DOMLEC acquisition matter deepens

Executive Director of the IRC, Lance McCaskey at Thursday’s press conference

The agency charged with regulating electricity on the island has joined its voice in expressing concern over the manner in which it was informed of the acquisition of DOMLEC by a Barbadian company.

It has also requested what it described as ‘urgent information’ on the matter, according to Executive Director of the Independent Regulatory Commission (IRC), Lance McCaskey.

“We are in the same position with the Government,” he said a press conference on Thursday.

Earlier this week Prime Minister Roosevelt Skerrit described as ‘unacceptable’ the manner his government was informed of the acquisition of DOMLEC by Light and Power Holding Ltd (LPH) of Barbados from its present owner, the Florida-based WRB Enterprises Inc.

According to Skerrit, his government learnt of the transaction the same day a press briefing was released to the media.

McCaskey said the IRC learnt of the transaction between the two companies on December 3 during a meeting with DOMLEC. “When we started our meeting with DOMLEC on the 3rd of December, we got a surprise visit from DOMLEC’s Chairman, and three persons from WRB who were also attached to the Barbados Light and Power Holding company. One was the chairman, Robert Hang, and they said they were here to advise us that they have a file of a letter of intent with Barbados Light and Power to sell their shares to them,” McCaskey stated.

He said what he gathered from the information given was that the chairman of DOMLEC will be sitting on the board of Barbados Light and Power and they will have the controlling interest of DOMLEC. “We listened and thanked them for advising us and that the IRC is here to work with anyone,” he said.

However, McCaskey said the IRC felt that the information was not sufficient, so a letter was written and sent on December 3 to the chairman of DOMLEC asking for further information but, according to him, a response has not been received.

The following is part of the letter written to DOMLEC by the IRC:

“The commission is grateful to you for introducing to us Mr. Robert Hang and the others from LPH and for your advising in the impending change of ownership for the majority share holder of DOMLEC. In the circumstances you are required to formally write the commission advising the number of WRB shares of DOMLEC to be transferred to LPH, the category of shares if different, the value of shares, whether any transfer will result in the controlling interest and the prospective date on which the transfer will take place. An urgent response from you on this matter will be greatly appreciated.”

When asked what would be the IRC’s position when the formal response is received, McCaskey said the IRC needs to make sure it has all the information necessary.

“What the IRC has to do is to make sure that it has enough information. The Act on which we operate really does not allow for us to do too much. In the first place DOMLEC shares are quoted on the Eastern Caribbean security exchange and anybody could buy the shares,” he said. “The Act allows the IRC to merely check into the background through some due diligence to see whether the EMERA (the parent company of LPH) is, what the Act called ‘Fit and Proper,’ to own the majority shares in DOMLEC.”

However if EMERA is not deemed fit and proper the IRC can revoke the licence given to them, according to the IRC boss.

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36 Comments

  1. ReeAreLeeTea
    December 8, 2012

    It amazes me that we as a country are so upset that we weren’t informed of a sale of shares. Please notice that all the parties involved in expressing their anger or dislike of the manner in which the sale took place are saying that there is nothing they can do about it because the notification, or lack of therein, is simply a matter of courtesy.

    However, I am still shockingly amazed that apparently no one knows what’s in the M.O.U between Dominica and China.

    Have we gone mad? Why are we bickering over where we’re going to sit in the car when we don’t even know who has the key?

    Open your eyes people please. This is getting insane.

  2. J.J.John-Charles
    December 8, 2012

    I don’t think Dominicans are so gullible to accept the Prime Minister’s crocodile tears.I refuse to believe that we are so daft.
    The Freedom Party bought the electricity company from C.D.C. for the people of Dominica.Miss Charles encouraged us to invest in what is ours.
    Lo and behold the UWP came on the scene,with Tim Tim as finance minister and sold it back to CDC.
    Now, let us all remember during the 2000 election campaign, the Labour Party gave us the assurance,that if they are successful at the polls they will certainly put back Domlec in the hands of Dominicans.They had the opportunity to do so instead the labour administration drew back like crayfish, but gave the OK to DSS to join with WRB and purchase 21 percent?.
    Now people are talking about Skerrit should nationalize DOMLEC.Nationalize my big toe.

  3. December 7, 2012

    ?

  4. and
    December 7, 2012

    To sour the sale of Domlec, government should:
    Demand more generators on site at power stations, more efficient diesel generators and cleaner chimneys at power stations, the burial of High powered lines along with those in the streets.
    Remove taxes on the importation of solar panels and batteries, wind turbines and tidal machines.
    This along with competition from Geothermal should make Domlec less attractive.

  5. just a suggestion
    December 7, 2012

    We are excited to be told that geo-thermal energy could be a significant factor in boosting our economy and the real possibility of lower electricity bills. I dont know anything about the mechanics of geo-thermal but I would think that as Domlec already has established plants, equipment,sites etc this would be very useful so why are we standing by and allowing an outside company to come in, putting them in such a strong position. The new buyers know what dominicans pay for power now and they will continue to enjoy a monopoly, so where is the motivation for them to drop the rates. If we are not very careful, geo-thermal or no geo-thermal, what we pay now for electricity could be the ‘best’ it will ever be!

  6. Malatete
    December 7, 2012

    The xenophobia regarding the ownership of Domlec is not warranted and certainly does nothing to attract investors to our shores.

    – Domlec is a Dominican company, registered locally, which pays taxes locally.
    – The company’s website shows two prominent Dominicans as members of their board of directors. Mr. Norman Rolle (a former chairman of the NBD no less) and Mr. Grayson Stedman
    – WRB account for only 52% of the equity, the remaining 48 % owned locally, in particular Dominica Social Security.
    – We sold the 52% to WRB willingly and were happy to accept their money- ask Hon. Julius Timothy, who was Min. of Finance at the time.

    One can not go out and promote foreign investment and then resent it when those investors want a see a return on that investment and want to keep control of it.

    • Anonymous
      December 7, 2012

      If the comments were based on a private company who manufactured potato chips then your comment would make sense.

      The point is not resentment of foreign investment. Alarm is based on the fact that our Government is not, apparently, privvy to crictical matters affecting our ELECTRICITY supply. To not be wary, to not demand effective protective mechanisms be put in place is just plain 3rd world.

      And absolutely UWP is as much to blame for this noxious predicament!

      • ReeAreLeeTea
        December 8, 2012

        WoW.
        You almost made a complete statement without getting directly political.

        If any of us take a look a even billion dollar companies on the stock exchange, we will see that this thing happens all the time. These kinds of deals can go sour very easily and so they are usually kept under wraps until a green light is sent. Even rumors of selling shares can drive the prices up or down depending on the market situation.
        Please let’s get more informed before we put our two cents in and it gets taken away from us.
        With all accounts, what I’ve read here is that the IRC had the privilege to the information about the sale even before it was completed. What more do you want?

      • Anonymous
        December 8, 2012

        You want to blame UWP but it was JULIUS TIMOTHY who is now a minister is this LABOUR GOVERNMENT who took the decision… Ask him to clarify and stopping blaming UWP… blame JULIUS TIMOTHY… where the buck stops

  7. Erasmus B. Black
    December 6, 2012

    And can it be:

    My Fellow Dominicans,
    The conspicuous failure of our Electricity Company to give government advance details on the sale of this prestigious company is a direct attack on the prestige of our government. As you know, the sin of omission is significant but the sin of commission is even worse!

    In times like these, I really wish I could wave my magic wand! The truth is we have very limited control over the process. That is why your Dear Leader needs unlimited powers to do his work – the kind of power that would give him control over every statutory or quasi operation. In short order, my advisers will conduct a study on the way forward, in that regard.

    As usual, the bad people will try their best to spread rumors and confusion. I assure you that my government will never let the truth get in the way of a good story and vice versa. Although the cost of electricity has never been a perennial in our politics, we are aware that there are some uninformed people who will try to use this an a political issue. Please do not pay attention to them. Idiomatically, it is said that grasshoppers change their tune when beside heavy traffic. This is not even applicable here. Please be assured that we are all in this together. And since it it the Christmas season, I hope Santa brings you a cheaper electricity bill.

    Thank you.

    • Hola
      December 7, 2012

      Don’t forget the big blue grasshopper is right inside the red fowl cage. If anybody change tune that music is playing the tune touch it. So when the miserable performing government looking to lay blame on others what they are doing effectively is calling the touch it minister’s game

  8. Cerberus
    December 6, 2012

    The IRC should not be expected to react in any other way since it is “Independent” in name only. In reality it resorts under the Minister of Public Utilities ( currently Hon. Rayburn Blackmoore), who appoints its chairman and four commissioners. Its press statements are released through GIS.
    Whether the Prime Minister is upset or not is of little relevance to most Dominicans, who are far more concerned about the level of their electricity bills. Rather than having the IRC pontificating there are two things th P.M. could do about lessening the burden on his own initiative and which would gain him a lot of popularity.

    – reduce the price of Petro Carib diesel sold to Domlec. The alleged difference between the landed price- and selling price per gallon would allow for a substantial price cut and empower the Govt. to exert pressure on Domlec to follow suit.
    – reduce the rate of VAT on electricity bills. St. Lucia charges 0 percent and other countries, such as the U.K. apply vat to utilities well below their standard rate, in recognition of the fact that that these are basic necessities and not items of luxury.
    I may be wrong wrong but I have never heard the IRC address these two crucial issues.

    • ReeAreLeeTea
      December 8, 2012

      That is absolutely correct. Every business owner in Dominica knows the mark-up they put on their items. That mark-up is not regulated (and i don’t believe it should be). The objective of competition is to allow the freedom to not just plan, but to be able to navigate through the plan taking advantage of strengths, weaknesses and opportunities to not just survive, but to florrish.
      How then can we expect Domlec, whose prices are monitored and regulated, who has to apply for license to operate which means that they have to operate at a certain quality level meeting a variety of standards set by the same commission who regulates their cost of product sold, who has to meet all maintenance cost, importation cost and taxes and cost of fuel to be a highly profitable company.
      I think it a miracle of business minded genius that this company has been able to stay a valuable commodity and even maintain a reasonable value on the exchange.

      SO MR GOVERNMENT

      – WHY ARE WE STILL PAYING VAT ON NECESSITIES LIKE WATER, ELECTRICITY AND COOKING GAS? Am I the only one who remembers that this was explained that we would be exempt from paying VAT on these and a few more.

      – WHY NOT REMOVE THE DUTIES ON IMPORTED FUEL FOR POWER PRODUCTION AND ALSO REMOVE THAT VAT ON PURCHASE OF THE FUEL BY THE POWER PRODUCTION COMPANY? I happen to think and continue to say that it would be beneficial to both the supplier and consumer and obviously to the entire country.

  9. Malatete
    December 6, 2012

    Can anyone please explain what authority the IRC has in all this? I have never fully understood either the need or the role of this body, the expense of which is ultimately born by the consumer. For an industry (Domlec) with a customer base of hardly 30,000 do we need such a meddlesome institution? The negotiation of licences for instance. Can that not be done directly between the Govt. and the company? I hold the simple view that it is of no concern to the IRC whether or not- or to whom WRB sell their shareholding in Domlec. It is none of their business.

  10. Dominique qui belle
    December 6, 2012

    Eugenia Charles must be turning in her grave.Does this manager have any manners? To be so contemptuous of a government and its people! Does he not remember where his salary came from for all these months?

    Indeed he should take the first flight out of here. He has proven himself to be no manager at all.

  11. Roughcake
    December 6, 2012

    The opposition were responsible for selling DOMLEC
    in the first place.Big mistake !!! So now the Bajans want to cash in on our geothermal energy. I say NO. Our Government should nationalise the company.After all we are paying for the explorstion so Barbados can benefit.Nonsense.

  12. T
    December 6, 2012

    DOMINICA IS PREGNANT WITH CORRUPTION. Nothing will go well in such a situation.The head is sick so the entire body is in disarray.

  13. Reader
    December 6, 2012

    But when you check the higher level of ownership, Barbados Light and Power is owned by a Canadian company who bought BLAP from the US company who owned it before. So the whole thing goes much further than just Barbados.

  14. polical Observer
    December 6, 2012

    Where is the opposition when you want to hear from them?? This a a matter they should speak out on.

    • Simple Minded Guy
      December 7, 2012

      Very good point, guess it is a question of they (UWP) sold it so they feel they should hold their tongues and thoughts, which is wrong when they should speak they are silent! On the other hand maybe one of their members posted something on Facebook :-D

  15. Positive
    December 6, 2012

    Nationalise it and be done, but please don’t be toothless and allow a Bajan company to own one of our strategic national utilities.

    Deh playing smart and are hoping to cash in on any future geothermal revenues. This sale is nothing short of treason and those responsible should be hung by their teefing fingernails!!

  16. him
    December 6, 2012

    We were always told that all state institutions are non functional. This seem to be very true to me.

  17. Well Well!
    December 6, 2012

    hope our bills go down and not up.some of them share holders only look to make there bulbs shine like the sun while us poor peole own deem like a lamp with an unclean shade… ALAS PAPA BORDIA!! APRE BODIA SA LA TEH…or however it going… hope is for better and not worst…even if the marriage say both…LMAO

  18. ????????????
    December 6, 2012

    These things happen in countries with “No Law No Constitution”. These things happen in countries where leaders are disrespectful, arrogant and insultive enough to tell its people “Go to Hell” Go to Hell” Go to Hell”. These things happen in failed countries where leaders will piublicly say to the people, “It’s Not Of Your Dam Business Where my Party Get Money. It also happen in Countries where Leaders Say “Man to Man we Will Marsh them Up”.
    These things happen in countries where all institutions have been destroyed, dismantled and bought by corrupt and greedy leaders, whose sole purpose as leaders is to experience a meteoric rise to wealth and riches.
    These things happen in countries where things are so hard that a large percentage of the population must go kneel to a God to eat. These things happen in ocuntries where leaders have no respect for people. These things ONLY happen here on island.

    • Bushmaninda
      December 7, 2012

      I could agree wholeheartedly with the tenor of this comment.

      The fact that the PM who does not think the electorate deserve to know where the monies that drive his election campaign come from yet he is disturbed when controlling interest in the electric company changes without notification of the public seems a bit disingenuous.

      IN ALL MATTERS THAT AFFECT THEIR LIVES, THE PEOPLE HAVE A RIGHT TO KNOW. Maybe the PM in his increasing maturity is beginning to accept this essential of a working democracy. I hope so, but will not hold my breath.

  19. December 6, 2012

    Of significance here; “DOMLEC shares are quoted on the ECSE and anybody could buy shares”, says Mr. McCaskey. It seems to me that someone dosed off. It certainly was not Mr. Hany nor the LPH of Barbados.

  20. Doc. Love
    December 6, 2012

    I am not fooled by Skerrit’s outburst about the acquisition of Domlec by Light and Power Holding LTD. of Barbados from the Florida- based WRB Interprise Inc. It is alledged that Skerrit’s political advisor is from Barbados.The labor party political anthem is from Barbados. It is alledged that the connection between Skerrit and the famous Villas involved a Barbadian. Remember when Skerrit was Minister of Education and without the knowledge of Pierro he went to Barbados to have a meeting with the Chinese, right now the Chinese controls almost everything construction.I cannot forget the major announcement to the Barbadians that Dominica will supply them with all the fruits and vegetables they require.It is ALLEDGED that he has wealth in Barbados. We cannot forget the famous pollster who insulted Dominicans was from Barbados.All what is mentioned above shows the closeness between Skerrit and Bardados,therefore,like I said I am not fooled by all the semantics.

    • Peeping Tom
      December 6, 2012

      :mrgreen: :mrgreen: :mrgreen:

  21. 1979
    December 6, 2012

    look slackness wi, those foreigners will leave us high and dry jus how CDC left us after Hurricane David, how a country can surrender their energy generation to foreign interests I DO NOT KNOW…
    UWP sell DOMLEC just so that history could be repeated….SMH…will we EVER be competent enough to do things for ourselves??? sigh…. We are more than this Dominica, we have so many expert engineers , economists, finance gurus’ all over the face of the planet, why is it that Dominica is always left with the chaff?? isn’t the wheat good enough for us???

    you see this is where the word ALLEGIANCE becomes
    PARAMOUNT…. is our love for country, for self or for money???? will our leaders continue to choose to be MILLIONAIRES as opposed to PIONEERS????? THAT! is the question…. when we begin to cultivate PIONEERS we will have none of this dual citizenship, bobol, topsy turvey priorities, arrogance and egotism in our leadership positions.

    oh that day, that beautiful day, prosperity will rain from Heaven on Dominica.

    the word for 2013 should be ALLEGIANCE, before god and all mankind.

    • 1979
      December 6, 2012

      this is ONE thing that I hold against the united workers party, that sale of Domlec. But my GOD blame will not resolve the issue, only prompt and decisive action will… THE QUESTION NOW IS what are we going to do to regain our ENERGY INDEPENDENCE??? I think this is something that both the sitting government and opposition parties should COME TOGETHER to address….after all you ALLLLLLLLLLLL SAY “I LOVE DOMINICA” well let us see that love in action…put aside differences for a while and as many people here like to FRONT “DO SOME NATION BUILDING” ALLLLLLLLLLLLLLLLLLLLLL.

      • Really n Turly
        December 6, 2012

        boy what’s beats me there is,these blokes,will never see eye to eye on anything for the good of this bloody abaused country,not to say is come they comming,they are on there way out and they treating this country like titanic,loaded with wealth,but going under.what a blasted shame.

    • Annon
      December 7, 2012

      Inspiration like this coming from you 1979? that’s a first….Leblanc comes to mind. thanks Bro/Sis.

  22. 4progress
    December 6, 2012

    Spot the difference in dealing with matters of public interest, a regulatory body the IRC was set up to deal with cases such as DOMLEC and co, thus ensuring the government representing the public interest will always know when companies intend to sell shares, amalgamate or acquire other companies the government has the opportunity to analyse, investigate, request more info, approve or disapprove.

    Barbados is on the ball….PM PLEASE TAKE NOTE AND ACT

  23. Shameless
    December 6, 2012

    Hmmmmm…now let the blame game begin. Caught asleep at the wheel I suppose but that aint fooling me! 8) . I am sure “if” we the people demand an investigation it will reveal ALL those who knew (formally and informally) and when and who “may” have asked for some %tange of the deal.

    Assertive, NOT Agressive!

    • Anonymous
      December 6, 2012

      not withstanding,that DSS has close ties with the government and interest in WRB,hmmmm connections are not as close as we think then :-?

  24. Anonymous
    December 6, 2012

    I see LPH experiencing the same thing from the government and regulatory agencies in Dominica as meted out by the Barbados government to some foreign companies within the Caribbean trying to setup shop in Barbados.

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