MTS to undergo forensic audit

A forensic audit of the National Maintenance Training & Security Company Ltd (MTS) will be undertaken following concerns raised during a public inquiry between company officials and members of the Parliament's State Enterprises joint select committee at the Cabildo Building, Port of Spain, on January 26.

It was also revealed that the company is owed approximately $850 million from the government and various state agencies.

The inquiry was briefly adjourned when an alarm went off in the building. The issue of firearm user certificates for MTS security guards was being discussed before this happened.

When the inquiry resumed, JSC chairman, Independent Senator Anthony Vieira, SC, thanked the police for their quick action in addressing the matter which caused the alarm. He did not say what the matter was.

MTS marketing manager Sherwin Gosine said there have been challenges getting these certificates over the last two years. "It has to be done in conjunction with with TTPS (TT Police Service) firearms department."

Minister in the Ministry of Housing Anil Roberts claimed the reason for the delay was the former PNM government was waging war on licensed firearm holders.

"Hopefully this will not continue because safety and security is a priority of this Prime Minister," he said.

In response to questions from Roberts, MTS CEO Brian Bachan said the company's current debt is approximately $850 million.

Questioned further by Arouca/Lopinot MP Marvin Gonzales, Bachan said this debt was mainly from government and other state entities. These include: Educuation Ministry ($450 million), Judiciary ($180 million), Sport Company ($30 million), Board of Inland Revenue ($25 million) and the police ($25 million).

Public Utilities Ministry Permanent Secretary Neela Ram-Atwaroo said the ministry has been meeting with the Education and Finance Ministries with respect to collection of these outstanding monies. She identified one of the challenges in this area is differences in the invoices submitted to different ministries

Ram-Atwaroo said the Finance Ministry has given the assurance there will be an additional allocation "to treat with the arrears."

In response to other questions from Roberts, Gosine said the company incurred expenditures of $250,000 for grass-cutting services. Roberts was surprised by this statement.

"I cannot fathom $250,000 to cut grass in Couva."

Gosine said the grass at schools are cut twice in the rainy season and once in the dry season.

MTS chairman Adrian Barran said the new board encountered a series of challenges at the company when it assumed office last year.

The company, he continued, was "under considerable strain" and in need of a new direction.

In relation to the issues raised by Bachan, Barran said a forensic audit will soon be undertaken at MTS. In response to questions from the committee chairman, Barran told JSC members the company is in the process of selecting someone to do the audit.

He hoped the audit would begin towards the end of January or early February and be completed within six to eight months.

He identified advance payments to certain contractors and questions over quality of work done as some of the issues which the audit would examine.

Barran added that if the audit uncovers evidence of wrongdoing, that evidence "will be forwarded to the appropriate authorities."

Other strategies to be employed, he continued, included contractual enforcement and financial recovery.

Gonzales observed that under the State Enterprises Performance Manual, MTS would need to seek permission from the Finance Ministry before undertaking legal action against any state entity.

Vieira added the manual is not a force of law, "it is just a guideline."

He said, "The Companies Act would suggest, they have a higher duty to the company. So this is the difficulty that all of these state enterprises find themselves in."

He said upon assuming office, the board was given instructions by the Prime Minister to ensure there is greater efficiency in MTS' operations. The company, Barran continued, is currently working on a strategic plan 2026-2030 to achieve this objective. "We are in the process of recalibrating the process."

Barran said since the company was formed in 1979, it has provided yeoman service to many different entities.

"The relevance of this institution is not in question." He added the MTS board understands the need to improve the level of service of the company.

Roberts said he empathised with the MTS board for having to solve problems which were not of its doing. He claimed while the PNM was in government, Gonzales (who was public utilities minister) was reluctant to make any appeals to former finance minister Colm Imbert.

In response, Gonzales said, "I understand my duty as a member of this committee. I am quite capable of playing the politics"

He added JSCs are a forum where parliamentarians can "tackle the issues of the State in a very transparent, apolitical atmosphere, so we can make recommendations, so the citizens who are listening can benefit from our discussion."

Vieira acknowledged Gonzales and Roberts' points.

But he said serious issues were raised during the inquiry about MTS' operations.

"Politics aside. This has to be addressed."

Gonzales repeated his concern about the claims Roberts made earlier about him.

He said he expected all members of any JSC to conduct themselves in a proper manner.

"Here is not doubles and coffee."