Foreign exchange cartel – PM demands report

PRIME Minister Kamla Persad-Bissessar says government will compile a report on foreign exchange (forex) distribution and leakages over the last decade. The contents of this report will be made public.

She made this disclosure at the post-Cabinet news conference at the Red House, Port of Spain on Thursday May 15. Finance Minister Davendranath Tancoo, Planning Minister Kennedy Swaratsingh and Trade Minister Satyakama Maharaj have been given this assignment by the Cabinet.

Persad-Bissessar reminded reporters how such spoke about forex distribution during the election campaign. "This is a serious matter. We need to know where the forex went, to who it went. to why it went and how it was deployed those reports will come to us and we will share them with you."

Persad-Bissessar said, "This report will be made public to identify the main users, the main facilitators of this main distribution and explain to the public how his entire forex distribution cartel and conspiracy between certain operatives and businesses were functioning."

Before the April 28 general election, then prime minister Stuart Young and then finance minister Vishnu Dhanpaul held meetings with the Central Bank, heads of commercial banks and the Bankers Association on forex matters.

At a post-Cabinet news conference at Whitehall on March 27, Young said,"We had very open and frank conversation. I made it known that this government was concerned about the average citizen. Why is it that the average citizen cannot go to the bank and get access to a reasonable amount of US forex and how is it being allocated."

Young said government accepted the supply of forex is less than it was in previous years. "Some of the items that came up for discussions is the gray market that exists out there. Some of the illegal activity that may be taking place out there that affects forex."

He said, "Another matter we discussed was the (commercial) bank charges and this is something that is not unique to Trinidad and Tobago "

Young said, "Bank charges are affecting all of us as citizens." He repeated, "One of the main people that are affected by this are average citizens because they feel the pinch the most." Young said, "I made it very clear to the bankers what our views are on it it."

He added the bankers' representatives identified investment in infrastructure and upgrade of software as contributing factors to these charges. Young said, 'Well I said okay, as a citizen I see that you are closing down retail banking and shrinking your retail banking services which means a reduction in cost."

He added banks are moving from paper to digital transactions which also refers to cost reduction by the banks. Young asked why was the efficiency of online services not leading to a reduction in bank charges to customers. He asked the Central Bank, Bankers Association and commercial banks to continue their conversation with Dhanpaul. and the Finance Ministry.

CLICO REPORT TO BE MADE PUBLIC

Persad-Bissessar also announced that government will lay the report of the Commission of Enquiry (CoE) into Clico in the Parliament in the coming months.

She claimed it was intolerable that the PNM "hid that report from the Parliament and therefore the people of TT."

Persad-Bissessar said, "That was one of the greatest economic meltdowns that we have had."

She added the population deserves to know the details in the report and what actions can be taken to prevent a repeat of this scandal.

In 2008, Clico was a wholly owned subsidiary of CL Financial Ltd. Effective February 13, 2009, the Central Bank assumed control of the company, exercising its emergency powers under section 44(D) of the Central Bank Act.

On September 10, 2009, the Government injected additional capital into Clico by the acquisition of ordinary shares and preference shares.

This transaction resulted in the government's ownership of 49 per cent of the share capital of the Clico.

In 2018, CL Financial Ltd entered involuntary liquidation and in 2022, the Central Bank relinquished its emergency control of Clico

Persad-Bissessar repeated that Tancoo, Swaratsingh and Maharaj are working to find ways to fill a $4.42 billion deficit TT is facing this month.

She disclosed Swaratsingh is now in Washington.DC, meeting with the Inter-American Development Bank and the World Bank to source funding for TT. "We are well aware that borrowing is a short term strategy."

Persad-Bissessar repeated that none of the country's economic challenges took the UNC by surprise after it won the election.

After repeating plans to scrap the TT Revenue Authority and property tax legislation, Persad-Bissessar said the date for the Mid-Year Review of the Economy will be announced at the ceremonial opening of Parliament on May 23.

She assured citizens, "Everything will be all right with regard to our country's finances."