Mark wants answers on sale of Clico's methanol shares

OPPOSITION Senator Wade Mark demanded documentary details of last year's sale of US$337 million worth of Clico's shares in Methanol Holdings International Ltd (MHIL) to Consolidated Energy Ltd (CEL) and called for an independent forensic audit into the deal.

Finance Minister Colm Imbert in reply at least twice let out an audible "steups," provided figures and accused Mark of seeking to mislead.

This happened in the Senate on November 26 during debate on Mark's private motion which gave the Government 14 days to table in the Senate any "acquisition agreements, valuations and legal opinions" relevant to the deal. If the Government failed to do so, a forensic audit was required, Mark's motion argued.

Mark said the Prime Minister and Energy Minister Stuart Young had met Proman president/CEO David Cassidy in 2022 at the Diplomatic Centre, Port of Spain. Mark demanded the minutes of this meeting plus another meeting he alleged had occurred with Dr Rowley and Young and Proman officials in Switzerland in 2022.

The CEL website listed Proman as its majority shareholder. Mark said he sought transparency and accountability.

He said auditors KPMG valued the portion of Clico's shareholding in MHIL.

Mark listed these valuations as $2.4 billion (2016), $2.36 billion (2017), $2.58 billion (2018), $2.58 billion (2019), $2.28 billion (2020) and $2.225 billion (2021).

He demanded to know how the valuation had fallen by $325 million from 2020-2021."The question is being asked: why is this asset being undervalued," Mark said.

He thanked KPMG for "standing up" for Clico and the taxpayers, after which they were allegedly replaced with Ernst and Young.

Mark challenged the Government to produce court orders relevant to the sale.

"Something is cooking. Something is amiss," Mark said. A nearby voice egged him on, "There is more in the mortar...."

Saying the country was now in a foreign-exchange crisis, he said Clico had a 30-year contract to supply methanol to Germany, which could have earned foreign exchange.

Mark complained that while the Russia-Ukraine War had pushed methanol prices from US$400 to US$1,400 per tonne, in that period TT's earnings had fallen from $2.85 billion a year to $2.25 billion.

"We want all the documents. Make sure this thing is above board! We are the watchdogs of the people!"

Opposition senator Jearlean John seconded Mark's motion.

Imbert, in reply to Mark, said the shares were not disposed of when Clico was under the Central Bank's control which relinquished its control in 2022.

Imbert listed the range of three values of the shares as calculated by an auditor versus that listed on Clico's books over the years.

He said it 2009, PWC valued it as US$105 million (low), US$110 million (medium) and US$114 million (high), while Clico's estimate of US$109 million was near the mid-point value. Likewise, the 2013 estimated values were US$325 million (low), US$354 million (medium) and US$387 million (high), compared to US$354 million cited by Clico.

Imbert said auditor Charles Duff in 2022 had given estimates of US$292 million, US$337 million and US$376 million, while Clico had used a figure of US$337 million.

He said during that period the price of methanol has fluctuated, as he cited figures of US$200-US$500.

Imbert said Clico was not a wholly owned state enterprise, but a private company. He said the Government has a minority shareholding, while the liquidator has 51 per cent.

He said that as a private company, Clico could not be forced to disclose its confidential minutes by him. He challenged Mark to try to do that to a private company.

"That is all I have to say on the matter," he said in annoyance.

Opposition Senator Damian Lyder told the Senate he had not intended to talk, but he supported Mark.

Addressing Imbert, he said, "If you name man, bring the valuations Senator Mark has called for. What have you got to hide?"