In its explosive report released yesterday, International observer, Global Witness made strong suggestions that Minister of Natural Resources, Raphael Trotman was in a possible position of conflict of interest in the form of his close political relationship with ExxonMobil’s attorney, Nigel Hughes. Global Witness said that the relationship was enjoyed at a time when Trotman was negotiating a contract with ExxonMobil on Guyana’s behalf.
Earlier this morning, Hughes released a short statement denying any possible wrongdoing on his part as he noted that he was “long gone” from Guyana’s politics during the negotiations of the contract.
Hughes was also keen to note, “I have previously informed Global Witness upon their inquiry that I was not at any material time responsible for advising Exxon on this matter (the contract). My position remains unchanged.”
Global Witness said in its report that Guyana lost much revenue as a result of the lopsided contract Trotman signed with ExxonMobil.
The International observer said that based on the evidence, Trotman may not have acted in the best interest of Guyana.
In addition to its mention of a luxury trip that Trotman enjoyed on ExxonMobil’s tab, Global Witness noted that Trotman had close ties with Hughes who is well affiliated with ExxonMobil.
Global Witness said that at the time when the contract was signed, “Trotman’s main political partner – Nigel Hughes – had served as one of Exxon’s lawyers on other matters, and Hughes’ firm periodically represents Exxon as a client. Trotman is the de facto head of Guyana’s Alliance for Change (AFC) political party, which, since 2015 has served as a junior partner in the Coalition government.”
The body noted that in early 2016, Trotman’s partner in leading the AFC was Hughes. Hughes’ official AFC title was “Chairman,” although according to Trotman, Hughes essentially served as his party’s deputy head.
Global Witness noted that on April 11 2016, shortly after Stabroek negotiations had begun, Hughes resigned from the AFC leadership, but remains closely tied to the party.
The report states, “His wife Catherine Hughes is an AFC member and serves as a government minister. Hughes himself is not a politician; even while leading the AFC he did not hold a government post. Instead, he is the managing partner of the law firm Hughes, Fields & Stoby. The firm represents some of the most powerful Natural Resource companies operating in Guyana, including Baker Hughes, Schlumbuerger, and Hess. It has positioned itself as a specialist in oil and gas law, and in 2018 opened an office in Houston. Hughes, Fields & Stoby also represents Exxon on assorted matters and has done so since at least 2009.”
Global Witness said that In December, 2019, Hughes said that he was “not at any material time responsible for advising Exxon” during the 2016 Stabroek negotiations.
Global Witness was keen to note that it does not have evidence that Trotman’s Stabroek negotiations were influenced – unwittingly or otherwise – by his relationship with Hughes. However, Global Witness noted its belief that the relationship between Trotman, Hughes, and Exxon should be investigated to determine the existence or extent of any conflict of interest.
Global Witness said, “As the AFC head, Trotman’s political interests were aligned with Hughes – the party’s deputy head. Given that Hughes’ firm has represented Exxon since 2009 (although it is not clear on what matters), and given that Hughes himself has represented Exxon on other matters, a Stabroek deal that was favorable to the company may have preserved or promoted that lucrative relationship.
