PM: Govt debt to Unipet separate from debt to Paria

THE PRIME Minister said the debt of a government agency to Unipet was a separate matter from Unipet's having to pay Paria Fuel Trading for fuel.

He was responding to a prime minister's question in the House on Wednesday from Naparima MP Rodney Charles.

Charles asked whether he had been aware that Government owed Unipet considerable sums of money (a reported $134 million in VAT refunds), affecting its ability to pay Paria, when he spoke about the Unipet/Paria impasse in Parliament last week.

Dr Rowley replied that he had no involvement in Unipet's financial status, but it was a simple matter of Unipet paying Paria for a product that Paria provided.

"I am aware that Unipet's requirement to pay Paria is not conditional on what other agencies of Government owe Unipet. Those are completely separate matters."

Charles also asked the quantum owed to Paria by NP as at November 30.

Rowley replied that NP had paid all its non-subsidiary payments for September and October and half a million for the November bill, which was not yet due. He said the total due for November will be $321,936,000.

Last Tuesday, Paria announced its decision to cut Unipet’s fuel supply because the company had failed to renegotiate a supply agreement since April. It also said Unipet defaulted on payments owed for September and October deliveries.

In the wake of the supply squeeze, 24 Unipet gas stations across the country were closed after its supplies were exhausted. A statement issued late on Monday by Paria said the parties had signed a settlement agreement. Paria said Unipet agreed to pay all outstanding debts.

Paria also said the supply of fuel to Unipet resumed at 5 pm on Monday.

Unipet also agreed to withdraw the injunction application and judicial review claim it filed on Friday.