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Trinidad & Tobago MP David Lee: Why did Petrotrin spend $63m on consultancy fees in 2017

 

 

By TT Newsday

PORT SPAIN
Petroleumworld 06 08 2018

Petrotrin spent nearly $64 million dollars on 16 consultants from July 1, 2017, to now, and Pointe a Pierre Member of Parliament David Lee wants to know why especially since the state oil company recorded a $2.1 billion loss last year.

In a release today, Lee said he had received a written response from Energy Minister Franklin Khan yesterday in response to a question he filed in Parliament in April. Lee had asked for the names of individuals or companies who had been retained as consultants by Petrotrin, as well as their fees. The total for all 16 was $63,610,158.33. The bulk of that went to one company, McKinsey & Co, Inc, who received $28 million for "company strategic review and transition."

"To spend $63 million 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," Lee said. What now needs to be established, he said, will be if the consultancy contracts procured legitimately and if taxpayers received value for money.

"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 its large debts would have improved and there would have been a larger impact on the company's productivity than stated by (Khan) in the past year. However this has not been the case," Lee said.

He said despite the McKinsey payment "up to this day the Government has not been upfront with the nation on Petrotrin's true state of affairs" and what its 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," Lee said. On March 1, Petrotrin set up a transition team on March 1 as part of its major restructuring, including splitting the company in two, with one entity focusing on exploration and production, and another on refining and marketing, headed by chairman Wilfred Espinet. The company's former executive management, including president Fitzroy Harewood, had all left the company on February 28. Harewood resigned, while the senior vice presidents had reportedly been asked to leave by the board, and accepted the offer.

List of Petrotrin Consultants from July 2017 to now

W. Paul Charles $120,600

Caribbean Corporate Clinic Limited $573,750

Kroll Consulting $1,376,069.53

Egonzehnder $3,788,204

Gaffney, Cline & Associates $1,407,108.23

HRC Associates Ltd $100,000

HSB Solomon Associates LLC $7,430,855.54

Mckinsey & Co. Inc $28,057,147.50

SAP Puerto Rico GBMH LLC $4,389,545.23

SGS Trinidad Ltd $370,004.39

Bacon Woodrow & De Souza $397,320

Medical Diagonostic Technologies and supplies Ltd $2,031,168

DeGolyer and MacNaughton Corp $12,669,570

Energy Solutions Group Limited $230,969.91

iSIMS Trinidad Ltd $212,246

Environmental Services Ltd $455,600

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Story from Trinidad & Tobago Newsday

newsday.co.tt
06 08 2018

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