Exxon Mobil’s signing bonus kept private as a matter of National Security

DPI, Guyana, Wednesday, December 13, 2017

President David Granger today, addressed the matter regarding the US$18M Exxon Mobil signing bonus being kept under-wraps stating, “the transaction was conducted in that manner because there were national security implications.”

The Head of State said the monies were not placed into the Consolidated Fund, because he believed at that time it was the advisable thing to do. He explained, “It is a legitimate exercise as I said, to be used for the national security interest and at that point in time it was the thing to do so that we can have access in that matter of a national security emergency.”

Earlier this month it was disclosed by ExxonMobil (Guyana) Country Manager, Rod Henson that the approximately US$18 million signing bonus was deposited into the Bank of Guyana last year.

In the oil industry, signature bonuses are given to countries after the completion of negotiations and signing of the Production Sharing Contract (PSC), when the production from a specific contract attains a certain threshold.

When asked as to why an explanation was not given sooner, President Granger said “Evidence of non-disclosure does not mean that there is evidence of any intention of deception…. but there was no need to make it public. It’s a governmental decision. I make governmental decisions all the time but it’s not deceptive.”

The Head of State further said not all the Ministers may have had knowledge of the contract.  The Government plans to disclose the contract signed with Exxon before the end of this year.

 

By: Zanneel Williams

 

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