Dear Editor,
The US President Biden has unleashed a scathing tirade against Exxon saying, “We will make sure that everyone knows Exxon profits – Exxon made more money than God this year…Number two reason they are not drilling is that they are buying back their own stock, which should be taxed quite frankly and making no new investments. Exxon, start investing, start paying your taxes.” So, will President Ali and the VP, of all things, now use this leverage handed to them on a platter by the US President to call on Exxon and friends to pay their taxes? Did President Ali use his California visit to talk to President Biden about Exxon not paying taxes? Which country would make US$607 million in profits but pay US$725 million in taxes for the oil companies? And which Government, knowing this tax exemption is a bad provision of a bad contract, would go to court, take the side of the oil companies, and defend that unjust tax clause against Mr. Glenn Lall fighting to reverse it on behalf of the poor people of Guyana? My friend Suresh said, “Only dunces would do that.”
In 2021, soon after President Biden took office, oil heads of major companies were summoned to Congressional hearings and questioned under oath. That included ExxonMobil’s Darren Woods. Then on April 6, 2022, oil companies were again summoned to hearings by the US House. “We are here to get answers from big oil companies on why they are ripping off the American people,” said Representative Frank Pallone Jr., a New Jersey Democrat and Chair of the Energy and Commerce Committee, during the hearing. The US Government claimed that at a time when oil prices were rising for consumers, the oil companies were making exceptionally higher profits. They asked Exxon’s head how much profit Exxon made in 2021 and he said US$15 billion. (See https://www.youtube.com/watch?v=iQlcwWsCKvQ). We should note that Governments in the United States and other oil producing countries around the world have moved to induce a one-off tax for oil companies that have been operating and enjoying increased profits as the cost for oil continues to surge on the global market. Will Guyana follow the lead of these countries and impose a one-time tax too? Or will our leaders continue to act like wimps?
The US Government does not appear to be a good friend of Exxon – an American business – and is ready to hold them accountable. So, this notion by the PPP and PNC that if they call for renegotiation of a bad oil contract with an American big business, the US Government would not be favourable to them at election time, seems like hogwash to me. The secret promise to Exxon by the PNC and PPP not to renegotiate the contract was treasonous, impeachable, and a betrayal of Guyana. The first loyalty of a Government is to their country and people. When you campaign on a manifesto that everything is up for “review and renegotiation” as the PPP Presidential candidate said, that was a solemn contract with the people of Guyana, similar to the 1994 Republican Party’s manifesto which was called, “Contract with America.”
The PPP had a “Contract with Guyana.” The sanctity of that contract with the people supersedes the “sanctity of contract” of a flawed oil contract with Exxon. That contract has likely illegal clauses such as the “stability clause,” “no taxes,” and the oil companies getting 600 blocks rather than 60 as allowed by our laws. There is no sanctity in the Guyana oil contract – the worst in the world. No other country pays the oil companies taxes, or allows oil companies to not pay taxes. The word “sanctity” means the “state or quality of being holy, sacred, or saintly.” None of these words describe the monstrosity of the oil contracts we have. The oil contracts are a blueprint for the ongoing “fleecing of Guyana.” Did you notice how everybody burst out laughing when that lady asked the President about the oil blocks at the Bartica meeting?
Just recently there was a headline, “Gov’t fulfills 90 percent manifesto promises in less than two years – VP.” Never mind the “mother of all election promises” that everything is up for “review and renegotiation” was not honoured yet. The PPP Government must think “the masses are asses” and they can bamboozle them with a few hampers and a cash grant here and there. The people will collect their hampers, cash grants, and house lots willingly because it is not “PPP soup.” That is not PPP money… that is Guyana’s money, “Guyana soup.” The resources of the country belong to all the people, not Government bureaucrats and their business class friends. So, the people will take all the random acts of goodies that the Santa Clauses will hand out, then vote for a Third Force in 2025. Guyana is going nowhere unless the Government comes up with a new vision and a National Development Plan that has a fresh structure for salaries, benefits and income support including a universal pension plan that includes the self-employed/unemployed/underemployed, unemployment benefits, and a European-type welfare state. Getting Exxon to start paying their taxes would help to fund this new system. Nation, it’s our wealth and our country and we must stand up for ourselves!
Sincerely,
Dr. Jerry Jailall
