Chambers: Crime doesn't pay, it costs

With the murder rate in Trinidad and Tobago reaching 598 up to Wednesday, and numerous reports of brazen criminals striking in broad daylight in the past year, it would be safe to say that 2022 has been one of the bloodiest in TT’s history. Crime and criminality have not only affected citizens but businesses as well, prompting several owners to focus on securing their stores to protect themselves, their property, staff and customers.

But with the global shocks that affected the cost of the movement of goods and raw materials since 2020 persisting into the new year, businesses and security professionals agree that crime will increase, along with the cost of living and the gap between the haves and have not’s.

This has left several owners worried that the cost of crime and protecting businesses from criminal activities will increase in 2023.

Chaguanas Chamber of Industry and Commerce president Richie Sookhai said owners on average spend tens of thousands of dollars each month to secure their properties.

He said an armed guard could cost anywhere between $15,000 and $20,000 a month, while an unarmed guard could cost between $8,000 and $10,000 a month.

“And that is one guard working from Sunday to Sunday,” Sookhai said.

President of the Estate Police Association of TT Deryck Richardson said that estate constables’ costs are based on the minimum wage along with other factors.

“If a security company is doing what is required, according to the law, concerning their bidding (for contracts) including paying for the green fund, statutory costs such as NIS and health surcharge and all of that, you would find that it would run on an average of $23 per hour for each security guard. It also depends on whether the businessplace wants armed or unarmed security personnel, patrols, the hours that they want security to engage and so on,” Richardson said.

Sookhai added that the physical infrastructure for security is also costly, and businesses have also spent a lot of money on CCTV cameras, burglar-proofing, security lighting and other forms of security equipment.

A check on the Building Source website indicated that burglar-proofing for windows cost around $400 per window. A check on the marketplace on Facebook indicated that security-camera systems could range from about $200 for one mini security camera, to more than $3,000 for full security systems.

Sookhai added that while security systems have been made exempt from taxes, worldwide shocks have offset whatever reduced costs the exemption gave.

“Globally the prices of all these items have gone up due to the lack of computer-chip manufacturing, supply-chain issues, shipping costs and so on, the prices of all these things have gone up. So when looking at infrastructure security-wise, this cost has gone up tremendously,” Sookhai said. He said in Chaguanas, crime and traffic cost businesses about 20 per cent of the potential earnings for the Christmas season.

Government has also granted significant funds to national security. For the fiscal year 2023, government allocated $5.8 billion to the National Security Ministry. The TTPS, which has its own expenditure head, was allocated $2.53 billion about 3.6 per cent of the allocation. In the last fiscal year, the police service had an audited expenditure of $2.34 billion, about four per cent.

Still the rate of crime has gone unabated as the murder toll has reached its highest in history with victims including business owners.

In February, Nicole Moses, a Westmoorings businesswoman was shot dead during a home invasion.

In May, Darryl Dindial, owner of Dindial’s Auto Supplies in Chaguanas was killed by gunmen outside his businessplace, making off with an undisclosed amount of cash.

In October, businessman William Gopaul was shot dead outside his Palmiste home.

In December, Jinme Li, owner of Benefit of the People Supermarket in Barataria was shot dead while driving in Wallerfield. Another businessman, Chandan Ramjit, owner of a hardware, was killed by bandits while delivering an order of cement and other hardware items.

There was also the heist outside Pennywise Super Centre in La Romaine in which two guards were killed in September.

Sookhai said one could not attach a cost to the loss of lives, whether business owners or customers, using Dindial as an example. He said the death of a proprietor of a business changes it forever.

“With him (Dindial) being gone, who is to say that business will be the same? The management of the business may continue but it may not ever be the same. So that is a loss, and that loss cannot be quantified at the end of the day.”

Illegal trade in goods has always been a concern of the private sector, especially the TT Manufacturers Association which has met several times with the police on ways to stem this activity. It has sought to build a partnership with the police, the Customs and Excise Division, the TT Bureau of Standards, the Chemistry Food and Drug Division and the Tobacco Control Unit. In 2021, Trade Minister Paula Gopee-Scoon disclosed that an estimated $90 million in tax revenue is lost through illegal imports.

On December 23, customs officers found 500 cases of the illicit Carnival Red brand and Blue king-size cigarettes and 6,000 bottles of Absolut Vodka hidden among household items. The items had a street value of an estimated $9 million. The find was made after officers and security guards received information about a 40-foot container at the examination station at Point Lisas, Couva.

Also at the courier bond in Piarco on December 20, while doing routine examinations, customs officers found four kilogrammes of marijuana hidden in a portable speaker box. The marijuana had an estimated street value of $1.2 million.

International security consultant Malcolm Brian Reid told Business Day that with the rising cost of living, owing to several fiscal shocks including a possible recession, some people may turn to crime just to survive. This would put an added strain on the security systems used to protect businesses and owners. He said that the US’ financial issues would have a ripple effect around the world, in particular developing countries such as TT.

“We have a recession coming in the US, the door is open to recession right now, so that is an economic factor,” he said. “Rising inflation and the cost of living going up (in the US) will now have a domino effect across the world. Even if the US comes out of this recession, other countries affected would be in recession for much longer, especially developing nations.”

He said that with the rise in the cost of living, crime will increase and with the increase in crime there will also be an increase in security costs. He said businesses with inventory or those that conduct on-site financial transactions will be among those targeted the most by bandits. Businesses that do not have on-site transactions would have to worry about cyberattacks and ransomware.

Tunapuna Business Chamber president Ramon Gregorio said it consistently monitors crime and how it affects its members.

“The cost of living and its increase is well documented on a national level so we have taken note of that,” he said. “We have also looked at some of the concessions provided by the Government, but we know that it is external to some of the shocks that TT cannot really control. As a chamber we continue to make recommendations to the Government asking whatever relief they could provide to citizens that they do so, but we are also mindful of the wider global impacts that are out of the Government’s hands.”

However, Government has provided billions-worth in relief over the past three years owing to the covid19 pandemic.

In 2021, Finance Minister Colm Imbert said over $5 billion was spent on covid19 inclusive of relief programmes, food card distributions and VAT returns. A further provision of $200 million for covid19 relief was allocated in the 2022 budget.

Also, the impact of climate change has been an additional social cost. In December, more than $140 million was allocated for flood relief to areas affected by heavy rains and flooding in November.

With these social issues, the country is further burdened by crime.

In order to address this meaningfully, Reid said that TT must develop a culture of security. Growing up in south Trinidad, Reid said he was accustomed to seeing neighbours looking out for each other. He said that has since changed.

“You just don’t see it any more,” he lamented.

Gregorio said he was hopeful that the crime rate reduces next year.

“No one wants to expect a higher crime rate than 600-plus murders. That rate of murders is just unimaginable for a small island state. But as a chamber we are hoping that this year doesn’t repeat itself and we have much less crime.”