“Guyanese do not believe for one minute that the second Vice President was unaware that Ministry officials were in the process of negotiating a $211 million reduction in the questionable expenses highlighted in Guyana’s first oil audit. The Vice President’s history is characterised by many lies, misinformation and inconsistencies.” So said the Opposition, the A Partnership of National Unity and Alliance For Change (APNU+AFC), at a press conference thursday. The Opposition has accused Jagdeo of being a control freak who does not allow people to operate based on their professional competency.
According to the Opposition when they met with ExxonMobil’s representatives just a few days ago, Exxon representatives stated definitively that this reduction had been agreed to by the government. If Bharat Jagdeo, the nation’s chief oil policymaker, did not know of, and agree with this outcome, how could the operator express such confidence that the matter was settled, the coalition queried. “Rather than blaming public servants for carrying out the tasks assigned to them, Jagdeo and his cabal need to come clean to the nation as to what really was going on at the Ministry of Natural Resources.”
As the PPP scrambles to cover its tracks, the Opposition said they believe that it is a good time to take stock of the extreme financial losses the PPP is exposing Guyana to by refusing to competently fulfill its audit duties. “The Opposition has committed to working to ensure our people get maximum benefit from our oil sector. However, we believe that there is no point talking to oil companies to get more out of the oil industry if we lose every last additional cent due to this persistent inability and unwillingness to audit. In an agreement in which we benefit from profit oil it is incumbent on the government to ensure that proper audits are done.”
Reminding the public it was the Opposition in 2022 that highlighted the PPP was not even interested in auditing these companies, the coalition said the government has allowed an audit deadline to lapse. Stabroek news echoed these remarks, citing Christopher Ram, who termed the government’s attitude “nonchalant.”
Kaieteur News, on the other hand, has frequently cited Opposition calls for audits to be released and the government to commit to a specific date for their completion.
Throughout the latter months of 2022 and early 2023 the President, second Vice President and Minister of Natural Resources dodged questions on Guyana’s oil audits, with the government repeatedly pushing back the dates by which audits would be completed. The opposition noted that faced with this alarming trend, they even went as far as to call for an audit timeline to be enshrined in law, “a cry which fell on deaf ears when the new Petroleum Activities Bill was passed.”
The PPP’s attitude has so alarmed right-minded Guyanese that both Kaieteur News and Stabroek News have published editorials in the last few weeks directly condemning the PPP’s governance of the sector. It is time for change.
As it stands, these audit deficiencies mean Guyana’s oil revenue is vulnerable to remaining a trickle even as the number of barrels pumped daily soars. The coalition warned Guyanese won’t have a better standard of living, better schools, better healthcare or even economic diversification if we are not receiving the revenues we are entitled to.
It was pointed out that as the cost of living crisis persists, hundreds of nurses are fleeing, teachers and other workers are forced to fight for better wages. “It is inconceivable that any caring government would rob the Guyanese people of the opportunity to access more revenues. This is just what the PPP is doing.”
The US$107 MILLION that Guyana will now move to claim on the basis of this audit could easily provide low income housing for 2,000 hard-working families, or alternatively, G$100,000 for nearly every Guyanese household, the coalition proposed. “This first audit, initiated by the Coalition government, indicated 13% of costs could be questionable. Applied across the existing approved oil projects, that is more than US$5 billion.” Left to the PPP’s machinations, Guyanese can instead expect no more than the US$3m pittance we were just about to receive, the Opposition pointed out.out.
Going further, the Opposition stated “rather than undermining the GRA with secret agreements, we once again call on the government to support that agency with the staffing and funding that would allow it to do its work. “This is particularly urgent given Guyana’s second cost oil audit is underway and early reports indicate no significant cost disputes. It would be quite bizarre for one audit to reveal almost 13% of bills are questionable costs and another to reveal none.”
Calling for an urgent release of the audit that would allow examination, the coalition warned “we cannot allow a repeat of the chaos and potential criminality the first audit has revealed.”
While the GRA builds capacity, the Opposition also believe that international firms should be seriously considered for any future audits, pointing out that this multi-billion dollar issue must receive the best expert attention available worldwide.
As the country moves to arbitration to reclaim US$107 million, in disputed costs, the Opposition queried who will be overseeing the country’s arbitration claim. “It cannot be the same man who swears he was not aware that hundreds of millions of USD were being negotiated away right under his nose.
“We repeat, Bharat Jagdeo is totally out of his depth. He was a failed President and should not be trusted to manage our oil sector. The President must remove his portfolio overseeing the oil sector and replace him with a team of competent experts such as would be found in the petroleum commission that the PPP has long resisted.” It’s the Opposition’s view that would be the first step towards ensuring Guyanese receive their fair share of oil revenues.
