The 2022 GEITI report indicates that oil revenues constituted 85% of total extractive sector revenues; however, a significant discrepancy of G$196.7 million exists between government and company reported figures. The report notes concerning audit delays within government agencies, notably with the GRA, GGMC, and NICIL, urging for improved transparency and accountability.
The 2022 Guyana Extractive Industries Transparency Initiative (GEITI) annual report highlights critical insights about the extractive sector’s financial transparency, as compiled by BDO Professional Services Inc. This sixth report reflects on the growing importance of oil revenues, which constituted 85 percent of the extraction sector’s total revenues. Despite this significant contribution, an unreconciled discrepancy of G$196.7 million emerged between the amounts recorded by government agencies and those reported by oil and gas companies.
The report also emphasizes the unfavorable status of audits among various government agencies involved in revenue collection. For example, the Guyana Revenue Authority (GRA) had its revenue collection audited only up to 2023 as part of the broader public accounts audit. Notably, a previous report indicated that the last comprehensive audit of GRA was conducted in 2018. Furthermore, the Guyana Geology and Mines Commission (GGMC) has not undergone an audit since 2016, and the National Industrial and Commercial Investments Ltd. (NICIL) has not been audited since 2013.
Such recurring audit delays across various government agencies underscore ongoing concerns regarding financial oversight and accountability in the extractive sector. The Independent Administrator’s observations reiterate the urgent need for thorough audits to enhance transparency and curb potential financial discrepancies in the sector.
In summary, the 2022 GEITI report reveals a substantial reliance on oil revenues within Guyana’s extractive sector, alongside significant unresolved financial discrepancies. Audit gaps across key government agencies raise concerns regarding transparency and accountability. The findings highlight the necessity for timely audits to ensure effective governance and financial management in this critical sector.
Original Source: www.stabroeknews.com
