THE GOVERNMENT yesterday revealed that it is to pay $604 million to Atlanta-based energy firm Mirant, as part of a sale agreement formulated during the divestment of the Jamaica Public Service Company Ltd. (JPSCO) almost three years ago.
During yesterday's sitting of Parliament's Standing Finance Committee, Opposition spokesman on finance Audley Shaw questioned an increased Government payout to the now-privatised light and power company.
According to the revised estimates of expenditure, the Government will increase this year's payment from about $158 million approved in April.
Explaining the rationale, Dr. Omar Davies, the Minister of Finance and Planning, said there was a clause in the sale agreement that required the Government to pay Mirant US$14.6 million (about $876 million) to account for 'environmental issues' and equipment damage that the Government should have paid for when it ran the company. The amount is for working capital, according to the Estimates.
But Mr. Shaw complained that this highlighted the need for greater transparency in the sale of State assets.
"We were not told of it," he told The Gleaner last night, arguing that the Government should have made the country aware that the payment would have to be made after the sale of JPSCo.
