The 2022 Guyana Extractive Industries Transparency Initiative report reveals that oil revenues made up 85% of total extractive sector revenues, with a notable financial discrepancy of G$196.7 million. The report highlights concerning audit statuses for the Guyana Revenue Authority and other essential agencies, some of which have not been audited for several years.
This article discusses the 2022 Guyana Extractive Industries Transparency Initiative (GEITI) annual report, compiled by BDO Professional Services Inc. This report marks the sixth iteration since Guyana’s membership in EITI began in 2017. The focus has been on revenue generation from the extractive sector and the audit status of related government agencies.
A significant highlight reveals that oil revenues constituted 85 percent of total revenues from the extractive sector. Nonetheless, there exists a net unreconciled difference of G$196.7 million, showcasing discrepancies between the financial records of government agencies and oil and gas entities.
Moreover, the report indicates a concerning state of audits for government agencies. The Guyana Revenue Authority (GRA) was last audited up to 2023 in conjunction with the public accounts audit, but the report did not disclose when it was audited as an independent entity. Previously, it had been stated in the 2021 report that the last audit occurred in 2018.
The Guyana Geology and Mines Commission (GGMC), crucial to the oil sector, has not undergone an audit since 2016. Similarly, numerous other agencies have not had their audits updated, with National Industrial and Commercial Investments Ltd. (NICIL) last being audited in 2013. Such recurring issues prompted the Independent Administrator to remark on the unfavorable state of these audits.
The 2022 GEITI report highlights the significant reliance on oil revenues in Guyana and underscores the discrepancies between reported payments by oil and gas entities and receipts by government agencies. Furthermore, the lack of recent audits for critical agencies raises concerns regarding transparency and accountability, necessitating immediate attention to improve clarity and governance in the extractive sector.
Original Source: www.stabroeknews.com
