At this hour in Belmopan, key players in the Musa Administration are reported to be in an emergency meeting to decide what to do about a deepening scandal concerning the award of two oil production sharing contracts in late July. As we've reported those contracts agree to production share percentages which are identical to those signed unto before oil was discovered.
Moreover, they assure the government far less revenue than what had been proposed to Cabinet in papers presented in June. Still, on Friday the Prime Minister told us that the final PSAs had the support of Cabinet and represented what he called "it's wisdom."
The difference between what was proposed by the former Minister John Briceno and what was agreed to by his successor Florencio Marin is glaring. And as we said the scandal is deepening tonight because 7NEWS new documents which establish that Cabinet had approved the more favorable rates and that, a weekend before the unfavorable ones were signed, top brass in the Ministry was reminded of this.
Here's what Jules Vasquez came up with.
Jules Vasquez Reporting,
On July 18 of 2007, Andre Cho, the Inspector of Petroleum, wrote to his CEO Allan Usher reminding him that Cabinet approved the application for BCH International on July 25, 2006.
The Cabinet approved terms are what you see here. They promise a production share far more favorable to the government than what was signed to on July 27. It's also in line with the proposed schedule on other Cabinet documents we've seen. And more than that, Cho - the Inspector of Petroleum says - Cabinet approved the application under those terms.
As for ZMT International - which is owned by the same people as BCH - Cho reminds CEO Usher of the application, which again "Cabinet approved." It shows a production share identical to what we've seen in other Cabinet papers, and again far more favorable to government than the one signed to on July 25, 2007.
So just one week before that signing, Cho - who is again the most senior
technician in the Department of Geology - reminded Usher what Cabinet had approved. He closes his memo by reminding him also that, "the Belize model PSA has been revised and updated to improve the benefits to the government and should
be utilized for negotiations."
So why then just one week later - did Usher and his Minister Florencio Marin sign a production sharing agreement with these terms? First they had been advised by the inspector of petroleum that Cabinet approved the application for far better terms - and second, the model PSA had been revised and Usher had been so advised but all that advice was ignored.
But still, on Friday the Prime Minister said Marin had Cabinet approval when he signed to that production share.
Rt. Hon. Said Musa,
{October 19th, 2007] "The Cabinet approved what the Minister signed."
