GEORGETOWN, Guyana – Vice President Bharrat Jagdeo says an investigation will be launched to determine why the Ministry of Natural Resources (MNR) went ahead and negotiated a reduction in ExxonMobil’s audited US$214 million expense.
Vice President Bharrat Jagdeo addressing news conference on Thursday (CMC Photo)Jagdeo, who maintained that the Guyana Revenue Authority is the sole agency lawfully mandated to audit the expenses, said the investigation is aimed at determining why the MNR went ahead and negotiated a reduction to as low as three million dollars.
“No money has been stolen somebody has to give explanation how they engaged with Exxon,” he told a news conference, adding “we believe there should be a full investigation but we have not completed the audit, the ministry has to now write Exxon.
“… I believe also that we have to have a policy where people, at the technical level particularly, who engage with the oil and gas companies and executives, that they must seek the explicit clearance from the ministry and they must report back on the nature of every engagement,” Jagdeo said.
Earlier this week, the main opposition A Partnership for National Unity and the Alliance for Change (APNU+AFC) called for Jagdeo be relieved of his portfolio of Oil and Gas.
The opposition said that this is necessary after the Petroleum Unit at the Natural Resources Ministry cut the US$214 million in questionable expenses incurred by ExxonMobil for its exploration of the Stabroek Block, to three million US dollars.
Last week, the Natural Resources Minister, Vickram Bharrat, said he supports the position that the Guyana Revenue Authority (GRA) is the competent authority to lead all audits for expenses incurred by ExxonMobil Guyana Limited and other oil companies operating here.
Last week, Bharrat said he stood by the GRA’s no-objection to the US$214 million in disputed costs flagged by the British-based IHS Markit in its audit of ExxonMobil’s US$1.7 billion in expenses incurred for the period 1999 to 2017.
He said then that the Natural Resources Ministry had no business engaging Exxon on the matter, when GRA had already submitted its report..
Based on the 50/50 split of cost of oil between government and ExxonMobil and its co-venturers, if Guyana gets its way in arbitration it will be credited US$107 million.
Jagdeo said government would release the names of the technical officials who met with ExxonMobil after the investigation has been completed.
“Then we will be able to identify who all the people are with Exxon and when it took place. We are not accepting anything Exxon sent subsequently to the closure of the GRA. We don’t know what they sent and I am not really interested in it. I am more interested in who authorized this and why after the GRA said we are closing at this stage,” he said.
Jagdeo told reporters that he would also ask Cabinet to approve putting in place a disclosure policy for technical officials in which they would first have to seek permission from policymakers before they interface with oil and gas companies and report back to the political policymakers “or we will never know what discussions take place.
“We have to have a policy with people who at the technical level who engage with the executives they must seek the explicit clearance from the ministry and report back on the nature of the engagement; almost a disclosure policy,” he said.
Jagdeo said he and Bharrat would have to compile a report and present to to Cabinet.
“I spoke with President Ali and I agree that there should be a full investigation of this matter and the minister still have to give a full report to the cabinet of what took place,” he said.
