Property Matters – Filling the Gaps

budget2011“…Mr. Speaker, no coherent, co-ordinated planning or strategy for state enterprises exists. As a result we have begun to rationalise the state enterprises, including the special purpose companies, which will incorporate a new accountability system that goes beyond the presently operating company ordinances. It is these loopholes in public accountability that resulted in the UDeCOTT scandal. This must never again happen in Trinidad and Tobago…”
—Dookeran, Winston. “Facing the Issues: Turning the Economy Around,” (Budget Statement 2011, Port of Spain, 8 September 2010), pg 22.

The previous article – Cycle of Consequences – drew from the official record to detail the performance of UDeCOTT in terms of its accountability for the vast sums of Public Money for which it is responsible.

The reaction to that article was so striking that I am responding to the disbelief and many questions. I will also examine the record of e TecK in this related matter of the State-owned hotels. As always, I am relying on the official record and the written correspondence. Continue reading “Property Matters – Filling the Gaps”

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Property Matters – Cycle of Consequences

This article will delve deeper into the State Enterprise sector and its role as an agent of government policy with huge transactions in Public Money. I will do so by continuing my focus on the State-owned hotels and their performance, drawn from the official record.

The poor quality of investment decisions with our limited Public Money has left us saddled with projects no private investor would have contemplated beyond an initial appraisal stage. Public Money ought to be managed to and accounted for to higher standards than those applicable to Private Money. That standard learning appears to have evaporated in our country.

ppp

The Public Private Partnerships (PPPs) in relation to our State-owned hotels are evidently beneficial to the hoteliers but of limited, if any, benefit to the Public as shareholders. PPPs here in T&T are ones in which we have privatised the profits and nationalised the losses. That is what happened at Tobago Hilton and, in significant respects, at Carlton Savannah – as detailed in ‘Carlton Savannah Swirl‘ published in this space on 15 February 2015. What is more, some of the leading beneficiaries of those arrangements, such as Arthur Lok Jack, can declare – “Government has to get the hell out of private sector business.”. Continue reading “Property Matters – Cycle of Consequences”