TTEC owes NGC US$516 million

This was disclosed by NGC president Mark Lo Quan during a public hearing held by the Public Accounts Enterprises Committee (PAEC) at Tower D of the Portof- Spain International Waterfront Centre, yesterday. Responding to questions from PAEC chairman and Opposition senator Wade Mark, Lo Quan said, “The TTEC contract has not been in place since 1994.” He continued, “This is an area which NGC has continued to supply gas for power and has not been able to receive payments on a regular basis. That has led to arrears first of all and it has led to underpayment back to the NGC for gas.” Lo Quan said the outstanding balance which TTEC owes NGC at the end of February is US$516 million. “That is in the order of $3.5 billion.” He said discussions are ongoing between NGC and TTEC regarding funding arrangements for the arrears. He indicated that while a draft contract is ready, NGC is awaiting the final pricing arrangements from up stream suppliers.

“As you recognise, these are negotiations that are at an advanced stage.” Lo Quan said he is confident that a contract could be put forward within the next two months. Noting earlier statements by NGC chairman Gerry Brooks about the company addressing $1 billion out of $5 billion in claims against it, Mark expressed concern that NGC was “a whipping horse.” He asked whether NGC could sue any multinational energy companies for breach of contract.

Brooks replied, “To the extent that the agreements allowed, NGC has prosecuted in the case of each of these companies recovery.” However he said those recoveries are “substantially less” in comparison to claims being made against the NGC. Recalling that the agreements between NGC and the upstream companies were struck 20 years ago, Brooks said the company was very careful to ensure it properly contracted supplies of gas within the 20 year period.

“The protection at the time was that given for many years we had an over abundance of gas, penalties would not occur.” However Brooks said when no investments were made in the energy sector between 2010 to 2015, “NGC found itself in that difficult position.”