Mar 2015 Financial News

Howai calls for facts on NGC audit

Mar 05, 2015

Finance Minister Larry Howai has asked for information on a November 2014 audit conducted into the corporate communications department of State-owned National Gas Company (NGC). His request follows reports that the department’s budget increased from $67 million in 2012 to $200 million last year and that there was non-compliance with standard and requisite requirements of a State entity in spending. The audit noted that a pattern of bad spending was an indicator of fraud or gross negligence.

Howai said he has asked Energy Minister Kevin Ramnarine, Energy Minister to provide him with the “facts” about the NGC audit before he comes to any conclusions. “Let’s find out what is happening. They are in the process of putting that together. I have asked my Permanent Secretary to co-ordinate with them to get the information. When we have the facts we could then determine where we go from there,” the minister said in response to questions from reporters yesterday. 

“I don’t want to jump to any conclusions just yet. They told me it’s a preliminary report and it hasn’t gotten to the audit committee. They are disputing some of the information, so let’s hear what some of the facts are.” Asked whether he was concerned about the findings of the audit, especially as NGC was one of the most profitable State entities, Howai insisted that he wanted to get the facts first.

“Let’s get the information and we can determine if there is a problem and I am assuming the facts are correct. I must have the ministry provide me with the information before we move forward,” he said. NGC’s profit after tax in the last financial year was $6.5 billion. Howai said the company’s dividend policy had been adjusted.

“What I had done in the last couple of budgets is that I had put quite a number of incentives in place for the energy sector, and part of it, the change in the dividend policy for NGC, was to help make up for some of the income I was giving up by way of concessions that we were giving to the energy sector. “I realised that we had to make that up, so we have looked at the dividend policy and we have increased the dividend policy.”

Howai added: “NGC pays us now about $3 billion in dividends. I think this year it will be a little bit higher but that dividend is also in keeping with what is normally taken from large companies on the stock exchange. Large companies normally pay a dividend of 50 to 55 per cent.”

Source:
Nadaleen Singh
Trinidad Guardian
Thursday March 5, 2015

http://www.guardian.co.tt/business/2015-03-05/howai-calls-facts-ngc-audit