OCG agrees with Commonsenseja on financials of EWC vs EWI

I was hoping that at least one of our many financial analyst would have commented public on the statements made by the OUR, that they would have accepted the financial statements from EWC as indicative of the finances of EWI, but sadly so NOT one has made any such comment publicly.

On March 20, 2014 I wrote .

The OUR has stated they can accept audited financial statements from a related company or in this case a large equity partner in EWC, but that statement is fundamentally flawed and here is why.

Energy World Corporation( EWC) is the “parent” company of Energy World International ( EWI),  but their ( EWC) website  has indicated that EWI is the largest shareholder in EWC and not the other way around .

I could see if we had a contractual arrangement with EWC , we decided to take audited financial statements from the largest shareholder, which in this case would have been EWI.  In this case, EWI (according to the website) is the largest shareholder in EWC . In effect what we have received  ( based on the OUR) is the audited Financial statements from a company, where EWI is majority shareholder.

If EWC is the parent company ( which is what I believe it is), then this is not a major issue, but if EWI is a completely different company not controlled by EWC then we have a different problem.

I continued with this remark further in the document.

If EWC is the parent company of EWI, then the OUR is on the correct path, there are no issues here. If EWC is not the parent company of EWI and with EWI holding 36.6% of EWC, how can we therefore accept the financials from EWC as representative of the financial position of EWI if EWC has no control over EWI ?

Folks, the fact that is EWC is not being truthful and the OUR has been caught up in a trap and has no way to extricate itself.

 

http://wp.me/pvIkx-1Sb

 

The OCG on March 27, 2014 wrote :

The OCG is of the considered view, that whilst the EWI has provided the OUR with the Audited  Financial Statements of the entity, EWC, in fulfillment of the Project Financing Requirements, which  formed part of the Instructions for Final proposals, the OCG is, however, unsure as to whether EWC  can be categorized as either EWI’s parent company or equity partner, in relation to this matter.

The OCG’s concern is premised upon the fact that EWI did not disclose in its proposal to the OUR, that the entity EWC, would be an equity partner. Further, the OCG is of the view that EWI would be EWC’s parent company, as EWI has controlling shares and controls the management of EWC. As such, EWC’s Audited Financial Statements could not satisfy the requirement for EWI’s financial statements. In addition, the OCG is of the view that for the OUR to accept EWC’s Audited Financial Statements, it would first have to be satisfied that EWI’s Audited Financial Statements are insufficient and not that they are non-existent

 

See OCG release here

OCG Media Release OCG – The Office of the Contractor General Expresses Concerns as it regards the 360 Megawatt Project and the OURs Pending Reco

 

I have spent a lot of time on this project and has taken the time out to inform myself of what is taking place and like the OCG we have arrived at the very same position.

I urge moe of our local experts to get involved at this stage and not wait until the horse has bolted through the gate, we out it to the people.

I urge the Jamaica Institute of Engineers to get off its hunches, here is the perfect opportunity for the local engineering body to get involved and speak to the public from an informed position, but what have we heard from them so far, nothing but silence.

This is part of the reason engineering in Jamaica gets zero respect, as this group tend not to become involved even when there is a clear case to become involved in.

Don’t wait until it something goes wrong, speak now and provide the public information from a very informed position.

You hear lawyers all the time speaking about cases, but silence from engineers on engineering issues.