Dear Editor
In scientific research, a petri dish, named after the German Physician Julius Petri, is monumental in the study of cultured organisms and consists of a flat glass plate where cultures are embedded and can be inspected with the naked eye or with the use of a microscope. Guyana appears to be well on its way of becoming a petri dish of corruption that is now propelled by large amounts of state funds at their disposal with the advent of the oil and gas industry. The proverbial and predictable “Dutch Disease or Dutch Curse,” coined by economists to describe the effects the gas discovery in the North Sea of Netherlands that had wreaked havoc on its economy in the 60s, has now taken over the Guyanese economy prompting a “surge in commodity prices, foreign aid, investments and remittances.” (Ianchovichina, Elena. Onder, Harun. “Dutch disease: An economic illness easy to catch, difficult to cure” Brookings, October 31st 2017, https://www.brookings.edu/articles/dutch-disease-an-economic-illness-easy-to-catch-difficult-to-cure/)
The disappearance of US$214 million from the ExxonMobil cost audit is an early warning sign that the culture of corruption is now being fueled by the oil and gas industry. As reports indicate, the audit performed by HIS-Markit, which covered the pre-production time frame from 1999 to 2017 has identified that ExxonMobil overcharged the Guyanese Government in the amount of US$214 million. The figure was endorsed by the Guyana Revenue Authority (GRA), but miraculously, was reduced to US$3 million with allegations of US$211 million being pocketed by someone in the government. The Second Vice President, who is in charge of the Oil & Gas sector, appears to be lost when the disappearance of this huge sum of state funds came to the fore by the media. By ExxonMobil’s own admission, these kinds of audits “usually result in few, if any, costs being dismissed, signaling the robustness of its accounting activities.” (OilNOW. “Exxon says has responded to draft audit report, awaits word from Guyana gov’t” OilNOW, September 22nd 2023, https://oilnow.gy/featured/exxon-says-has-responded-to-draft-audit-report-awaits-word-from-guyana-govt/)
The fact that Guyana’s Gross Domestic Product (GDP) has increased more than 400 percent since 2019 makes it fertile ground for malfeasance. This administration’s history of corruption predates oil production when Guyana’s economy operated primarily on sugar, rice, bauxite and gold. The corruption now appears to be matching the growth of the country’s GDP in the Oil & Gas era. We are seeing Guyana’s petri dish culture of corruption vehemently orchestrated by the manner in which infrastructure projects are being awarded to contractors. It’s simply a pay to play environment as seen in the Vice News report involving the Vice President.
The President has admirably announced an investigation into the disappearance of the US$211 million albeit, no timeline has been given to indicate when the investigation will commence or conclude. The investigators should also consider what role ExxonMobil played in the plot to make the US$211 million disappear as this run contrary to US laws. If history serves as a predictor of the outcomes of the investigation, it will perhaps conclude in the same fate of the Vice News reports – nothing came of it with the government hoping that the people of Guyana’s memory will be short to forget this episode while they continue business as usual. The unaccounted US$211 million could have better served the Guyanese populace by putting GUY$55,000 (using an exchange rate of $205) in the pockets of every man, woman and child in the nation. It is encouraged that each family can do the calculation and amass the impact of this singular corrupt act.
Now with their backs against the wall and the threat of this act being used as a springboard for the opposition in 2025, the Government of Guyana has to release the audit to the public as an act of transparency. Afterall, this figure represents approximately 13% of the overall cost of US$1.67 billion for the period of 1999 to 2017 at the preproduction stage. If we can’t get this stage of auditing executed transparent and corruption-free, I quiver for our nation when I imagine what other audits in the future which entails the tens of billions (USD) at play. As the American inventor and engineer Charles Kettering stated, “a problem well stated is a problem half-solved.”
Thank You,
Collin Haynes MPH MBA
