There is more confusion on Paria Fuel Trading Company.
The Opposition United National Congress is demanding answers and Trinidad Petroleum Holdings chairman Wilfred Espinet’s resignation after Energy Minister Franklin Khan yesterday denied Espinet’s statements that Paria Fuel is being sold.
“As Minister of Energy/Energy Industries, I wish to make it clear that the divestment of Paria Fuel Trading Company is not within the current mandate given by the Government to Trinidad Petroleum Holdings Limited,” Khan said yesterday.
Khan responded as he knocked down Espinet’s statements in the media over the weekend that “there was no reason for Government to keep” Paria and it would be sold. The company was formed only three months ago among subsidiaries following Petrotrin’s restructuring.
Among his comments, Espinet announced that a request for proposal had been issued for Paria as well the Pointe-a-Pierre refinery. He said there’s no strategic reason for the state to keep Paria once fuel security and fuel competitiveness can be guaranteed and the company shouldn’t be owned since “the way we do it, you’ll lose money.”
Espinet’s comments drew anger from the UNC and Movement for Social Justice (MSJ), who accused Government of lying about Petrotrin’s restructuring. MSJ leader David Abdulah demanded Prime Minister Dr Keith Rowley immediately address the issue on his return today.
But even before Rowley could be pressed on the matter, Khan said yesterday via a statement that he’d noted newspaper reports “that could give the impression” Government intended to sell Paria.
Khan added, “However, for the record, (Paria) is a strategic state asset that plays a very important role in ensuring the security of supply of liquid petroleum fuels for the transportation sector of T&T and for the general public. The company is also invested with the ownership of strategic assets such as tank farms, port infrastructure and real estate which were previously owned by the predecessor company Petrotrin.”
Khan made it clear the divestment of Paria isn’t within the mandate given by Government to Trinidad Petroleum Holdings (TPHL) which Espinet chairs.
“Accordingly, TPHL has been directed to withdraw and retract any advertisement or Request for Proposals that may have been inadvertently issued for the sale of Paria,” Khan said.
“The public is assured that Government and the Ministry will continue to maintain oversight of the restructuring of Petrotrin and its transformation into viable, efficient and profitable companies, in order to ensure that all decisions taken in the energy sector and all associated subsectors are in citizens’ best interest.”
Khan later told the T&T Guardian Espinet won’t be fired either.
“He was simply expressing a view, but it’s not Government’s view. However, there’s no issues with him and his performance. We’re very happy with Mr Espinet’s work and what he continues doing. He’s served T&T well, done yeoman service and been very instrumental in transforming Petrotrin’s structure.”
Pressed several times on Khan’s statement yesterday, Espinet replied three times he had no comment beyond indicating if any statement comes it might be from Paria or TPHL. Other TPHL officials said, “Well, fine if Khan/Government made a statement...they have the right to.”
But Opposition whip David Lee told the T&T Guardian Khan’s statement had raised more queries and Espinet should resign.
“Khan’s retraction of everything Espinet said shows Espinet is a law unto himself. Did Espinet’s opinion on what should be done signal that some secret deal might have been developing regarding Paria and Khan wasn’t aware of it?” Lee asked.
“If Khan’s now denying Paria was to be sold and telling Espinet to withdraw the RFP, there was clearly a communication breakdown between them because you’d have thought any instruction to sell Paria would emanate from Khan/Government.
“The Prime Minister must really clarify the situation because all these conflicting statements from Espinet and Khan reinforces the fact the public can’t trust anything they say. But certainly, Espinet must now resign after Khan has publicly embarrassed him.”
MSJ’s Abdulah added, “This is the latest in Petrotrin’s saga of constantly changing statements, numbers and facts coming from Espinet and Government - we can trust neither. Espinet’s credibility has been shot and the Prime Minister must say where this is going. It’s not helping the oil industry image.”
See Editorial on page A16