January 6, 2021 Read More →

Guyana asked for U.S. aid even while giving millions to ExxonMobil

Kaieteur News:

When the COVID-19 pandemic struck the world, Guyana, like many other third world countries, was forced to seek financial aid to cope with the unprecedented health and economic crisis.

With aims of combating the pandemic in Guyana, the Inter-American Development Bank (IDB) had approved a US$22M loan, which it had announced on November 9th, 2020, under its Contingent Credit Facility for Natural Disaster and Public Health Emergencies.

The bank had said that the expenditures are necessary to contain transmission of COVID-19 and mitigate further health and economic consequences.

In other words, if Guyana gets 50% in profits and the taxes to be paid to the Guyana Revenue Authority (GRA) amount to $20, it means that Guyana has only gained $30 in profits. If Guyana did not agree to such a provision in the Production Sharing Agreement (PSA) to begin with, it would have walked away with a total of $70.

Tom Sanzillo, Director of Finance at the Institute for Energy Economics (IEEFA) and Financial Analysis, on commenting on this very issue had stated that the public is fundamentally being shortchanged when the government pays the income taxes for the company.

[Staff Report]

More: Guyana begged for USD$61M in COVID aid

Posted in: IEEFA In the News

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