Earlier this week the Ministry of Natural Resources disclosed this year's earnings from Belize Natural Energy's wells in Spanish Lookout. And while BNE grossed $87.8 million and the government has thus far gotten $7 million, government still intends to collect millions more when income tax payments are settled at the end of the year. Today Minister of Natural Resources Johnny Briceno told us that while expectations are one thing the reality is another and there needs to be an audit of BNE to guarantee we're getting our fair share in taxes.
Hon. Johnny Briceno, Minister of Natural Resources
"We recognize in our department that we also need help that is why we have been getting several consultants to come in. We are speaking with the financial consultant from Trinidad, Mr. Louie, and we have asked him to give us a list of companies of accounting, auditing companies that have experience with petroleum companies to come in and do a full audit into the operations of B.N.E. Now I am in no way trying to elude any wrong doing of B.N.E. but it is just right for us to bring in our auditor or company to come in and audit the books. When they are finished with the audit, then they will tell us what we expect to collect."
Alfonso Noble Reporting,
Are you all expecting to collect all the revenues due to government as a result of the tax?
Hon. Johnny Briceno,
"Well I think it is the right of any citizen or any company to challenge whatever ruling that a government would put on them and that is for the courts to decide. I know that from our end we have been trying to do our best for us to be able to get a just portion of the receipts from the oil industry."
And while BNE may yet challenge the taxation of the oil production, Briceno today told us that one thing they simply cannot challenge is the issue of having an environmental impact assessment. He says that within the next few weeks government will be awaiting that document.
Hon. Johnny Briceno,
"The way it is structured right now is that you need to do an EIA from day one. The companies now have started to comply. I know RSM in the north, they have already done their EIA. The NEAC has revised the EIA and they have already approved that EIA. U.S. Capital, as we speak, they are working on their EIA as required by law and BNE, we had a meeting with them about two weeks ago and we had to explain to BNE that the law is very clear and that they have and they must do an EIA. They have agreed, they are complying, they are working on two EIAs, one in the Yalbac Area and the second one in the Georgeville Area."
Alfonso Noble,
What makes BNE special. The DOE has told us that they have made request to comply with what they are asking for from in May of last year and it seems that BNE is irresponsive to the requests.
Hon. Johnny Briceno,
"I think that the word that you used, the issue of 'special,' and it is not a matter of special."
Alfonso Noble,
You are telling me there are two other companies who have complied and who are not producing oil and BNE has not complied and they are producing oil. That seems to me that BNE is special.
Hon. Johnny Briceno,
"If you allow me to answer your question, what I am trying simply to bring across to you is that BNE is the only company that is producing oil. These other companies, they did their EIA after the court ruling. When the court ruling was made and it was said that it is required of them to do the EIA, they have done that. We sat down with BNE and we explained to them that now it is required of them to do an EIA. They are working on the EIA as we speak."
Alfonso Noble,
Do you know when that might be completed?
Hon. Johnny Briceno,
"I think probably in the next three or four weeks that they will complete their EIA and then they are going to present it to the Department. The Department will send it out to NEAC and then the members of NEAC will study it, they'll meet, and then they'll make their recommendations."
Briceno says that after the DOE, receives the EIA it will be passed on to the NEAC for review and approval. According to CEO Dr. Gilly Canton, BNE's position is that it is too late for an EIA and environmental audits best suit the present purpose.
