GUYANA; OIL BLOCKS: Legalizing stolen state assets – Commentary

Cunning politicians use crooked middlemen to hold, receive or transfer stolen state assets. For example, politicians would have some of their shady friends establish shell companies, information about which the public cannot access. These companies would then be handed oil blocks or given other state assets.

In the past, bribes were paid into politicians’ secret bank accounts or that of their relatives. With stricter anti-money laundering and transparency laws, these bribes are now easily detectable. Corrupt politicians therefore have devised more elaborate schemes to legalize the proceeds of corrupt dealings. 

One of the ways in which they do this is through secret, pre-arranged deals in which foreign oil companies would buy in to the state assets held by the shell companies of the friends of politicians.  The proceeds of these ‘buy-in’ transactions then become legal income for the politicians and their shady friends.

This is how dirty money is made clean. In the process, stolen state assets are disposed of and the earnings become legitimate money, while the public remains clueless.

State assets, such as land, can also be given out to middlemen who are either agents or fronts for crooked politicians, for them to execute Stage 2 of the scheme. This occurs when the lands are put on the open market and sold at a staggering profit.

The proceeds of these land sales make billionaires out of the politicians and their cronies, while ensuring that the monies earned are cleaned.  Just like a drug kingpin with his dirty money and a helpful bank, Guyanese politicians legitimize stolen property through the shell companies established by their cronies.

This is the massive Ponzi scheme which is being operated using state assets. The PPP/C has handed out the oil-rich Canje and Kaieteur oil blocks. The people of Guyana are clueless as to the identities of the persons behind the companies which have been given these blocks. The owners of these blocks reportedly sold a 35% share of each block to Exxon.

Not one blind cent of this multi-million dollar transaction is going to be seen, touched or shared with the ordinary man. It will remain within a closed circle.

BACKGROUND INFORMATION

OIL BLOCKS PROBE   (Kaieteur News June 21, 2019)

The State Asset Recovery Agency is currently investigating the circumstances under which former President, Donald Ramotar, signed away two oil blocks offshore Guyana days before the general elections. One of the oil blocks is the Kaieteur Block. The other is the Canje Block which was granted to Mid-Atlantic Oil and Gas. That firm was incorporated in Guyana on April 8, 2013. Komal Dookie is listed as the company’s beneficial owner.

As for its initial partner, JHI Associates Inc., this company was only registered in Guyana on May 4 and bought into the block on May 15. It seems JHI was created from nothing as its archived website only started working and listing managers, including John Cullen, on June 10. This is almost one month after Guyana held its General and Regional Elections on May 11, 2015.

But what is significant to note is that the Canje Block is the only asset that Mid-Atlantic and JHI have to their name. Also, both firms have never explored for oil in any corner of the world. They don’t have the wherewithal to do so.

Additionally, JHI and Mid-Atlantic, which participated in Guyana’s reporting process for the Extractive Industries Transparency Initiative (EITI), failed to submit audited financial statements which were requested for review.
JHI also failed to submit information on its beneficial owners.

Mid-Atlantic, since acquiring the block in 2015, got several companies to buy into the block. The first to cut a deal was JHI Associates Inc. Like Mid-Atlantic, JHI has zero experience in the oil industry. It has 17.5 percent interest in the Canje Block. French oil major Total was able to buy 35 percent of the working interest. ExxonMobil, which is the lead operator on the Stabroek Block, was able to get a 35 percent interest in the Canje concession too. This works out in Exxon’s favour as Canje is strategically located next to the oil-rich Stabroek Block. Mid-Atlantic continues to hold on to a mere 12.5 percent.

Source: Kaieteur News:  Jun 21, 2019

Canje Block up for renewal since March 4 -ExxonMobil says it will abide by requirement for relinquishment

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Comments

  • Dennis Albert  On October 5, 2020 at 12:44 am

    Is the $ 7 billion dollar man Donald Trump? It would create chaos if Jagdeo or Robert Persaud would own that much stolen wealth and live in Pradoville. We are not stupid.

    • kamtanblog  On October 5, 2020 at 3:15 am

      Nice one !

      Who owns exonmobil ?

      USA or Russia and its oil-igarchs !

      Go gooogle FMI

      Kamtan

      • Dennis Albert  On October 5, 2020 at 8:28 pm

        Gita Gopinath of the IMF?
        Is she going to be the Princess of the Caribbean Sea?

  • kamtanblog  On October 5, 2020 at 3:28 am

    Simple Simon asks

    Who owns exonmobil ???

    USA or USSR oil-igarchs ?

    Go google for some answers

  • Chris Prashad  On October 7, 2020 at 4:44 pm

    What did the old folks used to say in Guyana ?
    Moon does run till day catch am, and bucket a goh a well everyday, but one day the bottom does fall off…. Karma never forgets nor forgives and when it returns like a scorpion and bite the arses of the corrupt scumbags right down to the fourth generation I hope they will accept that joyfully as they were when they defrauded the citizens.

    • Dennis Albert  On October 7, 2020 at 11:55 pm

      It’s gonna be a long time for that, because the oil plenty. Those in power will buy fancy condo and penthouse in Manhattan and Toronto with impunity.

      • Chris Prashad  On October 8, 2020 at 3:33 pm

        If what the report says is true, there is no escape. Karma will find all of them and their generations who benefitted. That’s how the matrices in the multi-verse works.

      • Dennis Albert  On October 8, 2020 at 10:53 pm

        I hope so. The current government is worse than what was accused of the former Granger administration. Foreign oil experts are being sued by the PPP government for what they publish. This is the beginning of the Arabian types of barbaric dictatorships which Jamal Khashoggi died for. The PPP wants to emulate the Dubai life, while robbing us and denying the public sector their rightful wages.

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