BNE exorbitant overhead costs subject of govt audit

But what about the revenues from oil profits? According to their data, Belize Natural Energy’s gross revenue from petroleum production is three hundred and twenty-six point one U.S. million. The government’s share is seventy-eight point five million dollars.  BNE claims it only receives fifty five point five million dollars.   But the largest share, sixty percent of the gross or over one hundred and ninety four million U.S. dollars, goes to expenses, which the Prime Minister promises to scrutinize. Though BNE earns millions more than Telemedia, and many services depend on oil revenue, he has no interest in nationalizing BNE or reviewing its agreements with the government.

Prime Minister Dean Barrow

“I am not going to countenance any interference with these legally binding arrangements. That is not to say that I am satisfied with the end result. I have looked at BNE’s leaflet and I don’t have a problem with what they say her in terms of the principles and the government take that they describe as fifty-eight percent. But that depends on this column. That depends on how valid, how legitimate their transportation and handling cost recovery figures are, their capital and cost recovery figures are. I am not going to stand here and accuse them of padding the figures. But I will refer again to my favorite Arab proverb ‘trust in God but tie your camel’. It is incumbent on us to make sure that these figures are in order and that is what the government is in the process of doing. There is a joint audit being conducted by the Income Tax Department and the Department of Petroleum. And it is a concomitant audit. It is for 2007 and 2008 and that audit exercise will be completed dealing with those years and then we will know how ‘balle grows’. To recap, I am not going to interfere with binding contracts because that would be counterproductive and against the interest of the people of this country who are depending on the finding additional oil in order to help with budget support and the development agenda.”