The Opposition has described the planned move by government to acquire Venezuela’s 49 percent stake in Petrojam, as a hostile takeover.
Spokesman on Energy Phillip Paulwell says the Opposition is against it and that it’s premature.
According to him, the rushed expropriation of the shares is unwarranted, as both sides were in talks to reach a negotiated settlement.
Reacting to this morning’s announcement, Mr. Paulwell said it was particularly premature, given the fact that the Zacca committee, which was appointed to look at the future of the Petrojam refinery, is scheduled to report in May on its findings and recommendations.
The energy spokesman says no apparent effort was made to use any international arbitration organizations to settle any dispute which may have arisen between the two governments, especially in light of reports that a settlement price was the only outstanding issue.
Mr. Paulwell is calling on the Prime Minister in his capacity as Head of Government and as Minister of Energy, to report to the nation on what role he played in the negotiation and to disclose immediately the factors which led to this urgent action of forcibly acquiring the shares of a non-hostile foreign partner.
Mr. Paulwell said the expropriation will cause ripple effects to be felt in the local and international investor community for some time.
He adds that this hostile approach is uncharacteristic of Jamaica, and may, in fact, be detrimental to the country’s future negotiating capacity with other foreign investors.
The release states that the expropriation of investor property must always be a last resort and only after exhausting all reasonable avenues for an amicable settlement.
Consequently, the opposition says it strongly feels that the negotiating effort was weak, having been left almost solely to the minister of foreign affairs and foreign trade.
It says this present situation requires further explanation, particularly as it relates to the country’s energy security and Jamaica’s future relationship with Venezuela.