MSJ's Abdulah: Central Bank must remain independent

MOVEMENT for Social Justice (MSJ) political leader David Abdulah says the Central Bank must remain an independent and autonomous organisation.

In making this point on Sunday, he said it was wrong for some people to allege the Bank's independence and autonomy is only being threatened now and that this threat never existed in the past.

On the amendment to the Central Bank Act which was recently passed in Parliament as part of an omnibus package of legislation, he said that amendment changed the term of office of the Central Bank Governor from a fixed five-year term to a minimum of three years and a maximum of five years.

"You really want to ensure that your Central Bank Governor has security of tenure, so he or she is in a strong position to regulate the monetary system of the country." Abdulah said the current economic challenges due to the pandemic as well as other factors, underscores the need for the Central Bank to remain independent and autonomous.

He noted Finance Minister Colm Imbert's statement on Friday that Central Bank Governor Dr Alvin Hillaire was given a three-year extension in his post. Hillaire was appointed governor on December 23, 2015 for a five-year term. 

Asked if the amendment could allow any government to appoint a lackey as Central Bank Governor, Abdulah replied, "It could happen and perhaps has happened in the past."

He continued, "I think there have been threats in the past to the independence of the Central Bank and there may have been appointments in the past and persons who were not at the highest level and competent to be Governor of the Central Bank."

Abdulah said there have been competent people in the past who served as Central Bank Governor and the post is not one where decisions should be made on the basis of political expediency or short term government gain.

"The Central Bank has to maintain monetary stability for TT so that people know their dollar today is not going to be worth one cent tomorrow."

A statement on Government's news website last week said Imbert noted allegations from the Opposition and a daily newspaper editorial which incorrectly claimed the amendment would disrupt the process to appoint a Central Bank Governor.

The statement said both the Opposition and the newspaper editorial missed the facts that not all governors served their full five-year term, as indicated in the original Act, and some served under different administrations. Former governors Ewart Williams and Winston Dookeran were cited as examples of the latter. 

The statement also said, "Changing the term to three to five years thus allows for succession planning and a 'seamless' transition, and good corporate governance."