“Go public” with corrupt offers – VP Jagdeo encourages contractors

– also calls on public to report corrupt practices

In light of the recent fiasco involving the discrepancies in the oil audit, the Guyana Government is calling on contractors to report, publicly or to State officials, any corrupt offers they are approached with.
Currently, there are over 7000 government projects being implemented across the country and according to Vice President Dr Bharrat Jagdeo, these cannot be monitored effectively. Hence, he is calling on contractors to report any instances of public officials engaging in corrupt practices.
“My message to people is that anyone trying to shake you down for money, please contact us,” he stated.
According to Jagdeo, there are many attempts in which public officers ask contractors for money in exchange for certain benefits.
“We can’t know if a Clerk of Work on a project… is asking the contractor for money. But the contractors have to understand that if they comply with this, they’re not only breaching the system, they’re doing something illegal. They should contact us… it will be treated with high priority,” the Vice President assured.
Jagdeo wanted that if the government finds out that any contractor is complicit in such corrupt practices then they along with the public official will be disciplined even if that contractor is found to be eligible on merit.
The Vice President further pointed out that even in the housing sector, there are numerous complaints daily about persons being shaken down for money in order to get their land approved.
“Please don’t go to middlemen… There is no middleman here… Anybody who says that to you, you just bring it to the President’s attention, or the minister’s or my attention, or the Tender Board. Get it out in the public domain, go public with it – that is what we need,” Jagdeo declared.
Oil audit
His comments came on the heels of the controversy surrounding the ‘unauthorised’ reduction of ExxonMobil’s cost oil claims, which the government said was significantly reduced without its knowledge by staff at the Natural Resources Ministry.
Following an audit on the cost oil claims, the Guyana Revenue Authority (GRA) supported the US$214 million sum that was initially flagged in 2019 by British firm IHS Markit when it did an audit of ExxonMobil’s cost of oil expenses racked up between 1999 and 2017 from its operations in Guyana.
However, it was disclosed last month that staff from the Ministry of Natural Resources’ Petroleum Department had reportedly engaged the US oil company and reduced this figure to US$11 million and then subsequently to US$3 million.
VP Jagdeo had contended that the government was under the impression that the reduced US$3 million, which he previously disclosed publicly, was determined by GRA – the technical body appointed as its sole advisor to review these audits.
Under Article 23 and Annex C of the 2016 Stabroek Petroleum Agreement, the Guyana Government has the right to conduct audits on Exxon’s cost oil claims.
In a statement last month, ExxonMobil said it has acted in good faith and cooperated with the Guyana Government during the auditing of these figures.
Meanwhile, last week, Natural Resources Minister Vickram Bharrat, in trying to bring full clarity on this matter, disclosed that the Ministry’s Senior Petroleum Coordinator, Gopnauth Gossai, was the individual behind the reduced figure and that disciplinary actions will be taken against him.
Bharrat emphasised that the Ministry’s role was to oversee the process of conducting the audit as per the Production Sharing Agreement (PSA), as well as to facilitate the exchange of information and documentation among the relevant parties, including the GRA, which is the sole and final authority to determine the final outcome in relation to the audit.
It was explained that based on advice from Gossai, the initial claim of US$214 million was reduced to US$3.4 million which the Minister used to write GRA to confirm this figure by seeking a “No Objection”.
In fact, in a July 2023 meeting, Gossai reported this reduced figure during a meeting with the Vice President and the Natural Resources Minister.
“…I was under the impression that the reduced figure was done in collaboration with the GRA. I subsequently learnt that the GRA did not agree with the position and the initial claim of US$214,911,994 remains the same.”
“I wish to restate that the position of the Government of Guyana today remains consistent with its original position that the only authority to make a final determination is the Guyana Revenue Authority.
Therefore, after examining all the facts it is clear that Mr Gossai acted without the requisite authorisation to engage EEPGL and provided inadequate advice as such, I have asked the Permanent Secretary to take the necessary disciplinary measures,” Minister Bharrat indicated.
Further, he noted that systems will be established to ensure no repetition of this lapse in the future. Additionally, staff members have been advised to make full disclosure with all contacts and sharing of information with stakeholders in the sector.
During his press conference on Thursday, Vice President Jagdeo was asked about what specific disciplinary actions will be taken against Gossai. In response, he redirected the question to the Natural Resources Ministry and its subject minister. He, however, confirmed that Gossai is still in the country. (G-8)