Energy expert: New TPHL must be accountable to the people

Accountability and transparency are paramount if Trinidad Petroleum Holdings Ltd (TPHL) is to avoid the pitfalls of its predecessor, Petrotrin.

Energy consultant Anthony Paul in a telephone interview with Newsday on Thursday said that now the government has appointed a new board the question really is how decisions are made and how those who make those decisions are held accountable, that is, in the nation’s best interest.

"It calls for a lot of transparency, that’s why a lot of countries made reporting on these large state assets to parliament, and others list a portion on the stock exchange where there are better reporting standards."

On Thursday, the government announced it would replace Wilfred Espinet, who oversaw the closure of Petrotrin and restructuring of the company into TPHL and subsidiaries Heritage Petroleum Co Ltd, Paria Fuel Trading Co Ltd, Guaracara Refining Co Ltd and Petrotrin (as a legacy company). His successor at TPHL and Heritage will be attorney Michael Quamina, who has represented the Prime Minister in personal legal matters, and Newman George, husband of House Speaker Bridgid Annisette George.

"I heard the Minister of Finance’s explanation that (the old board) came in for the restructuring (but now) the goal is different. From that perspective it makes sense to put a team that’s fit for purpose," Paul said. Espinet, he added, took quite a lot of licks during the restructuring.

These new roles that Quamina and others need to fill will be challenging, Paul said, and will take "a lot of good people with the right kinds of skills on the board."

Asked to give his perspective on the perceived close relations of these new board members with members of the government, Paul said it was a valid consideration, which is why accountability was important.

"TT is a small place so there will invariably be overlaps. That said, we shouldn't exclude people just because they don't belong to one side or the other. People selected should have the right competencies... because of the nature of state companies it is not unusual to expect political influence because the state is the owner and the Minister of Finance (Corporation Sole) is the shareholder."

The government has said they want the leadership of the board to drive production improvement, Paul said, but he hasn't yet seen the relevant competencies from the names listed so far, although he acknowledged there may be plans to do so. "I can't see anything wrong with the move, though. I felt for Mr Espinet. He did what he had to do (as chairman) but it's the shareholder’s prerogative." The shareholder on paper is the Minister of Finance, he noted, but the shareholder in fact is the people of TT. And the people's representatives are the Parliament.

"Ideally a lot of control should be with the Parliament. My view is divesting assets of such magnitude should really have Parliamentary oversight."