Cash grant
President announces $200,000 for each household: President Irfaan Ali last week announced a cash payment of $200,000 to each household, free university education from January next year, a 50% cut in electricity charges before the end of 2025, a universal health voucher of $10,000 and a minimum wage of $100,000 per month in the public sector by the end of 2025 among other measures. In a sweeping address to the National Assembly, he also lambasted the former APNU+AFC government for broken promises and unveiled a range of initiatives to be funded from the country’s burgeoning oil wealth. Speaking for over three hours yesterday at the Arthur Chung Conference Centre in what was a mini budget, the President also plans for what he called Vision 2030 – an early drive for re-election next year. A cornerstone of the President’s announcements was a one-off cash grant of $200,000 to every household, projected to total $60 billion by the end of 2025 which set tongues wagging. “This initiative will significantly enhance the disposable income of our citizens, providing a vital boost to the economy,” he stated. In a commitment to public sector employees, he announced that “no government worker would earn less than $100,000 monthly by 2025”, which is expected to increase total public sector income by over $1 billion. Additionally, a $10,000 monthly income tax deduction for parents for each child aims to alleviate financial burdens on families. Further emphasizing educational reforms, Ali announced the reintroduction of free tuition at the University of Guyana starting in January 2025. “Education is a right, and we must ensure that financial barriers do not hinder our youth from achieving their potential,” he emphasized. He also noted that data from the University of Guyana indicates that upwards of 85% of graduates find jobs shortly after completing their studies across various fields, including engineering, medicine, and business. “Mister Speaker, an active labour market, combined with special legislation such as the Local Content Act of 2021, means that our people now have real choices,” President Ali said. He highlighted those skilled tradespeople, like masons and electricians, can now earn in one day what they previously made in a week. “The economy we are building is not of past generations. It is one that is diversified, offering high-yielding, high-paying jobs,” he asserted.
PPP insensitive to high cost of living – PNCR: The People’s National Congress Reform (PNCR) refused to attend last week’s sitting of parliament, and instead held a public demonstration on the grounds that the administration is insensitive to the high cost of living and refuses to engage in the democratic systems afforded by parliament, a release from the party stated. The release said that the decision was made not to attend yesterday’s parliamentary sitting at which the President spoke and its public demonstration served to emphasise that the nation is gripped by a series of crises: “a crisis in parliamentary democracy; a crisis in local government affairs; a crisis in political relations; a corruption crisis; a transparency and accountability crisis; a law enforcement crisis, and a crisis in terms of the high cost of living and poor quality of life experienced daily by most Guyanese citizens,” adding that a substantial percentage of the Guyanese people live in poverty despite the oil wealth.
The PNCR posited that in response to the aforementioned, the government will try to pretend that things are regular in the state of Guyana as it spares no effort in pretending that the people of Guyana are pleased and contented with their lives. It further accused the government of refusing to accept that a substantial percentage of people live in poverty and that they are raising their voices in protest, prompting the observation that “the PPP is either blind and deaf; or indifferent and heartless; or incompetent and clueless; or arrogant and elitist; or all the above.” In view of this state of affairs, the opposition asserted that it will not play along with the PPP’s “deceptions and pretensions.” The release assured that the PNCR will continue to fight on the people’s behalf and will continue to use all effective means at its disposal to expose and remedy bad governance, corruption, executive lawlessness, and all forms of discrimination. It will also continue to demand the easing of the economic burdens on the poor and vulnerable in Guyana that are a result of the PPP mismanagement, corruption, and divisiveness.
Police
Brutus told SOCU $46.4m was wedding, Christmas gifts: After coming under investigation by SOCU for money laundering, Deputy Commissioner (ag) of the Guyana Police Force (GPF) Calvin Brutus told investigators that he deposited $46.4m on the 17th of January this year which were proceeds from his wedding on November 11th last year and Christmas gifts. His statement on May 14, 2024, seen by Stabroek News, paints a picture of permissiveness in the force and access to a wide variety of fringe benefits. Brutus said that on December 12, 2023, after his honeymoon and a period of work, he sorted out his wedding gifts and prepared a declaration on the source of funds but was unable to deposit it that day. He said his busy schedule prevented him from being able to do it in December last year. During the month of December he said that he also received incentives and awards, stipends and extra duty money from the police finance department. He also received gifts in his personal capacity from friends but again due to his hectic schedule was unable to sort them out. He said he then placed all the Christmas gifts with the wedding gifts in the same room of his premises. “After the busy period, I sorted out the gifts received for Christmas 2023. I recognized that it was a large amount of cash and decided to promptly deposit same in the Bank as a precaution.. On January 16 this year, he said he prepared a declaration of the source of funds for the Christmas gifts being $8.48m. On January 17, 2024, he said that he gave the teller at Demerara Bank Limited the declarations with copies of the wedding invitation and certificate of marriage, cash and cheques in the total of $46.4m. The teller deposited the money and provided him with a deposit receipt. On May 14, 2024 at about 8 am he said that he was contacted by Assistant Superintendent Roopnarine and informed about the allegation of money laundering made by the Financial Intelligence Unit.
Oil and gas
Exxon’s estimate of reserves a little below 11b barrels of oil – Routledge: ExxonMobil’s CEO, Alistair Routledge yesterday said that its estimate of barrels of oil equivalent offshore (boe) is just under 11b compared to the government’s figure pf 11.6b boe. Routledge was speaking at a press conference at the company’s Duke St, Kingston HQ. There have been public concerns that with recent discoveries offshore by ExxonMobil the estimate of boe should be higher. The government has also been pressed on this matter. When asked about the relinquishment of certain areas within the lucrative Stabroek Block, Routledge emphasized the collaborative efforts between ExxonMobil and the Guyanese government. “We’ve been working very closely with the Minister of Natural Resources and the Guyana Geology and Mines Commission (GGMC) to ensure the proper rules, as per the petroleum agreement, are being followed,” he stated. He noted that the company is in the final stages of determining which areas will be handed back to the government and anticipates concluding the process “very soon.” Routledge refrained from providing specific acreage numbers, asserting that it would be inappropriate to disclose that information until it has been approved by the government. “I don’t want to give you a number that they haven’t blessed,” he added, assuring the media that the methodology laid out in the petroleum agreement is being adhered to. Regarding the timeline for this process, Routledge stated, “We are actively following up… It’s an ongoing process.” He explained that while ExxonMobil has provided the necessary data to the government, the dialogue remains dynamic, with additional questions arising as the process unfolds. Routledge reported that ExxonMobil has submitted notices of discovery for “45 (wells), I think, for the Stabroek Block and one for the Kaieteur Block.” He discussed the dynamic nature of estimating ultimate recovery figures, acknowledging a difference between ExxonMobil’s estimates and the government’s latest figure of 11.6 billion oil equivalent barrels. “Our number remains a little under 11 billion,” he stated, noting the complexities involved in determining these estimates based on ongoing assessments and economic conditions. Routledge clarified that ExxonMobil has identified over 30 significant discoveries in the Stabroek Block, emphasizing that only those deemed significant can be considered for economic development.
Audit
Belle Vue Pump Station still within contractual period – ministry: The National Drainage and Irrigation Authority (NDIA) last week said it wished to address and clarify several “unwarranted claims” published in the Stabroek News on October 11, 2024, regarding the Belle Vue Pump Station project. A release from the NDIA said that the article stressed that “The Auditor General’s Report for 2023 says $160.8 million was paid to the firm headed by Mikhail Rodrigues known as `Guyanese Critic’ for the Belle Vue Pump Station works but up to August 14, 2024, no works were in progress at the time of the visit of the auditors.” The NDIA said that as stipulated in the contract, the effective commencement date for the construction of the pump station was February 6, 2024. In accordance with the contract and upon submission of a mobilisation advance bond, an advance of $129,831,525 was paid, the NDIA said. Subsequently, works started with the construction of cofferdam and the removal of an old deteriorated sluice which was within the footprint of the work area for which interim valuation number one, totaling $31,062,903 was certified by the engineering supervisory consultant following which payment was effected by the NDIA. “As the works progresses, along with the supply of some of the steel sheet piles on site, greenheart piles and the installation of test bearing piles, interim payment number two, totaling $21,615,810 was certified by the engineering supervisory consultant following which payment was effected by the NDIA”, the agency said. It added: “The project is still within the contractual period and the contractor is still on site. The Ministry of Agriculture and NDIA with its Technical Officers have been meeting with contractors, including Tepui Group Inc. and consultants to ensure that projects are completed as per contract”. It must be made clear that the NDIA values transparency and accountability in all its operations. We are committed to providing updates on project progress and addressing public concerns as they arise. It said that engineers from the NDIA and the supervisory consultant are regularly visiting various project sites, overseeing work to ensure compliance with specifications outlined in contracts. Last evening, Auditor General Deodat Sharma said that his report on which the Stabroek News article was based was factual and he stood by it. “My report is factual, and the Ministry’s statement is inaccurate in saying SN’s article carried unwarranted claims, since they carried my report”, he said. For months the NDIA has evaded questioning by Stabroek News over the Belle Vue pump station which was controversially awarded to Rodrigues who had never built a pump station and whose bid had failed to meet nine of the 18 criteria set out in the evaluation documents for the project.
Ministry denies billions of dollars in drugs expired over last 18 months: The Ministry of Health last week denied a statement by the Office of the Auditor General in its 2023 report on the public accounts that billions of dollars worth of drugs had expired between 2023 and June this year. It is unclear how the ministry can now dispute this when it had been given a chance by the Office of the Auditor General to respond to this during routine auditing. The contention by the Auditor General’s Office would be deeply embarrassing to the government. In a statement via the Department of Public Information, the Ministry of Health said it “firmly denies the recent article alleging that billions of dollars of drugs expired between 2023 and 2024”. It didn’t identify the report but Stabroek News carried a news item on the expired drugs. The Ministry release went on to say that “this claim is misleading and inaccurate and misrepresents the Auditor General’s report”. There was no misrepresentation as the Stabroek News report accurately related the findings of the Auditor General’s Report which was tabled in Parliament on Thursday. “The Ministry wishes to clarify that the expired medications, medical supplies, and laboratory supplies in question date back to before 2022 and, in some instances, were from 2019 and beyond. These are now being responsibly disposed of by national and international safety protocols. For the medications bought in 2023, $12,546,000 expired or 0.1%; similarly, for 2024, $13,471,899 expired or 0.06%. “The drugs referenced in the article were procured and stocked primarily before 2019 and during the COVID-19 pandemic. They have since expired due to various factors, including changes in medical needs, such as the COVID-19 pandemic and new treatment protocols. The Ministry has been engaged in an ongoing process of identifying and safely disposing of these outdated medications to ensure that only viable, effective drugs are available for use”, the ministry’s release said. The release said that the Ministry of Health remains committed to maintaining the highest standards in healthcare delivery. It added that regular audits are conducted to monitor pharmaceutical stocks, and “efforts are underway to strengthen the supply chain management system”.
Economy
Foreign trade transactions up by 39% for first half of year – Central Bank: Total foreign exchange transactions for the first half of this year increased by 39.0 percent to US$9,889.1m compared to the first six months of last year and the Central Bank is assuring that the exchange rate for US dollar is expected to remain “relatively stable” and flows to the market are expected to adequately cover imports. The assurance in the recently released report comes amid public expressions by businessmen about difficulties in sourcing US dollars for imports. The report said that the rise in foreign exchange business is due to increases in transactions through bank and non-bank cambios, foreign currency accounts and hard and soft currencies. Transactions through foreign currency accounts and cambios accounted for 84.2 percent of the total volume of trade. The Guyana dollar mid-rate, used for official transactions, remained unchanged at $208.50. The total value of foreign currency transactions was US$9,889.1 million, representing a 39.0 percent or US$2,772.8 million jump from one year ago. Aggregate purchases and sales were both higher at US$4,881.7 million and US$5,007.4 million respectively, resulting in a net purchase of US$125.8 million, the report said. Transactions at the cambios amounted to US$3,965.4 million, representing 40.1 percent of the total market turnover. Bank of Guyana’s transactions totalled US$1,550.6 million or 15.7 percent of the market share. Foreign currency accounts and soft currency transactions were US$4,362.6 million and US$10.5 million, respectively, and together, made up 44.2 percent of the market share. The turnover generated by the bank and non-bank cambios was US$3,965.4 million, a rise of US$688.9 million or 21.0 percent compared with the same period last year. Cambio purchases were US$1,973.1 million while sales were US$1,992.3 million. Total transactions for the six bank cambios was 21.3 percent greater at US$3,929.7 million when compared with US$3,240.8 million for the same period last year. The non-bank cambios’ transactions declined by 0.1 percent to US$35.6 million while bank cambios’ share of the market increased marginally to 99.1 percent. The market share of the non-bank cambios declined slightly to 0.9 percent. Among the four major currencies transacted, the US dollar was dominant with a market share of 96.0 percent. This was followed by the Euro with 2.0 percent, the Pound Sterling with 1.2 percent and the Canadian dollar at 0.8 percent. “Official transactions processed by the Bank of Guyana were higher at US$1,550.6 million when compared to US$1,342.0 million in the corresponding period last year. Total receipts and payments were US$683.5 million and US$867.1 million, respectively, compared with US$575.6 million and US$766.5 million in the first half of 2023”, the report added.
Oil & Gas
Using ‘sanctity of contract’ defence to avoid renegotiating Exxon PSA unfortunate – Goolsarran: Former auditor general Anand Goolsarran has said that it is unfortunate that President Irfaan Ali continues to use “sanctity of contract” as a reason to not look into the 2016 Petroleum Sharing Agreement (PSA) between ExxonMobil’s subsidiaries and the Government of Guyana, which is heavily weighted in favour of the US oil giant. “No one is suggesting that we should not honour the terms and conditions of the agreement, and attempts at renegotiation do not in any way adversely affect the PSA currently in force,” Goolsarran said in his ‘Accountability Watch’ column published in last Monday’s edition of the Stabroek News. According to the former auditor general once renegotiation is successful, the contract is amended, and all parties are bound by the amendment. “If renegotiation proves unsuccessful, then we will have to live with the existing contract. But at least we should make an honest and genuine attempt… Over the years, Trinidad and Tobago has successfully renegotiated several of its oil contracts,” he added. Goolsarran said that on several occasions he referenced Article 31.2 of the agreement which states that the PSA can be amended or modified with the written consent of all the parties. He pointed out as well that the PPP/C 2020 election manifesto specifically stated that if the party won the elections, it would renegotiate the agreement. The relevant section read: “Even the lead government minister [under the APNU-AFC Administration] responsible for the sector, has admitted that in retrospect Guyana got a bad deal… To ensure that oil resources [are] managed responsibly, the PPP/C will: Immediately engage oil and gas companies in better contract management/re-negotiation….” He commented: “One wonders how many persons from the electorate might have been influenced by the above statement in deciding which political party they would support in the 2020 elections.” Identifying the lopsided nature of the PSA, Goolsarran pointed out that it provides for, among others: (i) the payment of a mere two percent royalty on production; (ii) a deduction of 75 percent of the value of crude oil produced to cover Exxon’s cost of operation (cost oil), while the balance (profit oil) to be shared equally between Exxon and the government; (iii) the recognition of pre-contract costs of US$460 million covering the period 1999 to 2015 as recoverable costs; (iv) absence of ring-fencing provisions; and (v) generous tax concessions that include the requirement for the government to discharge Exxon’s tax liabilities from its share of profit oil. In contrast, Suriname’s PSA with TotalEnergies provides for: (i) 6.25 percent royalty on production; (ii) profit split based on a certain formula that ensures “the higher the oil price the better” for Suriname, but the lower the oil price the contractor “gets protected”; (iii) a tax rate of 36 percent; and (iv) non-recoverability of pre-contract costs and interest on loans for the purpose of determining the value of cost oil.
Art
Artist Stanley Greaves laments usurping of national gallery curator’s responsibility: Renowned Guyanese artist Stanley Greaves has voiced deep concerns regarding the apparent removal of Ohene Koama’s responsibilities as curator of the National Collection but Director of Culture Tamika Boatswain has denied this stating that the artist is referencing an “administrative process that has been in place since this administration got into office”. Greaves shared his dismay over recent developments, stating, “My intention to hold an exhibition at Castellani House was met with surprise when I was told to approach the minister instead of the curator. That’s not how this should work.” Greaves, a key figure in Guyana’s artistic landscape and one of the contributors to the design of the nation’s coat of arms, argued that this decision undermines the artistic integrity of the country’s cultural institutions. Greaves, who previously served on the Castellani House Committee, contended that removing that responsibility from Koama was a significant misstep. He asserted that a curator plays a vital role in overseeing exhibitions, a responsibility that should not be transferred to Minister of Culture, Youth and Sport Charles Ramson. “He [Koama] is the person to give permission, not the minister. That’s not the minister’s job,” Greaves stated emphatically to Stabroek News yesterday, emphasizing the necessity of preserving the curator’s autonomy. Boatswain contacted Stabroek News last evening at the behest of Ramson to offer an explanation in response to a letter to the editor written by Greaves. “It is the position of the ministry that Mr Koama is still very much involved and is a part of the decision-making processes of the National Art Gallery,” Boatswain said in a telephone call. “What Mr Greaves is referring to is simply an administrative process that has been in place since this administration got into office. We have not turned down any artist who has applied using this process. This is in an effort for the ministry to ensure the quality of art pieces shown at the Art Gallery maintains the standard required, and this applies to small artists and established ones. This process of the applications going to the ministry does not override the decision-making capacity of the curator. The curator and the manager of any of the facilities are all actively involved every step of the way.” Koama was also on the call and agreed with Boatswain’s statement. The Director of Culture was asked about Greaves’s statement about the need to “reinstitute the Castellani House Committee which in the past has been very supportive at all levels relating to the administration of Castellani House”. To this, Boatswain said, “There is no legal basis for a board to be instituted, there is no act to support this. The presence of a board is based solely on the decision of the minister.” Greaves’s letter titled “I will not have a 90th birthday exhibition as I will not endorse Ramson’s dictatorial behaviour” highlighted Koama’s challenges, noting that he is currently working alone under stressful conditions without adequate support. “He’s doing the work of many, yet he has no one to lean on. The pressure is too much,” Greaves lamented. He called for the reinstitution of the Castellani House Committee to assist Koama and ensure the smooth operation of the gallery. “We used to have discussions to make sure that everything was functioning properly. Now he’s all on his own, and that’s simply not sustainable,” he added. Reliable sources have indicated that the Ministry of Culture has adopted a new policy. “The ministry decided to approve exhibitions for the gallery, which is a responsibility that was previously handled by the gallery itself,” sources said. They explained that artists would usually engage the gallery directly, allowing curators to assess the work and determine readiness for exhibition. This shift has raised concerns among many in the art community, who fear it diminishes the curator’s role.
Travel
E-gates set up at CJIA: E-gates have been installed at the Cheddi Jagan International Airport (CJIA), Timehri, to streamline processing for incoming passengers. A release last week from CJIA said that the key features include autonomous immigration processing that performs security checks on passports worldwide; validation of chip passports according to International Civil Aviation Organisation standards, with future support for Guyana’s e-ID and facial recognition technology for identity verification using an advanced algorithm. It is also integrated with the ABIS system for real-time passenger updates, with automated checks for ED form correctness. It has the capacity to process six passengers simultaneously with oversight from a single officer. The release said that the enhanced security measures will prevent unauthorised access and allow complete visibility for officers through glass panels. It also features a monitoring station for effective passenger flow management and automatic detention of watchlisted individuals. These improvements aim to reduce processing times and enhance overall airport efficiency significantly, the release said.
Accountability
Still no progress on Pouderoyen pump station project: One year after Spectre Construction was awarded a $981 million contract for the construction of the Pouderoyen Pump Station, not much progress has been made. The award of the contract had been deemed controversial because the construction company had no experience in building a pump station and was therefore classified as unqualified. During a visit to the project site on Friday, Stabroek News observed that little progress has been made despite the presence of workers. This newspaper had previously reported in April that the pathway leading to the pump station had been paved with stones. That situation still prevails, raising concerns about its condition during the rainy season when it is likely to become slushy. Minister of Agriculture Zulfikar Mustapha had indicated in April that the contractor had started work on the access road. However, no significant developments have occurred since the initial paving with stones. The lack of visible progress has led to frustration among local residents who are eager for the timely completion of the project to alleviate flooding issues in the area. Residents have been affected by flooding caused by tubes installed by the contractor to keep excess water out of the construction site. Those tubes drained the water into the surrounding area. One resident had told this newspaper that while he understands that work is ongoing, the pace must be intensified as he and a few other villagers who live next to the sea dam and the koker were severely affected by flooding which was taking a while to recede. The project is scheduled to be completed on July 29, 2025.
Indigenous
Toshaos Council Head calls for demolition of pit latrines in schools: In the wake of disclosures that there are 77 pit latrines in hinterland schools, the head of the toshaos council and the Chairman of Region Seven have called for their dismantling. The government has been silent on the way forward. Minister of Education Priya Manickchand has declined to comment to the Sunday Stabroek on the matter and there has been no word from the Ministry of Local Government and Regional Development. The existence of so many pit latrines – only in schools in indigenous villages – has raised questions about the government’s spending priorities almost five years into oil production and its disposition towards these regions. Chairman of the National Toshaos Council (NTC), Derrick John recently told the Sunday Stabroek that schools in the hinterland regions should not be excluded from the upgraded sanitary facilities found in other places of learning around the country, therefore, pit latrines need to be demolished and transitioned to flush toilets. The need for improved sanitary facilities in schools across hinterland regions has become increasingly urgent, John highlighted, as he emphasised the importance of installing flush toilets in these schools. He noted that while some communities struggle with inadequate water supply, the construction of several wells in the area presents a viable solution to the transition from traditional latrines to functional flush toilets. The NTC Chairman applauded the initiative to employ residents for the construction of the sanitary facilities. While stating that latrines should be transitioned to flush toilets speedily, John said, “It is time that our villages see an upgrade in the schools.” He added that while the transition is a work in progress, the Low Carbon Development Strategy (LCDS) funds are also being used to set up public conveniences within the hinterland regions. Meanwhile, Cuyuni/Mazaruni Chair-man, Kenneth Williams told the Sunday Stabroek that it is clearly unacceptable to have pit latrines as a sanitary facility in schools across Region Seven. Willams related that he recently visited Paruima, Upper Mazaruni, and Kamarang, where several schools have pit latrines. The chairman said he was hoping that it was an issue of the past but sadly they have existed for years within the region. According to the Chairman, several business owners have upgraded to the modern sanitary facilities and flush toilets are common in the region. Advocating for the latrines to be transitioned to flush toilets within six months, Williams said children are familiar with flush toilets because they can be found in many public places and they should also be able to use them in school. Hotels, guest houses, and businesses, within Region Seven have transitioned to flush toilets. The Chairman called on the government to upgrade the sanitary facilities within the hinterland regions in a timely manner.
Crime
Plane found at illegal airstrip in South Rupununi, may have been smuggling mercury: In the South Rupununi, the police last Sunday intercepted a plane which may have been smuggling mercury for gold mining and one man was arrested during an exchange of gunfire while the pilot of the craft managed to escape to Brazil. The police yesterday said in a release that at approximately 10:55 am on Sunday, based on information received regarding an aircraft attempting to land at an illegal airstrip in Bashaizon Village, an investigation was conducted. Commander of Regional Police Division #9, Senior Superintendent Raphael Rose, along with Inspector Alfred, Detective Sergeant 21328 De Jonge, Sergeant Joseph, and other ranks from the Guyana Police Force, accompanied by three members of the Customs Anti-Narcotic Unit, visited the scene. The Commander instructed Sergeant Joseph, the officer in charge of the Aishalton Police Station, to lead a team of officers to Bashaizon Village to monitor the suspected area. Sergeant Joseph, accompanied by Constable #26088 Berckly and Constable #26130 Wenceslaus, both armed at the time, departed Aishalton Police Station aboard ATV motorcycle #CL 9533. Upon arrival, the release said that ranks observed a large plot of land in the savannah featuring an illegal airstrip running north to south, about three miles from the village’s main access road. They also noticed a black, gold, and white Islander aircraft with registration #PU-MBN parked on the airstrip, facing north. Additionally, a dark-coloured, fully tinted four-door motor pickup truck was parked adjacent to the aircraft, also facing north. As the ranks approached, they observed two males exiting the aircraft and boarding the pickup. However, as the ranks got closer, the pickup turned and drove off in a southern direction. One of the men fell from the vehicle in the process. Simultaneously, the pickup collided with the plane, causing damage to the right wing and front propeller, the release said. The police ranks apprehended the man who had fallen from the vehicle. Despite discharging two .38 rounds in an attempt to stop the fleeing pickup, the vehicle managed to cross the Takutu River into Brazil.