This Week-in-Review May 14th to May20th

Security

‘Smallie’ makes dramatic escape from Mazaruni Prison: Mark Royden Williams called ‘Smallie’ last Friday escaped from the Mazaruni Prison, a maximum security facility, following an exchange of gunfire with prison officers. ‘Smallie’ is listed as a death row prisoner and according to the Ministry of Home Affairs (MoHA), the convicted killer escaped with the aid of heavily armed accomplices in a speedboat at Mazaruni Prison just around 14:30 hours while he was being escorted back to his quarters following a visit. At the time, the escort party was fired upon with AK-47 automatic rifles from the boat alongside the Mazaruni River during the transfer and it was then ‘Smallie’ escaped with the men. The boat and its occupants proceeded upstream, past Itaballi landing, while prison guards with police in support followed in hot pursuit. MoHA said that  members of the Joint Services have been mobilized to effect the recapture of Williams and to capture and or arrest his accomplices and also a preliminary investigation is underway, and persons are being questioned in relation to this extremely serious incident. The release further informed that Joint Services and other security personnel are on high alert. All citizens in the Mazaruni and surrounding areas have been advised to take precautions and remain vigilant as the persons sought are armed and are considered as being extremely dangerous. It was also made clear that aiding and abetting a prison escapee can result in a prison sentence of three or more years if and when convicted. Back in 2022, ‘Smallie’ was sentenced to death for the 2008 murder of Guyana Defence Force (GDF) officer Ivor Williams. Sherwin Nero also known as ‘Catty’, had also been charged and later he confessed to killing Williams and was released from prison after he pleaded guilty to a lesser count of manslaughter and was sentenced for time already served back in 2020. Nero and ‘Smallie’ were jointly charged for the offence and Nero was freed based on time spent on remand since June 2008.

Integrity

Integrity Commission issues warning to defaulters: The Integrity Commission yesterday issued a warning to public officers who have not submitted their 2022 declarations. In an advertisement in the state-owned Sunday Chronicle, the Commission said that for the year 2022, of the 1491 specified public officers,  only 663 persons had submitted. It said that 828 declarations are outstanding. This translates into delinquencies of 55.5% compared to 48% for 2021 based on figures supplied by the Commission. Statutory declarations for 2022 were originally due on August 31, 2022 but an extension was granted up to December 31, 2022. Despite this, the number of persons not complying remains high. Seventeen Members of Parliament are delinquent, 108 in ministries, 208 in  the regions and 493 in agencies and departments. The Commission said it is now preparing to take the next step in accordance with the Integrity Commission Act. As of February 2023, the Commission has sent out notices to several Specified Public Officers for failure to file their declarations. “The next step is, defaulters will see their names published in the local press and the Official Gazette. The final step, if declarations are still not received would be to seek prosecution of the defaulters”, the Commission warned. It said that while compliance remains a great concern and challenge it has made over forty recommendations through the Attorney General’s Chambers for the “modernization of the 1997 Integrity Commission Act, which continues to be an impediment to compliance”. It said that it has also actively sought to engage public officers including the Speaker and Members of the National Assembly. Further, the Commission is in consultation with external partners to undertake a thorough risk assessment of its systems and processes to develop a digital management system that would allow for e-filing. It added that it is also seeking to bolster the human resource capacity at the Commission for greater efficiency.

Oil & Gas

Parent guarantee order to feature at Exxon’s AGM: ExxonMobil’s annual general meeting on May 31st will see at least two demands from shareholders on the ramifications of the landmark decision by Justice Sandil Kissoon requiring it to provide an unlimited parent or affiliate company guarantee to indemnify and keep indemnified the EPA and the Government of Guyana. The demands  will underline the growing fallout for ExxonMobil from the decision which it has not yet attempted to appeal  but which is already being challenged by the Environmental Protection Agency (EPA). The Guyana Government and the EPA have been castigated for the move to appeal Justice Kissoon’s decision given the protection  it would confer on the country in the face of any spill and the fact that it was catered for in the language governing the environmental permit for the Liza-1 operations which began here in December 2019. The judge ordered the EPA to issue an Enforcement Notice pursuant to Section 26 (1) and (2) of the Environmental Protection Act, no later than May 9th, directing EEPGL to perform its obligations under the permit and to provide, within 30 days thereafter, the unlimited liability Parent Company Guarantee Agreement and/or unlimited liability Affiliate Company Guarantee to indemnify and keep indemnified the Government of Guyana and the agency against all such environmental obligations of Esso and its co-venturers within the Stabroek block, together with environmental liability insurance as is customary in the international petroleum industry in accordance with the Conditions 14 from an insurance company standing and repute that equates to Grade A Plus as envisaged by Condition 14. Failure to comply with the order, the judge said, will result in the permit being suspended. The EPA has since approached the Court of Appeal over the decision and a hearing has been set to make a determination on whether there will be a likelihood of the appeal succeeding. In the meanwhile, ExxonMobil shareholders have begun showing jitters over the possible impact on them of an unlimited parent company guarantee should there be a major disaster. Mercy Investment Services has tendered an appeal to shareholders to vote for Ballot Item No 10 seeking a report on the costs and impact of a worst-case oil spill from Exxon’s operations in Guyana’s Atlantic waters. Based on a document filed with US Securities and Exchange Commission (SEC), Mary Minette on behalf of Mercy Investment Services has written to shareholders seeking support for the ballot measure. She said: “Ballot Item Number 10 seeks disclosures that would allow investors to better evaluate the scope of potential liability associated with a worst-case spill.  “Asset managers and other fiduciaries that seek to exercise due diligence in managing portfolio risks would be well advised to vote in favor of this proposal, bringing into clearer transparency the potential costs and risks associated with a worst-case spill scenario in Guyana”. Minette adverted to Justice Kissoon’s decision.

ExxonMobil says over $80b spent locally last year by it and contractors: ExxonMobil Guyana and its reporting contractors have spent more than $80 billion (US$400 million)  with more than 1,500 Guyanese businesses in 2022 alone. That is part of the more than $180 billion (US$900 million) spent with locals since the first discovery of oil in 2015, the company said in a release last week. By the end of 2022, the company and contractors had employed over 5,000 Guyanese workers, representing more than 65 percent of the overall workforce in the oil and gas industry here. Notably, it said that the numbers of Guyanese working offshore continued to grow. Among the 2,700 personnel committed to supporting ExxonMobil Guyana’s operations, over 1,300 were Guyanese, constituting approximately 48 percent of the offshore workforce. These numbers will continue to increase as more projects come onstream. “We believe that the true measure of our success lies not only in the barrels produced but also in the positive impact we create for our people and the communities in which we operate. By prioritising local talent, partnerships, and investments, we aim to cultivate a thriving and sustainable environment that benefits everyone,” said president of ExxonMobil Guyana Alistair Routledge. On Monday the release said that the operator received a Letter of Approval from the Ministry of Natural Resources for its 2023 Local Content Annual Plan and its Certificate of Compliance for 2022. The 2023 Plan describes how the company intends to execute projects and implement systems to promote the development of local content this year. “ExxonMobil Guyana’s evolving strategic plan for operational growth includes balancing meeting the needs of the business while developing Guyanese content in a phased approach. It is assessed annually to ensure objectives are met in a sustainable and systematic manner”, the release said. ExxonMobil subsidiary here, EEPGL, is now at the centre of a major court battle over a parent company guarantee to accompany its insurance for the Liza-1 oil operations.

Development

Major work expected later this year on road to CJIA – Edghill: A US multimillion-dollar project to transform the East Bank of Demerara Public Road into a four-lane, fully-lit thoroughfare all the way to the Cheddi Jagan International Airport (CJIA), Timehri is expected to begin this year,  according to Minister of Public Works, Juan Edghill. Tenders for the supervision of the project were opened on May 10th with the design and build aspect to be closed in July. Three companies, ALYA Construtora S.A. of Brazil; China Road and Bridge Corporation and China Railway Construction (Caribbean) Co. Ltd (CRCCCL) out of China; and China Railway Construction Bridge Engineering Bureau Group Co. Ltd. (CRBG) also out of China, have all been prequalified to bid for the project. The tender process closes on July 26, 2023. The construction of the road is being funded by a US$117 million loan from the Inter-American Development Bank under its climate resilient road infrastructure project and US$17 million from the Government of Guyana. Six firms had responded to the invitation for expressions of interest for the supervisory and consulting process on the road. They are: 1) Beston Consulting Ltd (Trinidad & Tobago) with nominated sub-consultant Caribbean Transportation Consultancy Services (CARITRANS) Company Limited (Guyana); 2) Politecnica Ingegneria ed Architettura Societa Cooperativa (SC) (Italy) with nominated sub-consultant SRKN’gineering & Associates Ltd. (Guyana); 3) Sheladia Associates Inc (USA); 4) WSP Caribbean Limited (Panama), 5) Exp Services (Canada) in association with CEMCO (Guyana) Inc; and 6) Imtraff Group (Brazil) in association with Nippon Koei Co. Ltd (Japan) Nippon Koei Latin American Caribbean Co. Ltd. (Japan). Four companies from that list were shortlisted and bids submitted. Those four bidders are: 1) Beston Consulting Ltd (Trinidad & Tobago) 2) Sheladia Associates Inc (USA) 3) Exp Services (Canada) and 4) Politecnica Ingegneria ed Architettura Societa Cooperativa (SC) (Italy). Stabroek News was informed that evaluation of the Technical Proposals from the four bidders listed above will commence shortly. Under the project, some 24 kilometres of the road from Good Success to Timehri will be upgraded and outfitted with traffic safety road markings and safety signs, street lighting, roadside drains, and shared-use paths for cyclists and pedestrians. “…Sections of that road will be a four lane, the entire stretch is being developed all the way to the Timehri Airport… The improvement will be all the way to catch the four-lane at the intersection by the Timehri Police Station,” the minister explained. Edghill told this newspaper that prior to the approval of the project, IDB officials had visited and engaged in scoping missions to validate their proposal.

Crime

Two men gunned down in Linden home invasion: An elderly man and his son-in-law were gunned down during a home invasion in Block 22, Wismar, Linden on May 14th and a third man was critically  injured. Two persons are currently in custody and the police are pursuing leads. The police said that they are investigating the murder of Johnson Bowen, an 87-year-old from Block 22 and Emanuel Dos Santos, a 58-year-old miner of the said address, which occurred at about 4.20 am, The attack was carried out by three masked males, two armed with handguns and one with a cutlass. The police say that enquiries disclosed that Bowen and his son-in-law Dos Santos both resided in a one-story wooden and concrete house in an unfenced yard. Vashti Bowen,  48,  who lost her father and husband in the attack was asleep in the northeastern bedroom with Dos Santos while her father,  Bowen was sleeping in the southwestern bedroom with her 20-year-old son. Vashtie Bowen told the police that she was awoken by a noise in her living room. She exited the bedroom and entered the living room where she observed the three suspects, two armed with handguns and one with a cutlass pulling her father from his bedroom. She told the suspects that her father did not hear well. At the said time, she saw her nephew, a  gold miner who lives next door, push the door open, enter the house, and hold on to one of the suspects from behind, choking him. Her husband and son then began lashing the other suspect with a mop stick, and the two suspects began discharging their firearms indiscriminately. Another occupant of the house then armed himself with a cutlass and chopped one of the suspects. The suspect then ran out of the house through the northern door.  Dos Santos followed the suspects who shot at him and he fell in front of the door mortally wounded. The suspects then fled on foot.

In the courts

ExxonMobil says has appealed insurance ruling: Fifteen days after a historic High Court decision finding it in breach of insurance requirements for the Liza-1 well, ExxonMobil last week announced that it had filed its own appeal against the judgment. A terse statement from the company was the first announcement of an appeal but the company did not supply any of its filings. The May 3rd decision had been surprisingly appealed by the Environmental Protection Agency on May 9th but up to that point there had been no word from ExxonMobil on what it would do. In its statement, ExxonMobil said: “In light of some recent misreporting, we wanted to take a moment to clarify that ExxonMobil Guyana supports the EPA’s appeal of the recent High Court ruling and filed our own appeal last week.  “The court failed to recognize the ability of the Stabroek block co-venturers to meet our financial obligations, which are supplemented by the insurance that we already have in place and the agreement we reached with the EPA for financial guarantees that exceed industry benchmarks”. The company did not identify the misreporting. Justice Kissoon’s decision has put ExxonMobil and the government on the back foot as non-compliance could lead to the cancellation of the environmental permit for Liza-1 and a halt to its operations. The same would likely apply to Liza-2. The EPA’s case came up last week before Court of Appeal judge Rishi Persaud and hearings have been fixed on the question of whether the EPA’s appeal has a chance of succeeding. It is unclear from the ExxonMobil release if the company has applied to join the EPA case against the judge’s decision or it has filed a separate case. In the meanwhile, ExxonMobil’s Annual General Meeting set for May 31st will see several questions on the financial ramifications for shareholders as a result of Justice Kissoon’s decision.

Linden woman gets eight years for rape of child: A Linden woman has been sentenced to eight years behind bars for the rape of a child. Gabriella Allen, 20, had been convicted by a jury back in February for raping a girl, but her sentencing had been deferred for a probation report. Allen, called ‘Gabby,’ of Buck Hill, Wismar Linden, was charged back in August of 2021, with rape of a child under 16. She was indicted under Section 10 (1) of the Sexual Offences Act. Cap. 8:03. That section which deals with Child Sex Offenders, states among other things that “A person, (“the accused”) commits the offence of rape of a child under sixteen years of age (“the complainant”) if the accused – (a) engages in sexual penetration with the complainant…” The Act defines penetration as “any intrusion, however slight and for however short a time, of any part of a person’s body or of any object into the vagina or anus of another person, and any contact, however slight, and for however short a time, between the mouth of one person and the genitals or anus of another, including but not limited to sexual intercourse, cunnilingus, fellatio, anal intercourse and female to female genital contact.” Following the presentation of all social impact reports on Monday, Justice Priya Sewnarine-Beharry who presided over the trial, sentenced Allen to eight years in prison. The State’s case was led by prosecutor Latifah Elliot. Allen was represented by defence attorney Adrian Thompson. The trial proceedings were held in-camera at the Sexual Offences Court of the High Court in Demerara.  

Winston Jordan cleared of misconduct charge: Former Minister of Finance, Winston Jordan has been cleared of the charge of misconduct in public office after a Magistrate’s Court found that the Special Organized Crime Unit (SOCU) had not proved its case against him. Stabroek News understands that following the prosecution’s tendering of all of its witness statements and documents last Tuesday, Magistrate Leron Daly sitting in the Georgetown Magistrate’s Court ruled that Jordan had no case to answer. Jordan yesterday express relief at the decision. He told Stabroek News “I feel relieved; this was like the sword of Damocles hanging over my head, sullying my name”. The ruling, Stabroek News understands, came after the Court’s finding that Jordan could not be considered a public officer because he had been appointed a minister and not a public officer in the public service. It is unclear at this time whether SOCU will be filing an appeal, though sources say that this is likely.  Back in December of 2021, SOCU brought the charge against Jordan. It had always been the contention of his legal team led by Senior Counsel Roysdale Forde, that Jordan was not a public officer. However, the prosecution had submitted that the Chief Justice had made a ruling in the case of Brassington and Singh vs the Chief Magistrate in Application 757 of 2018 that Dr Ashni Singh, who was also a Finance Minister, was considered a public officer and that Article 232 of the Constitution of Guyana provides that, a “public officer means the holder of any public office and includes any person appointed to act in such office inter alia.” Stabroek News understands, however, that from the case presented by SOCU, Jordan was not found to have been a public officer, a circumstance on which it was hoping to ground the misconduct charge.