The 2022 Guyana EITI report by BDO reveals that 85% of extractive revenues stem from oil. However, a G$196.7 million discrepancy exists between government received amounts and company payments. Audits of agencies like the GRA and GGMC are overdue, with the former last audited in 2023 and the latter in 2016, prompting concerns about financial transparency.
The 2022 Guyana Extractive Industries Transparency Initiative (GEITI) report by BDO Professional Services Inc. highlights key findings about the country’s extractive sector. Oil revenues represent a substantial 85 percent of total extractive revenues. However, a concerning unreconciled difference of G$196.7 million exists between the reported amounts received by government entities and those reported paid by oil and gas companies.
The status of audits for relevant government agencies remains a significant issue. The Guyana Revenue Authority (GRA) was only audited up to the year 2023 during a public accounts audit, with no information provided about its last standalone audit since 2018. Similarly, the Guyana Geology and Mines Commission (GGMC), a crucial entity in the oil sector, has not undergone an audit since 2016.
Other agencies, such as the National Industrial and Commercial Investments Ltd. (NICIL), have faced prolonged gaps in audits, with the last review occurring in 2013. These delays prompt the Independent Administrator to express concern about the transparency and oversight in Guyana’s extractive industries, emphasizing the need for timely audits to ensure accountability.
The 2022 GEITI report underscores the critical need for improved financial oversight in Guyana’s extractive sector. Despite significant oil revenues, discrepancies in reported financial data and prolonged audit gaps raise questions about the efficacy of financial management. Continued efforts towards enhanced transparency and regular audits are essential for reinforcing accountability within government agencies involved in extractive industries.
Original Source: www.stabroeknews.com
