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New Fortress Energy a near-bankrupt company: Hadunnetti 

22 Dec 2021

  • Alleges share prices plunged from $ 65 to $ 20
  • Publicly available data contradicts with Hadunnetti’s claim
    New Fortress Energy (NFE) is a near-bankrupt company and the price of its shares traded on Nasdaq has fallen from around $ 65.9 in 2020 to around $ 20.5 now, claimed former Janatha Vimukthi Peramuna (JVP) Parliamentarian Sunil Handunnetti at a meeting held on Monday (20). He stated: “Our friends in the US, whom we requested to purchase shares in NFE in order to access information, are now complaining that the company is a near-bankrupt company.” However, as per data available on Investing.com, which is one of the premier financial sites in the world used by traders, the share price of NFE was around $ 54 as of end-2020 and reached its all-time high of $ 59.1 on 7 January 2021. The share price of NCE has since been on a downward trend and fallen to around $ 22.3 as of Monday. In the meantime, the Ceylon Electricity Board Engineers’ Union (CEBEU) accused the Government late November of making an irregular deal with the US-based energy company, which they claim is “broke and corrupt”, and said that they would escalate their trade union action if their demands are not properly met by the Government. “We started our work-to-rule trade union action. We will escalate it, which would inevitably cause major inconveniences to the public, if our demands are not properly met. Our main demand is that the Government not proceed with the illegal and improper deal with New Fortress Energy Inc. This company is a corrupt and bankrupt company. Fitch Ratings gives it a ‘BB-’ rating,” said CEBEU President Eng. Saumya Kumarawadu. Handunnetti further alleged that the current controversy regarding the safety of liquefied petroleum gas (LPG) cylinders is part of the Government’s plan to provide liquefied natural gas (LNG) as a safer alternative. He claimed that the spate of explosions being reported with regard to LPG cylinders is part of a conspiracy to turn the public away from the use of LPG. He pointed to the fact that countries such as India, the Maldives, Nepal, and Bangladesh use LPG without such incidents. He further pointed out that if this controversial Yugadanavi deal was truly favourable to our country, Minister of Finance Basil Rajapksa would have launched this deal with much more pomp and pageantry, involving the Maha Sangha, instead of signing the deal in secret at midnight without the knowledge of anyone. “When Anura Dissanayake questioned why this deal was signed at midnight, their answer was that it was signed according to American time. Even if we were to accept this explanation, where are the usual pictures of this deal being signed? Is there even one picture available? We know that when these people open even a bridge or drain, they will ensure to take the credit for it through the affixing of plaques. But there isn’t even a single photograph available of this deal, which will not only import LNG to Sri Lanka for our future generation but also provide for the re-export of LNG. Who is Daniel Christopher Knight? They won’t even show us his face,” stressed Handunnetti. He further claimed that even the members of the Cabinet who knew and were involved in this deal, such as Minister of Power Gamini Lokuge and Minister of Highways and Chief Government Whip Johnston Fernando, were probably unaware of the full details of this controversial deal, including the fact that it involves the re-export of LNG. Handunnetti further disclosed that the party with whom the Government of Sri Lanka had entered into this fraudulent deal, Sri Lanka Power Holdings (SPH), which is a subsidiary of NFE, has it registered address in Delaware, USA and that an acquittance had obtained several documents from the said company for a small fee, which reveals that the company had paid only $ 300 in tax. “This company, which will import LNG to Sri Lanka, store it in Sri Lanka for use, construct the necessary facilities required for such purpose ,and re-export LNG only has the ability to pay $ 300 in tax,” claimed Handunnetti in derision. He further alleged that the above-mentioned registered address of SPH leads to a warehouse which is also used by companies engaged in fraudulent activities as a proxy address and that many people who have money in Panama accounts have also registered at this address. “This deal was signed by Ministry of Finance Secretary S.R. Attygalle on behalf of the Government and his signature was verified by CEB Chairman M.M.C. Ferdinando, who was previously the Secretary to the Ministry of Power. Ferdinando was appointed as CEB Chairman upon the removal of Eng. Vijitha Herath in order to pass this deal. Mahinda Amaraweera and Dullas Alahapperuma were also removed in order to pass this deal; even Chandima Weerakkody has stated that he was removed from his post as Minister of Energy in order to pass this deal. They (the Rajapaksas) removed all of them and appointed Gamini Lokuge as the Minister of Power in order to pass this deal,” Handunnetti alleged.


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