As day one of the consideration of the 2023 budget estimates began, the Opposition yesterday questioned what it believed to be a paltry sum allocated to the EPA, but the government responded that the agency raked in some $1.8b for 2022 in flaring fees and will add this to its spending for this year.
Under Budget Agency, Office of the President and line item 015, Opposition Member of Parliament, Khemraj Ramjattan, highlighted to the Committee of Supply that only $667m was allocated to the Environmental Protection Agency (EPA) which is charged with oversight in an oil producing state.
“In the need of the strengthening at that institution, wasn’t there need for some extra monies to come out of the EPA?” he questioned as he reasoned that no expense should be spared in equipping it, given that it is the watchdog agency for sectors which rake in billions of revenue, such as oil and gas and mining.
Minister of Parliamen-tary Affairs and Govern-ance, Gail Teixeira, answered on behalf of government and said that the EPA’s budget estimates factored in the $1.8b flaring monies paid by ExxonMobil and partners for flaring in the Stabroek Block and held by the EPA.
“A number of the issues raised, according to the EPA, we don’t have to pay for…,” she said noting that the agency generated significant revenues on its own. She told the Commit-tee of Supply Chairman and members that “part of this is because flaring taxes… the revenue came in – $1.8b – came as revenue last year and this is the money the EPA got from the flaring tax that was introduced, and therefore they did not cater to us for revenue,” she said.
She reasoned that there are no projections for such high sums this year from the agency “because they do not expect to continue with flaring” but that what they have they will use for development and training projects. Ramjattan sought clarity as he probed, “In addition to this $676m that the EPA will have, their expenditures will also be $1.8b plus?”
“The monies that you refer to will be accessible through the Trust Fund. They also projected fines and fees they will be able to access. My understanding is that this money will be available to the EPA,” Teixeira replied.
It is unclear whether the fees collected by the EPA last year could have been kept by it as opposed to be being paid into the Consolidated Fund.
In May 2021, the EPA disclosed that the Environ-mental Permit for the Liza Phase 1 Development Project offshore Guyana had been modified and ExxonMobil’s subsidiary, EEPGL would now be required to pay for gas flaring once it continues beyond a 14-day period.
While the permit initially said that Exxon will be paying a fine for flaring, the payment is now described as a fee. The company last year disclosed that it had paid over US$10 million to the EPA as a fee for flaring of climate harming gases. And as she gave an insight into estimates for constitutional and other agencies, Teixeira said that oversight of the sector was paramount for government as reflected in the spending for the Audit Office of Guyana, which plans to employ more persons for a dedicated Oil and Gas Unit to be established. Her announcement of the oil and gas-dedicated department within the Audit Office came following questions by Opposition Member Volda Lawrence who questioned the significant increase to the agency from $109.1M last year to $819.6M this year.
Renting
Meanwhile, for other agencies, Teixeira said that some $1.3b has been allocated to the Guyana Elections Commission of which $40 million will be spent on the renting of properties to host polling stations for Local Govern-ment Elections (LGE) this year. Lawrence and Ramjattan led most of the questioning to Teixeira and asked why GECOM’s allocation for claims and objections this year had been reduced by almost $100m from $171m to $71m. Lawrence described the electors’ education as “an area especially, the education of the electors, that the Commission is always lacking in.” Teixeira explained that was not the case as training for most of the temporary staff for LGE was completed last year, as such this year there would only be “mop-up training”.
Turning to Defence and National Security Capital Expenditure, Teixeira was questioned on the line item $120m for furniture and equipment and was asked if she could provide a breakdown. She explained that a number of the projects had to do with purchasing basic office equipment such as filing cabinets and “other equipment”. She was asked if any of the other equipment will help in this country’s fight against cybercrime. Teixeira said that while it would help to improve overall capacity boosting, it will also help in the cybercrime protection area. With Guyana’s Office for Investment (G-Invest) falling under her purview, Teixeira was asked by Lawrence to tell the Committee of Supply and the nation “what we can see jumping out at us from Go-Invest”.
She said that the allocations in the agency’s estimate are dedicated to follow ups with the investment delegations it brought here last year, namely from Jamaica, Saudi Arabia and the United Arab Emirates.
“This year there will be follow ups to bring these Expressions of Interests into greater form for these three countries…,” Teixeira said. She was quick to point out that the new projects that Go-Invest has budgeted for in the line item, are there to serve the entire nation. “Go-Invest is responsible for the whole country in terms of opportunities and investment.”
Following the grilling on the sums proposed the $5.7b allocated to the Office of the President was passed.
