APNU+AFC failed to launch international investigation into oil blocks in five years

In acknowledgement of the People’s Progressive Party/ Civic (PPP/C) 100 days in government, the A Partnership For National Unity + Alliance For Change (APNU+AFC), yesterday blasted the government for failing to launch an international investigation into the controversial award of the Kaieteur and Canje oil blocks.

Some have labelled these utterances as hypocritical, especially when one recalls that in the five years that the APNU+AFC held government, it had failed to effectively conduct that said international probe.
In fact, the coalition may have deliberately stonewalled the State Assets Recovery Agency (SARA) in its probe of the awards of the Kaieteur and Canje oil blocks in the weeks leading up to the 2015 General and Regional Elections, as reported by international watchdog, Global Witness.

In a February 2020 report titled Signed Away, Global Witness had stated: “According to a source close to the government, one reason why SARA has not been effective, is because some officials may have stonewalled investigators’ record requests.”
That investigation started in May of 2018. Two years later and with $600M of taxpayers’ money spent, SARA has nothing to show for it. There are many who believe that the agency has been nothing but a complete waste of tax dollars. One such person who remains resolute in this view is Chartered Accountant and anti-corruption advocate, Christopher Ram.

During an interview with Kaieteur News in July, Ram had highlighted that the coalition, like the PPP/C, had shown the necessity for asset recovery without the “heavy hand of politics.”
He noted, however, that the APNU+AFC have been at best, irresponsible in handling this matter.
Notably, while in office, APNU+AFC was in the best position to assist the state investigator to complete the investigation with haste. Yet, even now, its leading officials claim not to know who the true beneficiaries are of the suspicious giveaways.

During an October 2nd virtual conference, Opposition Leader, Joseph Harmon, had claimed that he did not know who the real owners of the Canje and Kaieteur Blocks are.
He had said that he has some information on the matter, but that he did not want to put out information into the public, which was unverified, as he said this is information which he received from someone overseas who reached out to him.

Notwithstanding, Harmon was constantly pressed on his knowledge on the award of the two blocks, but continued to claim ignorance on the topic, and gave his assurances that the coalition would conduct a “special” oil and gas conference to address the issue. That press conference is yet to happen.
Later, on October 29th, Harmon was reminded that he had, on multiple occasions, had committed to providing information about the suspicious awards. In response, he denied any further knowledge, repeating an earlier statement he had made, that Kaieteur News seems to have more information than he does, and that this publication has more than what the opposition possesses.
Importantly, the Coalition had no need to rely on outside sources to close this case, as the two oil blocks changed hands several times under its tenure.

As the PPP/C should have done when it awarded the blocks, every time the blocks changed hands, the Coalition was in a position to determine who the beneficiaries are. The government has to know the hands, which the stakes are leaving, and the hands to which they will go.
Meanwhile, Vice President (VP), Dr. Bharrat Jagdeo had said that the government intends to peruse briefing reports on the handling of the awards of the Kaieteur and Canje oil blocks, to find any possible evidence of corruption.

He posited, too, during a press conference last week, that he does not believe any laws were broken, nor is there any evidence of corruption.
He was asked whether he would support an independent probe by a competent foreign investigator, into the awards. When Kaieteur News first raised the issue of red flags surrounding the awards, in 2019, the then Opposition Leader had said that an independent probe would receive his support.
However, Jagdeo on Friday had refused to commit to having said probe then. He said that he would not commit “at this stage.”
He continued, “We go sequentially, that’s how I work. I work sequentially. I’m trying to find out [whether there is corruption].”
The blocks

The Kaieteur Block was initially split 50/50 by Ratio Energy and Ratio Guyana (owned by the Israeli company, Ratio Petroleum) on April 28, 2015. As of today, the Kaieteur Block is split among four companies: ExxonMobil (35 percent), Ratio Guyana (25 percent), Cataleya (25 percent) and Hess (15 percent).
The Canje Block was awarded to Mid Atlantic on March 4, 2015. Currently, four companies have stakes in the Canje Block: ExxonMobil (35 percent), Total (35 percent), JHI Associates (17.5 percent) and Mid-Atlantic (12.5 percent).

The Coalition has had its own controversy to deal with, given that its Minister of Natural Resources, Raphael Trotman, also raised suspicion for signing a lopsided contract with ExxonMobil while on a trip, which the company paid for, to its Texas headquarters. Both major parties’ stewardship of the petroleum sector has been marked by global standard corruption red flags.