VIDEO: Afra Raymond at Tobago Benchmark Symposium on 18 Aug 2016

tobago-benchmark-flyerTobago Benchmark hosted a symposium on the “Impact of Sandals Resort on Tobago and No Man’s Land” on Thursday 18th August 2016 at the Buccoo Community Center. Afra Raymond was one of the guest speakers, focusing his talk on the “underlying commercial arrangements” which no one likes to talk about. Examples throughout the Caribbean are seemingly secret, but there are examples from Trinidad and Tobago that can set a context for what is important as opposed to what is merely interesting. Video courtesy Tobago Benchmark.

Read the post on “Property Matter – Sandals Tobago?” for more context.

Property Matters – Sandals Tobago?

No Man's Land, Tobago is a potential site for Sandals Resort in Tobago
No Man’s Land, Tobago is a potential site for Sandals Resort in Tobago

The recent official statements about a proposal for a Sandals Resort in Tobago are significant, given both the convulsions in the Tourism portfolio and the urgent need to diversify our economy away from its long-term dependence on energy earnings. This is a preliminary view of some of the relevant considerations, since the sparse details now available do not permit a critique.

The various official statements outline that Sandals are in discussions with the State towards a new 750-room resort to be located in Tobago, which would both increase the overall room stock and bring collateral benefits if it proceeds.

Some of the main considerations are – Continue reading “Property Matters – Sandals Tobago?”

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”

Our Land – The Review

“…A small State such as Trinidad & Tobago must accord a very high priority to the judicious management and utilization of its land resources or perish. All elements of land policy must be designed to ensure that these finite resources are efficiently utilized and husbanded in such a manner as to serve the long term interests of the national community…”
—Conclusion of “A New Administration and Policy for Land” (19 November, 1992)

The PNM won national elections on 7 September 2015 by 23-18.

Two key themes emerged during the PNM’s successful campaign –

  1. Firstly, there was a strong emphasis on the critical need to restore proper standards of Accountability, Transparency and Good Governance;
  2. Secondly, a commitment was given to ‘keep the various promises made by the PP government’.

When one considers the various promises, policy changes and actions of the PP in relation to land and property, it seems clear to me that those two campaign commitments made by the PNM are entirely incompatible.

Our country has a very high population density and the previous Minister of Land and Marine Resources estimated that some 63% of our country’s land belongs to the State. It is therefore a cardinal State responsibility to properly manage those critical resources so that short and long term interests can be reconciled in a sustainable manner. The present situation is so serious and damaging to our collective interests that I am calling for a halt to any attempt to keep promises with respect to land and property while a fact-finding and policy review is conducted.

landpolicyThe opening quotation is from the National Land Policy 1992, which is now a virtually unknown document since its very existence is denied by all the relevant agencies. This Policy provides critical guidance for how this scarce resource should be best managed in the Public Interest.

The severe crisis now evident in relation to our State Lands resembles a ‘Tragedy of the Commons‘ in which this crucial resource which should offer long-term collective benefits is effectively abused by self-seeking individuals. The pattern of abuse is facilitated by gross mismanagement, in profitable partnership with deliberate obscurity in how the State Land system actually operates.

Food Security

foodplan-2012-15This remains elusive since in March 2012 the Ministry of Agriculture, Land & Marine Resources published its Food Production Action Plan 2012-2015. The major goal of that Action Plan was to halve the country’s annual $4.0 Billion food import bill. Yet in March 2014, the Food Production Minister, Senator Devant Maharaj, stated that the food import bill had been reduced by only 2% since 2010.

The significant reduction of our food import bill will require a flexible plan, with dedicated implementation and continuous monitoring. The one inescapable requirement is for farmers to have access to land of suitable quantity, quality and location. Without a good supply of land, no food security plan can succeed.

Land for the Landless

The proposed revisions to the State Lands Act 1998 were approved by the Lower House of Parliament on 3 June 2015 and withdrawn after the JCC raised certain objections. The proposed change in the ‘Land for the Landless’ policy were approved by Cabinet on 19 March 2015 with these main elements –

  • Occupation Date – Was moved from January 1998 to June 2014, which means many more persons would qualify.
  • Income Limits – Previously the maximum monthly family income was $8,000, this was now revised to $30,000.
  • Definition – the 1998 Act defined a landless person as one who was ‘disadvantaged’ according to the Ministry of Social Development, that word was deleted from the revised proposals.
  • Designated Areas – these were specified in an extensive list of over 400 areas covering the entire country.
  • The Numbers – The total number of persons identified was 250,000 and a commitment was given to regularise some 60,000 of those.

A policy which was originally intended to alleviate the plight of our poorest citizens has now effectively been extended to offer ‘Land for Everybody’. The existing commitment in respect of 60,000 lots will consume about 8,000 acres of land.

embd logoThe EMBD website states that it is responsible for the development of the former Caroni lands – some 7,500 residential lots are being prepared for ex-Caroni workers as part of their retrenchment package, with a further 8,400 agricultural leases of 2-acre parcels reportedly being processed. That means about 940 acres are to be used for the residential lots, with at further 18,500 additional acres for the agricultural plots. The total land area to be used would be about 19,420 acres, which is about a quarter (26%) of the estimated area of the Caroni lands.

Caroni Lands

caroni1975_logo_smallCaroni Lands were leased to ex–Caroni workers as part of their retrenchment compensation – they were entitled to one residential lot and a two-acre parcel for food-crop farming. The use of those lands for those purposes was intended to be controlled by the restrictive covenants in those leases. For instance, the residential lots were to be developed by a residential building within three years and the agricultural lots were to be held by the ex-workers for food-crop farming. In the 2015 budget, the restriction on sale of those agricultural lands was removed (pg 14). In addition, Cabinet Minute 3093 of 6 November 2014 approved the removal of the restrictive covenants in the leases to ex-Caroni workers – both agricultural and residential. No restriction on sale and no requirement to build on the lots.

This is tantamount to the State entirely gifting the development and transactional rights to these lessees, with no effective means of ensuring the originally desired results.

Housing Development Corporation (HDC)

hdc-logoThe HDC sells new homes at heavily-subsided rates to middle-income families, subject to restrictive covenants which prohibit open-market sale within the first ten years. Under the terms of that clause, the owner of one of these homes is required to offer the property to the HDC at the original price. It now seems that the HDC has relinquished those restrictive covenants. I have seen several letters signed by the HDC which authorise the open-market sale of those homes within the ten-year embargo period. I am not aware of any policy decision which supports that pattern of approvals and none of the vendors I have spoken with have paid any penalties of profit-share to the HDC.

This is yet another example of the State or its agents abandoning its fundamental duty to properly manage the public property rights within its remit.

Property Tax

The proposed Property Tax would require a live, open-access database which would allow anyone to examine the details of any property in the country. Those details would include land area, building area, number of bedrooms/bathrooms and other facilities, transaction history, ownership and assessed taxes. One of the strongest sources of opposition to the Property Tax is persons who would wish to keep the details of their property holdings and dealings as secret as possible.

The new Property Tax system and the modern database is in fact a key element in unearthing the facts of our country’s property ownership and occupation.

Property Tax must therefore be a priority in this arena.

The unrealistic policy of homes with gardens consumes too much land and will jeopardise our country’s sustainable future.

CL Financial Bailout – Studied Disdain

Sen the Hon. Larry Howai, Minister of Finance and the Economy

SIDEBAR: How much Public Money has been spent on this CL Financial bailout?

These are the official statements as to the actual cost of the bailout since 2012. It really resembles the ‘carefully cultivated confusion‘ which I deplored recently in relation to the Invader’s Bay fiasco.

  • 3 April 2012Affidavit of then Finance Minister, Winston Dookeran, which specifies the Public Money committed to this colossal bailout as –
    Para 21 (a) $5.0Bn already provided to CLICO;
             (b) $7.0Bn paid to holders of the EFPA and
    Para 22 $12.0Bn estimated as further funding to 
    be advanced.

    Dookeran is saying in April 2012 that $12 Billion had been paid and an estimated $12 Billion remained to be paid, which is a total of $24Bn in public money to be spent to satisfy the creditors of the CLF group.

  • 1 October 2012 – Senator Larry Howai, delivering his first Budget Statement, stated the cost of the CL Financial bailout at page six –
    …The cost to the national community has been substantial—an amount of $19.7 billion or 13.0 per cent of our current GDP; yet this expenditure was necessary and decisive for containing an economic and financial crisis…
    Howai is telling the Senate in October 2012, a mere six months after Dookeran’s Affidavit, that $19.7 Billion has been spent. If we follow this official account, which fixed the total spent in April 2012 at $12 Billion, an additional $7.7 Billion of Public Money was spent in six months. I continue to contest whether this bailout was at all necessary, but it was certainly an incredible rate of expenditure, that cannot be contested.
  • 4 May 2013 – In this newspaper, under the headline ‘$25b and counting – Cost to taxpayers of CLICO bailout and enquiry‘ –
    …However, Government’s intervention into the CLICO fiasco has cost taxpayers more than $25 billion
  • 17 May 2013 – UNCTT’s website contains a formal Press Release from the office of the then Attorney General, Anand Ramlogan SC –
    …It should be noted that efforts to stabilize and resuscitate CLICO have thus far cost taxpayers over $25 billion dollars…
  • 2 April 2014 – At the Senate sitting , Minister Howai stated at page 35 of Hansard
    …Mr. President, as you would perhaps be aware, the cost to the country of the CL Financial bailout—the actual cash that has been put out—is approximately $20.8 billion. This was done in an effort to preserve the stability of the economy of Trinidad and Tobago…
  • 7 August 2015 – I was therefore astonished to hear the Minister of Finance, Larry Howai, stating on CNMG TV, that the cost of this bailout is ‘not quite $20 Billion‘.

The first item, Dookeran’s April 2012 affidavit, is the one for which Howai is now being required by the Court to produce the details.

Some of my views on this, from last week

“…Well, this is the usual practice, in which the public right to know is subordinated to private, undisclosed interests…it seems to me at these moments that the job of the State’s attorneys is to shroud the entire indecent affair in ‘something resembling an important principle’, but ultimately the effort is intended to wear me down and let the issue fade from collective memory…I am continuing to fight this very hard…what we have here is the ultimate collapse of our Republic by Public Officials who are sworn to uphold the Public Interest without fear or favour, but end up exposed as serving the toxic interests of the financial robber barons…I am reminded of Simon Johnson’s ‘The Quiet Coup‘ published in The Atlantic of May 2009…in T&T, we too, had a quiet coup…”

As the Season of Reflection and the impending election flow together, there is a bitter brew now being offered in relation to the CL Financial bailout.

Disdain is an attitude which denotes someone or something as being unworthy of proper consideration. I think that in relation to our collective interests in the CL Financial matter, we are now being subjected to Larry Howai’s ‘studied disdain’ in relation to our collective interests in the CL Financial matter.

On Tuesday 10 August 2015, the State announced its decision to appeal the recent High Court ruling that the details of the CL Financial bailout must be published. That appeal was also filed that day and the State applied to have the stay of execution extended to the end of the appeal process – the latter issue will be heard on 19 October 2015.

The Minister of Finance & the Economy is the main public official with responsibility to account for how Public Money is spent. The Public Money being used to bailout the CL Financial creditors is our money. The Minister of Finance therefore has a fundamental duty to publicly account for how our money has been spent.

Our collective interests in this matter, of exactly how $25 Billion of our dollars were spent, far outweigh the undisclosed interests on whose behalf the Minister is now appealing.

This appeal is against every one of the orders made in the High Court judgment of 22 July 2015 and therefore represents an utter abdication of the fundamental duties of the Minister of Finance and the Economy.

Our collective interests could benefit from the unintended juxtaposition of national elections, the apparent halt of USD sales by the country’s leading bank and the hostility of the Minister of Finance to the truth. These are rare moments in which we might gain insight and regain fundamental rights, but we have to be aware of what is at stake.

The Ministry’s Press Release deserves stern scrutiny, so these are my points. Continue reading “CL Financial Bailout – Studied Disdain”

CL Financial Bailout – Impunity Insanity?

© 2015 Dion Jennings
© 2015 Dion Jennings. Used with permission.

The headline ‘Duprey wants back CLICO‘ in the Sunday Express of June 28th 2015, did not surprise me at all. That is exactly the threat against which I have been warning throughout my campaign against this appalling and unprecedented bailout.

To allow Lawrence Duprey to regain control of CLICO would do serious violence to the fundamental notions of the law not allowing persons to benefit from their wrongdoing.

Already, we can see various positions being taken – the Movement for Social Justice and Peter Permell of the CLICO Policyholders’ Group stating their objections, while Mariano Browne (former PNM Treasurer and Minister in the Ministry of Finance) and Mary King (economist and former Minister of Planning) setting out what seem to be supportive positions.

Continue reading “CL Financial Bailout – Impunity Insanity?”