'We always knew Paria was failed business model': MSJ

LEADER of the Movement for Social Justice (MSJ) David Abdulah said statements attributed to chairman Wilfred Espinet that Paria Fuel Trading Company Ltd is a “failed business model” vindicates the party's opposition to the closure of Petrotrin, but gives it no satisfaction.

Abdulah charged government with committing high economic crimes against the national interest and the people of TT because of the economic fallout from this decision. He said contrary to what government promised, since the closure, the country’s debt-to-GDP ratio has increased, oil production has fallen, unemployment has increased, local service contractors are being replaced by joint-venture international companies and more businesses are closing.

Abdulah said the contradictory statements by Energy Minister Franklin Khan and Espinet, chairman of Trinidad Petroleum Holdings Ltd (TPH), about the future of Paria had demonstrated, “not just incompetence and bungling about people who don’t know anything about the industry, but a matter of serious economic crimes.”

He said the way the Prime Minister, Khan and Espinet undertook the restructuring, “has been exposed to reek of 'adhocism,' bad business decisions, decisions that cost and continue to cost the country billions, cost thousands of workers their jobs and livelihood, cost the deep south a loss of economic activity.

“The cost to the country is huge and that is why the MSJ accuses Rowley, Khan and Espinet et al of economic crimes against the country. They must be held accountable,” he said at a news conference at MSJ’s St Joseph, San Fernando headquarters on Tuesday.

The MSJ identified the decision to import fuel, including bitumen to supply Lake Asphalt, as uneconomical saying it now places the jobs of at least 40 per cent of the LATT staff at risk.

Abdulah said the National Gas Company (NGC) has also found itself in difficulties, referring to reports that NGC is no longer buying all of bpTT’s gas, although there is a shortfall of natural gas production and a demand for the commodity.

“The implication of what is not being said is that clearly, the pricing arrangement for the purchase of gas from bpTT and perhaps Shell as well, is that the purchase price is now putting the NGC in a difficult position with respect to the selling price of gas to the downstream users in Point Lisas.”

Recalling Rowley and National Security Minister Stuart Young’s trip to Houston, Texas to resolve the issue of the gas supply, Abdulah said, “If there is a bad deal that is putting pressure on NGC, then the buck stops with the PM in this regard, and it would seem as if the multinationals have gotten the upper hand on us because contracts were badly negotiated.”

Abdulah said Espinet's and Khan's differing statements on Paria are an example “of the false narratives, of the outright lies and deception and contradictory statements on policy position uttered by the board and Espinet and Dr Rowley and Mr Khan at various points between August 2018 and March 2019.”

He said from the beginning there was a lack of transparency.

“We heard the refinery was old junk to be thrown away. Now we are hearing how many people are interested in buying the refinery.

"We knew the refinery was profitable and was making a profit in 2018 before it was closed down.

"Those who made the decision at the Cabinet level did not understand the implication to close the refinery and retrench all workers: that by doing so we would lose foreign exchange and at the same time burn up more foreign exchange, now that we have to buy fuel, buy bitumen for Lake Aphalt.

“They said they were trying to avoid the country going into debt, but the debt to GDP ratio is in trouble. They said Moody’s was going to downgrade us, that the economy would crash, all kinds of doomsday scenarios if Petrotrin continued to operate. But the very thing they claim they were trying to avoid has now beset us.”