(Trinidad Guardian) Ashley Taylor, the president of the Point Lisas Industrial Port Development Corporation Limited (Plipdeco), was sent on administrative leave by the board of the company in July, three months before his retirement in November.
However, no notice of Taylor’s administrative leave has been filed with the T&T Securities and Exchange Commission (TTSEC) as Plipdeco is required to do in accordance with section 64 of the Securities Act 2012.
The act requires reporting issuers to file notices of material change with the TTSEC within three days of the occurrence and publish material change notices in two daily newspapers within seven days of the occurrence.
An internal investigation has since been launched into contracts negotiated during his 16-year tenure at Plipdeco.
The Sunday Guardian understands that the board’s decision stemmed from the terms of the lease agreement with TT Iron Steel Company Limited (TT Iron). TT Iron acquired the defunct Arcelor Mittal steel plant (which has been in liquidation since 2016 by Christopher Kelshall) in Point Lisas in July and Plipdeco as its landlord.
TT Iron, chaired by Joel Pemberton, agreed to pay US$30 million for the plant—a downpayment of US$3 million with the remaining US$27 million to be paid by December 31, 2024.
However, Mittal had incurred close to $44 million in rent outstanding to Plipdeco at the time of closure, and TT Iron’s acquisition of the plant would see it responsible for that debt.
The Sunday Guardian was told that initially, Taylor negotiated the terms, in which TT Iron would operate for the first three years rent-free. However, when the board raised issues with those terms, it was renegotiated to six months rent-free. As part of the initial payment from the liquidator to Plipdeco, the terms were that $22 million was paid upfront, with the remainder of $22 million to be paid in January 2025.
The Sunday Guardian was told that the TT Iron lease happened when Plipdeco adopted the Office of Procurement Regulations’ (OPR) Procurement and Disposal Advisory Committee (PDAC) into its administration in June.
Plipdeco is majority-owned by the Government. As a result, Plipdeco sought legal advice on the matter given that Plipdeco sub-leases its leased state lands and directly leases freehold lands for companies in the estate.
For his part, Pemberton said that while the agreement took a longer time than expected, it was negotiated on TT Iron’s behalf by the legal firm, Dentons and Plipdeco’s external counsel.
The board’s decision led to the issuance of a notice on July 9 that the company’s annual general meeting, scheduled for two days later on July 11, would be moved to a date in September.
The date has not yet been announced.
Taylor was sent on leave on July 29. He did not respond to the Sunday Guardian for comment.
“It’s become like a witch hunt,” an employee told the Sunday Guardian.
Dr Averne Pantin, the vice president of Technical Services, is now the company’s acting president.
The Sunday Guardian was told that Pantin has begun a restructuring of the organisation. Neither Plipdeco chairman Dr Daniel Dookie nor its acting chief executive responded to the Sunday Guardian.
Plipdeco is a publicly traded entity with the State, through corporation sole, owning 51 per cent of the company.
According to its annual report, the other nine shareholders with the largest block of shares are Masa Investments Limited (7.6 per cent), Chan Ramlal Limited (6.67 per cent), and Tatil Life Assurance Limited (2.84 per cent). Bourse Nominee Account Co (2.53 per cent), Atlantic Investments Company Limited (2.52 per cent), Republic Bank Limited (2.48 per cent), Riyad Khan (1.49 per cent), Olympic Manufacturing Limited (1.26 per cent), and George Aboud and Sons Limited (1.22 per cent).
In its financial statement that ended June 30, Plipdeco said that as 2024 progresses, it intends to utilise its strong performance thus far as a platform to advance its strategic plan and operational activities.
“We are also pleased to welcome TT Iron Steel Company Limited as a new tenant on the industrial estate. As a tenant, TT Iron Steel Company Limited will leverage the corporation’s amenities on the industrial estate and port facilities to enhance their production capabilities. This move aligns with our commitment to fostering industrial growth and the provision of a conducive environment for business to thrive. I wish to extend utmost gratitude and appreciation for all efforts expended thus far and eager to continue our collaborative efforts, which will create and strengthen synergies that favour the Corporation,” Dookie said in his chairman’s remarks.