GRA tells ExxonMobil to amend financials over disputed US$214m

ExxonMobil yesterday received correspondence from the Guyana Revenue Authority (GRA) notifying it that the IHS Markit audit findings of US$214 million in questionable expenses stands, and that the company should prepare financial transactions to reflect this, sources say.

Commissioner General of the GRA Godfrey Statia yesterday confirmed to the Stabroek News that the letter was dispatched.

The missive to the US oil giant comes on heels of Opposition Member of Parliament Roysdale Forde seeking answers on the scandal. Forde has written to government and the Commissioner of Infor-mation for details on both the audit report, and the contract and job portfolio of Senior Petroleum Coor-dinator in the Ministry of Natural Resources, Gopnauth ‘Bobby’ Gossai, who has been blamed by the Ministry of Natural Resources (MoNR) for decisions pertaining to the reduction of sums.

“As the Shadow Attor-ney General and Minister of Legal Affairs, it is my responsibility to ensure transparency, accountability and strict adherence to proper legal protocols and ethics within the architecture of Government. Accordingly, I am writing to request information regarding investigations conducted into the unauthorised negotiations between the head of the Petroleum Unit within your Ministry (Ministry of Natural Resources) and ExxonMobil, which resulted in a drastic reduction of audited questionable sums from USD$214,911,994 to USD$3, 414,853.68,” Forde said in the letter to Minister of Natural Resources, Vickram Bharrat.

“An action that has itself generated a national controversy. Additionally, I seek details regarding the Employment Contract of the officer who, it has been alleged, is at the centre of this controversy – Mr. Gopnauth ‘Bobby’ Gossai, Senior Petroleum Coordi-nator in the Ministry of Natural Resources,” he added.

Forde said that exposing any wrongdoing and securing the integrity of policies and systems to protect the nation’s patrimony are crucial for maintaining public trust and confidence in the transparency of government operations. It is why he asked that the minister, respectfully, provide “the requested information within 7 days of the receipt of this Letter to facilitate a thorough review.”

Forde posited that given the seriousness of the allegations surrounding the “unauthorised negotiations, and the apparent ease with which instructions, and systems in your Ministry could be manipulated, modified and erased”, it is “crucial that a comprehensive investigation is undertaken to ascertain the truth, evaluate potential misconduct, and determine appropriate accountability measures.”

 To better understand the processes involved in this matter, Forde asked Bharrat for a copy of the report he prepared and gave to Cabinet last week along with the employment contract of Gossai and what actions have since been taken.

He sought “a copy of the investigation report conducted into the unauthorized negotiations between the head of the Petroleum Unit, in the Ministry of Natural Resources and ExxonMobil, specifically focusing on the reduction of the questionable sum.”

“This report should outline the findings, evidence obtained, methodology employed, and any disciplinary or corrective actions taken as a result,” he added.

And on the contract for Gossai who this newspaper understands is currently in Scotland pursuing post-graduate studies, Forde asked that that it also “specify their role, responsibilities, compensations, benefits and any relevant clauses that may shed light on potential conflicts of interest or misconduct.”

Against the background of the Minister of Natural Resources announcing that Gossai would be disciplined, the Opposition MP  seeks, “Information on any actions taken by the Ministry of Natural Resources in response to the unauthorized negotiations, including disciplinary actions, policy changes, or any other measures implemented to prevent similar incidents in the future.”

Forde said that exposing any wrongdoing and securing the integrity of policies and systems to protect our nation’s patrimony are crucial for maintaining public trust and confidence in the transparency of government operations.

Separately, Forde has also written to the Commissioner of Information, Charles Ramson Snr  requesting access to the contract of Gossai, and outlined the importance of knowing information concerning one of the top officials with responsibility for oversight of this country’s oil resources.

Lingering

“As you are aware, the Petroleum industry plays a significant role in the economic development of our country- Guyana. It is crucial for the public to have confidence in the hiring process and terms of employment for such a significant position, particularly in circumstances where there are serious lingering questions about the unauthorised negotiations between himself and ExxonMobil to reduce USD$214,911,994 to USD$3, 414,853.68. To facilitate a thorough review, I kindly ask that you provide me with the following information,” Forde wrote, listing the information sought.

The Shadow Minister of Legal Affairs expressed to Ramson that he was confident in his commitment to upholding the principles of justice and the importance of transparency in Government affairs in releasing the information.

He asked for Gossai’s  “Employment Contract: A copy of the Employment Contract or Agreement between the Government and Mr. Gopnauth ‘Bobby’ Gossai, Senior Petroleum Coordinator in the Ministry of Natural Resources and the Government of Guyana. This would include any clauses related to the terms of employment, compensation, benefits and duration of the Contract.”

The Petroleum Director’s job description, how he was selected for the post and his remuneration was also requested. “A detailed job description setting out the powers, responsibilities and duties assigned to the head of the Petroleum Unit. This will assist in evaluating the competency and relevance of the appointed individual. Selection Process: Information regarding the process employed to select the head of the Unit including details of any advertisements, requisite qualifications, interview procedures, and the selection panel involved. Remuneration Approval: Confirmation that the remuneration package for Mr. Gossai received the necessary approvals in accordance with governmental standards, regulations and policies,” Forde stated.

“…Access to this information will enable a careful evaluation of the processes through which the head of the Petroleum Unit, Mr. Gossai was appointed and ensure that it was conducted in a fair, transparent, and merit- based manner. In addition, it will allow for a fair and objective assessment of the terms of employment and ensure they align with industry standards and public interest,” he added.

Gossai has been blamed for the audit fiasco where US$214 million in disputed oil expenses was slashed to US$3 million and he is to be disciplined, a statement released by Minister of Natural Resources on Thursday night said. The minister made known the government’s position after hours earlier, submitting to Cabinet a report on his ministry entering into direct negotiations with ExxonMobil to reduce US$214 million in questionable cost oil claims flagged by UK audit firm IHS Markit to US$3 million.

Stabroek News had reached out to Gossai and he said that he had no immediate comment. “I have no formal comment at this time,” Gossai said.

This newspaper understands that Gossai was asked by Minister of Natural Resources, Vickram Bharrat, to prepare a report into the circumstances leading up to the discussions between the Ministry of Natural Resources and ExxonMobil, which he did.

This newspaper was told by sources that at one point during the discussions with the United States oil major, the Ministry of Natural Resources had asked the Guyana Revenue Authority to be part of the discussions and the GRA declined.