The United States has barred former Ecuador President Rafael Correa and former Vice President Jorge Glas from entry into the United States because of their alleged involvement in corruption. According to the U.S. State Department, the two have abused their positions by accepting bribes, including through political contributions in exchange for granting favourable government contracts. The spouses and children of the former Ecuador officials were also barred from entering the United States.
In last week’s article, we referred to the President’s insistence that the Government would not interfere with the 2016 Petroleum Sharing Agreement (PSA) with Exxon on the ground that it will destroy the “sanctity of contract” although the PPP/C 2020 election manifesto specifically states that if the party wins the elections, it will renegotiate the Agreement. Article 31.2 of the Agreement allows for the PSA to be amended or modified with the written consent of all the parties to the Agreement. In fact, in April 2019, the Granger Administration successfully negotiated with Exxon an amendment to the PSA to exclude the payment of royalties from being treated as recoverable costs. The relevant section of the Addendum to the Agreement reads as follows: In the interest of the avoidance of all doubt, the parties have come to a mutual and satisfactory agreement that the payment of royalty pursuant to Article 15.6 of the Petroleum Agreement shall be borne solely by the Contractor…The said royalty payment shall not be recoverable cost, in any manner or formulation under the Petroleum Agreement.
