November 2019, the Government of Guyana entered into a contractual arrangement with IHS Markit (IHSM) for the provision of consultancy services to execute the country’s inaugural Cost Recovery Audit.