Trinidad and Tobago
Opposition Leader Kamla Persad-Bissessar has called for an investigation into the Central Bank of Trinidad and Tobago (CBTT).
She said there must be a probe as to why the CBTT refused to allow Auditor General Jaiwantie Ramdass access to examine the bank’s electronic cheque-clearing system, which was said to be the source of the understatement in some $2.6 billion in national revenue.
Speaking at a United National Congress (UNC) meeting at the party’s Chaguanas headquarters on Monday, Persad-Bissessar said the Auditor General’s special report still does not account for almost $3 billion.
She said Finance Minister Colm Imbert used the “fig leaf” of parliamentary privilege to lambaste the Auditor General because “she stood for the truth and did the right thing”.
She said the Auditor General re-audited the accounts, which she had done previously, and the special report still does not address the “missing” money.
“You know what is the big news? There is no change. The $3 billion is still missing. Where has this money gone?” she asked.
“Has the Central Bank been complicit in cooking the books with this Government? What else is the Central Bank and Government hiding? Our confidence in the Central Bank has been diminished. I call for an enquiry into the action of the Central Bank of Trinidad and Tobago,” she added.
“When it is you cannot have confidence in your Central Bank, which holds all the money of the people of Trinidad and Tobago, then the country really gone through,” she said.
She further called for an investigation into the replacement of $100 cotton notes to polymer notes as she pointed out that Prime Minister Dr Keith Rowley had said that some $500 million could not be accounted for.
“When you put us back into office, we will do the enquiries,” she said.
Persad-Bissessar said that under the Rowley Government, only the PNM (People’s National Movement) friends and financiers benefit while the people face the pressure of a higher cost of living from increased fuel to food prices.
She said that Monday was the last sitting in the parliamentary session and a new session starts this Friday, which places the country in an election year.
“You better be ready ’cause these fellas, they don’t know if they coming or they going. One day Rowley saying, ‘Don’t bother with Kamla, no election,’” she said.
Pointing out that Rowley said there are no elections soon while Energy Minister Stuart Young and Youth Development Minister Foster Cummings are telling the people to get ready for the polls, she said: “They totally confused. You know why? They don’t know if to call it or not to call it because anytime they call it, licks book! Is licks like fire and licks like peas, so they confused.”
She said Imbert has been “totally emasculated” by Young, and he (Young) has taken the PNM’s chairmanship position from Imbert, as well as the role of acting Prime Minister when Rowley is away.
She joked it would not be a surprise if Young delivered the budget.
“Faris (al-Rawi), Foster (Cummings) and Penny (Beckles) are hanging on by a thread waiting on the PNM internals in November,” she said.
Persad-Bissessar predicted that an “election budget” will be delivered as she warned people to not fall for the PNM’s false promises as the Government has delivered nothing in nine years.
“They are going to come with the same old tricks in this Columbus budget,” she said.
“When they come to this election to buy you out, they try to buy your vote with $300 in a red jersey…let them know $300 can’t make up for nine years of nothing,” she said.
She said over 4,500 people have been murdered as she questioned whether this pittance can make up for the blood spilled.
She recalled Imbert’s arrogance when he said the people did not riot when he increased fuel prices.
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Guyana
Former auditor general Anand Goolsarran has flayed the National Pro-curement and Tender Administration Board (NPTAB) over its apparent role in what could be a conflict-of-interest situation now that investigations into allegations of financial impropriety against Deputy Commis-sioner (ag) of Police Calvin Brutus have also placed a company allegedly owned by his wife under scrutiny.
Not naming Brutus, Goolsarran wrote in his weekly ‘Accountability Watch’ column published in the Stabroek News today: “Media reports indicate that the officer’s wife set up a company about a year ago, which company became one of suppliers of the Police Force with the full knowledge of senior officials of the Ministry of Home Affairs… the Public Procurement Commission should also be involved in the investigation in keeping with its mandate.
“What is most distressing is that the NPTAB offered no objection to the company being included in the list of suppliers for the force. It is not clear whether the NPTAB carried out the necessary background checks before offering its no objection. Such checks would normally include a scrutiny of the incorporation and other documents to ascertain, among others, how reputable the company is, who are the real owners, whether there is any connection with members of the force, and any other matters that may pose a conflict of interest. If the NPTAB did not conduct such checks, it would have been guilty of a serious dereliction of duty.”
Contacted yesterday, NPTAB Chairman Tarrachand Balgobin told Stabroek News that he was out of the country but referred this newspaper to CEO Arvin Parag, who said he would address questions today.
In July, Home Affairs Minister Robeson Benn informed that the allegations of financial impropriety made against Brutus were being investigated by the Special Organised Crime Unit (SOCU).
Last week, President Irfaan Ali told reporters that SOCU was handling the matter with regard to the Brutus case and he would not intrude.
Ali’s stance was echoed by Commissioner of Police (ag) Clifton Hicken, who also said that SOCU was an independent agency and had been given unrestricted scope to do its work.
Goolsarran said that since SOCU was also a part of the Guyana Police Force, “it would have been more appropriate for the Audit Office to undertake a forensic audit of the matter.”
As regards the NPTAB, he said that there have been several calls by the public and accountability observers for its complete reorganisation so that it can be seen as independent of government control and influence. “However, our pleas have so far fallen on deaf ears,” he contended.
Goolsarran pointed out that allegations of irregularities in the disciplined services were not new as successive reports of the Auditor General over the years have highlighted mismanagement and irregularities in the use of public resources.
“It is sad to note that over the years, both the Guyana Police Force and the Guyana Defence Force have been the major violators of the financial rules and regulations as well as the procurement procedures, without evidence of any sanctions being imposed on the perpetrators. Instead, they are being handsomely rewarded, especially with a one month tax free bonus at the end of the year to the exclusion of public servants, teachers, nurses and other categories of government employees,” he said.
Going back to 2003, Goolsarran noted that it was reported that there were numerous breaches in the Tender Board Regulations. In particular, there was evidence of contract-splitting to avoid adjudication by the then Central Tender Board. This practice resulted in irregularities in excess of $50 million in the purchase of uniform material.
He related that further details, as gleaned from the Auditor General’s report for 2003, indicated: “(a) Amounts totalling $168.514 million were expended on the purchase of items of uniform, including uniform material. However, there was no evidence of the involvement of the Central Tender Board. In fact, there were 279 purchases totalling $145.926 million falling within the limits of $180,000 and $600,000 which would have been adjudicated by the Departmental Tender Board. It is evident that the purchases were divided into lots of on average $523,000 to bring them within the limits of the Departmental Tender Board. (b) An examination of the Departmental Tender Board minutes relating to the above purchases revealed that there were no minutes for 102 transactions valued at $58.316 million, although there was reference to such minutes on the payment vouchers. Further examination of the foolscap book in which the minutes were kept revealed that the preparation of minutes was discontinued in June 2003. In addition, the minutes were not written by the Secretary of the Tender Board but by a junior rank who was not part of the proceedings of the Tender Board. These observations would raise doubts as to whether or not meetings were actually held, especially in view of the fact that there were no details relating to the opening bids and the discussions that followed leading to the award.
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Guyana
police were responsible for list with questionable bidder
SOCU has acquired documents relating to procurement for the Guyana Police Force (GPF) from the National Procurement and Tender Administration Board (NPTAB) as it continues its investigation of financial impropriety claims against Deputy Police Commissioner Calvin Brutus.
NPTAB has also made it clear that the list of prequalified bidders for the GPF that it received from the Ministry of Home Affairs last year, and which has on it a company allegedly linked to the Brutus’ wife, is a standard document it receives from respective procuring entities with names of companies reviewed that could bid but only the evaluation of tenders determines who is awarded a contract.
Reliable sources told Stabroek News that the Special Organised Crime Unit (SOCU) had asked NPTAB for records and documents on GPF procurement and contract awards. These documents, one source explained, were handed over but the Board was not informed about the investigations.
In July, Home Affairs Minister Robeson Benn informed that the allegations of financial impropriety made against Brutus were being investigated by SOCU.
Last week, President Irfaan Ali told reporters that SOCU was handling the matter with regard to the Brutus case and that he would not intrude.
Ali’s stance was echoed by Commissioner of Police (ag) Clifton Hicken, who also said that SOCU was an independent agency and had been given unrestricted scope to do its work.
Former auditor general, Anand Goolsarran, has stated that NPTAB may be guilty of dereliction of duty in the case of allegations of financial impropriety against Brutus which has also placed a company allegedly owned by his wife under scrutiny.
He posited that the Public Procurement Com-mission should also be involved in the investigation in keeping with its mandate.
“What is most distressing is that the NPTAB offered no objection to the company being included in the list of suppliers for the Force. It is not clear whether the NPTAB carried out the necessary background checks before offering its no-objection. Such checks would normally include a scrutiny of the incorporation and other documents to ascertain, among others, how reputable the company is, who are the real owners, whether there is any connection with members of the Force, and any other matters that may pose a conflict of interest. If the NPTAB did not conduct such checks, it would have been guilty of a serious dereliction of duty,” Goolsarran wrote in his Accountability column this week.
No dereliction
However, Chairman of NPTAB, Tarachand Balgobin, contended that there was no dereliction of duty by the entity as the disciplined services carries out its pre-qualification screening process of companies and sends the documents to NPTAB to add to the list of bidders. He said that NPTAB then sends its no-objection of the names of the prequalification pool back to the procuring entity.
Balgobin pointed out that a company being prequalified by an agency does not equate to a company’s right to obtain a contract as winning a tender is determined through the independent evaluation process for which the most responsive bid wins.
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Caribbean
The Caribbean Development Bank (CDB/the Bank) has approved USD 160,000 to fund a feasibility study for the establishment for a Regional Credit Enhancement Facility (RCEF) for Micro, Small and Medium-sized Enterprises (MSMEs). This initiative will explore viable solutions to the recurring challenges MSMEs face accessing financing and potentially pave the way for enhanced financial support structures in the future.
Highlighting the need for improved financial support for MSMEs, CDB’s Acting Director of Projects, L. O’Reilly Lewis says, “Even with extensive investments in loans and equity, many Caribbean MSMEs continue to face substantial funding gaps because of underdeveloped financial systems. This study will help us better understand the market needs and design a facility that could effectively address these gaps if the demand is validated.”
Once the demand is validated, the RCEF is expected to offer MSMEs access to various financial products and support services, including guarantees, that enhance their bankability. It is envisioned that the facility will also support financial institutions in expanding credit access, provide training to enhance the capabilities of financial institutions, guarantee schemes and MSMEs, and streamline processes for all involved. Additionally, the solutions will focus on the inclusion of traditionally underserved groups such as women, youth, and those in the creative industries.
Recognising that MSMEs are pivotal to the region’s economy, CDB has revised its approach to focus on enhancing financial accessibility and supporting sustainable business practices. Reflecting on the Bank’s commitment to empowering MSMEs, CDB’s Acting Head of the Private Sector Division, Lisa Harding, says “We are constantly looking for ways to support these enterprises, which are the backbone of many Caribbean economies. The results of the study will lead to practical solutions that can help our MSMEs overcome finance-related obstacles and drive their growth.”
In addition to assessing demand, the investment will help CDB establish a framework and operating guidelines for a functioning RCEF. It will also support CDB’s efforts to secure additional funding from international development partners to boost MSME financing. These steps are crucial for positioning the Bank to transform the financial landscape for MSMEs in the Caribbean, fostering a more innovative, inclusive and resilient private sector.
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Trinidad and Tobago
A former director of the Sports Company of T&T Limited (SporTT) has claimed that he and his 13 fellow former board members were obligated to facilitate a $34 million contract for the controversial Life Sport programme, which subsequently failed.
Testifying in the state company’s ongoing breach of fiduciary duty case against the former board members before Justice Ricky Rahim at the Waterfront Judicial Centre in Port-of-Spain, Tuesday, accountant Matthew Quamina claimed that he and his former colleagues were instructed that SporTT was merely the payment “agent or provider” for the Ministry of Sport.
Quamina maintained that the ministry and a committee of officials assigned to the programme were responsible for all aspects of it besides payment of creditors.
“Although the contract was in SporTT’s name, it was directed by the Ministry of Sport,” he said.
He repeatedly denied that he and his former colleagues were required to deeply scrutinise the contract.
Quamina also admitted that before the contract was signed, he did question whether it contained an “exit” clause.
However, he admitted that he did not follow up on whether such was included, as he said that was SporTT’s chief executive, John Mollenthiel, and the ministry’s responsibility.
“It was not my role to see that contract,” he said.
Dealing with a recommendation that eBeam Interact Limited be given the contract to administer the numeracy and literacy and the interactive technology components of the occupational skills training aspect of the programme based on a sole select tender, Quamina suggested that such was the ministry’s suggestion.
“The CEO would have been in communication with the ministry, the permanent secretary, and the minister,” he said.
Quamina also admitted that after eBeam failed to perform its full obligations and demand full payment, he questioned whether the contract could be amended or terminated and legal advice was sought.
“Any reasonable person would have asked the questions they did not ask two years before,” he said.
“The board would have been seeking clarity and guidance,” he added.
Quamina claimed that he and his colleagues were not concerned by the initial proposal submitted by eBeam, which referred to services to be offered to infants and teenagers when the programme was intended for men aged 16 to 25.
“Our role was not to question the Ministry of Sport over a social programme for the national community,” he said.
Also testifying yesterday was former director Sabrenah Khayyam, who currently serves as senior manager at the Water and Sewerage Authority (WASA).
Like Quamina and the other former directors, who testified since last Friday, she denied any wrongdoing in relation to the contract.
In the lawsuit, the company is claiming that its former board acted negligently and recklessly in entering the contract.
The defendants in the case are Mollenthiel and ex-directors Sebastien Paddington, Chela Lamsee-Ebanks, Reynold Bala, Norris Blanc, Nisa Dass, Dr Anyl Gopeesingh, Cheemattee Martin, Quamina, Annan Ramnanansingh, Kent Samlal, Harnarine Seeram Singh, and Milton Siboo.
On August 22, High Court Judge Eleanor Donaldson-Honeywell rejected SporTT’s breach of contract case against eBeam but ordered it to pay $30 million in restitution as she ruled that it was unjustly enriched for services it did not provide.
While SporTT was seeking the entire value of the contract, Justice Donaldson-Honeywell deducted $4 million, which represented the nominal services inclusive of the procurement of equipment provided by eBeam.
“It would be legally unjust for the defendant to retain the benefit of $34 million when only the minimum value, unrelated to any substantial delivery of the bargained-for services, was received by the claimant under the contract,” Justice Donaldson-Honeywell said.
“The minimal services provided by the defendant did not meaningfully meet the benefit that was intended by the parties to be delivered to the claimant,” she added.
eBeam still has the option to appeal the outcome.
SporTT has contended that the case against eBeam has no bearing on the parallel litigation against the group.
Colin Kangaloo, SC, John Lee, and Stephanie Moe are representing SporTT.
The group’s lawyers include Fyard Hosein, SC, Anthony Vieira, SC, Rishi Dass, SC, Jagdeo Singh, Karina Singh, Keston Lewis, Roger Kawalsingh, Ravi Mungalsingh, Tara Bhariosingh, Nicole de Verteuil-Milne, Adrian Ramoutar, Sushma Gopeesingh, Kamini Persaud-Maraj, Neal Bisnath, Lydia Mendonca, Richard Jagai, Andrea Bhagwandeen, and Dharmendra Punwassee.
The case is scheduled to continue later today with the evidence of two more directors.
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