AUDIO: The Power Breakfast Show interview on 102.1 FM – 1 June 2016

Power 102 FMAfra Raymond is interviewed on the ‘The Power Breakfast‘ show on Power 102 FM by Rhoda Bharath and Richard Ragoobarsingh discussing the ongoing CL Financial bailout saga. 1 June 2016. Audio courtesy Power 102 FM

  • Programme Date: Wednesday, 1 June 2016
  • Programme Length: 35:04

Board Games – part 2

state-boards-logos

SIDEBAR: Correction on Court Case

With apologies to readers, in the previous article, I mistakenly named UTT as the SoE which had sued its Directors over allegations of a negligent 2005 investment, in fact it is eTeck which sued its Board. A lawsuit was launched by UTT on a similar series of allegations, but that was abandoned in July 2015.

Both those Boards were headed by Professor Ken Julien.

The previous article prompted a series of extremely interesting responses, so I will continue this examination of the State Controlled Agencies. That phrase includes State-owned Enterprises (such as UDECOTT, Caribbean Airlines and EFCL) and Statutory Agencies (like WASA, TTEC, CDA, PATT and HDC).

Some sharp objections were made to my comparison of the relation between the State, the Government and Citizens to a Company, its Board of Directors and its shareholders. I maintain that this is a valid comparison for us to reflect on the proper roles and responsibilities of the various public officials, but perhaps more importantly, the responsibilities of us citizens. Continue reading “Board Games – part 2”

CL Financial bailout – Duprey’s Story: SIFI vs PIFI

Artwork by NiCam Graphics

On Sunday 22nd May 2016, the front-page story in this newspaper was headlined ‘We will pay it back‘. That article featured very interesting quotes from former CL Financial Executive Chairman, Lawrence Duprey as well as the Minister of Finance & the Economy, Colm Imbert, on the prospects for repayment of the huge sums of Public Money spent on this CL Financial bailout.

Duprey claimed to have made a formal proposal to the State to repay taxpayers and all stakeholders who are owed money, while insisting that the amount owed was yet to be determined. The failure or refusal of the State to publish any audited statements in relation to this CL Financial bailout appears to be impeding the discussions as to a settlement of this massive debt. The sidebar contains a summary of how the Public Money spent on this bailout has grown from the initial 2009 estimates of $5 Billion to a 2016 figure now said to exceed $24 Billion. Continue reading “CL Financial bailout – Duprey’s Story: SIFI vs PIFI”

Board Games

demming xed out
Dennise Demming (left) was “removed and replaced” as the chair of the Tourism Development Company by Corporation Sole. Standing with Demming are Tourism minister, the Hon. Shamfa Cudjoe MP and TDC director Tonya Laing. Photo courtesy Trinidad Express.

The recent controversy over the dismissal of Dennise Demming as Chair of the Tourism Development Company (TDC) has sparked yet another round of debate on the role and operation of State-owned-Enterprises (SoEs).

Some of the issues which have arisen are –

  • What is the purpose of these SoEs?
  • How do the Boards of these SoEs get appointed?
  • Are Board Directors of SoEs required to follow directions from the line Minister?
  • Do Board Directors of SoEs have the right to get involved in managerial decisions such as hiring of staff and awarding of contracts?
  • Do Ministers and Permanent Secretaries have the right to meet with or direct staff of the SoEs without the input of the Board of Directors?
  • Given the recent Appeal Court decision in the eTeck case, what is the legal liability of Board Directors of SoEs?

Continue reading “Board Games”

CL Financial Bailout – Duprey’s Gambit

Lawrence Duprey. Photo courtesy the T&T Review
Lawrence Duprey

Last week we learned that Lawrence Duprey and his fellow CL Financial shareholders are victims of a badly-handled bailout. According to the Duprey version, the State must halt all asset disposals and he must regain control of the CL Financial group of companies. In what seemed to be an immediate response, Minister of Finance & the Economy, Colm Imbert, said he was so alarmed at the gross mismatch in the bailout figures that he decided to order a forensic audit on the entire process. These two contrasting stories are the latest big news on the CL Financial bailout.

I have always objected to the CL Financial bailout and it has become a strong example of how the Public Interest can be perverted under a series of disguises.

The Duprey Gambit is just the latest attack on good values in our country. It is a nasty, shocking outbreak of moral hazard. It needs to be dismantled and discredited, nothing less will do.

The Imbert Initiative looks like a welcome move to examine the details of this scandalous waste of Public Money. The proposed forensic audit seems to signal some official appetite for disclosure. However, if this is to properly protect the Public Interest, there are some ‘litmus tests’ which can show the official commitment to disclosure

This article will examine those two proposals so that some meaning might emerge from this utter, deliberate confusion.
Continue reading “CL Financial Bailout – Duprey’s Gambit”

Telling Truths

“…The first responsibility that devolves upon you is the protection and promotion of your democracy. Democracy means more, much more, than the right to vote and one vote for every man and every woman of the prescribed age…”
Dr Eric Williams, in his first Independence address, on 31st August 1962.

We are now at a place in which our political parties routinely subject us to misleading promises to win elections, followed by a sharp dose of reality as we realise which financiers are actually in charge of important public policy. This has been happening for a while now, but while we can criticise the various political parties, our gullibility is at the root of the problem. Many of us still believe in ‘Father Christmas’, so we remain stuck in a loop of high expectations leading to deep disappointment. Frustration and outrage appear to be key features of the ‘new normal’ we are all now living.

Obviously, we need a big shift in how the membership of the political parties hold their leaders accountable once office is attained, but there are other aspects of public affairs which need to change. Some say that once we choose not to vote, we have lost the right to criticise the actions of public officials, since we are effectively opting-out of the system. I believe it is important to remember that politics is not a single choice made by the voter at elections: politics is how we live our lives together and choose everyday.
Continue reading “Telling Truths”

The Whistleblower Proposals

The Whistleblower Protection Bill 2015 was submitted to Parliament on Friday 13th November 2015. Those proposals will create legal protections for persons making reports of wrongdoing in both public and private bodies. A Joint Select Committee has been established to examine these proposals and report back to the Parliament no later than 22nd January 2016, so this is the time to consider these and make formal comments.

According to the Association of Certified Fraud Examiners 2014 Global Fraud Study, whistleblowing is the best method of detecting fraud –

“…Tips are consistently and by far the most common detection method. Over 40% of all cases were detected by a tip — more than twice the rate of any other detection method. Employees accounted for nearly half of all tips that led to the discovery of fraud…” (pg 4)

Given the levels of improper and illegal conduct with which our society is beset, these proposals are long overdue and I welcome them. That said, it is important to examine the detailed provisions and exemptions, together with the introductory statement made by Attorney General, Faris Al Rawi. Continue reading “The Whistleblower Proposals”