Daraine Luton, Staff Reporter

Clive Mullings

THE Energy Minister Clive Mullings has raised concerns about the financial position of the Jamaica Public Service Company (JPS) and is adamant that the plug must be pulled on members of its management team.

Speaking in the House of Representatives yesterday, Mullings revealed that the power company owes Petrojam, the state-owned oil refinery, $5.7 billion, $2.9 billion of which is now due.

"This raises a very serious question and I indicated to the chairman of Marubeni, to convey to Tokyo, the Government's concern about manage-ment," Mullings said.

The public service company has been feeling the wrath of hundreds of disgruntled customers, many of whom have protested against the astronomical increases in their utility bills

This has prompted Prime Minister Bruce Golding to commission an investigation into the JPS electricity charges.

Country could be at risk

Yesterday, a strident Mullings said the JPS could put the country at risk if it is in financial troubles. He said that he would be heading to Tokyo, Japan, in two weeks to get more answers on the dim affairs.

"We can't jeopardise this county in terms of its energy security and national security," Mullings said.

Michael Peart, the opposition spokesman on energy, sought answers as to how long the sum has been owed and the nature of the agreement between JPS and Petrojam.

Mullings did not reveal the nature of the agreement, but said he was aware of what it was. He said also that the JPS debt to Petrojam has been growing.

"That is why it is cause for grave concern. The trajectory is not a good one, not an encouraging one," Mullings said while promising to take more information to Parliament next Tuesday.

Marubeni acquired majority shares in JPS from Mirant in 2007.

JPS customers pay for fuel used to generate electricity monthly through their bills.

"If this fuel charge is a pass through, then why is the sum owed," Mullings said while questioning Marubeni's depth of pocket and management.

Mullings said if Marubeni is not suffering a cash flow problem, then it is utilising Petrojam as a credit facility.

The minister noted that Petrojam cannot stop supplying the JPS with the oil or the lights would go out in the country.

Attempts to get a comment from the JPS up to late last night were futile.

daraine.luton@gleanerjm.com

Operating revenue 2007 -

$54.2 billion or 13 per cent increase over 2006.

Operating expenses - $9.8 billion or a 17 per cent increase over 2006.