PNCR calls for strict timelines for completion, publication of Exxon’s 3rd audit

Oct 30, 2024 News

…says auditors must ensure costs are reasonable, report must clearly highlight disputed sums

PNCR calls for strict timelines for completion, publication of Exxon’s 3rd audit

Opposition spokesman on Oil and Gas, Elson Low during Tuesday’s press conference(PNCR calls for strict timelines for completion, publication of Exxon’s 3rd audit)

Kaieteur News- The People’s National Congress Reform (PNCR) has called for a more thorough third audit of ExxonMobil’s expenses, noting that the “failures” in the second audit should not be repeated in the execution of the third.

The third audit was awarded by the National Procurement and Tender Administration Board (NPTAB) to the local consortium VHE Consulting on October 10. VHE Consulting which is a locally registered partnership between Ramdihal and Haynes Inc; Eclisar Financial; and Vitality Accounting and Consultancy Inc is tasked with reviewing expenses incurred by ExxonMobil between 2020 and 2023. The local consortium had also won the contract for the second audit.

During a press conference on Tuesday, the party’s oil and gas spokesman, Elson Low provided a number of recommendations relating to the audit. He said at minimum, “There should be clear concise summary, which Guyanese can read and understand. Critical issues like whether interest is being charged and the total amount in the dispute must be comprehensively addressed.”

In addition, he said that costs in dispute should be clearly outlined in the report in a manner that allows for swift action in the event arbitration is necessary. Moreover, he noted, “The scope of the audit must not neglect the reasonableness of cost. Rather than merely identifying whether they are eligible to be recovered.” Additionally, Low pointed out that there should be a defined timeline for the completion and release of the audit.

The party is of the view that ExxonMobil, the operator of the Stabroek Block must be held to high standards when it comes to provision of information and responses to the auditors’ questions.

Meanwhile, with regard to the Gas-to-Energy (GTE) project, the PNCR believes that costs related to the natural gas pipeline being constructed by Exxon must be addressed separately and robustly. “We remind the Guyanese that the cost of the pipeline tripled in a short period of time. This change in the cost of the project must be accounted for transparently,” Low reasoned.

The party spokesman on oil and gas was keen to note that if the government wants to show that it is serious about its sacred duty to safeguard the nation’s resources, it will follow these standards and recommendations, even if that means re-engaging the auditors to expand or adjust the terms of reference for the audit.

“We want to stress that billions of US are at stake and Guyanese cannot hope to benefit fully from the oil industry without a robust audit culture. Tragically, the PPP has thus far been far wedded to a totally unpatriotic attitude. We remind them that these resources are not their personal resources to fritter away as they please, but belong to all Guyanese,” Low said.

(PNCR calls for strict timelines for completion, publication of Exxon’s 3rd audit)

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

completion, low, public, Report, third audit, timeline

Latest News