Mangal says advised against Crab Island oil facility over lack of transparency
don’t have to go and uproot anything, the fact that you have, of course, economies of Regions Five and Six that will benefit immensely and the entire nation. So it has a lot of advantages that we believe are good,” he added.
The Ministry of Natural Resources would months later say that the Crab Island project was not definite and studies had to be done.
“Where the proposed on-shore base is concerned, it must be stated that though the Ministry of Natural Resources has identified Crab Island, Berbice as a very possible site, the necessary feasibility and environmental and social impact studies have not been completed and for this reason there is no sanctioned project,” then ministry spokesman Johann Earle later wrote in a letter to this newspaper.
“The exact location has not yet been settled and arrangements are being made to formally approach an international institution to conduct the necessary studies to answer the questions of what type of onshore base Guyana will need, where it should best be located and how the corporate and financial structures should be configured,” he added.
‘Main influence’
Mangal was asked if he believes that his advice to the President resulted in the project being shelved and he said, “I can’t tell you if it was as a result of my advice.”
He said that he had also expressed concerns about CGX having a part in the development of the area given its links to the previous administration. “I was also worried that CGX was involved with this in some way because CGX has an opaque relationship with the past government in Guyana,” he noted.
But he underscored that the “main influence” in his decision making was because he did not find the process to be transparent and in keeping with the principles that should govern government spending. “The main reason… was because they did not follow any acceptable process. There was no due diligence or no decision making process to show,” he said.
Responding to potential critics of his advice, Mangal said that more than
anyone he wants this country to benefit tangibly from the proceeds of oil and gas. He said that if he comes across as being negative, it is just him trying to hold government accountable.
“Although I may come across as being negative about oil and negative about elements in the current government, let me stress the following: Firstly, I believe in the oil industry but it will only work in our favour if we pursue it in a particular way. Secondly, I believe Guyana is very lucky to have President Granger in place at this critical phase. The country would be worse off with respect to O&G if the behaviours exhibited under the previous government were being exhibited now. Although there are numerous rotten apples in the current government, the President is a stabilising force. But I worry he is the only one who has grasped the magnitude of the opportunity before Guyana, and grasped the challenges/risks. I worry about his recent illness because the O&G situation would quickly deteriorate if President Granger is no longer at the helm. Some of those around him are, frankly, dangerous to Guyana, as were elements in the previous government,” he said.