Audit results and its impact

The work done by the consortium of auditing firms, Ramdihal& Haynes Inc., Eclisar Financial, and Vitality Accounting and Consultancy Inc., with backing from Martindale Consultants, have identified the unauthorized expenditures that have inflated the costs of the EMGL financial statements. In particular, the auditors point out the unlawful disbursement of funds from the Liza 1 and 2 revenue streams for activities in the Kaieteur and Canje blocks, as well as other expenditures not related to the extraction of oil from Liza 1 and 2. This dishonorable action by EMGL signals the utter contempt EMGL has for Guyana.

Recognizing that EMGL would not engage in this behavior in the USA, where financial penalties would unreservedly be imposed by the appropriate government department, several questions can be raised at this juncture:

1. First, will this unprofessional behavior continue on future projects in the Stabroek block, given that EMGL claims that they have invested US$50.00 billion dollars?
2. Second, can the auditors have access to the EMGL financial documentation in real time, not years later, so that this deceitful behavior can be terminated before it impacts Guyana share of total revenue?
3. Third, going forward, can a simple system be commissioned in real time of counting barrels so that Guyana can receive its fair and equitable share? This approach of counting barrels will establish a transparent system that is currently lacking; it will not violate ‘the supposedly inviolable contract sanctity cause of unending serfdom of Guyana’; and moreover, this approach will allow the full breakeven level of output to be determined and the correct profit level to be derived. Incidentally, the current 75 percent of total revenue that is allocated as total cost is a fake cost measure, since it violates the elements that are included in a cost function.

In conclusion, the Government of Guyana must change this EMGL unjustified behavior that is occurring on your watch; for no one else can be blamed for this lack of timely follow up.  And may I also add that both CBJ and LFSB would be fired up on this matter and see this completed without delay.

Sincerely,

Dr. C. Kenrick Hunte

Professor and Former Ambassador