THE Cabinet last Thursday discussed awarding Petrotrin to a foreign company with no experience in refinery operations.
The favoured bidder has, in the past, been suspended from two international stock exchanges and certain senior officials have been accused of corruption.
There is speculation about the bidder’s official representative in Trinidad and Tobago.
The company, Oando PLC, has given no guarantee of utilising local professionals and services.
Oando may have difficulty in raising the US $1 billion start-up capital.
The Rowley Government has not permitted the relevant financing bank to do business in T&T.
Stuart Young, Minister of Energy and incoming Prime Minister, presented a Cabinet Note advocating for Oando, one of three bidders short-listed from 10 applicants.
The matter was the final item at last Thursday’s Cabinet meeting and was later referred to the Finance and General Purposes Committee.
The Government is aiming to make a public disclosure on the general election campaign.
Oando, based in Nigeria, is involved in the exploration, production and distribution of crude oil and natural gas.
The company has participated in mergers, acquisitions and divestments but has never operated a refinery.
A 2017 plan to enter refinery activities did not materialise.
The company has had major cash flow problems, with high debt and liabilities.
The Nigerian and Johannesburg Stock Exchanges suspended Oando for varying periods, ending last year, for failure to present audited financial accounts.
Senior officials have been accused of false disclosures, market abuses, misstatements in financial accounts, internal control failures, and corporate governance lapses caused by poor Board oversight.
There were also allegations of highly irregular payments to directors.
In 2019, two top-level officials were debarred from serving as directors of public companies for five years.
The Government favours Oando over Inca Energy LLC and CRO Consortium, a group of three companies, one of which is T&T-owned.
Oando previously secured two loans from African Export-Import Bank (Afreximbank) to finance ventures in Nigeria.
Afreximbank launched in the Caribbean in August 2023 but is not active in T&T because the Rowley Government declined to issue a licence.
Prime Minister Rowley said the bank wants its employees to earn tax-free salaries.
“I don’t know why the bank is taking that position,” Rowley said after being challenged by the Black Caucus Movement.
Petrotrin, T&T’s largest State enterprise, has been mothballed since November 2018.
Thousands of workers lost their jobs and retail businesses have collapsed in several fenceline communities.
