Tweet
Gov't struggling to pay US$31M owed to ALCOA
The Government has been slapped with another massive bill arising from the controversial deal for the forward sale of bauxite.
The cash strapped Bruce Golding administration is now struggling to find US$31 million to pay ALCOA (Aluminum Company Of America), the company which has a controlling interest in Jamalco.
Prime Minister Bruce Golding told a meeting of the Jamaica Labour Party's (JLP's) Area Council Two on Sunday that the company sent him the bill last Friday.
According to Mr. Golding, it is money ALCOA is due under the forward sale agreement which the former People's National Party (PNP) administration signed with the company in 2001.
The Prime Minister disclosed that he is negotiating with ALCOA on an easier arrangement to pay the money.
"I said we're going to pay have of it now but we're going to need some more time to pay the other half. US$31 million is more than J$2.5 billion," Mr. Golding told JLP supporters.
He also poured scorn on the PNP administration, in particular former Finance Minister Dr. Omar Davies for signing the deal saying it was proving a nightmare for his government.
Under the forward sale agreement, the then PNP government collected money from ALCOA for bauxite not yet produced based on an agreed price.
But the money is due because under the contract the Government has to pay if the bauxite is more expensive to produce than anticipated.
The Government has been slapped with another massive bill arising from the controversial deal for the forward sale of bauxite.
The cash strapped Bruce Golding administration is now struggling to find US$31 million to pay ALCOA (Aluminum Company Of America), the company which has a controlling interest in Jamalco.
Prime Minister Bruce Golding told a meeting of the Jamaica Labour Party's (JLP's) Area Council Two on Sunday that the company sent him the bill last Friday.
According to Mr. Golding, it is money ALCOA is due under the forward sale agreement which the former People's National Party (PNP) administration signed with the company in 2001.
The Prime Minister disclosed that he is negotiating with ALCOA on an easier arrangement to pay the money.
"I said we're going to pay have of it now but we're going to need some more time to pay the other half. US$31 million is more than J$2.5 billion," Mr. Golding told JLP supporters.
He also poured scorn on the PNP administration, in particular former Finance Minister Dr. Omar Davies for signing the deal saying it was proving a nightmare for his government.
Under the forward sale agreement, the then PNP government collected money from ALCOA for bauxite not yet produced based on an agreed price.
But the money is due because under the contract the Government has to pay if the bauxite is more expensive to produce than anticipated.
Comment