Petrojam denies JPS ‘payment schedule’

Petrojam has rejected the explanations given by the Jamaica Public Service Company as the controversy surrounding monies owed by the JPS to the State owned oil refinery deepens.



The JPS had refuted claims by Energy Minister, Clive Mullings that it owed Petrojam $5.7 billion.



According to the JPS, the amount owed to Petrojam is $3.5 billion, with $1.1 billion of that figure being outstanding for August.



The JPS also said it had agreed on a payment schedule with Petrojam after it fell behind in payments due to steep and unpredictable increases in fuel costs in recent months.



Managing Director at Petrojam, Winston Watson, has denied that the refinery entered into any special payment arrangements with the light and power company.



He says the JPS had written to Petrojam outlining a payment plan and indicating that the debt would be settled by early September.



According to Mr. Watson Petrojam rejected this proposal.



He has also countered the JPS’ figures, saying while the outstanding amount continues to increase, the JPS has only paid $200 million of the more $2 billion it owes.



On Tuesday night the JPS had also claimed in a news release that $2.4 billion of the $3 .5 billion owed for fuel received is not due for payment until Friday



But Mr. Watson says yesterday he received an email from the JPS indicating that it had only made a payment of $318 million.



He says the letter further stated that the company intended to clear its balance by Monday.