Archive for category Corruption

The Whistleblower Proposals

The Whistleblower Protection Bill 2015 was submitted to Parliament on Friday 13th November 2015. Those proposals will create legal protections for persons making reports of wrongdoing in both public and private bodies. A Joint Select Committee has been established to examine these proposals and report back to the Parliament no later than 22nd January 2016, so this is the time to consider these and make formal comments.

According to the Association of Certified Fraud Examiners 2014 Global Fraud Study, whistleblowing is the best method of detecting fraud –

“…Tips are consistently and by far the most common detection method. Over 40% of all cases were detected by a tip — more than twice the rate of any other detection method. Employees accounted for nearly half of all tips that led to the discovery of fraud…” (pg 4)

Given the levels of improper and illegal conduct with which our society is beset, these proposals are long overdue and I welcome them. That said, it is important to examine the detailed provisions and exemptions, together with the introductory statement made by Attorney General, Faris Al Rawi. Read the rest of this entry »

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TEDx Talks: Is it only White People who can be racist?

In this provocative talk, Afra Raymond takes a deeper look at race and racism. He successfully uses the talk to place a new perspective on how we think about race and its role in corruption. TEDxPortofSpain. 14 October 2015.

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CL Financial bailout – Finding the Facts

Min of FInance, Colm Imbert, MP

Min of FInance, Colm Imbert, MP

On 10 August 2015, the then Minister of Finance and the Economy appealed the High Court’s 22 July 2015 judgment which ordered the release of the details on the CL Financial bailout. My protest at this action was published in this space as ‘Studied Disdain‘. Since then, the General Election of 7 September 2015 brought about a change of government – the People’s Partnership is now the official Opposition and the People’s National Movement is once again the government.

It is essential to now determine the areas in which we can expect changes in policy and the areas in which we can expect business as usual. Those perspectives informed my letter of 15 September 2015 to the new Minister of Finance & the Economy, Colm Imbert.

Imbert asked for more time to consider my request, so I consented to his application to the Appeal Court – the next hearing in this matter is therefore set for 25th January 2016.

My exchanges thus far with Imbert have been straightforward ones, but it is always important for us to be vigilant and aware.

15th September 2015
By email & hand
Mr Colm Imbert MP,
Minister of Finance & the Economy,
Ministry of Finance & the Economy,
8th Floor,
Eric Williams Financial Complex,
Brian Lara Promenade,
Port-of-Spain
Honourable Minister,
Request for Official Publication of Suppressed Details relevant to CL Financial bailout
The controversial CLF bailout is the largest payout of Public Money on a single project/issue in the history of our Republic. The entire operation has been conducted in conditions of complete secrecy with all the usual standards on transparency and accountability being ignored by the responsible public officials – a timeline showing the various official versions of the cost of this bailout is attached for ease of reference.
The PNM conducted its successful campaign for the recently-concluded 2015 General Elections on the commendable principles of Accountability, Transparency and Good Governance. I have been campaigning for the restoration of those standards to this CL Financial bailout and have gone so far as to sue the Ministry of Finance (CV 2013-00162) for the details of the bailout, at my own expense and in the Public Interest.

The High Court ruled in my favour on 22 July 2015 and ordered the publication of the requested details, but on 10th August 2015 the Ministry of Finance appealed that ruling (P201 – 2015). Our next hearing is set for Monday 19th October 2015, to argue the State’s application for extension of the stay of execution. It is my intention to strongly oppose that application for any extension of the stay of execution.I am formally requesting that you take the necessary actions to restore the Public Interest in the Accountability, Transparency and Good Governance in relation to this vast, opaque expenditure of Public Money.In specific terms, I am requesting three actions from you –

  1. Formal withdrawal of the State’s appeal in this matter;
  2. Urgent publication of the details of the CL Financial bailout to include the audited accounts for CL Financial 2008-2014 or any interim, preliminary, draft or unaudited statements of CL Financial Limited; the full details of the official briefing to Independent Senators in September 2011 preparatory to the debate on The Central Bank (Amendment) Bill and The Purchase of Rights and Validation Bill 2011 (to include copies of all slides. Power-Point slides, tables, charts, schedules, text or other information which comprised that presentation) and details of the funds paid in the bailout to include – a full list of creditors as at the commencement date of the bailout and at the date of my FoIA request (8th May 2012); the names of the EFPA holders; the dates of the repayments of the EFPA holders, together with details of the amounts received; the identities of all those who have received public money in the conduct of this exercise, together with details of the amounts received. These details are no doubt electronically stored, so I would request that the answers be provided in a searchable database;
  3. Refund of my reasonable legal fees in this matter – The High Court awarded 70% of my costs.

In anticipation of objections to disclosing these details on the grounds of the right of private investors to confidentiality, my response would be to point out that all other recipients of Public Funds are liable to having detailed information disclosed, upon request and without notice. A request for information on the details of a Public contract would include the identities of the parties; the contract itself; the dates and amounts of payments. Such requests are routinely handled without resort to attorneys or even the Courts, even if administrative delay is also a reality. That is the common and accepted practice in relation to all Public contracts and payments, which is fortified by the provisions of the Freedom of Information Act, under which my litigation was successful. There is no case made for any special status of financial investors to enjoy rights of confidentiality which are not available to other recipients of Public Funds.

The only way for the required level of transparency and accountability to be achieved is by the responsible officials publishing all the details of all the payments of Public Money.

The equation for the reality check is –

         Expenditure of Public Money
Minus    Transparency
Minus    Accountability
Equals   CORRUPTION    

I can appreciate that the impending 2016 budget would likely demand your attention for the next three weeks. I would like to know the State’s position in this matter before the next Appeal Court hearing on Monday 19th October 2015, so I would appreciate your reply by Friday 9th October 2015.

This request was made in the Public Interest, so I trust that it will receive your positive attention.

Yours sincerely,
……………………………………………….
Afra Raymond

c.c. – Dr. Keith Rowley MP, Prime Minister,
Mr. Faris Al Rawi MP, Attorney General

http://www.afraraymond.wordpress.com

How much has the CL Financial bailout cost?’
TIMELINE

DATE

EVENT

SOURCE

with live hyperlinks

30th January 2009

Bailout announced at an estimated cost of $5.0 Billion

CBTT Statement of 13th February 2009

12th June 2009

CL Financial Shareholders’ Agreement signed, which for the first time made it a priority to protect shareholders’ rights.

https://afraraymond.files.

– see Para ‘A’ of the Preamble at page two.

8th September 2010

Winston Dookeran’s first Budget Statement, in which he formally proposes to drastically reduce the rate of payout of Public Money in the bailout.

2011 Budget Statement 

pages eight through ten.

1st October 2010

Then PM confirms that $7.3 Bn had been spent and that a further $7.0 Bn needed to be spent (pg 31). The burning need for an explanation of where the $7.3 Bn went…(pgs 25-26)

Hansard for 1st October 2010 

pages 19 through 34.

3rd April 2012

Then Finance Minister Winston Dookeran confirms that $12 Bn had been spent.

Affidavit to High Court in Percy Farrell & Ors vs AG 

para 21.

1st October 2012

New Finance Minister Larry Howai confirms that $19.7 Bn had been spent, which is an additional $7.7 Bn in six months.

2013 Budget Statement 

page six.

17th May 2013

Formal confirmation of bailout cost “over $25 Bn

Formal Press Release from Office of the AG 

para eight.

2nd April 2014

Then Finance Minister Howai confirms bailout cost as – “… the cost to the country of the CL Financial bailout—the actual cash that has been put out—is approximately$20.8 billion...”

Hansard for Senate sitting of 2ndApril 2014 

page 35.

7th August 2015

Then Finance Minister Howai confirms bailout cost as ‘not quite $20 Bn‘.

CNMG interview

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Our Land – The Review

“…A small State such as Trinidad & Tobago must accord a very high priority to the judicious management and utilization of its land resources or perish. All elements of land policy must be designed to ensure that these finite resources are efficiently utilized and husbanded in such a manner as to serve the long term interests of the national community…”
—Conclusion of “A New Administration and Policy for Land” (19 November, 1992)

The PNM won national elections on 7 September 2015 by 23-18.

Two key themes emerged during the PNM’s successful campaign –

  1. Firstly, there was a strong emphasis on the critical need to restore proper standards of Accountability, Transparency and Good Governance;
  2. Secondly, a commitment was given to ‘keep the various promises made by the PP government’.

When one considers the various promises, policy changes and actions of the PP in relation to land and property, it seems clear to me that those two campaign commitments made by the PNM are entirely incompatible.

Our country has a very high population density and the previous Minister of Land and Marine Resources estimated that some 63% of our country’s land belongs to the State. It is therefore a cardinal State responsibility to properly manage those critical resources so that short and long term interests can be reconciled in a sustainable manner. The present situation is so serious and damaging to our collective interests that I am calling for a halt to any attempt to keep promises with respect to land and property while a fact-finding and policy review is conducted.

landpolicyThe opening quotation is from the National Land Policy 1992, which is now a virtually unknown document since its very existence is denied by all the relevant agencies. This Policy provides critical guidance for how this scarce resource should be best managed in the Public Interest.

The severe crisis now evident in relation to our State Lands resembles a ‘Tragedy of the Commons‘ in which this crucial resource which should offer long-term collective benefits is effectively abused by self-seeking individuals. The pattern of abuse is facilitated by gross mismanagement, in profitable partnership with deliberate obscurity in how the State Land system actually operates.

Food Security

foodplan-2012-15This remains elusive since in March 2012 the Ministry of Agriculture, Land & Marine Resources published its Food Production Action Plan 2012-2015. The major goal of that Action Plan was to halve the country’s annual $4.0 Billion food import bill. Yet in March 2014, the Food Production Minister, Senator Devant Maharaj, stated that the food import bill had been reduced by only 2% since 2010.

The significant reduction of our food import bill will require a flexible plan, with dedicated implementation and continuous monitoring. The one inescapable requirement is for farmers to have access to land of suitable quantity, quality and location. Without a good supply of land, no food security plan can succeed.

Land for the Landless

The proposed revisions to the State Lands Act 1998 were approved by the Lower House of Parliament on 3 June 2015 and withdrawn after the JCC raised certain objections. The proposed change in the ‘Land for the Landless’ policy were approved by Cabinet on 19 March 2015 with these main elements –

  • Occupation Date – Was moved from January 1998 to June 2014, which means many more persons would qualify.
  • Income Limits – Previously the maximum monthly family income was $8,000, this was now revised to $30,000.
  • Definition – the 1998 Act defined a landless person as one who was ‘disadvantaged’ according to the Ministry of Social Development, that word was deleted from the revised proposals.
  • Designated Areas – these were specified in an extensive list of over 400 areas covering the entire country.
  • The Numbers – The total number of persons identified was 250,000 and a commitment was given to regularise some 60,000 of those.

A policy which was originally intended to alleviate the plight of our poorest citizens has now effectively been extended to offer ‘Land for Everybody’. The existing commitment in respect of 60,000 lots will consume about 8,000 acres of land.

EMBD

embd logoThe EMBD website states that it is responsible for the development of the former Caroni lands – some 7,500 residential lots are being prepared for ex-Caroni workers as part of their retrenchment package, with a further 8,400 agricultural leases of 2-acre parcels reportedly being processed. That means about 940 acres are to be used for the residential lots, with at further 18,500 additional acres for the agricultural plots. The total land area to be used would be about 19,420 acres, which is about a quarter (26%) of the estimated area of the Caroni lands.

Caroni Lands

caroni1975_logo_smallCaroni Lands were leased to ex–Caroni workers as part of their retrenchment compensation – they were entitled to one residential lot and a two-acre parcel for food-crop farming. The use of those lands for those purposes was intended to be controlled by the restrictive covenants in those leases. For instance, the residential lots were to be developed by a residential building within three years and the agricultural lots were to be held by the ex-workers for food-crop farming. In the 2015 budget, the restriction on sale of those agricultural lands was removed (pg 14). In addition, Cabinet Minute 3093 of 6 November 2014 approved the removal of the restrictive covenants in the leases to ex-Caroni workers – both agricultural and residential. No restriction on sale and no requirement to build on the lots.

This is tantamount to the State entirely gifting the development and transactional rights to these lessees, with no effective means of ensuring the originally desired results.

Housing Development Corporation (HDC)

hdc-logoThe HDC sells new homes at heavily-subsided rates to middle-income families, subject to restrictive covenants which prohibit open-market sale within the first ten years. Under the terms of that clause, the owner of one of these homes is required to offer the property to the HDC at the original price. It now seems that the HDC has relinquished those restrictive covenants. I have seen several letters signed by the HDC which authorise the open-market sale of those homes within the ten-year embargo period. I am not aware of any policy decision which supports that pattern of approvals and none of the vendors I have spoken with have paid any penalties of profit-share to the HDC.

This is yet another example of the State or its agents abandoning its fundamental duty to properly manage the public property rights within its remit.

Property Tax

The proposed Property Tax would require a live, open-access database which would allow anyone to examine the details of any property in the country. Those details would include land area, building area, number of bedrooms/bathrooms and other facilities, transaction history, ownership and assessed taxes. One of the strongest sources of opposition to the Property Tax is persons who would wish to keep the details of their property holdings and dealings as secret as possible.

The new Property Tax system and the modern database is in fact a key element in unearthing the facts of our country’s property ownership and occupation.

Property Tax must therefore be a priority in this arena.

The unrealistic policy of homes with gardens consumes too much land and will jeopardise our country’s sustainable future.

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CL Financial Bailout – Studied Disdain

Sen the Hon. Larry Howai, Minister of Finance and the Economy

SIDEBAR: How much Public Money has been spent on this CL Financial bailout?

These are the official statements as to the actual cost of the bailout since 2012. It really resembles the ‘carefully cultivated confusion‘ which I deplored recently in relation to the Invader’s Bay fiasco.

  • 3 April 2012Affidavit of then Finance Minister, Winston Dookeran, which specifies the Public Money committed to this colossal bailout as –
    Para 21 (a) $5.0Bn already provided to CLICO;
             (b) $7.0Bn paid to holders of the EFPA and
    Para 22 $12.0Bn estimated as further funding to 
    be advanced.

    Dookeran is saying in April 2012 that $12 Billion had been paid and an estimated $12 Billion remained to be paid, which is a total of $24Bn in public money to be spent to satisfy the creditors of the CLF group.

  • 1 October 2012 – Senator Larry Howai, delivering his first Budget Statement, stated the cost of the CL Financial bailout at page six –
    …The cost to the national community has been substantial—an amount of $19.7 billion or 13.0 per cent of our current GDP; yet this expenditure was necessary and decisive for containing an economic and financial crisis…
    Howai is telling the Senate in October 2012, a mere six months after Dookeran’s Affidavit, that $19.7 Billion has been spent. If we follow this official account, which fixed the total spent in April 2012 at $12 Billion, an additional $7.7 Billion of Public Money was spent in six months. I continue to contest whether this bailout was at all necessary, but it was certainly an incredible rate of expenditure, that cannot be contested.
  • 4 May 2013 – In this newspaper, under the headline ‘$25b and counting – Cost to taxpayers of CLICO bailout and enquiry‘ –
    …However, Government’s intervention into the CLICO fiasco has cost taxpayers more than $25 billion
  • 17 May 2013 – UNCTT’s website contains a formal Press Release from the office of the then Attorney General, Anand Ramlogan SC –
    …It should be noted that efforts to stabilize and resuscitate CLICO have thus far cost taxpayers over $25 billion dollars…
  • 2 April 2014 – At the Senate sitting , Minister Howai stated at page 35 of Hansard
    …Mr. President, as you would perhaps be aware, the cost to the country of the CL Financial bailout—the actual cash that has been put out—is approximately $20.8 billion. This was done in an effort to preserve the stability of the economy of Trinidad and Tobago…
  • 7 August 2015 – I was therefore astonished to hear the Minister of Finance, Larry Howai, stating on CNMG TV, that the cost of this bailout is ‘not quite $20 Billion‘.

The first item, Dookeran’s April 2012 affidavit, is the one for which Howai is now being required by the Court to produce the details.

Some of my views on this, from last week

“…Well, this is the usual practice, in which the public right to know is subordinated to private, undisclosed interests…it seems to me at these moments that the job of the State’s attorneys is to shroud the entire indecent affair in ‘something resembling an important principle’, but ultimately the effort is intended to wear me down and let the issue fade from collective memory…I am continuing to fight this very hard…what we have here is the ultimate collapse of our Republic by Public Officials who are sworn to uphold the Public Interest without fear or favour, but end up exposed as serving the toxic interests of the financial robber barons…I am reminded of Simon Johnson’s ‘The Quiet Coup‘ published in The Atlantic of May 2009…in T&T, we too, had a quiet coup…”

As the Season of Reflection and the impending election flow together, there is a bitter brew now being offered in relation to the CL Financial bailout.

Disdain is an attitude which denotes someone or something as being unworthy of proper consideration. I think that in relation to our collective interests in the CL Financial matter, we are now being subjected to Larry Howai’s ‘studied disdain’ in relation to our collective interests in the CL Financial matter.

On Tuesday 10 August 2015, the State announced its decision to appeal the recent High Court ruling that the details of the CL Financial bailout must be published. That appeal was also filed that day and the State applied to have the stay of execution extended to the end of the appeal process – the latter issue will be heard on 19 October 2015.

The Minister of Finance & the Economy is the main public official with responsibility to account for how Public Money is spent. The Public Money being used to bailout the CL Financial creditors is our money. The Minister of Finance therefore has a fundamental duty to publicly account for how our money has been spent.

Our collective interests in this matter, of exactly how $25 Billion of our dollars were spent, far outweigh the undisclosed interests on whose behalf the Minister is now appealing.

This appeal is against every one of the orders made in the High Court judgment of 22 July 2015 and therefore represents an utter abdication of the fundamental duties of the Minister of Finance and the Economy.

Our collective interests could benefit from the unintended juxtaposition of national elections, the apparent halt of USD sales by the country’s leading bank and the hostility of the Minister of Finance to the truth. These are rare moments in which we might gain insight and regain fundamental rights, but we have to be aware of what is at stake.

The Ministry’s Press Release deserves stern scrutiny, so these are my points. Read the rest of this entry »

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VIDEO: Good Morning T&T – 7 August 2015

Afra Raymond sits with host, Larry Lumsden on the Good Morning T&T television show to discuss his recent High Court victory over the Minister of Finance to get accounting details on the CL Financial bailout. Video courtesy CNMG

  • Programme Air Date: Friday 7 August 2015
  • Programme Length: 0:17:13

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Facing the Facts

Two important laws were partially-proclaimed by the President at the end of July –

  1. The Public Procurement and Disposal of Public Property Act, which is intended to control transactions in Public Money, and the
  2. Planning & Facilitation of Development Act, which is intended to provide for effective control of physical development.

Both those laws would be critical in controlling the worst excesses in terms of waste and theft of Public Money as well as the scourge of unplanned development. There is still substantial work to be done to properly implement those new laws, neither of which will actually come into effect before elections on 7 September, so our stern attention will therefore be essential.

The campaigning and committee-work to achieve those new laws has been demanding, so it Is important to re-state our fundamental concern as to the sheer hostility of high-level public officials to the truth. This is a fundamental point since the new laws create modern, transparent and participative processes. If the key public officials maintain their hostility to the truth, we would be entering a period of serious struggles to implement these new laws.

These examples speak to the official hostility to the truth with which we are beset.
Read the rest of this entry »

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