Prime Minister Roosevelt Skerrit has revealed that his government purchased the majority shares of the Dominica Electricity Company Limited (DOMLEC) for US$5 million or EC$13.5 million.
The Prime Minister made the announcement during the Third meeting of the Second Session of the Tenth Parliament on Monday.
He said this followed months of intense and cordial negotiations with DOMLEC’s then majority shareholder, Emera Incorporated.
Skerrit said the government had previously informed Emera of its interest in acquiring its shares, however, the company was hesitant in divesting its shares in DOMLEC, “given that DOMLEC has been, year-after-year, generating profits, but much of the setbacks were caused by Hurricane Maria. However, this time around with government’s plans and significant progress towards transitioning to renewable energy, and the fact that very soon, with the commissioning of the Geothermal Power Plant in Laudat, DOMLEC will have to purchase the electricity generated by the Government of Dominica Geothermal Development Company (DGDC).”
“Emera proposed to sell the shares at the market price listed for DOMLEC shares on the Eastern Caribbean stock exchange which is EC$3.50 per share. At that price, government would have had to pay a total of EC$18.9 million for these shares,” Skerrit said. “However, I am happy to report to the house and the people of Dominica that following months of intense and cordial negotiations that government purchased the shares at a total of US$5 million or EC$13.5 million, which is 5.4 million or 28.6% less than the listed value.”
Furthermore, the Prime Minister stated that his government only bought back 51.9% of the shares, “which means that if the United Worker Party had not sold the 72% of the shares that government owns for $21 million, these shares would have been worth at least $26.3 million today,”
Skerrit mentioned that over the past 12 financial years, from 2009 to 2020, DOMLEC paid dividends totaling $24.8million.
“The only years during that period there were no dividends were in 2018 and 2019 because of Hurricane Maria,” he added. “Of the $24.8 million paid in dividends during 2009 and 2020, 72% or $17.9 million of this amount would have gone to government’s treasury to meet the needs of our Dominican people.”
He explained that the profits earned by DOMLEC over the period were much more than the $24.8 million paid in dividends.
“That is why we are confident that this was a decision fully in the interest of the people of Dominica,” the Prime Minister said.
Meantime, Skerrit contends that the United Workers Party (UWP) was mistaken and shortsighted when it sold the government’s 72% share ownership in DOMLEC on such generous terms.
He said DOMLEC was at the time a profitable company serving the interest of the people of Dominica.
In his address to parliament, the Prime Minister also announced that a new transmission network is being built to relieve pressure on DOMLEC’s network, reduce losses and increase reliability; allow for the efficient and resilient transmission of hydro-electricity from the Roseau Valley; and provide resilience to DOMLEC’s electricity network by minimizing the damage caused by hydro-meteorological events and allowing for the quick reinstatement of power in the event of damage.
He further addressed the impact of the Russia-Ukraine War on the current cost of petroleum and petroleum products, resulting in a corresponding increase in the cost of electricity.
“Your government is doing everything within its control to reduce the impact on families and businesses,” the Prime Minister declared. . “We have urged the Independent Regulatory Commission (the IRC) to accelerate its review on the electricity tariffs, while the Government continues to push on to build and commission the geothermal plant. We are confident that with a reduction in the tariffs by the IRC, we can experience a reduction in the electricity rates.”
I want Hunter to make a song ” they gonna suck Domlec dry, they gonna suck Domlec dry”
What the hell crap are you talking about? Get out of here please.
Yes dogs please get out of here
Dog Louse, get out of here! Stop polluting this forum with your malodorous sewage. What you and your ghost writer post equates to graffiti. Stop defacing the pages of the news site.
The double doctorate dude comes with news that shareholders of DOMLEC got their investment in the company devalued and reduced by his government but refused to frame it in that light. He spent considerable time blaming the UWP government for its sale agreement of the utility company without stating that his administration had opportunities to buy back controlling interest for the past 20 years and didn’t do it. Right now Social Security and other shareholders have just lost out on share value because of the myopic minister of finance. Since the departure of RUSM from Dominica the customer base of DOMLEC has shrunk and profits are down. Skerritt needs to tell the whole story and not crow about the acquisition from Emera which sold below market value because they desperately want out of a not very profitable business. As a shareholder of DOMLEC , I’m not impressed.
Do not forget we are now in 2022..dominica is no longer and island..
Most importantly the master or ruler of a country in most cases is never seen in public. and if they are seen in public with those whom one thinks is the authority in the country you will not know. the one dominicans think is the authority in the country is just a figure head he has no authority..
Pay attention. we are now in the time of the great deception and great misery. those who are not paying attention will not see what is coming coming until it is too late..
How many average citizens are going to get any financial benefit or is all the benefit going to yours truly and his friends to stuff their already overflowing foreign bank accounts with the Dominican peoples cash.The Dominican people should be paid quarterly dividends. Nothing yours truly does benefits the people it is always him and his friends. If yours truly tells you the sky is blue you better go outside and check for yourself. On a side note, when is yours truly going to bring back the parrots that he allowed to be kidnapped from Botanical Gardens after Hurricane Maria? Did he get paid for their kidnapping and how much was he paid?
Every time I see your alias I remember those national birds that were ripped from their natural habitat and exported to Germany. The public was assured that they were there for medical reasons and would be sent back home. As usual, that was another fat lie from the notorious LIAR.
When will the Dominican people get a status report on these treasured creatures? Nothing in Dominica escapes Roosevelt’s corruption and avarice – national birds, indigenous plants, trees, soil, rivers, lakes, beaches, all fall victim.
@Ibo, The family of parrots is already back in Dominica Mr Ahole, they are called Ugly Lenny, and his Halfwit supporters!!!!
@Consumer of Dog Meat
You are severely allergic to common sense. Getting you to learn anything constructive is like nailing Jello to a tree, in the open, under the blazing, midday sun on a clear day.
Pure junk you are penning…the parrots for sure does better job of communicating than you. Pure Marlaki
I would appreciate if someone could pinpoint any ministry, department or public entity that this Roosevelt-led regime has managed well – Ministries of Finance, Agriculture, Education, Health, Tourism, Sports?
DOMLEC will soon become a next DOWASO perpetually beset with problems caused by gross mismanagement.
Lying Roosevelt didn’t buy the majority shares in DOMLEC to bring much needed relief for the indigent, small businesses nor the unemployed. Anything he does is meticulously planned to gain selfish political and financial profit.
Bro are you saying that it took you 22 years to realize that “the UWP government was mistaken and shortsighted when it sold the Govt. 72% share ownership in DOMLEC on such generous terms?” speak the honest truth for once Dr Dr; the geothermal thing is not working as planned right, so you had to trump up some bogus excuse for the purchasing of DOMLEC; and why did it take you so long to inform the Dominican people of the price you paid for your pet project; or did you have to wait on your “puppet” Clerance Christian to sugar quote the monitory equation so it would look nice in the eyes and mind ears of those DLP “mouton batallie”; hurray! hurray! free light is here “you know how they love a freeness already”.
Wait till you all see who the shareholders will appoint to the Board of Directors. That is when jumbee will begin to dance
Government we know is the most inefficient institution and time will tell whether this is a good investment. If history is a guide, then it is not, One test will come when there is a hurricane and quick restoration of services will be a dream. Another will come when capital investments will need to be made to improve services or buy new equipment. There is a reason why most of these capital intensive utilities are in the hands of private companies in most countries; governments realize these services are better provided by the private sector.
I’m afraid it may turn out to be more a pig in a poke than a bargain. The purchase price paid by EMERA has been more than recouped multiple times. They have not lost anything and will be glad to have Domlec off their hands now.
Government ownership of DOMLEC can be good for the country, if only qualified, competent individuals are employed to manage and operate the entity, and such employees are held accountable. Customers want reasonable electricity rates and reliable services. If DOMLEC is able to meet such requirements, Dominicans will benefit. On the other hand, if this is treated as a political pork barrel, all bets are off.
Do we still need that independent regulatory body now that government owns Domlec. Government pays that organisation at vast expense so I think it is not necessary anymore. I mean government watching government, what for?
Make the documents available to the general public. We have to verify everything said by Lying Roosevelt before believing what emanates from between his deceitful lips.
Lying Roosevelt never misses an opportunity to blame the UWP for every single problem in the country after being in control of the government for twenty-two (22) consecutive years.
Lying Roosevelt is touting the imminent transfer of geothermal energy to the electrical grid. Notice he did not give a specific date when this will happen. People want specificity not just his usual unfulfilled promises and generalities.
By the way, has any consumer received a noticeable reduction in his electricity bill?
People have no reason to smile about this deal. Everything the habitual LIAR does turn to coal dust. Purchasing the majority shares in DOMLEC doesn’t garauntee benefits to the consumers. This only gives the regime more control over employment opportunities and access to more cash. That’s it.
Did the UWP make the documents available when they first sold Domlec? Mr. Ibo France, you sound disappointed that the people of Dominica are once again the owners of Domlec. Get a life!
Skerrit cannot be trusted. He lies about all things. His life’s record is replete with falsehoods and deceptions. Therefore, he has to show concrete proof and not just give verbal assertions.
Here is a reminder of some of his outrageous fabrication:
*replacements for ROSS *electoral reforms by November 2021 *return of the national birds *geothermal energy years ago. *refurbishment of dreary Roseau *Brand new seaport facilities *state of the art healthcare, etc.
Why should any sensible person believe lying Roksevelt? The man is a SERIAL LIAR.
The people literally crying about DOMLEC bills. What does uncle do? He pats himself on the back for purchasing DOMLEC and finds a way to celebrate the people’s pain. Meanwhile laborites, the same ones whose money just disappear from their meter, will applaud and celebrate with their dictator in chief!
On a side note – notice our caribbean educational curriculum not teaching our children how to buy dividend stock and financial literacy in general. But look above and see for yourself ‘$24.8 million paid in dividends’. They wont teach you where the real money is and how to access it, all they do is teach you how to chase a 9-5.
Skerrit, nobody more short sighted than you! YOU are in no position to criticise your former peers, after all, people in glass houses shouldn’t through stones. Perhaps you care to answer my following questions, since you are pretending to be sooo clever an sooo squeaky clean:
1) when are you planning to account properly in reference to the CBI proceeds?
2) when are you planning to update the citizens of DA as to why Venezuela told the whole world that they had to write off US100 million owed by Dominica. Is the government of Venezuela lying? If not, where did that money go?
3) when are you planning to give the citizens fair election? What happened to Byron? Did he make of with our money?
Skerrit, you are so lucky that the majority of Dominicans are dotish and satisfied with a couple of dollars. Otherwise you would be residing in stockfarm already as opposed to a palace financed by the taxpayers.
IDK what all that means but what i know is since government buys Domlec my light bill is now $20.00 a day when it use to be $13.00 and $15.00 a day, and yes i know the price of oil goes up and all that, but even with that, we selling enough passport for the government to subsidize our light eh. SO WTF IS THIS GOVERNMENT DOING?