Court
Exxon ‘reviewing’ court ruling on insurance: ExxonMobil says it is reviewing last Wednesday’s court ruling by Justice Sandil Kissoon, which found the company in breach of its insurance obligations for its first oil project Liza 1, a decision that can have major ramifications. “We are reviewing the court’s decision and evaluating potential next steps. However, it is disappointing that the court failed to appreciate and acknowledge the financial capabilities of ExxonMobil Guyana and its co-venturers to meet their obligations, the insurance we already have in place, and the progress towards agreeing to a guarantee that exceeds industry benchmarks,” ExxonMobil said in a statement in response to a request from Stabroek News for a comment on the ruling. “ExxonMobil Guyana and our Stabroek block co-venturers have adequate and appropriate insurance and proposed guarantees in an amount that exceeds industry precedents and an estimate of potential liability,” the statement added. Justice Kissoon, in a ruling on Wednesday in the action brought against the Environmental Protection Agency (EPA) to enforce the liability clause in the permits issued to ExxonMobil Guyana for its offshore oil operations, described the EPA as “submissive”. He said it had abdicated its responsibilities “…thereby putting this nation and its people in grave potential danger of calamitous disaster.” The judge bluntly said that the circumstances giving rise to the action disclosed the existence of an “egregious state of affairs that has engulfed the Environmental Protection Agency in a quagmire of its own making. “It has abdicated the exclusive statutory responsibilities entrusted to it by Parliament under the Environmental Protection Act 1996 and the Environmental Protection Regulations 2000 to ensure due compliance by Esso Exploration and Production Guyana Limited [EEPGL].” President of the Transparency Institute of Guyana Inc (TIGI) Frederick Collins and another Guyanese citizen, Godfrey Whyte, had moved to the court last year to get the EPA to enforce the liability clause in the permits issued to ExxonMobil Guyana for its offshore oil operations.
Claiming fraud on nomination lists, APNU files court action to block LGE: Opposition Leader Aubrey Norton said last Thursday said that A Partnership for National Unity (APNU) had filed court action to block the local government elections slated for June 12, after the Guyana Elections Commission (GECOM) failed to address the charges of fraud APNU made about the People’s Progressive Party/Civic (PPP/C) nomination lists. At the party’s weekly press conference yesterday, Norton explained that lawyers had approached the court on Wednesday with the party’s application. “We filed … a court action seeking to either postpone or stop the local government elections… As far as I gather from the lawyers, we have a 28 May date fixed for hearing on this matter. We also have other pending legal action that we will take to deal with this issue. But as it stands, on the question of the manipulation of the boundaries and a number of other issues we have already filed. And we will continue to file legal action to deal with these issues.” According to Norton, this route was taken because GECOM was unwilling to address the concerns raised by the APNU relating to cases of fraud uncovered with several nominations for the upcoming elections. He stressed that APNU had reported the issue to the Guyana Police Force as well. “We are continuing to protest their actions and we will take legal action on all aspects of these irregularities. We believe the voters’ list is flawed, bloated and we will continue to fight for that.” A statement from the party yesterday said that for GECOM to state that the allegations of forgery and voter impersonation were matters for the police and for election petitions, was “a gross dereliction of its constitutional responsibilities to the people of Guyana.” It stressed that the commission has a duty, an obligation, and a binding undertaking to deliver fair and impartial elections, adding, “it is not the duty or obligation of neither the Guyana Police Force (GPF) nor the High Court. The Constitution explicitly places that responsibility fully in the lap of GECOM. The commission has no room for dodging and ducking its obligation here. Clearly, GECOM is a pawn of the PPP administration and cannot deliver free, fair, and credible elections to the people of Guyana.” Furthermore, the party said that for GECOM to apply one set of rules to certain constituencies and different rules to others further exposes it to charges of “ineptitude or political bias at its very top.” Prior to revealing that the court action was filed, during an interview with the Stabroek News, Norton had said, “I have different advice that you could challenge by way of magistrate. I know what the petitions entail but challenges will mount from all levels and there will be challenges.”
Govt slammed over intent to appeal ruling that EPA must enforce liability clause in Exxon permits: Former head of the Environmental Protection Agency (EPA) Dr Vincent Adams last week slammed the government’s intention to file an appeal against Justice Sandil Kissoon’s ruling that the EPA failed to enforce the liability clause in the permits issued to ExxonMobil Guyana for its offshore oil operations. Adams, an Alliance for Change (AFC) executive member, said the party welcomed the landmark decision and questioned the grounds on which the government is preparing to appeal it. He said he was somewhat surprised at the move coming from the government and not ExxonMobil’s Esso Exploration and Production Guyana Limited (EEPGL). “It proves how close the PPP/C government is with the oil industry… I could understand Exxon appealing,” AFC Leader Khemraj Ramjattan interjected. Fellow AFC member and shadow Minister of Natural Resources David Patterson expressed similar views. According to Patterson, the government’s move to file an appeal is a clear indication that it was fearful of more citizens moving to the courts to challenge decisions and policies. He said he had expected the government to adhere to the court’s ruling and take it as a win for the people. “The ruling is purely based on the facts and there are some important things which the judge said. The judge said the Environmental Protection Agency refused to give any documents or confirmation in its defence regarding insurance coverage from Exxon. He also said that Exxon and EPA in their defence, said citizens have no locus standi,” Patterson underscored. “Any other reasonable government would have taken it as a win. Tell the oil company we have an independent judiciary, let us all follow the rule of law. This has nothing to do with future business…” Patterson went on to state that the government should explain where the judge’s interpretation of the law is bad for business and why the company is scared to put up unlimited liability coverage for operations it has been involved in for decades. The former government minister questioned the difficulty in providing unlimited coverage when the operators boasted that their floating production storage and offloading vessels have been operating at a standard. The former EPA ahead agreed with Patterson and he too questioned the difficulty given that operators have done so in the United States. “Why should it be different for Guyana?” he added. Adams said the ruling sends a very strong message to Exxon and its partners, putting them on notice and that the people of Guyana “will not sit idly by while they overlook and attempt to evade their responsibilities to follow the rule of law in Guyana – responsibilities which they uphold in other territories.” Attorney General Anil Nandlall had said that the ruling could have “profound ramifications and grave economic and other impacts on the public interest and national development”. He said that both the government and EPA are of the considered view that the environmental permit “imposes no obligation” on the permit holder to provide an unlimited Parent Company Guarantee Agreement and/or Affiliate Company Guarantee Agreement.
Judge rules ‘submissive’ EPA must enforce liability clause in Exxon permits:In the action brought against the Environmental Protection Agency (EPA) to enforce the liability clause in the permits issued to ExxonMobil Guyana for its offshore oil operations, Justice Sandil Kissoon, in a ruling last week, said the EPA, which he described as “submissive,” had abdicated its responsibilities “…thereby putting this nation and its people in grave potential danger of calamitous disaster.” The judge bluntly said that the circumstances giving rise to the action disclosed the existence of an “egregious state of affairs that has engulfed the Environmental Protection Agency in a quagmire of its own making. “It has abdicated the exclusive statutory responsibilities entrusted to it by Parliament under the Environmental Protection Act 1996 and the Environmental Protection Regulations 2000 to ensure due compliance by Esso Exploration and Production Guyana Limited [EEPGL.” In response to the ruling, which he has signalled will be appealed, Attorney General Anil Nandlall said that both the government and EPA are of the considered view that the environmental permit “imposes no obligation” on the permit holder to provide an unlimited Parent Company Guarantee Agreement and/or Affiliate Company Guarantee Agreement. The AG’s position is that the ruling can have “profound ramifications and grave economic and other impacts on the public interest and national development.” President of the Transparency Institute of Guyana Inc (TIGI) Fredericks Collins and another Guyanese citizen, Godfrey Whyte, had moved to the court last year to get the EPA to enforce the liability clause in the permits issued to ExxonMobil Guyana for its offshore oil operations.
Security
Home Affairs PS was carrying around US$9,000 when phone was seized: Home Affairs Ministry Permanent Secretary, Mae Toussaint Jr Thomas was carrying a significant amount of cash but below the threshold for declaration when she was selected for a secondary inspection on April 8th at Miami International Airport in the US and her cell phone subsequently confiscated. The government has maintained silence on what it will do in relation to Toussaint Jr Thomas as a result of the seizure of the cellphone and the revocation of her US visa given what could have possibly been behind the moves by the US Customs and Border Protection. Toussaint Jr Thomas submitted a report on the April 8th incident to Home Affairs Minister Robeson Benn and this was to be transmitted to the Ministry of Foreign Affairs to enable further dialogue with the US authorities. It is unclear if the report was forwarded to the ministry. Sources close to the government say that Toussaint Jr Thomas was carrying around the equivalent of US$9,000 when she was questioned by the authorities in the US. She then continued onwards to China. Since the government had said that she was on a PPP-related training programme, questions will likely be raised as to why she was carrying that amount of cash. Sources say several months ago, a close relative of Toussaint Jr Thomas who is a US citizen also had their phone seized at a US airport, underlining that the US authorities have been keeping a close watch on their movements. Meanwhile, former Auditor General Anand Goolsarran has rapped Benn for suggesting that the appointment a PS is solely at the discretion of the President. Writing in his accountability column in Monday’s edition of Stabroek News, Goolsarran said: “Amid criticisms about political party officials being appointed to the position of Permanent Secretary in what has traditionally been a politically neutral Public Service, the Minister of Home Affairs asserted that such appointments are solely at the discretion of the President. However, all appointments to the Public Service, including those of Permanent Secretaries and Regional Executive Officers, are the responsibility of the Public Service Commission (PSC), as provided for by Article 201(1) of the Constitution: “The power to make appointments to public offices and to remove and exercise disciplinary control over persons holding or acting in such offices shall vest in the Public Service Commission.
Legislative
Proceeds of crime for sharper focus: Anti-money laundering laws are to be further tightened and this will allow the authorities to go after assets that were considered tainted before the passage of the original act and will also dramatically increase the period available to confiscate the property of criminals.Attorney General Anil Nandlall SC last week released the Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Bill 2023 and the Guyana Compliance Commission Bill 2023 and invited inputs over the next two weeks. In a statement, Nandlall acknowledged that the laws have to be in place to implement the outstanding recommendations of the Caribbean Financial Action Task Force (CFATF) and the Financial Action Task Force. He also noted that the country’s anti-money-laundering framework will be undergoing its fourth round of mutual evaluation in September 2023 by the CFATF and the tabling of the bills should be seen in this light. With the vast expansion of financial transactions accompanying the oil and gas industry, Guyana is likely to come under even closer scrutiny. According to the Explanatory Memorandum, the amendment bill seeks to update the Act to ensure the Financial Intelligence Unit (FIU) meets the necessary requirements for membership of the Egmont Group. The Egmont Group comprises FIUs and Guyana needs to join this to be part of a network that shares information on money laundering. Membership has been spoken about for many years. Recently, the Heads of two regional FIUs were here for a site visit on Guyana’s application to join the Egmont Group. Sections 46 and 55 of the amendment bill provide a greater time period with regard to going after the property of criminals for confiscation for forfeiture, amending the period in question from six years to twenty years. The Bill also inserts new sections 57 A, 57 B, 60A, 60B, 60C and 60D related to the proceeds of crime.
Media
Guyana drops 26 spots on World Press Freedom Index: Guyana has dropped 26 spots in the press freedom rankings moving to 60 out of the 180 countries listed on the 2023 World Press Freedom Index, which was compiled by Reporters without Borders (RSF). The ranking was released last week by the RSF which condemned the harassment and intimidation of journalists in Guyana through online targeting and disrespect from the administration. The report, which assesses the state of journalism in 180 countries and territories, highlights the disastrous effects of news and information chaos – the effects of a globalised and unregulated online information space that encourages fake news and propaganda. It stated that the environment for the practice and promotion of journalism is satisfactory in only 30% of the countries. It was released earlier in the week. The report noted that journalists in Guyana continue to encounter pushback from the government and supporters of the ruling party in their work. This includes exclusion from routine press briefings by the administration and intimidation tactics. The report cited a recent incident where journalists were forced to sit among the public and be verbally intimidated while asking questions, particularly when bringing up certain topics like oil. In this instance, the crowd was largely composed of vocal supporters of President Irfaan Ali’s party and the meeting was more like a rally. It highlighted the attacks on journalist Devina Baggot and President of the Guyana Press Association Nazima Raghubir. “Whether directly attacking the media or encouraging supporters to do so with a wink and a nod, President Ali is putting journalists at risk for simply doing their jobs. President Ali’s administration must take action to ensure all journalists are safe to do their jobs. This includes holding to account party supporters who intimidate members of the press,” RFS US Bureau Executive Director Clayton Weiners was quoted as saying in the report. Further the RFS report, highlighted critical reporting by the Guyana Chronicle, which is owned by the government, on the press association, especially Raghubir. “This exemplifies a larger issue that the government controls many of the media outlets in the small country and tries to silence those who criticise the administration. There have been no cabinet press briefings since August 2020,” the report added.
Oil & Gas
Exxon says has responded to IHS Markit audit: ExxonMobil says it has submitted its responses on the findings of the IHS Markit report which unearthed some US$214 million in questionable claims and this raises again the question of when the government will disclose its final position. The final audit report by the UK firm on US$1.67b of the earliest oil spending was completed in March 2021 but has not been publicly released along with the government’s position on the questionable expenses. “…The company is regularly audited by the government, its co-venturers and professional audit firms to verify the integrity of its accounting against international standards, and the terms of the Production Sharing Agreement and Joint Operating Agreement,” the company said in response to questions from Stabroek News and through its local Media Relations Advisor, Kwesi Isles. “We are fully transparent with our accounting practices and records, and we have communicated to the Guyana Revenue Authority and the Ministry of Natural Resources our response to the initial claims raised by the IHS Markit audit,” it added. The company noted that, “as a practice ExxonMobil Guyana does not comment publicly on draft reports.” The public only became aware of the findings of the IHS Markit report when Stabroek News reported on it in its April 2nd 2023 edition. Among a plethora of issues, the audit report found that the Government of Guyana (GoG) could contest some US$214.4 million in the expenses claimed by Exxon. This figure works out to 12.8 per cent of the US$1.67 billion figure for the period 1999 to 2017. “The Audit has established that GoG has reasonable grounds to dispute US$214.4 million plus overhead adjustments of the costs currently included by EEPGL in the Cost Bank. This amount represents 12.8% of the cumulative cost recovery balance as of Q4 2017 Statement,” the IHS Markit Final Audit Report said. The disputed costs fall into three main categories – Defined Costs for Removal (DCR), Inadequate Supporting Documentation (ISD), and Ministerial Approval Required (MAR). For each of the categories, the sums were: DCR – US$34 million, ISP – $179.8 million, and MAR – US$0.27 million.
Investment
Sod turned for $6.6b hospital at Bath Settlement: The sod was last week turned for the construction of a hospital at Bath Settlement, West Coast Berbice, in Region Five. The cost of the construction of the Bath Settlement hospital is projected at $6.6 billion and over 30,000 persons in Region Five are expected to benefit from the improved healthcare services when completed. The China National Pharmaceutical Group Corporation, Sinopharm will be taking on the task to build the Regional Hospital. The hospital will have 75 beds, three operating theatres of international standard, a neonatal unit, a 24-hour accident and emergency department, a modern laboratory that will conduct various types of testing as well as ultrasound, CT scan, and digital X-ray services. President Irfaan Ali yesterday said during his presentation at the sod-turning ceremony, that the hospital is the first of the six regional facilities and is part of a national health revolution aimed at improving the country’s healthcare system. He added that because of the type of policies and directions they have offered to the health sector, they are seeing tremendous private investments being made in health care. In that way, he explained, the government must be able to support the specialized care. “We don’t want to be the primary provider in specialised healthcare. We want to be the primary facilitator for specialised health care. But we want to be the foundational pillar of primary healthcare. That is what the government is hoping to achieve.” He added: “We can be assured of the future that is not only healthy, but a future that benefits from strong balances investments. Investments that are futurisict, an investment that will allow your children and the future generation of residents in Region Five to live a higher quality of life. To benefit from higher services, including education and health. Public human services type of support services. That comes to the region.” Meanwhile, Minister of Health, Dr Frank Anthony noted that the sod turning for the regional hospital creates a big opportunity for everyone, “It is going to be a level four hospital which means, it’s a very high level and we will be able to do quite a lot of things.”
Sheriff Hospital opens at Leonora: The multi-million US$ Sheriff Hospital at Leonora, West Coast Demerara was on April 29th officially opened with its principals committing to a charge from President Irfaan Ali that while patients will have access to world class healthcare service it must be affordable. Announced also was that stem cell treatment would be offered along with cosmetic and other surgeries. President Ali said that it is his government’s top priority for all Guyanese to have access to quality healthcare thus the reason for the removal of the 25 per cent corporate tax on healthcare service providers. He believes that the tax removal along with investor confidence in his government are key reasons for many investing here and the Sheriff Group’s plans to open additional facilities is evidence of this. However, Ali told the principals of the hospital that as the country undergoes world class transformation, they must ensure that the service they provide matches that. “We are not playing to be second best, we are playing for once in Guyana to be the best at what we want to do,” he stressed. The president noted that while he also understands that investments are made to bring profits and returns, investors must also understand that they have a social responsibility to the people to not exploit them. “Today, Region Three celebrates with the investors this wonderful facility, and I am very pleased because the government has created the enabling environment by removing corporate tax on healthcare services… so this could be affordable.” “I hope the Minister of Health would ensure that their affordability is in the true meaning of affordability. This is not a gift, this is an investment and we expect an investment to return profit, but investment in healthcare comes with a social conscience,” he added. Chief Executive Officer, Shareef Ahmad, yesterday told the many attendees, most of whom hailed from the region, that in their options of healthcare treatment, they must know that this facility is there to offer them stellar service, every time. “This hospital is your hospital. Together, we will change the way healthcare is dispensed in this county,” he declared.
Media
Guyana’s press freedom index dive influenced by sympathy-seeking GPA – Jagdeo: Guyana’s 26-point drop on the global press freedom index was influenced by the current executive of the Guyana Press Association’s attempt to gain sympathy ahead of the body’s upcoming elections, according to Vice President Bharrat Jagdeo. “I believe they are campaigning now because they have long overdue elections – the GPA,” Jagdeo, who is also the PPP general secretary, said on Thursday at a press conference when asked for a response to the GPA’s World Press Freedom Day message. “It is long overdue. And now because of fears that there may be changes, the boogeyman is always the PPP. [This is] … to make some of the journalists feel that if they vote for a different person in there that they are part of some government plot. It is like trying to shame the journalists or the members of the press association into voting for the status quo. So, I believe that this is part of the campaign. The boogeyman PPP is trying to derail the press association; trying to take over an independent press association. So I am an independent press association, so vote for me. Don’t vote for anyone else. It is part of the campaigning,” he said. Taking a direct aim at President of the GPA Nazima Raghubir, Jagdeo said she was partisan in her views and reports from the GPA influenced this country’s latest ranking on press freedom. “I would urge Nazima Raghubir not to use the PPP/C as her campaign. We have enough troubles otherwise. We don’t want to be part of your internal campaigning there,” he said. “I think that the press association had this big hype, knowing that the report was coming out now and Guyana suddenly dropped 26 points on the report. They knew the report was coming out and I think it was an orchestrated attempt by some media practitioners …who are politically aligned to stir up issues that are non-issues knowing that it would influence the ranking…,” Jagdeo posited. “Reporters are getting killed around the world, and the countries don’t drop 26 points. But we dropped 26 points because the press association, again, sent something. And know that everything they sent was used by the international organisation.”
He said that the GPA’s World Press Freedom Day statement attacked the PPP/C in an effort to get sympathy from the international community and organisations. The GPA’s statement warned of an attempt by the government to take it over or failing that, to establish a parallel body.
Crime
Police probing death of 12-year-old Aishalton girl: As the family of 12-year-old Amanda Smith of Aishalton, Deep South Rupununi comes to grips with her sudden demise, her 17-year-old uncle, who has admitted to being in her presence at the time of her death, remains in police custody. Smith’s lifeless body was discovered by her brother in their yard on the night of April 22. A police report stated that a post-mortem examination revealed that Smith died from brain haemorrhage due to blunt trauma to the head and face compounded by compression injuries to the neck. According to information received, Smith’s uncle, a secondary school dropout, also of Aishalton Deep South Rupununi, told the police that he went to the victim’s home on Saturday night to check on them while their parents were out. He said he saw her brother exit the house and go to the outside toilet and he proceeded into the house. He further stated that Smith was rushing towards the door to go outside to urinate and he put his foot out and tripped her. She fell, hit her head on the concrete wall next to the door, and lost consciousness. He told the police that he panicked, picked her up and took her to the backyard. When he heard the brother calling for his sister, he escaped. Her, grieving father Hezron Smith told this newspaper that the family was at a loss as to what transpired. “It is very shocking for our family. We cannot believe something like this happen and her uncle was a part of it… we don’t really know what happened,” the father said in a telephone interview.
Businesswoman slashed to death in hotel room: A 46-year-old woman was last Thursday found dead in a room at Alpha Hotel, Lot 2 Public Road Ogle, East Coast Demerara with 13 stab wounds and a slashed neck. Kim Halley, a businesswoman and mother of three children, of Lamaha Park, Georgetown, was murdered, allegedly by her husband Junior Halley, a 50-year-old businessman of Mahaicony, who has since been arrested and is at the Criminal Investigation Department Headquarters assisting with investigations. According to reports, the Halleys checked into the hotel around 13:45 hrs and were given room 235. Around 14:30 hrs, hotel staff said they heard screams coming from the room. Approximately 15 minutes later, the man left the hotel. Staff then discovered the door to the room ajar and found the woman lying motionless on the bed, facing upwards and partially clothed, a police press release stated. A report was made to the police. EMTs were summoned, and the woman was pronounced dead at the scene. Police said Kim Halley had sustained 13 stab wounds to her face, hands and body and a wound to her neck. The bed was soaked in blood. A knife handle without a blade was next to her body on the bed. The blade was subsequently found in her hair, covered in blood, police said.
Timehri man murdered over teen’s affections: Police are investigating the murder of a 24-year-old porkknocker, allegedly by a 27-year-old man over the affections of a 16-year-old. Police said the dead man has been identified as Kwasi Michelle of Hyde Park, Timehri, East Bank Demerara. The murder occurred at Jaw Bone Backdam, North West District (NWD) on May 1. According to the police, around 00:30 hrs on the day in question, Quason Frank called ‘Lethem Man’, also a porknocker and of Annai Village, North Rupununi, had a misunderstanding with the teenager. The girl left, the report said, and later got into a hammock with the victim. Around 02:00 hrs, the teenager was awakened by an impact to her head. She told the police that she saw the suspect with a sharp object, which he used to stab the victim to his left side chest and right hand. The wounded man ran away and collapsed at Jaw Bone Landing, where public-spirited citizens assisted him to the NWD Health Centre, police said. However, he was pronounced dead on arrival by a doctor on duty. The suspect was nabbed by public-spirited citizens, assaulted and then handed over to the police, the release said. It added that he has since admitted to the offence of murder.
