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Ram accuses Exxon of ‘scampish accounting practices’ as company under-reports profits Jul 05, 2024 News Kaieteur News – Chartered Accountant and prominent Attorney-at-Law, Christopher Ram has accused oil major, ExxonMobil of ‘scampish accounting practices’ in Guyana as the company has been underreporting its earnings from the lucrative Stabroek Block operations. Chartered Accountant and Attorney-at-Law, Christopher Ram Ram while appearing as a guest on the Oil and Gas Governance Network’s (OGGN’s) weekly radio programme ‘Oil Talk’ recently pointed out that while the company lists tax as expense on its financial statement, it does not make such payments to the government of Guyana. Exxon’s 2023 Annual Report reflected an ‘operating profit before taxation of $752,782,373,026 or US$3.6B and an income tax expense of $138,182,695,517 or US$658M. As such, the company reported $614,599,677,509 or US$2.9B as its ‘total comprehensive income for the year. However, Ram’s contention is that Exxon does not pay taxes to the government of Guyana, in accordance with the 2016 Production Sharing Agreement (PSA). He told viewers and listeners of the radio programme, aired on Kaieteur Radio 99.1/ 99.5 FM that the company’s tax reporting is fraudulent. “That is a complete fraud. They do not pay taxes in Guyana; that’s a fraud and let me tell you why. The  agreement says (at) Article 15.4 of the Petroleum Agreement says that at the end of the year, the oil company will make up its tax returns (and) hand the returns to the Minister.” A receipt is subsequently issued to the operator, indicating that the respective annual income tax was paid. The Chartered Accountant pointed out that the company then presents this certificate to the United States of America and claims that figure as a tax deduction on its total tax liability. To this end, Ram argued, “So there is no tax charge as represented by these financial statements. It’s fraudulent…it is all skullduggery and accounting scampishness.” It should be noted that not only is Exxon exempted from paying taxes in Guyana, but its subcontractors as well. The PSA states at Article 15.1 that the Contractor (ExxonMobil Guyana Limited) as well as its affiliates shall not be subjected to tax, value-added tax, excise tax, duty, fee, charge or impost in respect of income derived from petroleum operations, property held or transactions except as specified under the agreement. It goes on to state at Article 15.4 that the sum equivalent to the taxes owed by the company will be paid by the Minister responsible for Petroleum to the Commissioner General of the GRA. As a result of the deal signed by the former administration and now accepted by the incumbent regime, Guyana to date has lost over US$3B in tax payments from petroleum companies operating here. Kaieteur News reported that tax exemptions granted between 2019 and 2021, according to previous Reports from the Auditor General (AG), amount to a whopping US$2.3 billion. In 2019, Guyana lost US$600 million in taxes and in 2020 another US$685 million; this was followed by US$1 B in tax exemptions in 2021 and US$541 million in 2022. The AG report for 2023 has not yet been issued but information from Exxon’s Annual Report indicates that Guyana lost US$658M in taxes from that company alone. Taxes were also waived for the other Stabroek Block partners, Hess and CNOOC as well as the subcontractors hired by the Co-Venturers. Related Similar Articles

New political party seeking to oust Jagdeo and Norton over failed management of oil sector Jul 05, 2024 News …says Guyana desperately in need of new leaders to end corruption By: Davina Bagot Kaieteur News – The Democratic National Congress (DNC), officially launched in May 2018, is on a mission to oust top political forces in Guyana, to ensure prudent governance of the country and its invaluable natural resources. Leader of the DNC party, Craig Sylvester Leader of the party, Craig Sylvester is presently scouring for passionate and patriotic citizens, like himself, to challenge the People’s Progressive Party Civic (PPP/C), the People’s National Congress Reform (PNC/R) and even the Alliance For Change (AFC) at the upcoming National and Regional Elections, likely to be held in November 2025. With just over a year remaining to garner support and build the party, Sylvester told Kaieteur News it was important for a new crop of leaders to guide the nation down the path of prosperity. In this regard, one of DNC’s objectives as a political party and government in waiting is to ensure the lopsided 2016 Production Sharing Agreement (PSA) with U.S. oil giant, ExxonMobil is scrapped. High on the party’s agenda also is ending corruption in government and “government-sponsored poverty” as well as ensuring higher wages, pensions and investments in new business ideas, among others. See link for party’s vision for Guyana here: https://issuu.com/craigsgy/docs/dnc_brochure_2490e765f55786?fbclid=IwZXh0bgNhZW0CMTAAAR2RrnKv_OJPsq-Qqsm4NRmgTz41nMupnu3Ydu8vbBUpbIfdOMxW6EIqin4_aem_Ac1U6l9g5gD-goxQWQqi8FPiM0U_zzKtkdtmo7HVMx_GrU0e6GczDDBDKGu5Fme24reS0EUwEFmZXchOXyZqu7Sp#google_vignette Jagdeo misleading The Leader of the party during a brief telephone interview with Kaieteur News on Thursday argued that Vice President, Bharrat Jagdeo, who manages the country’s burgeoning petroleum sector, has been misleading the nation through his insistence that the oil deal cannot be renegotiated. “Jagdeo has been selling us a lot of crap forever and ever and ever and he will continue telling us a lot of crap forever and ever. Jagdeo and the PSA has made Guyana the eye-pass of the world where companies are concerned because as I said there is no other country in the world, no other government in the world that would issue a contract to a company where that company doesn’t have to pay any income taxes,” Sylvester contended. He explained that while the VP insists that investors can be deterred if Guyana requests the companies to return to the bargaining table, this was merely an excuse. Instead, the DNC Leader believes, “We are the only economy, the only government that actually did that (waived all tax payments) and so for Jagdeo to turn around and tell us investor confidence is going to be shaken, nothing can shake investors’ confidence with the amount of oil we have right now- nothing!” Shifting his attention to the lack of ring-fencing, the party leader said, “They are moving the profits from all of these wells and pumping it into new projects…so don’t worry too much about what Jagdeo saying. As I said Jagdeo eyes pass Guyanese people and his eyes will continue to pass Guyanese people until we get rid of him.” When asked if he does not believe foreign investors should be granted incentives to attract investments in the country, Sylvester explained that while tax holidays are normal, Exxon has been allowed to have an unlimited tax holiday in the Stabroek Block deal. He reasoned, “The tax holiday is really just to encourage investors…we don’t have to give them any incentive other than all of this oil that we have out there. A lot of foreign investors are actually running into Guyana because they see Guyana as the next best thing where investment is concerned.” He argued that anyone who understood the value of the resources discovered offshore would agree that it is “utter nonsense” for the company to be exempt from paying taxes to the country. The DNC Leader also believes that the country could be raking in billions more annually but the politicians have not only allowed Exxon not to pay taxes, but refuse to ring-fence the Stabroek Block projects. Presently, the leader of the party is seeking the support of Guyanese to join the group. The DNC is set to host its first General Meeting of 2024 to discuss opportunities and prospects to strengthen the Party as it prepares to win the upcoming elections. The General Meeting is to be hosted at the National Library Conference Room, on August 8, 2024, at 13:00hrs. Doors closed to partnership with PPP/C, PNC/R and AFC When asked if his vision for the country aligns with any of the popular political parties today and whether he is open to partnering with any of them, Sylvester said his doors are closed to the Alliance For Change (AFC) and the People’s National Congress Reform (PNC/R). “Nigel Hughes has made the AFC an irrelevant party in Guyana with his conflict of interest…the PNC, they have a big black mark on them, they are out because they are complete liars and did a lot of stupidness with that agreement and this chap (Norton) is unwilling to make declarations where Exxon is concerned and the PNC and the PPP are the same.” As such, he said he is open to partnerships with smaller political parties. In an advertisement that appeared in this newspaper’s Thursday edition, the DNC urged citizens, “Your future, your children’s future, your money is on the line! If we don’t get this right now, we condemn ourselves to watching the PPP and PNC give our money to Exxon and company, and suffering under economic mismanagement and discrimination we have endured since independence! It’s a long road to November 2025, but it’s a road we can travel together. As we did in 2015, let’s unite and tell Jagdeo and the PPP (to) stand down!” Related Similar Articles

Success Elementary girl tops NGSA Jul 05, 2024 News Kaieteur News – Alisha Scheller of Success Elementary emerged as the country’s top National Grade Six Assessment (NGSA) student. Scheller, who is currently on vacation gained 503.34 marks out of the highest possible score obtainable of 504.24 marks, securing a spot at the country’s top secondary school, Queen’s College. This was announced by the Minister of Education, Priya Manickchand who on Thursday released the 2024 NGSA results at the Arthur Chung Conference Centre. Some 15,285 candidates wrote the examinations on May 2 and 3, 2024. Among the top performers who also secured placement at Queen’s College is Kaiya Daniels of Green Acres Primary who gained the second position in the country with 503.27 marks, Lucas Spooner of Mae’s Under 12 secured the third position with 502.44 marks and Skyler Gopaul also from Mae’s Under 12 obtained the fourth position in the country with 502.38 marks. Minister of Education, Priya Manickchand on Thursday announcing the NGSA 2024 results. This year, three candidates shared the fifth position with 502.33 marks each. They are Jayin Kissoon of Marian Academy, Khayleigh Ramautar of Academy of Excellence and Yuan Shen of Canadian School of Arts & Science. Copping the eighth position is Adam Rahaman of Mae’s Under 12 who obtained 502.32 marks, Sophia Miranda of Success Elementary who secured the ninth position with 502.30 marks and Abigail Manohar also of Success Elementary who gained the tenth position with 502.27 marks. The Ministry of Education has continued its collaboration with the Caribbean Examinations Council (CXC) to improve the quality of all national primary grade assessments. During her address, Minister Manickchand applauded the pupils for their exceptional performances, as well as the teachers and parents who played a crucial part. She also made mention of the government’s involvement and investments in the necessary tools and materials the students needed especially during the COVID-19 period and noted it has yielded good results. “I was very pleased to see that we finally appear to be and fingers are crossed climbing out of the COVID hardship that we had and that really hit us in the education sector very, very hard as it did countries around the world. And we are finally seeing results that show that we have taken some good sound decisions even at the time we ourselves didn’t know if they were right because we hadn’t had that COVID experience before,” the minister explained. She added, “And that our investment and textbooks and breakfast and more trained teachers and resources that allow for distance learning like the learning channel, ED You FM, worksheet, websites, quiz me, those are paying dividends in students and pupils who ordinarily are not present at these kinds of ceremonies because they didn’t have the same resources that private school type children would have.” Minister of Education, Priya Manickchand flanked by the country’s top performers at the 2024 NGSA. Among the top 20 performers in the country is Roshine Deonarine of Huist Dieren Primary who placed 11th in the country with 502.19 marks, sharing the 12th position are Khadeja Ramsammy of Cumberland Primary and Perla Da Silva of Mae Under 12, both securing 501.41 marks. The 14th position was gained by Robin Walcott of Success Elementary with 501.40 marks, Ryan Persaud of New Guyana School secured the 15th position with 501.38 marks, Sydney Cummings of Canadian School of Arts & Science, Priya Khan of Leonora Primary and Aydan Itwaru of Zeelugt Primary shared the 16th position with 501.36 marks. The 19th position was gained by Matthew Persaud of Mon-Repos Primary with 501.34 marks while Shreya Singh of Mae’s Under 12 and Emma Singh of Academy of Excellence gained the 20th position with 501.30 marks. All these students have been awarded a place at Queen’s College. Speaking with media operatives yesterday after the results were announced, top performer Kaiya Daniels said she felt amazing and was in disbelief after learning of her results. “I want to be a scientist and to reach my goal, to go to QC and to go in the top 10 of the country I had to study long hours and I use sources such as Guyana learning channel, Quiz Me and the Education website,” the elated student said. Kaieteur News understands that Daniels while preparing for her exams was at the same time writing a book with some friends which is now available for purchase on Amazon.com. It is titled ‘A Game of Friendship’. Commenting on her daughter’s success, Melesa Agard told the media “Well the journey here wasn’t easy but as Kaiya said she studied for long hours, she was a very dedicated child, studying was not a problem she was always willing to pick up her book and do her research and so forth. I was there as a motivation and guide so that she can be here.” “We both are in disbelief and also as she mentioned earlier she wrote a book while preparing for NGSA and I am so proud of her. I am happy that you were able to accomplish both of this in this one momentum so congratulations Kaiya,” the proud mom expressed. Another top performer, Lucas Spooner said he felt great about his performance having topped his school and brought 3rd place in the country. “I was very confident about the exam and I knew that I was going to be here. I used to wake up 04:30 in the mornings and go to bed at 9 [in the night] doing classes. I did do a lot of lessons and classes and a lot of work preparing for the exams,” he explained. Briefly, his mother Natasha said she was overwhelmed after learning of his results and noted that her son has been consistent throughout primary school. Meanwhile, Skyler Gopaul who copped the Best Story award at the 2024 NGSA, told the media that she felt “ecstatic and it’s like it’s not real, like it’s a dream.” Jayin Kissoon of Marian Academy said, “I am feeling very excited to have gotten the school I wanted and to have gotten a good result.” His message to students who will sit the exams come next year is, “A friend once told me to prepare for the worse but expect the best so I would like to relate that message.” Related Similar Articles

Hughes welcomes investigation into relationship with ExxonMobil Jul 05, 2024 News Kaieteur News – Newly elected leader of the Alliance for Change (AFC), Nigel Hughes on Thursday said that he welcomes any investigation into his relationship with oil giant ExxonMobil Guyana Limited (EMGL). Hughes’ statement follows statements by Vice President Bharrat Jagdeo on Thursday that suggested that an investigation will be launched into Hughes’ relationship with his client. Last week, Hughes made it clear that Exxon is a client of his law firm, Hughes, Fields and Stoby and opted not to answer questions related to the company during an interview with a media entity. Hughes wrote on his Facebook page, “I welcome any probe Mr Jagdeo wishes to initiate into any relationship between Exxon and me. While you have the probe fever include Su, Hong Kong and some other offshore locations.” Over the past few days, the issue of Hughes leading the AFC while maintaining EMGL as a client at his law firm – Hughes, Fields & Stoby – has been the topic of discussion whether his professional life possess a conflict of interest with his political interest. Notably, Hughes has already acknowledged the critics saying that while he is a Politically Exposed Person (PEP), there is no law that prevents him from having the oil company as a client. However, he noted that should he become President he will cut ties with the company. However, the Vice President shares a different view, calling Hughes position “obscene” and “unethical.” “…it’s even more obscene…I can’t convey the feeling of revulsion that I felt. This is someone aspiring to the highest office in the country, who has just been elected the leader of a party…” Jagdeo stated. Added to that, he said that when running for office it can sometime cost you financially, choosing between personal gain and the country. “Sometimes you have to forego the private benefits, money basically when national interest calls you and in this case he was asked directly and he says no, only if [he] become president [he] will do that, in the meantime [he] will work for Exxon…,” Jagdeo said. Moreover, Jagdeo stated that given that Hughes has come under scrutiny for conflict of interest, the Government will be watching what Exxon and its first-tier contractors do. “This may necessitate a formal investigation into all these matters. I am making it clear today. There is a lot of politically exposed people, he [Hughes] is politically exposed as he pointed out, his wife is a Member of Parliament, but it was not an issue because we didn’t want to discriminate but what change is that now he has gone to the AFC,” Jagdeo added. The Vice President underscored, “Now that we are looking at this…let me make it clear, that Exxon has a lot to answer because Nigel Hughes, knowing him he will not want to resign, knowing him he would want to collect the money and still be leader of the AFC and conflict of interest would not bother him at all…” Related Similar Articles