FYZABAD – OPPOSITION leader Kamla Persad-Bissessar is claiming that the Paria Fuel Trading Company is facing a US$20 million monthly shortfall.
She made the statement at the United National Congress (UNC) Monday Night Forum in Fyzabad, last night.
She read a letter dated June 7, 2019 from chairman of Trinidad Petroleum Company Limited Wilfred Espinet to Minister of Energy Franklin Khan.
Stating that the letter was dropped in her mail box, Persad-Bissessar said it shows how after only eight months in operations, Paria was in serious trouble.
Persad-Bissessar said Espinet’s letter gives an update on the Petrotrin transformation process and lists a number of “immediate risks” which include “an ongoing shortfall of US$20 million per month to purchase refined fuels to ensure supply to the country – this is a structural problem that is going to result in a shortage of fuel unless corrected.”
She said, “That is a very serious issue. The supply of fuel to the country is under threat and I didn’t say so. The chairman of Trinidad Petroleum Holdings, Wilfred Espinet, said so. What is that US$20 million shortfall about?”
Persad-Bissessar wanted to know whether the cost of petrol will increase as the pumps.
She said, “Whatever it means, it is clear as day that Paria Fuel Trading, the company with the sole responsibility for importing this country’s fuels – super, diesel, premium, kerosene and jet fuel – is in big trouble.”
Persad-Bissessar quoted Espinet as saying an immediate risk was “the failure to implement ex-terminal pricing for imported fuel, despite the company and the MEEI (Ministry of Energy) having implemented a formula since November 2018,” noting that the government recently passed a piece of legislation to implement this formula.
She said, “That was the amendment to the Petroleum Act and the Petroleum Production Subsidy and Levy Act. However, the chairman is saying to the Minister of Energy that this should have been done since last year when Petrotrin was shut-down and we started to import fuel.
“That must be the height of incompetence on the part of the smiling Franklin Khan as Minister of Energy.”
Persad-Bissessar outlined a concern as stated in the letter, “The inability to secure two letters from the Ministry of Energy and the BIR (Board of Inland Revenue) to close the 2018 year-end audit and finalise long-term financing. Requests for both these letters have been pursued daily for several months.”
She said this meant that Petrotrin could not publish financials for 2018 due to outstanding matters regarding royalty payments to the Energy Ministry. She said there were also outstanding issues regarding taxes owed to the BIR.
She said next month Petrotrin has to pay US$850 million to bondholders it owes for a bond taken out in 2009 by the then Malcolm Jones People’s National Movement (PNM)-appointed board of Petrotrin.
Persad-Bissessar said, “It seems the Petrotrin candle is costing more than the funeral.
“When you consider the loss of production, the loss of revenue, the loss of sales of refined products and the cost to settle with workers, the closure of Petrotrin is a debacle because it was not properly thought out but done with spite, malice and contempt.”
