Nearly four months later, the 1.1 million gallons of heavy fuel at the centre of a Guyana Oil Company (Guyoil) scandal remains in the custody of the Guyana Revenue Authority (GRA) which now cannot sell it as GPL has declared that it does not meet their specifications, sources say.
The tanker which brought the fuel here also remains docked and under guard at the Guyana Sugar terminal wharf, Ruimveldt, under the watch of the GRA Enforcement Unit, with its owners moving to the local courts to get it back.
Simultaneously, the parties involved are also lobbying GRA for a settlement in return for both the fuel and the vessel and it is unclear if the agency will agree.
“Parties have requested that a settlement be made in lieu of legal action,” a source told the Stabroek News.
On the 24th of April of this year, the GRA served notice to the company that the 1985 built tanker – President – was being confiscated. President was at the time sailing under the flag of Panama and had brought fuel here for Aaron Royality Inc.
Earlier in April, the principal of Aaron’s Royality Inc. (ARI), Jayson Aaron, had claimed that the company had been left with a large quantity of fuel after a commitment for purchase was made by Guyoil officials for GPL.
He claimed that he had evidence of the commitments by officials of the company who he said also tried to solicit kickbacks in return.
It was ARI’s claims that saw Minister with responsibility for Finance Dr Ashni Singh requesting the Auditor General to investigate, as he then sounded a warning that corruption would not be tolerated.
Aaron was arrested and questioned for allegedly falsifying the series of WhatsApp messages he released. He has since been released on $100,000 bail and it is unclear what has happened with that case.
But the Auditor General’s probe of the allegations of procurement irregularities found that there was “inappropriate communication” by officials of Guyoil and a dealer, although the name of the dealer was never made public. The AG recommended that the police determine if any laws were broken.
As per the recommendation of the Auditor General, Minister Singh has directed Guyoil’s Board to share the report with the Guyana Police Force.
The Minister with Responsibility for Finance had told this newspaper that the detailed report also confirmed the stance of the company and Board that the allegations by the dealer, Jayson Aaron and his company, Aaron Royality Inc. — that it had a contract with Guyoil — were untrue.
“The AG confirmed that there was nor is no contract with the company in question…,” Singh stated.
But the Auditor General, according to Singh, identified officials of Guyoil who had “engaged in inappropriate communication with the company in question and displayed action in violation of the Guyoil’s standards and procedures for procuring fuel and recommended that disciplinary action be taken against them.”
The Finance Minister did not name those persons recommended for disciplinary action but said that those persons have already faced those actions.
Among other recommendations by the Auditor General was for a strengthening of the company’s systems.
Before the audit had started, the vessel with the fuel was seized and the owners have since filed court proceedings have it released.
“The fuel remains with the GRA and it is them that hold responsibility for it. The same of the vessel, so you would have to check with them,” one source said.
The source informed that the GRA has had discussions with GPL about the company taking the fuel, given that it was originally destined for that utility company. GPL, however said, according to the source, that the fuel does not meet the specifications it wanted and it will continue with its procurement through Guyoil.
“It was one conundrum and it keeps on going. The fuel and boat were confiscated, the importer was locked up. The GRA was left with responsibility for vessel and seized fuel. GPL said they do not want the fuel because it did not meet the standard, the owners want back the boat, the fuel importer wants back the fuel…it doesn’t end,” one source said.
“All of a sudden, GPL says it does not meet their standards,” another source added.
