Key Insights from the Guyana EITI 2022 Report

The 2022 Guyana Extractive Industries Transparency Initiative report highlights that 85% of extractive revenues come from oil, with significant unreconciled discrepancies and outdated audits for key agencies like the GRA and GGMC. Timely audits are necessary to enhance fiscal transparency and accountability.

The 2022 Guyana Extractive Industries Transparency Initiative (GEITI) annual report, prepared by BDO Professional Services Inc., marks the sixth report since Guyana’s membership in the EITI commenced in 2017. Previous discussions have highlighted revenues generated from the extractive sector and the status of audits of the relevant government bodies.

A significant portion of the total revenues, specifically 85 percent, originated from oil. However, the report reveals a net unreconciled discrepancy amounting to G$196.7 million between the figures reported by governmental agencies and the payments claimed by oil and gas companies. The audit status of the governmental bodies remains unsatisfactory, with the revenue collected by the Guyana Revenue Authority (GRA) last audited in 2023 as part of the public accounts audit; the current status of comprehensive audits is unclear.

The Guyana Geology and Mines Commission (GGMC), a pivotal agency in the extractive sector, has not undergone an audit since 2016. Similar delays in auditing have been noted for other agencies, including the National Industrial and Commercial Investments Ltd. (NICIL), which has not been audited since 2013. The Independent Administrator emphasized these concerns in the report, highlighting the need for timely audits.

In summary, the 2022 GEITI report reveals critical insights into Guyana’s extractive industry, particularly regarding oil revenue and the lack of recent audits for key governmental agencies. With oil accounting for a significant 85 percent of total revenues, the unreconciled discrepancies and outdated audit statuses are concerning. These issues underscore the necessity for improved fiscal oversight and transparency within the sector to ensure accountability and build public trust.

Original Source: www.stabroeknews.com