A&V seeks $1 billion

A&V Oil and Gas Ltd – the oil company that attained notoriety in what’s became known as the “fake oil scandal” – stands to receive a hefty $1 billion in damages from arbitrators empanelled to deal with the matter. So confident is the company’s counsel, Ramesh Lawrence Maharaj, SC, that he is 150 per cent certain that the company will emerge a billion-dollar winner.

The company is claiming wrongful termination of contract against now-defunct state-owned Petrotrin.

Maharaj, speaking yesterday at a press conference at his law office in San Fernando said, “The arbitration will be heard in January and I think that by the end of March there would be a judgement. I am 150 per cent sure that there can only be one outcome in this case.”

Former president of the Caribbean Court of Justice (CCJ) Sir Dennis Byron is expected to head the panel of arbitrators together with a former judge of the Judicial Committee of the Privy Council, Lord Hope, and retired justice of Appeal, Humphrey Stollmeyer.

Maharaj said, “The people who are going to judge this case have a long history. Lord Hope is one of the most eminent jurists in the Privy Council.”

Petrotrin had a contract with A&V to drill and sell Petrotrin crude oil. An internal audit done by Petrotrin’s audit department said the data stated in that report that A&V overstated the volume of crude oils it sold to Petrotrin. The state-owned company later announced that investigations were also done by Kroll Consulting Ltd and Gaffney Cline and Associates.

In September 2017, Opposition Leader Kamla Persad-Bissessar, at a political meeting, levelled allegation of fraud against A&V dubbed as a “fake oil scandal”. In December 2017, Petrotrin terminated the contract and seized the Catshill wells in Barrackpore and Moruga.

Petrotrin has since been replaced by Heritage Petroleum Company and Paria Fuel Trading Company.

A&V sought an injunction and both the High Court, and the Court of Appeal found that if Petrotrin wrongfully terminated the contract, A&V would be adequately compensated with an award for damages, therefore an injunction could not be granted.

Today Maharaj, a former attorney general, insisted that Petrotrin’s case against his client is “really a fake case” to avoid paying A&V for the supply of real oil. 

But the arbitrators, he said, will not tolerate unfairness and injustice.

“Lord Byron is also one of the eminent jurists in the Caribbean. When you read his judgements, he does not make joke when he sees unfairness and injustice. Lord Hope is not going to tolerate unfairness and injustice.”

Maharaj accused the members of the then board of directors of Petrotrin of using their positions and powers of the State to take away the lawful entitlement to A&V.

“I am not making any threats today, but I have a duty to my client to explore whether the members of the board at the time did not commit the thought of misfeasance in public office.

“In my view, there is evidence of recklessness, gross negligence and an attitude of not interested in the truth. It is very serious for state companies to deny persons their contractual rights.”

Maharaj called on the Government to send a signal to state corporations that they are occupying the positions entrusted to the people of TT and not for themselves.

Only on Thursday, Baksh and his son-in-law Sgt Billy Ramsundar, reappeared in the Siparia Magistrates’ Court charged with assault and malicious damage. The offences arose of an alleged attack against Guardian Media Ltd senior photographer Kristian De Silva who was covering the fake oil scandal.

In July, a magistrate dismissed the case. But the State re-established the charges and Maharaj has filed submissions for an abuse of process against the State.

Government closed down Petrotrin last year and the defunct company’s assets are now under the Trinidad Petroleum Holdings Ltd.