Dominica power company sale puts out PM

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Prime Minister Roosevelt Skerrit not happy with parties involved in with DOMLEC acquisition.

ROSEAU, Dominica, Thursday December 6, 2012 – Majority shareholder in the Dominica electricity company (DOMLEC), WRB Enterprises Inc. of Tampa, Florida, and the proposed buyer Light & Power Holdings Ltd. (LPH) of Barbados, have received a public dressing down from Prime Minister Roosevelt Skerrit.

The prime minister and his government appear to have been snubbed by the corporate entities as, according to a report by the Dominica News Online, Skerrit said on air on the state-owned DBS radio that his government was informed of the decision on the day of the announcement itself.

“The manner in which they went about in informing us is certainly unacceptable and in future the government may want to look at putting systems in place … when such important utilities are being disposed off by majority shareholders ….that they would have to get the approval of the Government of Dominica,” Skerrit reportedly said.

The prime minister put the position that government should have been informed of WRB’s decision since it has interests in DOMLEC.

“The government is of the firm view that WRB should have in fact inform the government of its intention to dispose of itself or its shares in DOMLEC and give the government of Dominica and the people of Dominica the opportunity for the right of first refusal,” he remarked. “We had an interest and we do have an interest and we felt that WRB should have in fact given the government of Dominica an opportunity to make an offer.”

Skerrit said that his government has always believed that the sale of DOMLEC by a previous administration “was not in the best interest of the country.”

DOMLEC is the sole electric utility for Dominica, serving 34,000 customers. WRB owns 52 percent of DOMLEC, with 21 percent held by Dominica Social Security Scheme and the remainder by other investors. Click here to receive free news bulletins via email from Caribbean360. (View sample)

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Comments (3 posted):

Anestine on 06/12/2012 14:56:05

Absolutely

beholder on 08/12/2012 14:26:18

As DOMLEC is a monopoly public utility, which by rights should be overseen and regulated by the government, and as a substantial minority interest is held for the benefit of the country's social security welfare program, the PM is right to be miffed at not being informed. However, if proper oversight had been in place, this should not have come as a surprise. I do believe, though bond financing would probably have been essential to accomplish a purchase, government's interest would have been well served by taking a larger stake in the only electric utility on the island.

beholder on 08/12/2012 14:33:54

The PM should indeed have been made aware of this potential sale, the country's social security welfare program in a substantial minority shareholder. Wasn't this agency informed of a change is majority ownership of it's investment? Since DOMLEC is a monopoly electric utility it should have had regular government oversight. So why should this come as a surprise to the PM? It would have indeed been in the country's interest to increase its stake in its only electrical generating facility.