The 'Fake Oil' Scandal Highlights Need For Open Data
Head, TTEITI Secretariat
Sherwin Long has served as TTEITI Head since 2015. Previously, Mr. Long held the positions of Senior Research Specialist, Energy and Chairman of the Energy Efficiency and Alternate Energy Committee at the Energy Chamber of Trinidad and Tobago.
PORT-OF-SPAIN, September 29, 2017 — The recent public outcry over the alleged ‘fake oil scandal’ has raised questions over how well the country captures information about its oil and gas production.
As the only institution that independently verifies revenue and production data in the country, the Trinidad and Tobago Extractive Industries Transparency Initiative is obligated to shed light on the issue.
Recent newspaper headlines alluded to a comment made by the Chair of the TTEITI Steering Committee, Mr. Victor Hart, that “there are no discrepancies in the oil and gas receipts.”
For the record, data shows that this statement is not false. The last four published reports show that the TT$114 billion in revenue payments to Government from oil and gas companies closely matched the receipts declared by the Government.
A total difference between the payments and receipts of TT$ 840 million was identified and explained by an Independent Auditor.
Apart from revenue, the Auditor also reconciles oil and gas production declared by companies and by the Government.
However, the EITI does not capture information from all companies operating in the T&T extractive sectors given that it is a voluntary initiative.
This provides sufficient justification for reporting under the EITI to be mandatory through EITI legislation. Consider that the company linked to the alleged “fake oil scandal” does not participate in the EITI and therefore does not disclose data to the Independent Auditor.
It should be emphasised that this matter is still being investigated and in the absence of the final report, it is premature to make assumptions.
Despite the work of the Auditor, it is not impossible for dishonest individuals to manipulate figures. Mandatory participation in the EITI is valuable but it is not a magic pill.
What it will do is provide an extra layer of assurance for a public prone to suspicion, act as a disincentive to corruption and ultimately help Government increase its revenues.
For further information on this statement or to arrange an interview, please email the TTEITI’s communications team at info@tteiti.com or call (868) 225 4334 ext. 2513.
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