PETROJAM IN SPOTLIGHT AGAIN

GOV’T ASKED IF COMPANY IS OWED US$3 MILLION BY FIRM THAT FILED FOR BANKRUPTCY IN US

JAMAICA’S PARLIAMENTARY Opposition has sought answers from the Andrew Holness administration about whether the state-owned oil refinery Petrojam is owed more than J$380 million by a Greek fuel-trading company that filed for bankruptcy protection in the United States (US) yesterday.

Phillip Paulwell, the opposition spokesman on energy, said his information is that Aegean Marine Petroleum owes Petrojam US$3 million, or approximately J$381 million, and that the debt was unsecured.

“The House leader (Karl Samuda, leader of government business in the House of Representatives) could verify if they are aware of this development and to confirm the outstanding amount owed to Petrojam,” said Paulwell, who was speaking in Parliament late yesterday.

Aegean Marine Petroleum Network, one of the world’s largest traders of shipping fuel, announced in a statement that it filed voluntary petitions, along with some of its subsidiaries, for relief under Chapter 11 of the US Bankruptcy Code.

According to a statement published on the company’s website, the petitions were filed in the Bankruptcy Court for the Southern District of New York.

“The debtors will continue to operate their businesses as ‘debtors-in-possession’ under the jurisdiction of the bankruptcy court and in accordance with the applicable provisions of the US Bankruptcy Code and orders of the bankruptcy court,” the statement said.

“The debtors have filed a series of first-day motions with the bankruptcy court that seek

authorisation to continue to conduct their business in the normal course, including in relation to employees, customers and suppliers, among others,” it continued.

Paulwell said the developments at Aegean underscore the need for a minister to be appointed to give full attention to the energy portfolio. “It points to the myriad of issues that can arise in the portfolio, and that’s why it requires a minister that has particular portfolio responsibility,” he asserted.

Andrew Wheatley stepped down as energy minister in July following allegations of nepotism and cronyism at Petrojam.

Two weeks later, Prime Minister Holness announced that he was taking over responsibility for the Ministry of Energy, Science and Technology.