Govt grilled on supplemental provisions for ICJ case

Border controversy

…$788M to be first signing bonus tranche for consolidated fund

The Parliamentary Opposition has always contended that money from the ExxonMobil signing bonus, to defend Guyana’s patrimony should never have been held outside the consolidated fund and that they would have supported the Government seeking the money as supplemental funds.

As such, $788 Million in sums being sought by the Foreign Affairs Minister in supplemental finances to defend its case before the International Court of Justice (ICJ) was put under the microscope by the Parliamentary Opposition.
Among their questions was the source of the funds. In her contribution, Opposition Chief Whip questioned whether the sums originated from the ExxonMobil signing bonus of US$18 million.
“I am not sure I understand the intent of the question. The exercise takes place across a number of years. So we don’t plan to transfer it all in one year,” the Foreign Afffairs Minister, Carl Greenidge replied.

In light of the state of Guyana’s Foreign Reserves, Opposition Leader Bharrat Jagdeo asked whether the Government anticipated the foreign reserves and the consolidated fund running flat. However, Greenidge replied in the negative.
Pointing to Article 33 of the ExxonMobil’s contract, Jagdeo also questioned the Government on the contents of the contract speaking to verifying accounts. He asked whether government would share with ExxonMobil particulars on the account, when it has a track record of not sharing the information with the people of Guyana. In the end, however, the sums requested were passed by the Government majority.
According to the supplemental paper, the $788 Million was “to meet the estimated cost in 2018 of presenting Guyana/Venezuela controversy at the International Court of Justice including payment of legal fees.”
A decision had been taken by Cabinet to set aside US$15 million from the signing bonus that Government received from US oil giant ExxonMobil to be used towards the border controversy case with Venezuela.
This disclosure was made by Foreign Affairs Minister Carl Greenidge during a press conference at the Foreign Affairs Ministry, South Road, Georgetown office a month ago.
While Government had initially received the US$18 million bonus, Greenidge said it was decided that US$15 million bonus could be used for the legal challenge, while the remaining US$3 million was set aside for training.
In that same breath, the minister said there may be a need for more monies to assist with the legal case as the US$15 million may be inadequate.
“It is not possible for me to say what it will cost, the lawyers themselves don’t know,” he explained to media operatives when asked to state how much more would be needed.
Greenidge did, however, state that other needs may arise for additional skills and research, and this would require supplementary funds. He again stated, “The US$15 million may not be adequate.”
He also reminded that it was Government’s intention to have portions of the signing bonus transferred to the Consolidated Fund whenever there was a need for finances relating to this matter.
“So, for 2018, the Minister of Finance (Winston Jordan) will, down the road, come for supplementary funding, and it will be indicated at that time,” Greenidge had explained to the media.