GRA has to deal with Exxon’s cost audit

The Guyana Revenue Authority (GRA) is the body tasked with reviewing the audit into the expenses incurred by ExxonMobil’s local subsidiary from 1999 to 2017, Vice President Dr. Bharrat Jagdeo stressed on Thursday.

The Vice President said GRA, Guyana’s main tax regulator, recommended that the audit which identifies US$214 million in questionable spending be finalised.

And according to him, GRA had been empowered to review the audit and give its position on the findings because the government wanted technical, not political, input.

However, Minister Vickram Bharat revealed that an employee of the Petroleum Department of the Ministry of Natural Resources engaged ExxonMobil’s local subsidiary, which has now been renamed ExxonMobil Guyana Limited, on the audit and the questionable US$214 million expenses. That should not have been the case, he said.

Minister Vickram Bharrat said the issue is being corrected and confirmed that the GRA is the body that should be dealing with the audit.

“… they engaged in a further discussion with Exxon after GRA recommended closing the audit and that should not have happened,” Jagdeo stated.

He confirmed there was no great discussion, only that Exxon sent in requests for clarifications.

While other reports indicated the disputed costs may be reduced to about US$11 million based on Exxon’s provision of additional documentation, it was emphasised that only the advice from the GRA would be followed.

This audit is the first ever one conducted on cost claims by ExxonMobil Guyana Limited, previously known as Esso Exploration and Production Guyana Limited (EEPGL), for the pre-production period

The Vice President previously acknowledged that the audit has been long delayed but contended that the necessary technical work is being done.