New US Ambassador draws criticisms for ‘state-sector’ remarks

NEW US Ambassador Joseph Mondello’s criticism of state enterprises has drawn a divergence of views locally. At the American Chamber of Commerce’s 2018 Health, Safety, Security and Environment Conference at the Hyatt Regency Hotel in Port of Spain on Thursday, Mondello said state enterprises were incompatible with free markets. He also said corruption, transparency and needless bureaucracy make potential investment opportunities unattractive.

In response at the post-Cabinet news conference later in the day, Prime Minister Dr Keith Rowley acknowledged there were inefficiencies in state enterprises.

“In terms of developing as a nation starting from the depths which we started, the state would have had to play a significant role and the state does have a significant role to play going forward but it is not cast in stone,” Dr Rowley said.

Former minister Mariano Browne on Friday said, “I hear him but I don’t agree with him.”

He countered that having a private sector does not stop corruption.

But Browne said there are inefficiencies in TT’s state enterprises, arguably too many of them and considerable room for improvement.

“He should zip his mouth,” Movement for Social Justice leader David Abdulah said.

Abdulah argued that Mondello cannot just come to TT and make such pronouncements.

“He can’t come and try to take the splinter from our eye but not remove the beam from his,” Abdulah said.

He suggested Mondello focus more on the Trump Administration’s policies.

Abdulah claimed these policies currently favour the one per cent of American society at the expense of the rest.

Economist Indera Sagewan-Alli agreed with Mondello.

She said history shows that at least 95 per cent of the country’s state enterprises over the years “continue to be a drain on the taxpayers. Sagewan-Alli opined that only the National Gas Corporation and National Petroleum may be the exceptions.

She believed the state enterprises model in TT can create fertile ground for corruption and nepotism. Sagewan-Alli also said this model can crowd out the private sector and discourage competitiveness. Barataria/San Juan MP Dr Fuad Khan said, “The US ambassador is correct.

“Only in China due to their method of approach and communist, one party control with the poor human rights culture, can such a system work.”

Khan added, “Government to government contracts and framework agreements are one of the biggest ways to manipulate processes.” Oropouche East MP Dr Roodal Moonilal had a different view.

“The greatest corruption scandals in the world and TT involved private companies,” he claimed. Moonilal said, “ What is needed is a robust, legal and institutional framework manned by independent professional personnel to monitor laws and compliance.”