Ramsaran writes Kamla for help on forex distribution issue

BEVERAGE producer Rajnanan Ramsaran has now appealed for parliamentary intervention and public advocacy on the foreign exchange (forex) distribution issues impacting local businesses.

Ramsaran, the founder of Ramsaran Dairy Products, appealed to Opposition Leader Kamla Persad-Bissessar in a letter on October 28.

His request for intervention followed similar requests he made last week to the Central Bank governor, the Auditor General and the managing director of the International Monetary Fund (IMF).

Ramsaran's letters also followed his judicial review challenge over the inability to source foreign exchange to import paper-based cartons for a new water product. The businessman has complained that forex was not equally distributed.

In his letter to Persad-Bissessar, Ramsaran explained the rationale behind the judicial review claim which, he said, seeks “clarity on the forex distribution policies, processes and records, hoping to bring greater transparency to the system and push for a more equitable distribution framework.

“Unfortunately, the ministry’s response was that no such documentation exists, deepening my concern and frustration with the current state of affairs,” his letter to Persad-Bissessar said.

Ramsaran said he also reached out to MP Davendranath Tancoo, the opposition’s representative on the Public Accounts Committee (PAC), to take action through this parliamentary committee “to investigate and review the Ministry of Finance's actions regarding forex distribution, ensuring accountability in the management of public resources.”

Ramsaran said, “The PAC's oversight could provide essential transparency and shed light on whether public funds and forex allocations are being equitably distributed and properly recorded.”

“I am hopeful that a thorough investigation can bring about the transparency needed to resolve this issue for the benefit of all affected businesses in Trinidad and Tobago.”

Ramsaran said raising the issue in the Parliament would bring transparency as direct questions to the Finance Ministry could highlight the deficiencies that affect businesses.

He also opined that a “focused inquiry” into forex distribution practices could bring scrutiny to the ministry and Central Bank on forex allocations.

“Trinidad and Tobago's status as an IMF member underscores the importance of documented forex policies.

“Your office's engagement could reinforce the concerns outlined in my IMF letter and possibly prompt further review or support from international organisations.”

Ramsaran also suggested the Opposition propose amendments to existing laws for forex distribution and meet with the business sector to develop “constructive, actionable solutions.”

To his letter to the Opposition Leader, Ramsaran attached his freedom of information request on the policies that govern the distribution of forex, the ministry’s response, affidavits filed in his lawsuit and his letters to the Central Bank, IMF and the Auditor General.

In his FOI request, he had complained that some companies in the industry appeared to have “liberal access” to forex “while others are being unjustly denied equal and fair treatment.” Ramsaran provided examples.

He also complained that while agents and redistributors “only drain our nation’s foreign exchange reserves and limit local growth and development,” local manufacturers’ investments and revenue circulated within TT.

“In that context, we argue it actually may be better to revise the current policy to consider investment growth and local product development.” Ramsaran had been told by the ministry the documents he wanted could not be supplied because they “do not exist.”

He had asked for documents relating to forex allocation policies, monitoring and reporting mechanisms, audit reports, historical data, total foreign exchange allocations to commercial banks from 2015 to 2023 and the actions of the Central Bank in response to customers denied forex.

The ministry’s information specialist, Joann Balgobin, in her affidavit, said it appeared the documents requested did not fall in the ministry’s remit but that of the Central Bank.

In his letter to Central Bank Governor Dr Alvin Hilaire, Ramsaran said, “I believe the information must exist since it is critical to ensure compliance with legislation, develop policies to increase economic growth and calculate our GDP.”

He added, “Would we not need this information to comply with IMF reporting requirements?”

He called on the governor to clarify the bank's position on the existence of the information he has asked for and why the data is not being kept.

In his letter to Auditor General Jaiwantee Ramdass, Ramsaran called on her office to engage in an immediate investigation since, he said, the absence of data “undermines both local governance frameworks, such as the Exchequer and Audit Act, and international obligations.”

“If these documents indeed do not exist, it would suggest a severe failure in corporate governance and accountability, which threatens the country's compliance with IMF standards and other international financial obligations.

In his letter to the IMF’s managing director, Ramsaran said he was compelled to raise his concerns.

“Currently there is an extreme shortage of forex at the detriment of the business community.”

Ramsaran said, “As a member of the International Monetary Fund (IMF), Trinidad and Tobago is obligated to uphold principles of good governance, transparency, and economic management.

“The ministry's response indicates a failure to meet these obligations, potentially breaching IMF reporting requirements.

“From my perspective, there appears to be an unfair distribution of what little forex that is available with no equality nor equity among the business community and by extension the citizenship of Trinidad and Tobago."