The Ministry of Natural Resources is expected to conduct an investigation into its Petroleum Unit’s mishandling of an audit that flagged US$214M in questionable spending by Stabroek Block operator, ExxonMobil. Cabinet would then review the findings of that probe for the necessary action to be taken. This was revealed by Vice President, Dr. Bharrat Jagdeo during a press conference on Thursday.
The investigation follows recent revelations that a member(s) of the ministry’s unit engaged with representatives of ExxonMobil Guyana Limited to reduce the US$214 million in expenses to US$3M.
The US$214M figure was first flagged in a report by British Consultancy Group, IHS Markit and later endorsed by the Guyana Revenue Authority (GRA). The tax agency also recommended to the ministry on August 8, 2023 that the US$214M sum remains the final disputed amount and that the audit be closed. That advice was ignored.
Jagdeo assured today that the facts of the matter would be captured following a thorough investigation. He also strongly criticized the ministry’s diversion from GRA’s advice, deeming it entirely unacceptable.
He also emphasized that the government would not accept any communication from Exxon subsequent to the GRA’s audit closure.
He further noted that, “…we are not accepting anything that Exxon sent subsequently to the closure of the audit by the GRA and if the closure is $214M, 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 authorized this contact and why, after the GRA had said we are closing it at this stage.”
He added that disciplinary actions would be taken once the Cabinet receives the report, as this issue is of significant concern.
Regarding the possibility of arbitration, Jagdeo expressed confidence that Guyana’s position would not be weakened, as the US$3M figure by the Ministry’s Unit was not properly authorized.
