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JAMAICA | Petrojam Directors Resign, Paulwell not yet satisfied

Featured People's National Party (PNP) Shadow Minister of Energy Phillip Paulwell People's National Party (PNP) Shadow Minister of Energy Phillip Paulwell
Kingston, Jamaica, June 19, 2018 : Amidst reports that Petrojam Chairman Perceval Badahoo-Singh, and fellow  Jamaican directors Richard Creary and Harold Malcom have resigned from the board, People's National Party (PNP) Shadow Minister of Energy Phillip Paulwell says although this is  a step in the right direction, it does not go far enough in addressing the corruption and deepening crisis at the nation's oil refinery.

Paulwell, a former energy minister, says the ongoing investigations by the Auditor General and the Office of the Contractor General must continue to completion and those responsible for acts of corruption or fraud or any other breach must be held accountable.

Paulwell wants  Energy Minister Andrew Wheatley to explain why the board members were forced to resign. He said the revelation by Director Richard Creary that the board had not met in nine months is a damning indictment on the oversight of the major state agency and a gross dereliction of duty on the part of the Minister.

“When the PNP was in power, we ensured that at least one of the Venezuelan directors was domiciled in Jamaica. This had to be so because of the critical nature of the Petrojam operations to the nation and the national economy.” Mr Paulwell said.

The major projects currently being undertaken by the agency demand that the board is active and responsive in the decision-making process and ensuring that the interest of the Jamaican people is safeguarded, Mr Paulwell said.

“The agency was left with no oversight, both the chairman Mr Perceval Bahado-Singh and the Minister must be held accountable. In fact, Mr. Bahado-Singh, who also sits on the board of the parent body Petroleum Corporation of Jamaica (PCJ), needs to step down from that agency as well.” Mr Paulwell said.

The PNP Shadow Minister says the revelation in the PAAC last week that the chairman of the board was paid unlawfully by the agency, when he made claims for reimbursement of travel and other expenses for which he was not entitled, is beyond troubling.

PetroJam460Mr Paulwell is insisting that all the other matters, including the wanton and unlawful dismal of staff, the hiring of unqualified persons in sensitive positions and at unusually high salaries, the breach of procedure in travel arrangements for the chairman  and payments to him for airline tickets he did not use, the unprecedented cost overrun for the construction of the oil refinery wall, the unusual and  unnecessary retainer being paid  to an events company, as well as  questionable donations made by the agency, must be thoroughly investigated and the chips fall where they may.

Taking note of a release last week by the resigning directors that there was no basis for the PNP’s concerns about the agency, it has now been confirmed that the Venezuelan board members were not aware of the release which falsely included their agreement and approval. A letter written to the chairman of PetroJam now confirms beyond any doubt that they did not participate in the approval of the donations the agency made. Venezuela continues to hold 49 per cent share in Petrojam.

The crisis at Petrojam has ensured extended delays in implementing  the urgent and critical  VDU project without which the very viability of the agency is threatened.
Every effort must be made to rescue the nation's sole oil refinery and safeguard taxpayers investments, Mr. Paulwell says.

In the meantime, the Jamaica Observer is reporting that the Venezuelan directors of Petrojam are refuting board claims that there were party to a release refuting charges of corruption by the PNP. The Observer  story had quoted from a release issued by the Petrojam board saying: “At all times the requisite approvals and review channels are utilised for every aspect of the company's business, including the award of contracts, the provision of donations, and the implementation of projects. Donations are made to entities as part of our corporate social responsibility and in an effort to contribute to national development.”

Petrojam is jointly owned by the Petroleum Corporation of Jamaica (PCJ), which has 51 per cent, and PDV Caribe SA of Venezuela.

In 2006, the Government of Jamaica entered into a joint venture arrangement with the Government of Venezuela through the PCJ and PDV Caribe — a wholly owned affiliate of Petroleos de Venezuela, SA (PDVSA), the Venezuelan oil corporation — for the expansion, joint cooperation, and management of the Kingston refinery.

The agreement was effected on August 14, 2006, resulting in the PCJ, on January 1, 2008, transferring 49 per cent of its share capital in Petrojam to PDV Caribe SA.

Last modified onTuesday, 19 June 2018 08:26
  • Countries: Jamaica

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