Lee: Petrotrin records 2 billion in losses for 2017 yet spends 63 million on Consultancy fees

UNC Chairman David Lee

As Member of Parliament for Pointe a Pierre I filed a question on notice to the Minister of Energy and Energy Affairs in April 2018 to ascertain the names of the individuals or companies who were retained as consultants by state oil company Petrotrin as well as the value of these fees received by each company for the period July 1st 2017 to present.

At yesterday’s Parliamentary Sitting the Minister provided the required information in writing which indicated that Petrotrin had engaged the services of 16 consultants at the cost of $63,610,158.33 dollars since July 2017 to present.

To spend 63 million dollars in less than 11 months on only 16 consultants is quite an incredible feat especially when for the past two and a half years this government has routinely spoken on the poor financial health of the state company. What is even more worrying is the fact that the company recorded a loss of 2.2 billion dollars in 2017 yet still spent this significant sum on consultancy fees.

Therefore the questions must be asked;  “Were all of these consultancy contracts procured legitimately ? Have taxpayers received value for money for these services ?”

These questions are not meant to cast aspersions but rather protect our taxpayers as well as ensure the efficiency of the state company. After spending 63 million dollars in 11 months our citizens would have hoped that Petrotrin’s rating may have increased, its ability to pay it’s large debts would have improved and there would have been a larger impact on the company’s productivity than stated by the Minister in the past year. However this has not been the case

When one reviews the payments to consultants we see that one firm was paid 28 million for “Company strategic review and transition” yet up to this day the Government has not been up front with the nation on Petrotrin’s true state of affairs as well as what this ” so called transition” would include.

Petrotrin remains a key asset in our nation’s economic and social framework therefore it is critical that any money spent by this entity is met with equivalent returns that can propel and improve the position of the company.

Lists of Consultants hired as provided by the Ministry of Energy and Energy Affairs in response to my question on Notice (Question 228):