Dionne Rose, Staff Reporter
Opposition
Leader Bruce Golding is demanding that Government speed up its deliberations
on the upcoming sale of the Jamaica Public Service Company Ltd (JPS) as majority
shareholder Mirant Corporation has made another step forward in plans to rid
itself of its 80 per cent stake in the light and power firm.
Mr. Golding said yesterday that the Atlanta-based company has issued a prospectus overseas on JPS, spurring his concern that the Government has been too slow in deciding its next move since Mirant announced early last month that it would be terminating its operations in the Caribbean and the Philippines.
Deeply
concerned
Yesterday, he told The Gleaner he was deeply concerned about Mirant's latest action and raised further questions about what came out of a meeting scheduled for last week between Dr. Omar Davies, Minister of Finance and Planning, and William von Blasingame, president of Mirant Caribbean Holdings Ltd.
"What concerns me is, in the meanwhile, Mirant has issued a prospectus overseas setting out the details of the shares that it is selling and inviting investors' interests and response," the Opposition Leader said. "We haven't been told whether those efforts by Mirant to secure an early sale of the shares have been suspended or put on hold pending discussions with the Government."
Phillip Paulwell, the minister with responsibility for the light and power company, confirmed yesterday that the Government knew about the prospectus.
"Yes, we are aware of it (but) Mirant can't sell the shares without the Government's approval," said Mr. Paulwell.
He reiterated Government's view that, because of a clause in the share purchase agreement, Mirant has to first get consent from the Government to sell JPS.
But Mr. Golding is insisting that if such a requirement were in the clause, the company should not be advertising its 80 per cent shares for sale.
"If the Government has first refusal and the Government has not yet exercised that option, why and how can Mirant be out there with a prospectus in the market inviting potential purchasers to come forward? " he argued.
On Monday Senator Colin Campbell, the Minister of Infor-mation and Development, told journalists during the weekly post-Cabinet press briefing that the Government team, out of the Cabinet Office and Dr. Davies' and Mr. Paulwell's ministries, was still contemplating the matter.
Senator Campbell said the team would be examining whether Government should repurchase, consider new investors, or consider the sale of shares to Jamaicans. "Everything is being looked at. Cabinet is sitting throughout the Summer and we expect to get a report sometime soon," he emphasised.
Mr. Paulwell told The Gleaner yesterday Government would shortly be commencing talks with Mirant, but only after Cabinet has approved the decision taken by the team.
But Mr. Golding said the Government appears to be reactive rather than proactive. He further cautioned that the auction approach, which Mirant was considering, was not in the best interest of the country.
"We have no idea who is going to be the successful bidder in that auction," the Opposition Leader noted. "That successful bidder may not be purchasing the shares with any intention that takes into account the long-term development and interest of Jamaica."
He said the Government was moving too slowly and imprecisely and appeared to have no clear policy as to what options it is prepared to pursue.
Mirant has been the majority stakeholder in JPS since 2001, when it acquired 80 per cent of the company for US$183 million.
The company's announced withdrawal came at a time when Government was preparing to put its own 20 per cent stake in JPS up for sale to the public.
