POSH faces difficulties in Mexico

Singapore: PACC Offshore Services Holdings (POSH), the Kuok controlled OSV operator, has become embroiled in a Mexican corruption scandal.

One of the company’s joint ventures, Servicios Martimos Gosh (GOSH) chartered six vessels to Oceanogafia (OSA), which are in turn, chartered them to PEMEX, the Mexican state-owned petroleum company. Since February 28 this year the administration of OSA has been placed under the control of the Mexican state administrator in connection with the Mexican government’s investigations of OSA over alleged fraud arising from billings charged by OSA to PEMEX.

Under an irrevocable trust arrangement entered into between OSA and PEMEX on 8 August 2013, PEMEX has been paying all charter hire invoiced by OSA into an irrevocable trust (GOSH Trust).

Now, however, POSH has recently been informed that the state administrator has obtained a court order for PEMEX to stop paying charter hire on vessels chartered from OSA to all trusts including the GOSH Trust and instead to make such payments directly to the administrator. Since then GOSH, through its trustee, has filed an injunction in the Mexican courts to nullify the Order. A hearing on the matter is to be held on 28 May.

In the meantime, GOSH has stopped work on the vessels chartered to OSA. POSH said losses from the venture could amount up to $4.6m.  [22/05/14]

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