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- Advertisement - By Samuel Peters The Ministry of Sports in collaboration with Cool & Smooth and Joma, launched this year’s male school football tournament, emphasising...

- Advertisement - By Samuel Peters In a thrilling night of basketball, the Cool & Smooth ABBA Business Basketball League 2024 saw three intense matchups that...

‘Govt will stick with lopsided ExxonMobil contract’ – Pres. Ali tells New York Times Sep 30, 2024 News Kaieteur News – Last week, Guyana’s President Irfaan Ali reaffirmed that his administration will uphold the Stabroek Block Production Sharing Agreement (PSA), even though it heavily favours ExxonMobil and its partners. President Irfaan Ali being interviewed by international climate correspondent Somini Sengupta at the New York Times Climate Forward event ExxonMobil Guyana Limited (EMGL) is the operator of the Stabroek Block, with a 45% interest, while Hess Guyana Exploration Ltd. holds 30% interest and China National Offshore Oil Corporation (CNOOC) Petroleum Guyana Limited holds 25% interest. During an interview at the New York Times Climate Forward event, international climate correspondent Somini Sengupta asked President Ali to address criticisms from Guyanese citizens regarding the Exxon PSA. The agreement exempts the oil companies from paying taxes with Guyana covering those costs out of its share of profit oil, grants a mere 2% royalty on the country’s valuable resources, and allows the companies to recover 75% of their investments before splitting the remaining 25%, of which Guyana receives 12.5%. President Ali accepted, “I have said this a number of times. They [Exxon, Hess and CNOOC] had the better hand of the deal.” He outlined that his government inherited the deal, which was signed by the previous Coalition Government and Exxon. “But listen, as leaders, there’s something called sanctity of contract. Can I just walk in there and decide, okay, this contract was signed [but] we’re going to abandon this contract [or] we’re not going to honour this contract,” President Ali said. He asserted that if his administration had chosen to walk away from the contract, they would have faced criticism for not upholding the sanctity of contract. “Right on this stage, you will say that there’s a tyrant and dictator in Guyana who does not respect contract, who does not respect the sanctity of contract and then you might hear that Guyana will be called before every commission globally,” President Ali said. Ali noted that governments often inherit certain agreements, and in Guyana’s case, his administration has to find ways to maximise the benefits of the contract without renegotiating its terms. Sengupta asked President Ali, whether, in another scenario, would he consider renegotiating the Exxon deal, or if that option was entirely off the table. In response, President Ali avoided addressing the question of renegotiation directly. Instead, he highlighted that the government has introduced a new PSA to ensure that all future oil agreements will differ from the Stabroek Block deal. “If you examine the new PSAs, you will see that is substantially different than the PSA that the consortium [Exxon, Hess and CNOOC] enjoys,” Ali said. President Ali continued, “But we don’t focus on this. We don’t focus that this is a government that recognized that they had a bad PSA that committed itself to design a new PSA. Went beyond that and implemented a new PSA…” Sengupta pointed out that Guyanese citizens have accused the country’s Environmental Protection Agency (EPA) of failing to conduct sufficient environmental assessments. She noted concerns that Guyanese taxpayers might be held liable for oil spills due to the type of liability insurance required from oil companies. “In one case, a judge in Guyana has called your Environmental Protection Agency derelict and pliant and said its decisions put your citizens and your environment in grave peril. How do you respond?” Sengupta said. President Ali first acknowledged that citizens have been critical on various issues. He then noted that his administration is committed to upholding their right to freedom of speech. Moreover, Sengupta highlighted that Norway is frequently cited example of a country that successfully leveraged its oil wealth to improve the well-being and standard of living for its citizens. She noted that Norway imposes over 75% windfall taxes on oil and gas profits. She then asked, “You have a very favorable tax rate. What is your tax rate on oil extraction?” “You’re talking about a country that is new in oil and gas versus Norway, that has decades of oil and gas experience, and oil and gas revenue,” President Ali said. He added that his government’s priority is to mirror Norway’s success to ensure prosperity for every family, aiming for world-class healthcare, education, and infrastructure to enhance the quality of life for all citizens. “When we get to that point that Norway had the opportunity to get to after decades of revenue earned from the oil and gas sector…then we can implement anything that Norway implemented, and even do it better,” he added. The reality in Guyana with the Exxon deal is that last year the country earned US$1.6 billion last year from oil sales and the 2% royalty. However, for that same year the government had to pay over US$1.4 billion taxes for Exxon, Hess and CNOOC to the Guyana Revenue Authority (GRA). Exxon had reported that while it is subject to Guyana’s income tax laws, the taxes assessed on the company’s operation are paid by the government, rather than the company itself.  The provision of the Stabroek Block contract which gives Exxon and its affiliates a tax-free ride in Guyana has attracted criticisms locally and internationally. The contract states in 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. Further, Article 15.4 states 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. It should be noted that the contract also allows for the issuing of a receipt to ExxonMobil, indicating that it has met the local tax requirements to avoid the burden of double taxation. Article 15.5 of the contract states, “Within one hundred and eighty (180) days following the end of each year of assessment, the Minister shall furnish to Contractor proper tax certificates in Contractor’s name from the Commissioner General, Guyana Revenue Authority evidencing the payment of the Contractor’s income tax under the Income Tax Act and corporation tax under the Corporation Tax Act. Such certificates shall state the amount of tax paid individually on behalf of Contractor or parties comprising the Contractor and other particulars customary for such certificates.” Related Similar Articles

Guyana could have already paid off debt by ring-fencing Stabroek Block projects – Glenn Lall Sep 30, 2024 News Kaieteur News – A whopping US$34 million in interest alone was paid by the state to service its debt during the first six months of 2024, a burden this country would not have had if government had executed better strategies in the management of the petroleum sector. K/News Publisher, Glenn Lall This is according to Publisher of Kaieteur News and businessman, Glenn Lall. The advocate in a recent public message emphasized that the climbing interest rates could force Guyana to fork out another US$35 million in interest for the remaining months of the year, taking the total interest on debt service to US$70M by December. The country’s debt service reached US$85.2M in the first six months of 2024, with US$34M alone paid in interest. Although the country’s total debt climbed from US$4.5B at the end of December 2023 to US$5B at the end of June 2024, the Bank of Guyana (BoG) in its 2024 Half Year Report revealed that Guyana’s total debt service, during the period under review, decreased by 7.7 percent to US$85.2 million. Lall was adamant that the US$5B debt that currently hangs over the head of each Guyanese “like a dark cloud” would not have been present had the oil sector seen prudent management over the last five years. The businessman reasoned that since Guyana began producing oil in December 2019, consecutive governments have failed to prevent the wanton abuse of the country’s resources by foreign companies. He said, “Five years into pumping oil, and we still haven’t capped the interest rates or equity charges on the oil companies’ investments, nor have we ring-fenced any of the oil projects…had the government and opposition simply ring-fenced these oil projects, Guyana could’ve paid off its debts by now.” A ring-fencing provision would ensure only costs related to one project are paid off from those revenues. In this way, more money would be available to share as profits between the government and Exxon, after the co-venturers recover the cost of the project. Presently, Guyana could have been receiving a greater share of profit from the three projects producing oil- Liza One, Liza Two and Payara. This, as Exxon has since recovered over US$19B from the Stabroek Block, well above the cost for the three projects. To this end, Lall said, “Guyana would be on a development drive unmatched in the region, with our people already enjoying the wealth from our resources. But no, instead, we’ll be heading back to those same overseas banks next year, borrowing more money and paying more interest, while boasting about “development” financed by loans.” Related Similar Articles

Elderly man dies after knocked off bicycle Sep 30, 2024 News Kaieteur News – A 63-year-old pedal cyclist identified as Stanford Benjamin lost his life after he was knocked off his bicycle Saturday afternoon on the Number 28 Village West Coast Berbice Public Road. According to police the incident took place around 14:00hrs. The accident involved motorcar #PZZ 7256, owned and driven by Malcolm Nurse, a 65-year-old resident of New Amsterdam, Berbice.According to their investigations Benjamin was headed west on the southern side of the roadway and the motorcar was going in the same direction behind him. The driver alleges that he was in the process of passing Benjamin when he unexpectedly swerved into the path of the motorcar which resulted in a collision.The front of the car hit the pedal cyclist and caused him to fall onto the roadway receiving injuries. He was picked up in an unconscious condition and taken to the Fort Wellington Public Hospital, where he was seen by a doctor and later succumbed to his injuries while receiving medical treatment.Investigations are ongoing. Related Similar Articles

Campbellville to get new $766.2M health centre Sep 30, 2024 News The Campbellville Health Centre. Kaieteur News – The Georgetown Public Hospital Corporation (GPHC) is currently seeking bids for the construction of a new building for the Campbellville Health Centre. The GPHC in its tender stated that the construction works are estimated to cost $766. 2 million and bidding will be conducted through the National Competitive Bidding (NCB) procedures specified in the Procurement Act 2003, and are open to all eligible qualified bidders. This publication understands that the decision to have a new building constructed is to properly improve the infrastructure of the health centre so as to introduce more services for patients coming there, which will be able to take the load off of the GPHC. Speaking with Kaieteur News on Saturday, GPHC’s Chief Executive Officer (CEO), Mr. Robbie Rambarran said that the current building is very old and has several defects which is unsafe for patients. “It is a very old building and what has happened over the years, is that pieces were add on, add on (extensions) and so it’s very old, it’s leaking, when it rains, it floods, there is no proper logical flow for patient care because there were pieces of things that were built all around so there is no proper logical flow for patient care and the processing of patients,” he explained. He said too that the current facility is very small and cannot meet the current demand of the number of patients that goes there. The Campbellville Health Centre on a monthly basis sees patients from Campbellville, Prasad Nagar, Sophia and even persons from Kitty. Rambarran disclosed that GPHC intends to introduce additional services at the Health Centre including but not limited to x-rays. He said the new building will be equipped with an asthmatic bay. “This health centre will have something that majority of the health centre don’t have and that is an asthmatic bay, a lot of people with asthma rather than they come to the Georgetown Public Hospital and have to wait for some time to get treated, people with asthma will go there,” the CEO related. Questioned on the location for the new facility, Mr. Rambarran stated that it will be at the same location and also cover the area where the post office is situated. “So next door, there is a post office so the plan is to build one big two-storey building; we will incorporate the post office in the building as well and therefore, we will get additional space,” he mentioned noting that the post office and health centre will operate separately. Notably, the CEO revealed that the operation of the Kitty Health Centre will merge with the Campbellville centre in that big building. He mentioned that they have done surveys and observations for this transition over a two-year period and the found that the Kitty Health Centre can be accommodated at the Campbellville Health Centre since it is in the same catchment area. According to the CEO, when the construction begins, the current operations at Campbellville Health Centre will relocate to a temporary building. The hospital has since gone out to tender for that location; a contract is yet to be awarded. It was reported that health centres across the country are being upgraded so as to comfortably serve patients and have enhanced healthcare services. The GPCH’s tender document further stated that the bids for the project will be opened on October 22, 2024 at the National Procurement and Tender Administration Board office. Related Similar Articles

‘Time to modernise copyright laws’ – Govt, AFC agree Sep 30, 2024 News Kaieteur News – Following a recent lawsuit by Guyanese artistes Jackie ‘Jackie Jaxx’ Hanover and Ivan ‘D’Ivan’Harry Vice President  Bharrat Jagdeo said that he feels it is time that the country’s copyright laws be modernised to allow for the protection of local artistes and other works which fall under the Copyright Act. Vice President Bharrat Jagdeo He also acknowledged that this was an age-old issue and that the government has been looking to update the laws. “There are citizens who are of the opinion that the country should have an appropriate legislation to govern its copyright and protect its citizens. But I believe our artists should be protected. I hope that we can advance it now we are also part of the World Trade Organisation and some countries expect us in the new dispensation they are not going to bring certain types of business here unless we have protection for them so in the modern era as we go forward I think the historic position may have to change,” he said. Emphasising that things are becoming more modern Jagdeo voiced his strong support for the evolution of the framework to protect local artists, even though he admitted to having a different view some years ago. “I support protection of local copyright strongly. Historically I might have had another view because I thought the developed world at that time maybe you know…they were not protecting a lot of our stuff.” Leader of the Alliance for Change Nigel Hughes during the party’s press conference on Friday said that although the legislation is long overdue they are in full support of it being in place. Hughes said that, “I read that the Vice President has said that copyright legislation is on the way. We support the call for the implementation of up to date copyright legislation.” Hughes said Guyana cannot present itself as a modern democratic society and not have the proper legislation in place to protect the intellectual property of not just Guyanese artists but also the content of persons internationally who seek to have their intellectual products available on the Guyanese market. Referencing content online that have restrictions or with a notice that says the content is not available in a particular country when an attempt is made to play them, Hughes said that this simply means that, “your country does not have any legislative framework to protect the intellectual property of others.” The AFC is of the belief that even though it is long overdue, artists have been making these calls for decades and as long as the government is sincere in these efforts they “should table the bill as a matter of priority.” On September 22nd 2024, this publication reported that Guyanese musicians Jackie ‘Jackie Jaxx’ Hanover and Ivan D’Ivan Harry have filed a US$1.6M lawsuit in a US District Court in the Eastern District of New York against recently rebranded One Communications for the unauthorized use of their musical compositions “Guyana” and “Oh Guyana”. According to a statement released to the media by their lawyer, “Jackie Hanover, popularly known as Jackie Jaxx, and Ivan Harry who performs as D’Ivan, have filed a copyright infringement lawsuit in the United States, against One Communications (Guyana) Inc. and Tennicia De Freitas, known by her stage name NEKEITA, for the unauthorized use of their musical compositions “Guyana” and “Oh Guyana” during a rebranding event hosted by One Communications.” It is alleged in the lawsuit that One Communications and NEKEITA by performing, broadcasting and commercially exploiting the songs without obtaining the permission needed infringed on the copyright of the plaintiffs music. Harry and Hanover are contending that the company, One Communications, in particular has gained significant benefits when it infringed on their copyright protection. The lawsuit was reportedly filed after efforts made to have the dispute resolved with One Communications failed. Related Similar Articles