Oil & Gas
Audit of US$7.3b claims found Exxon’s subsidiary assigned costs using complex system: The RHVE Consortium that undertook the audit of the US$7.3 billion claims by ExxonMobil’s subsidiary for the period 2017 to 2020 said that the company assigns costs using a complex system and while only a small figure, some expenses were above what they should be and included a transfer pricing percentage. “EEPGL’s accounting is extremely tedious, requiring intensive concentration and diligence to understand… EEPGL has more than 180 Cost Objects that costs are booked into, with many of those costs then flowing into a second Cost Objects and then further broken down into other tiers. There are several instances where a cost booked into a Cost Object must be traced through five levels of allocations to see the eventual charge or allocation,” the report seen by the Stabroek News states. This newspaper had earlier reported that the final report for this audit, conducted by the Ramdihal, Haynes, Vitality Consulting, and Eclisar Financial & Professional (RHVE) consortium was handed over to government last month and the challenged amount works out to around 1.3% of the total – much less than the 12.8% in the first audit of the US$1.67 billion by UK auditing firm, IHS Markit. “We analyzed the Cost Recovery Account charges and credits for validity, propriety, and compliance with the PSA (Production Sharing Agreement) and Annex C. Based on the review, it is our opinion the Cost Recovery Account entries were in accordance with the PSA and Annex C, except for items discussed in the report,” the report says. Of note too was that, according to the auditors, “EEPGL’s cooperation was outstanding throughout fieldwork,” it adds while noting that it had submitted 187 Information Requests and while some answers took longer to get, all were completed and they were overall, “encouraged by and pleased with EEPGL’s assistance.” Coming in the wake of the expanding scandal over the illicit bid to reduce the US$214 million disputed figure in the IHS Markit audit, there will be intense interest in determining whether the claimed expenses of ExxonMobil and partners were properly scrutinised in the RHVE audit.
Around US$100m of oil expenses disputed in US$7.3b audit: Around US$100m in expenses claimed by ExxonMobil and partners have been classified as disputed in the audit of the massive US$7.3b amount for the period 2017 to 2020, well-placed sources say. The final report for this audit, conducted by the Ramdihal, Haynes, Vitality Consulting, and Eclisar Financial & Professional (RHVE) consortium was handed over to government last month and the challenged amount works out to around 1.3% of the total – much less than the 12.8% in the first audit of the US$1.67b by UK auditing firm IHS Markit. With ExxonMobil given time for its feedback on the findings, government now awaits advice from the Guyana Revenue Authority (GRA) on the way forward and to decide on when it will make the report public. “We submitted the first report on December 5th [2022]. The most recent and final submission was done on September 11th, that is the final report to the Government of Guyana and we are awaiting feedback,” RHVE Lead Representative Floyd Haynes told the Sunday Stabroek. “…So the report is done. It is very thorough and I’m hoping they make it public,” he added. He explained that when he referred to the government he meant the Ministry of Natural Resources and the GRA. Haynes had been pointed to by the GRA after this newspaper contacted GRA Commissioner-General Godfrey Statia for an update on the US$7.3b audit. The RHVE representative explained that he could not go into details of the audit as he was government’s client and could only speak in detail when government “authorizes” him to. Coming in the wake of the expanding scandal over the illicit bid to reduce the US$214m disputed figure in the IHS Markit audit, there will be intense interest in determining whether the claimed expenses of ExxonMobil and partners were properly scrutinised in the RHVE audit. The GRA – as distinct from its functions of examining the tax returns of ExxonMobil and its partners had declined to participate in a review of the disputed IHS figure as it had not been involved in the process from the start. It is unclear what the GRA’s role will be in relation to the RHVE report on the US$7.3b audit.
Infrastructure
Two proposals submitted for Guyana/Suriname bridge: Two companies have submitted proposals to build the bridge over the Corentyne River to link Guyana and Suriname, Minister of Public Works, Juan Edghill, recently confirmed. They are the Dutch engineering company, Ballast Nedam and Chinese-owned China Road and Bridge Corporation (CRBC). The proposals were submitted on Thursday to the National Procurement and Tender Administration Board (NPTAB). Following an evaluation of the submissions, a proposal will be made to Georgetown and Paramaribo and upon agreement, the selected company will be announced, this newspaper was told. Five companies had been pre-qualified as contractors/joint ventures. They were CRBC; China Railway Construction International Ltd, China Railway Construction Caribbean Co Ltd and China Railway Construction Bridge Engineering Bureau Group Co Ltd; Ballast Nedam Infra Suriname B.V; China Harbour Engineering Company; and China Overseas Engineering Group Co Ltd, China Railway Eryuan Engineering Group Co Ltd and China Railway First Group. With only two companies submitting bids, it is unclear the reason for the diminished interest from other three companies. The Corentyne River Bridge will be constructed via a Public-Private Partnership (PPP) arrangement and according to the Design-Build-Finance-Operate-Maintain model (DBFOM). This means that the successful contractor or joint venture will be responsible for its final design, construction, financing, operation, and maintenance, the Ministry of Public Works has said. Trinidad-based consultants, WSP Caribbean, has designed and proposed a two-section bridge connected by an island in the Corentyne River to link Guyana and Suriname. The design of the bridge was unveiled in June during a high-level decision makers meeting (HLDM) when the consulting team made a detailed presentation on the feasibility and design of the new infrastructure. Then, the Public Works Minister had hosted his ministerial counterpart Dr Riad Nurmohanmed of Suriname and a technical team from WSP Caribbean.
Mining
Gov’t cancels Troy gold pact: The government last night announced that the agreement with Australian gold miner Troy Resources Limited has been cancelled and swift action has been taken to secure the Region Seven mining site. The announcement followed a report in Stabroek News that Troy Resources appeared to have abandoned its Guyana operations without abiding by the terms of its agreement and for reclamation of the area which was mined at Karouni since 2015. In a statement at around 10 on Monday night, the Ministry of Natural Resources said that in light of Troy Resources Guyana Inc.’s failure to remedy its default concerning several matters, inclusive of the outstanding royalties, rental fees, non-compliance with the work programme, and matters relating to environmental management the government has taken necessary actions. “The Karouni Mineral Agreement issued to Troy Resources Guyana Inc. (TRGI), Troy Resources Limited and Pharsalus Gold Inc., and the Mining Licence are now both cancelled and Terminated”, the statement said.
Bilateral
Guyana and Canada to partner on 3,000 innovative jobs – President: Opening the Agri Investment Forum & Expo last Friday, President Irfaan Ali announced that Guyana and Canada will partner to create 3,000 innovative jobs here especially for the younger generation as he pushed the importance of science and technology in developing agriculture. Speaking at the Arthur Chung Conference Centre, Ali said, “We are going to launch a programme where we want to have at least 3,000 of our young people in these innovative jobs in the coming years and Canada and Guyana will partner in developing the framework to provide the training to have our young people in these innovative jobs in the technological field.” During his speech, Ali who returned on Thursday from a CARICOM-Canada summit in Ottawa, said the goal is to position Guyana in the world 2030 and beyond as a global leader on climate change, food security and energy security. According to the President, following his recent visit to Costa Rica, it was agreed that young people from CARICOM will be going to the regional headquarters of the Inter-American Co-operation on Agriculture (IICA) “to be trained in their innovation centre and their centre of excellence to come back here in Guyana.” He said, IICA and the Government of Guyana have agreed that they will develop the centre of excellence to educate and train the country’s young people in the field of agriculture here in Guyana for across the region.
“The Guyana School of Agriculture will be transformed into IICA Guyana Centre of Excellence for studies in the field of agriculture focusing on innovation and resilience”, he said. Ali stated that the country is also working with Cuba, adding that he has made it very clear that he does not want any “studying relationship with anyone anymore” instead they are working to develop the honey industry.
Crime
Mon Repos biker gunned down at Ogle traffic lights by men in car: Police are investigating the murder of Kimal Khan, a 42-year-old resident of Mon Repos, East Coast Demerara, which occurred at about 00:10 last Monday morning on the public road at Ogle by three unidentifiable men in an Allion motorcar (Registration Number unknown). Enquiries, police say, disclosed that, around 23:00 hrs on Sunday night, Khan and his common-law wife, age 21, left their Mon Repos home on the victim’s black Honda motorcycle (# CL5173). They proceeded to Wee Bar and Lounge at Mon Repos Public Road, where they each consumed an alcoholic beverage. They then left for another bar in Mon Repos and later went back to Wee Bar and Lounge, where they spent a few minutes and left again, heading to another drinking spot in Georgetown. As they were making their way to Georgetown, the police say that Khan stopped his motorcycle at the Traffic Lights at Ogle, waiting for the light to change. At that point, a tinted silver-coloured Allion vehicle (registration number unknown) pulled up alongside the Khan and his common-law wife and discharged several rounds in their direction. Khan immediately fell off the motorcycle onto the roadway as the car sped away, heading South along the Ogle Access Road. The Police were summoned and arrived about five minutes later, along with EMT personnel. They found Khan lying on the road motionless in what appeared to be a pool of blood. The police said that the body was examined, and what appeared to be a gunshot wound was seen on the left side of the chest and two to the right side of the head. The body was later pronounced dead by a Doctor. The scene was processed and photographed, and six 9mm spent shells were recovered. The body was escorted to Memorial Gardens Funeral Home, awaiting a post-mortem examination. The area was canvassed for CCTV cameras, which were seen but are yet to be viewed.
Woman stabbed to death in Princeville Backdam, husband arrested: The man suspected to have murdered his wife, Christina Holder, a 42-year-old cook working at Princeville Backdam, Potaro last Monday was arrested. The police say that investigations have so far revealed that Holder and the suspect were in a common-law relationship for the past 12 years. On Sunday, at about 11 pm, Holder and the suspect were in their camp imbibing high wine with coke and water while playing cards. On Monday, at about 2 am, a dredge worker at a nearby camp told the police he was awoken by a noise coming from the couple’s camp, which was about 100 feet away from where he sleeps. The worker said he heard Holder and her husband arguing, followed by a crashing sound, after which Holder was heard screaming for help. He immediately ran to the couple’s camp and saw both the suspect and Holder. Holder was naked with several stab wounds on her body, including her face and arms. She collapsed to the ground. The suspect’s body was covered in blood. The matter was reported to the Mahdia Police Station. When detectives visited the scene at 4:45 am yesterday, the deceased woman’s body was seen with multiple stab wounds. The suspect was arrested and taken to the Mahdia Police Station. A weapon suspected to have been used in the murder was recovered and lodged at the station. Holder’s body is currently at the Mahdia District Hospital’s Mortuary awaiting a post-mortem examination.
In the courts
Three freed over fire murder of Good Hope rice farmers: The three men who had been accused of the 2016 murder of Good Hope rice farmers, Mohamed and his wife Jamilla Munir, were last Monday discharged after a Court found that the prosecution had no case against them. Following a voir dire, Justice Jo-Ann Barlow directed the jury to formally return verdicts of not guilty in favour of Shamudeen Mohamed, called ‘Milo,’ Jason Howard called ‘Smellie’ and Joel Blair. The Court ruled that the caution statements reportedly given by the trio were inadmissible. Apart from those statements on which the State sought to rely to prove its case, it had no other evidence to present connecting the accused men to having committed the crime. In the circumstances, Justice Barlow directed the jury to formally return verdicts of not guilty, thereby discharging the former accused of the capital charges.
Sophia man gets 19 years for killing wife: Sophia resident Wazim Perreira, who back in 2019 killed his former reputed wife by drenching her with gasoline and setting her alight, has been sentenced to 19 years behind bars, less the time he has since spent on remand. The offender has been in pretrial custody for the past four years. On September 9th, 2019 at Sophia, Georgetown, Perreira set Olivia DeFreitas alight. The woman had to be admitted to the Burn Care Unit of the Georgetown Hospital Corporation (GPHC) where she succumbed to her injuries a month later. The sentence was imposed yesterday by Justice Simone Morris-Ramlall, who lamented the premeditated nature of Perreira’s actions toward the young woman whom she noted from the evidence, had tried to sever what was an abusive relationship. Underscoring the history of abuse meted out to the mother of his two children, the Judge said it was unfortunate that Perreira has forever deprived them of their mother; and himself as he now has a sentence to serve. Justice Morris-Ramlall bluntly told the offender that his claims of the woman being unfaithful do not justify or in any way excuse his actions.
