Latest update March 29th, 2024 12:59 AM
Jul 07, 2022 News
…as importer claims US$3.6M in compensatory damages
Kaieteur News – The Guyana Oil Company’s (GUYOIL) woes in relation to an ‘incomplete’ transaction involving Jayson Aaron of Aaron’s Royality Inc., and the supply of a quantity of fuel valued some US$3.6M, is deepening with the fuel dealer now demanding payment, failing which he will proceed with legal action.
Writing on behalf of his client, Attorney–at-Law, Eusi Anderson, in a missive to GUYOIL’s General Manager, Molly Hassan, referenced an oral agreement between the Aaron’s Royality Inc.’s principal and the oil company in April last for the supply of D6, Heavy Fuel Oil.
According to Anderson, in that agreement, the company was contracted to supply “and you agreed to accept delivery worth a total of USD$3,601,000.”
To this end, it was explained that “it was always a term of our oral agreement that upon notification of the fuel’s arrival in international waters, proximal to Guyana, your entity would take possession and delivery of same in those waters and escort ship to the port of discharge.”
According to Anderson’s missive to GUYOIL, the State Company had agreed to accept responsibility for taxes, freight and other official charges where applicable.
Additionally, it is claimed that GUYOIL was notified between June 14 and 17 last year, “of the arrival of an initial shipment valued around USD$1.8M.” and that GUYOIL, “failed to accept delivery or take possession as agreed.”
Anderson further stated that GUYOIL failed and or otherwise refused to make arrangements for balance of the remaining USD$1.8M.”
As a result, the attorney action on instructions of his client, notified GUYOIL of their demands, namely to first comply with the initial agreement or alternatively, pay compensatory damages to the tune of US$3.6M together with an interest calculated at four percent per annum until the amount has been paid off.
It was noted that, “there is an appetite on our part for a counteroffer within the bounds of reason.” According to the letter seen by this publication, should the demands not be met by July 14, then such will be taken as impetus to institute legal action against GUYOIL.
This publication had reported in April last year that the Guyana Revenue Authority (GRA) had seized a shipment of fuel at the centre of the imbroglio, involving Aaron and Aaron’s Royalty Inc.,
At the time, it was explained that Aaron did not have a fuel import licence but had brought in the shipment close to Guyana’s waters as per agreement with GUYOIL officials.
Aaron at the time had explained that under his verbal agreement with the entity’s officials, GUYOIL was supposed to send their pilot ship to escort the vessel from international waters, on arrival. This did not happen.
He had told Kaieteur News, “I have it in wording from the owner of the vessel, that’s what he told me; the Coast Guard gave instructions to [the] lighthouse to radio the vessel, to tell the vessel to come in” after which it was formally detained. He shared with this publication what he classified as the last known location for the vessel via satellite tracking. The vessel has since been moored at the Ruimveldt Sugar Terminal.
Regarding the fact that he did not have a fuel import licence, Aaron explained that under the agreement which he had with the GUYOIL Director and senior official who engaged him, they were to – on the ship’s arrival – use their “fuel permit to bring the ship with the cargo in.”
According to Aaron, “I told them in the beginning, I didn’t have a permit and it was being processed at GEA and they said that after this shipment, they would speed up the process of my permit.”
Elaborating on the agreement, Aaron had told this publication he had requested a contract but “they said, when this emergency load is received, they will put everything in place for a contract; so basically, this was supposed to be a trial run for my company with them.”
This publication understands the Guyana Energy Agency (GEA) has also launched an investigation into how ARI managed to import the fuel without a licence. GEA head Dr. Mahender Sharma, when asked yesterday, would only confirm that an investigation has been launched into the matter. He declined to comment further, saying that he did not want to prejudice the investigation. According to Aaron, he is expected to meet with the GRA today on the matter.
Aaron had at the time issued several ultimatums to GUYOIL to conclude the transaction with him or he would expose that officials of the company had contacted him to procure the fuel and that there was some corrupt aspects to what was subsequently required of him to secure the deal. He told Kaieteur News that the deal between him and the GUYOIL officials was squashed, since, according to him, the officials had found another dealer that was offering a higher pay off. This publication understands that that other purported arrangement also fell through at the time, since GUYOIL ended up purchasing the fuel for GPL from Staatsolie, the Surinamese state-owned oil company.
Two directors, Sean Persaud and Akanni Blair of the fuel company were later sacked from GUYOIL in an ensuing investigation which had found the two being implicated in recorded conversations and whatsapp thread messages discussing the transaction.
THIS IDIOT TELLING GUYANA WE HAVE NO SAY IN THE 50% PROFIT SHARING AGREEMENT WE HAVE WITH EXXON.
Mar 29, 2024
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