Possible corruption

The TTEITI said, “The research that goes into the production of the EITI Reports has found no evidence of corruption at the level of upstream oil and gas companies, both local and foreign, in the dealings with Government.” However the committee added, “That is not to say that there may not be some form of corruption in the energy sector.” The committee continued, “We are aware of allegations made of mismanagement and corruption in the award of contracts by companies to suppliers and contractors but that is not part of the EITI remit, therefore, we are not in a position to form an opinion on those allegations.” Speaking in the House of Representatives last Friday, Finance Minister Colm Imbert said, “We have just engaged international consultants last week to start to look at the value chain in terms of energy commodity pricing because there is a view in TT that the multinational companies cheat on the declaration of income and the prices of commodities, and they use a technique called transfer pricing.” Imbert, who is also Acting Energy Minister, said, “It is said to be happening with the sale of LNG.

There is an allegation that the persons who produce the LNG, sell the LNG to an associated company and they sell it at a low price, so that the Government gets its profits based on the sale price and not market price. Therefore TT is robbed of income. There is a strong belief that this is happening.” The committee said this country has published four EITI Reports, covering 2010 to 2015. “Based on the reports’ findings, an estimated $840 million in differences between extractive companies’ declared tax and other payments and Government’s corresponding receipts have been identified, audited and reconciled to our satisfaction,” the TTEITI said.

The committee also said the reports have also provided extensive recommendations on improving Government revenue collection, data management and audit and assurance processes.

“Data generated in the reports have also informed the findings of the recent Gas Master Plan and assisted Trinidad and Tobago in meeting its obligations to the Open Government Partnership,” the committee added.

Indicating the EITI is one tool which can be used to reduce the perception of corruption in TT, the committee said, “The work we are doing to promote resource revenue transparency and to unveil the names of the real owners of companies investing in our oil and gas sector holds lessons for other sectors as well.” The CPI 2016 showed that, based on the results of surveys conducted in 2014 and 2015, TT’s score has dropped from 39 to 35.

The People’s Partnership coalition was in government from May 2010 to September 7, 2015.

The People’s National Movement (PNM) has been in office since September 7, 2015 to the present.

TTEITI committee chairman Victor Hart will attend the next EITI International Board Meeting in Bogota, Colombia, from March 7 to 9.