Petrotrin refinery shut down

[gastly369]

Not financial member... No wok for allyuh mc

Basically the usual trini racket hadda pay to get a work...

[Country_Bookie]

Owtu doh have USD 700m anywhere. The 3 year moratorium being mentioned relates to payments of a loan to govt.

Essentially owtu bid 700m on the condition that govt loan them that amount, and they have 3 years to start paying it back. If they aren't making enough money to start making payments in 3 years time, they'll resort to normal bullying tactics to force the government to renegotiate the loan and delay payments even further.
Take win Owtu, allyuh just got a refinery for free

[zoom rader]

Owtu doh have USD 700m anywhere. The 3 year moratorium being mentioned relates to payments of a loan to govt.

Essentially owtu bid 700m on the condition that govt loan them that amount, and they have 3 years to start paying it back. If they aren't making enough money to start making payments in 3 years time, they'll resort to normal bullying tactics to force the government to renegotiate the loan and delay payments even further.
Take win Owtu, allyuh just got a refinery for free

Redman dont understand that play.

Its the great short with insider trading.

A gift from PNM.

[apole69]

Owtu doh have USD 700m anywhere. The 3 year moratorium being mentioned relates to payments of a loan to govt.

Essentially owtu bid 700m on the condition that govt loan them that amount, and they have 3 years to start paying it back. If they aren't making enough money to start making payments in 3 years time, they'll resort to normal bullying tactics to force the government to renegotiate the loan and delay payments even further.
Take win Owtu, allyuh just got a refinery for free

Redman dont understand that play.

Its the great short with insider trading.
It seems that the country was taken for a ride !
Is Politics all about enrichment ? Whatever happened to all the lofty ideals ?
I seriously doubt,that we can sink any lower!

A gift from PNM.

[Duane 3NE 2NR]

US$1.4 B to fix Petrotrin refinery

Out­side of the mas­sive US$700 mil­lion up­front pay­ment to the State for the Pointe-a-Pierre re­fin­ery, the new­ly-formed Pa­tri­ot­ic En­er­gies and Tech­nolo­gies Com­pa­ny Ltd (PET­CL) would have to find at least US$1.4 bil­lion to get the re­fin­ery up and run­ning, says a mem­ber of the val­u­a­tion com­mit­tee that con­sid­ered the bid.

http://www.guardian.co.tt/news/us14-b-t ... 63596dc95e

[kstt]

I can really see Espinet falling out of favour over this decision.

[The_Honourable]

I can really see Espinet falling out of favour over this decision.

Like him or not, it comes down to dollars and cents for Espinet.

Probably one of if not THE reason he was removed. He probably knows unknowing to the public why this is a bad deal but politics over economics. He learnt the hard way that he was only hired to do the dirty work (fire everybody and restructure) but not to carry everything to conclusion (a profitable group of companies). The latter is for Rowley padnas.

Remember the bobol with Paria earlier in the year that it was sale, then not for sale and was pulled, then if the govt get a good offer, to the owtu getting it now?

[hydroep]

Khan: No politics in refinery sale to OWTU
Khan defends choice of union to own refinery
Yvonne Webb

ENERGY Minister Franklin Khan has no politics was involved in accepting the US$700 million offer for the Pointe-a-Pierre refinery from a company owned by the Oilfield Workers Trade Union.

Questions have been swirling about the “master-stroke” by the People’s National Movement (PNM) in an election season for Patriotic Energies and Technologies Co Ltd to be named as the preferred bidder from among a list of 77 companies which originally expressed an interest the refinery.

The assets were once owned by former state oil company Petrotrin which Government shut down last November.

Given that Patriotic was incorporated less than a year ago, and Government's decision to grant concessions to the company, including a three-year moratorium on payments of principal and interest, talk of the move being more political than economical have come to the fore.

However, Khan speaking to the media in the Parliament on Friday, after the announcement was made by Finance Minister Colm Imbert, affirmed, “no politics was involved.”

He said Government and the OWTU are now partners in this exercise.

OWTU’s president general Ancel Roget, also reacting in Point Fortin on Friday to the news that Patriotic was named as the preferred bidder to operate the refinery, also asserted the acquisition was not a gift from the Government.

“Nobody did us any favour. We deserve it. The people deserve it.”

Khan said he is confident that the selection process was transparent and recalled that in one of his early addresses to the nation, after the decision to shut down the refinery was taken, the Prime Minister did indicate that due consideration would be given to the OWTU if the union wanted to operate it. He said once they made their bid, stood up to scrutiny and proved to be economically robust they were successful.

Khan said once the purchase agreement comes into the place the plant will belong to Patriotic .

“The OWTU has now gotten a very strategic, national asset and we hope to bring it into operation at the shortest possible time.”

He said he hopes that with the start-up of the refinery, the community of Marabella, Pointe-a-Pierre, San Fernando, Gasparillo and other surrounding areas will see an economic revitalisation.

“This whole project can now regenerate serious economic activity,” Khan said.

Former energy minister Kevin Ramnarine yesterday said while the evaluation team comprised “some very reputable people, I think the hands of politics is certainly at play here.”

In a telephone interview from London, Ramnarine said when Government closed Petrotrin and announced its decision to sell or lease the refinery, he expected interest from major international players, not minor players shortlisted.

“We were given the impression by government there was great excitement about it. I would have thought, the way government behaved, they had significant offers from companies like Shell and Valero.”

He said Government had itself to blame after bad mouthing the refinery, dissuading potential buyers.

“The last four years has really been a period of a lot of decay and decline in the energy sector and I think this Petrotrin is simply now coming full circle. It is really a sad day for TT to see a company that wasn’t perfect, that had a lot of room for improvement being brought to where it has today."

Ramnarine also raised questions on the decision to put the country’s fuel supply in the hands of a private entity.

“As far as I am aware, OWTU’s Patriotic is a private company, so why are we putting a right to distribute fuel in this country, why are we giving the monopoly right to a private company?”

https://newsday.co.tt/2019/09/22/khan-no-politics-in-refinery-sale-to-owtu/

[Allergic2BunnyEars]

Well if Guy smiley says it’s so it’s definitely so.

[sMASH]

guy smiley does say one thing friday, and by monday is a different story.

[wingnut]

So whats gonna happen to current heritage and paria employees. Dey gonna close down those companies and send everyone home again for patriotic to take over and bring in their ppl

[Allergic2BunnyEars]

So whats gonna happen to current heritage and paria employees. Dey gonna close down those companies and send everyone home again for patriotic to take over and bring in their ppl

Heritage is separate and unfortunately state owned. It isn’t included in the refinery sale so will exist on its own.

Paria is to be sold with the refinery. Most likely those employees will be retrenched at some point when new refinery owner takes over.

[Slartibartfast]

Sooooooooooooo..... I'm a bit confused. Either I don't understand the situation or the situation just doesn't make sense. Somebody correct me where I'm wrong.

1. Petrotrin was in heavy debt and not profitable (allegedly). The cause was cited as unproductive workers and blame placed on the union as a root cause.
2. All of the union workers were fired to get rid of them with the aim to sell and privatise the company and make money for the country by just collecting taxes.
3. OWTU newly incorporated company won the bid for the purchase of the company over many other firms despite being incorporated less than a year ago and therefore having no financial history (and I'm guessing to real assets to use as collateral).
4. The GoTT has decided to basically give them 3 years before they have to start paying. So it's like we are giving the OWTU a loan to buy the refinery and 3 years to make it profitable enough to keep up with the payments.
5. OWTU will now attempt to refurbish the refinery (with what money?) and run the refinery at such a profit that they will be able to repay for itself, bring in revenue in the form of taxes to TnT (otherwise, why bother selling it) and still turn a profit (otherwise why bother buying it).

How incorrect is my understanding of the situation?

[MG Man]

^^^the ppl who allegedly buss the company with their high wages are now going to run it at a profit....

[neilsingh100]

Sooooooooooooo..... I'm a bit confused. Either I don't understand the situation or the situation just doesn't make sense. Somebody correct me where I'm wrong.

1. Petrotrin was in heavy debt and not profitable (allegedly). The cause was cited as unproductive workers and blame placed on the union as a root cause.
2. All of the union workers were fired to get rid of them with the aim to sell and privatise the company and make money for the country by just collecting taxes.
3. OWTU newly incorporated company won the bid for the purchase of the company over many other firms despite being incorporated less than a year ago and therefore having no financial history (and I'm guessing to real assets to use as collateral).
4. The GoTT has decided to basically give them 3 years before they have to start paying. So it's like we are giving the OWTU a loan to buy the refinery and 3 years to make it profitable enough to keep up with the payments.
5. OWTU will now attempt to refurbish the refinery (with what money?) and run the refinery at such a profit that they will be able to repay for itself, bring in revenue in the form of taxes to TnT (otherwise, why bother selling it) and still turn a profit (otherwise why bother buying it).

How incorrect is my understanding of the situation?

For them to get the financing the investors providing the financing will bring in competent persons to run the refinery. This is a smart move by the government since if the OWTU succeeds or fails they will still look good.

[Slartibartfast]

For them to get the financing the investors providing the financing will bring in competent persons to run the refinery. This is a smart move by the government since if the OWTU succeeds or fails they will still look good.

Definitely a smart move by the government. I felt that the way the situation was handled was purposefully done to create a crisis situation so that they will have full control of the outcome.

I just wish our government used to apply the same expertise to looking after the country's interest. I'm trying to get the story straight because the way it looks, it seems as though this was one big play to privatise one of our country's biggest revenue generating assets for free.

[screwbash]

wah ever...
is the plant back in operation?
is it looking for workers? who do i send my application for?
can i invest my petrotrin money into the new oil refinery for yearly dividend and payouts?

[Slartibartfast]

wah ever...
is the plant back in operation?
is it looking for workers? who do i send my application for?
can i invest my petrotrin money into the new oil refinery for yearly dividend and payouts?

And herein lies the power in keeping the people you rule over poor.

[sMASH]

The profitability of the business.
Before it was patriated, now it's privatised, and we will earn taxes.
The monies to refurbish, who sponsoring those, the work contracts who getting those?

The people that lost their jobs, they didnt need to suffer so.

Essentially what went on, is what i was saying to do; hire a management / operations company, issue shares, and let workers get some shares of the profits.


Too much damn drama

[Slartibartfast]

The profitability of the business.
Before it was patriated, now it's privatised, and we will earn taxes.
The monies to refurbish, who sponsoring those, the work contracts who getting those?

The people that lost their jobs, they didnt need to suffer so.

Essentially what went on, is what i was saying to do; hire a management / operations company, issue shares, and let workers get some shares of the profits.


Too much damn drama

So again, correct me if I'm wrong.

We give them a refinery, let them run it, and use the profits to pay back for it. After it is paid back for, they have a refinery without ever having to put out money.

So we basically gave away one of our biggest income generating assets for free when we could have just alternatively gotten better management and be able to keep the profits to enrich the country. Like I said at the beginning, this was a manufactured crisis aimed at making their way forward the only reasonable alternative. This is more than just "too much drama"

I want to see who really collecting the profits from this.

[sMASH]

Work-to-own refinery.

[hydroep]

Now if Tantie Kams and dem de do dat...........

[The_Honourable]

There are three sources the OWTU could get US$750 million from:

(1) Investors
(2) Government
(3) Maduro/Russia/China

#1 is least likely. Investors would only have put up that kind of money if there was some kind of write-off for the expenditure needed to modernise the refinery so it could make a profit.

#2 is quite possible. It gives Roget a golden parachute, the PNM a campaign talking point, including, when the OWTU fails, an irrefutable “I told you so”. However, any such deal will come to light and have a backlash (including the $5 billion in additional debt) but the PNM may have calculated that the electoral benefit outweighs cost.

#3. This is the elephant that no commentator, no media house, is talking about. If the OWTU has leveraged its socialist links to get this money, it’s not because Maduro/Russia/China want to refine oil. In the case of the first two, it’s because a refinery will make an excellent avenue to launder cocaine money. Petrotrin was losing about US$3 million annually – if the Venezuelan cocaine trade brings in $US10 billion annually (a VERY conservative estimate) the US$750 million investment is peanuts. If it’s China behind the investment, the reasons are more geopolitical, but still dangerous since this would include putting in a puppet government headed by somebody like David Abdulah.

I think #2 is most likely, but I would hope the TT government is already talking to the Americans in case it’s #3.

Source: https://www.facebook.com/vulcansatirist ... 3732952756

[abducted]

[The_Honourable]

Bharath: Refinery heading for catastrophe

THE Government’s proposed deal to sell the Pointe-a-Pierre refinery to an OWTU company is clearly a case of petty politicking which will end in catastrophe, former trade minister Vasant Bharath told Newsday yesterday.

Last Friday, Finance Minister Colm Imbert said the mothballed refinery will be sold for US$700 million, with a three year moratorium after which the OWTU firm, Patriotic, will have 10 years to make payments.

Bharath said, “I’m very passionate about it because of how much money this country has squandered in the past 50 years in shady deals that the population has had to swallow and it is the citizens who ultimately pay for it.”

He said the most recent issue was the unexplained cancellation of a US$72 million contract between the HDC and the China Gezhouba Group for high-rise public housing. “Even with this Petrotrin the country has had to swallow $13 billion worth of bad deals signed by previous regimes. With the World GTL and Ultra Low Sulphur Project the country has had to swallow it and nobody has been held to account. We’ve just swept it under the carpet and on we go again.”

Bharath’s two concerns were the moratorium and Patriotic’s capability.

Firstly, he said Imbert had said Patriotic was the only bidder with an up front cash offer, namely US$700 million. Bharath said in normal accounting parlance, “up front” means a company is handing over cash at the start, so it was self-contradictory for Imbert to then grant a moratorium. Bharath also said a moratorium as defined can only be granted by a lender of money, which the Government was not, even as they had insinuated the funds would come from elsewhere. “Imbert believes the country is made of complete fools and whatever he says we must take at face value.”

Secondly, Bharath lamented Patriotic’s lack of any track record. “They came to the Government, almost cap in hand. They have no financial statements to present. They have no collateral against which they are making the offer to use as security. They have no cash on any balance sheet because they have no balance sheet, and no audited accounts. They have no due diligence that would have been performed on the organisation. They have no organisational structure to show who are the people who are going to run the organisation."

He said Patriotic doesn't even have a web-site.

“The OWTU has no track record of having done any business endeavour anywhere in the world.”

“So, on what basis are you granting these people a golden handshake, this huge asset, where this country’s energy security now lies in these people’s hands? It makes no sense.”

Bharath predicted TT heading to a catastrophic ending in this matter.

“And what happens then is that the Government walks away from it saying, ‘Well, we made a mistake. We gave them an opportunity. It didn’t work out.’

“But who suffers? Who suffers because this company don’t have the expertise and experience to do any of these things? Who is going to stand up when for example they make a boo-boo because they didn’t bring enough fuel in? And they are not storing enough fuel and the country runs out? Or they can’t get the refinery up and running?

“I suspect one of the incentives they are going to ask the Government for, because they clearly have no money, is funding to start up the refinery.”

He said a newspaper put this cost as US$1.4 billion. “Where’s that money coming from?”

He said the Government is relying on people to ultimately just write it off, as for the Malcolm Jones and World GTL issue.

“A lot of people told me to leave this alone because it’s about the union and people will say you are anti-worker. I am not anti-worker. I’ve absolutely no problem whatsoever with employee participation and sharing profits and endorse this, but to just give away something like this in haste knowing that what’s presented to you doesn’t make sense and doesn’t add up, it is just reckless and irresponsible and is pure politicking.

“I can just imagine Imbert in the background grinning, he’s gotten away with it. It sickens me that we can accept this nonsense in this country.”

Newsday asked how severe is the legal culpability for any lack of due diligence, that is, a check on a company’s financial soundness before contracting with them.

Bharath replied that it is very difficult to prove.

However he said the initial evaluation of 77 bidders had been done by an evaluation committee under Scotia Bank of Houston, Texas, but for the subsequent whittling down of bidders the exercise was taken out of Scotia and handed over to a group of local individuals whom he alleged “knew what they were going to do.” Bharath said the Government is calculating on the deal to win them the 2020 general election, with them ready to pick up the tab if the deal fails. “I’ve never felt so sickened by something. It is just in your face.”

Source: https://newsday.co.tt/2019/09/24/bharat ... tastrophe/

[Slartibartfast]

What's the punishment for stealing a refinery?

[vaiostation]

^^^A job as a minister with access to government contracts...

[MG Man]

all these opposition nitwits desperately grasping to hold on to relevance

[16 cycles]

hope it is not another billion dollar bailout in the making...

[wickedtuna]

Inmates running the prison? ....well dong here we does do Dat ......any foreign examples of this working workers running the company profitable? Jus asking