Has ExxonMobil Corporation’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) engaged in practices that would rob the country of millions of dollars? One will just have to be a bit more patient and await the outcome of an ongoing audit says Vice President, Dr Bharrat Jagdeo.
At a press conference today, the official addressed several “misconceptions” about a preliminary report that was covered by Stabroek News over the past few days. While the media house had criticized the government for being possession of the document for more than two years and hiding same from public scrutiny, Jagdeo said this is patently false.
During his third engagement with members of the media at Freedom House this afternoon, Jagdeo said the initial report indeed flagged some US$214M as questionable costs. He stressed however that approximately US$180M requires further documentation from EEPGL. In light of this, he alluded that it would be unfair for one to assume that the entire US$214M is what was outlined by auditors to be reasonably contested or disallowed by the State.
He said the report is still being worked on aggressively among 20 technical officers spread across the Ministry of Natural Resources and the Guyana Revenue Authority (GRA). He said too that the Guyana team is working to ensure no stone is left unturned by the contracted auditor, IHS Markit from the United Kingdom.
The Vice President stated, unreservedly, that the report has to be completed before it is released, as such, accusations that it is being hidden is untrue.
The official said he understands that there are frustrations about the length of time it is taking to complete the audit which started since November 2019 to review costs incurred by Exxon’s subsidiary from 1999 to 2017 in the Stabroek Block.
He said, “We as policy makers press the technical people to get this done. It is going slowly but it is getting the required attention at the technical level. What would have been distressing is rubber stamping this and allowing Exxon to get away with spurious explanations and cost claims; they (GRAS and the ministry) are sticking doggedly with it.”
The Vice President concluded, “It is talking long yes, but we are being careful.”
