THA GOES AFTER GOVERNMENT FOR $166m – Augustine: Tobago owed unpaid budget allocations since 2017

CHIEF SECRETARY Farley Augustine says his administration is taking legal action to get some $166.4 million which he claims the government owes the Tobago House of Assembly (THA) in approved parliamentary allocations over the past few years.

The THA is also seeking legal action to ensure that governments give the assembly an annual budget allocation commensurate with its development agenda.

Augustine made the declaration as he moved a motion in the Assembly Legislature to re-prioritise the THA’s 2023-2024 budget allocation on Thursday..

He said, “Madam presiding officer (Abby Taylor), notwithstanding the public utterances from the Minister of Finance (Colm Imbert) and his Tobagonian colleagues (MPs Shamfa Cudjoe and Ayanna Webster-Roy) in the Parliament, the calculations reveal that the THA is owed a total of $166.4 million in approved parliamentary allocation that has not been transferred to the THA.”

In the Tobago budget in June, the THA requested $4.54 billion from central government to manage its affairs over the next year but only received $2.585 billion in the national budget on September.

Exactly one year ago, on November 24, 2022, Augustine, at a plenary sitting, had accused central government of not disbursing the THA’s full fiscal allocation from the national budget over the past five years.

On that occasion, he claimed, the THA had been consistently receiving shortfalls, which amounted to $138,925,658.

Augustine also said, then, that he had asked staff at the division to do a reconciliation and verification on the releases of the parliamentary allocation of the THA for fiscal years 2016-2022.

Saying the exercise was an eye-opener, he claimed shortfalls were reported.

For example, Augustine claimed for fiscal 2017-2018, the shortfall was $32.8 million and for 2018-2019, $16.285 million.

On Thursday, Augustine, who is also the Secretary of Finance and the Economy, revealed the overall sum of money owed to the THA was actually higher than what he was initially told.

He added his administration had spoken to Imbert on several occasions about the issue to no avail.

“My administration has been having discussions with the Minister of Finance on this matter over the last two years without any material success. Madam Presiding Officer, the time for futile talking has expired.

“We are now at an advanced stage in our preparation for legal action and preparations of complaints to invoke the jurisdiction of the Dispute Resolution Commission (DRC) provided for under section 56 of the THA Act 40 of 1996.”

He said Section 56 of the Act provides for the establishment of the DRC to resolve disputes between the THA and the central government on budgetary allocations to the assembly and matters in connection therewith.

Augustine said, since that time, the THA had consistently been getting allocations reflecting 4.03 per cent of the national budget – the lower end of the DRC’s recommendation – despite the island’s development goals.

“Madam Presiding Officer, the only ruling of the DRC was given since 2001, some 22 years. It was never intended to last forever. So much has changed since this ruling, population size, Tobago’s socio-economic conditions, among others.

“But successive central governments have chosen to disregard these changes and to slavishly follow it notwithstanding the fact that the ruling recommended and it was were accepted by the Parliament in 2001, that the percentage of 4.03 to 6.9 per cent be reviewed from year to year in light of prevailing circumstances.”

Additionally, he said Section 43 of the THA Act stipulates that the “Cabinet must give due consideration to the financial and developmental needs of Tobago and to allocate financial resources to Tobago as fairly as is practicable.”

Augustine said in determining what is fair and practicable, the act said consideration should be given to the physical separation of Tobago from Trinidad by sea, Tobago’s isolation from the principal national growth centres, the island’s restricted opportunities for employment and career fulfilment and its status as being far removed from the multiplying effects of expenditure and investments.

He said the DRC also considered that the cost of living in Tobago is higher than that of Trinidad and that major large scale developments were are needed to ensure the transformation of the island’s economy.

“What is interestingly interesting is that since 2010, successive governments have taken legislations to accord internal self- government to Tobagonians to parliaments. They all proposed significantly higher percentage shares than 4.03 per cent which they deceitfully continue to allocate to the THA up to today, incredibly incredible.

“In other words, in all of the bills between 2010 and present, presented to the Parliament, the central government proposed significantly higher percentages. But law is required to give Tobago a greater percentage because the recommendation goes up to 6.9 per cent.”