In a deal negotiated last month, President Obama and BP officials agreed the company would pay $5 billion annually over the next four years into an escrow account for damage its oil disaster in the Gulf of Mexico caused. Ken Feinberg, who was appointed to administer oil spill claims out of the escrow fund, has said he “hasn’t been able to start writing claims checks” because BP PLC has failed to deposit any money into the $20 billion fund it promised to create:
Feinberg, who was appointed to administer oil spill claims out of the fund, said he doesn’t have the authority to force BP to deposit the money, but his hands are tied until it does. “I don’t want the checks to bounce,” he said.
The day after the escrow account’s establishment in June, BP CEO Tony Hayward told Congress that BP is “unwavering in our commitment to fulfill all our responsibilities” and the company “won’t stop spending until the job is done.”