- NEWSDAY.CO.TT - A la Une - 26/Jun 16:02

Dookeran: Was there 'policy tension' between Central Bank, Finance Ministry?

FORMER Central Bank governor Winston Dookeran has asked whether there is "policy tension" between the Central Bank and the Finance Ministry. He made this comment in relation to the dismissal of Central Bank governor Dr Alvin Hilaire by President Christine Kangaloo, acting on the advice of the Cabinet on June 24. Former finance minister Larry Howai was appointed as the Central Bank's new governor on June 25. In a statement that day, Dookeran said, "In good governance, there is always ‘policy tension’ between the Central Bank and the Ministry of Finance as each body has different mandates in economic management – fiscal and monetary." In recent times, he continued, "I read that the new government had commissioned a ministerial team to examine the equitable distribution of foreign exchange (forex)." On May 15, Prime Minister Kamla Persad-Bissessar said Finance Minister Davendranath Tancoo, Planning Minister Dr Kennedy Swaratsingh and Trade Minister Satyakama Maharaj will compile a report on foreign exchange (forex) distribution and leakages over the last decade. She said the contents of this report will be made public. Dookeran said, "This report was expected to be laid in Parliament and may form the basis for policy change and transparency within the legal confines of the existing law." He added, "I imagine this report may lay the foundation for decision making." Dookeran, who was Central Bank governor from 1997-2002 (serving under successive UNC and PNM governments during that period), described Hilaire as a professional who is highly regarded. "So I assume the ‘ policy tension’ I referred to earlier would have been discussed between himself, as governor and the minister of finance. We await the promised report for clarity." Dookeran was also finance minister from May 28, 2010-June 22, 2012. Howai succeeded him from June 25, 2012-June 17, 2015. The Office of the President (OTP) neither confirmed nor denied the report about Hillaire. In a statement, the OTP said, "In the case of the appointment and revocation of the governor of the Central Bank , the President acts in accordance with the advice of the Cabinet." The legislative authority for the appointment and revocation of the appointment of a Central Bank Governor, the OTP continued, is provided for in Sections 7 and 12 of the Central Bank Act. But the OTP added these sections must be read and applied alongside Section 80 of the Constitution. The OTP said all other queries with respect to this matter should be referred to the Office of the Prime Minister. Persad-Bissessar, Tancoo, Hilaire and Howai were unavailable for comment. The report about Hilaire comes two weeks after Persad-Bissessar instructed Tancoo to give the Auditor General authority to audit the accounts of the Central Bank under the Central Bank Act. She did so in a statement in the House of Representatives on June 13. Persad-Bissessar said Section 52 of the Act states the bank's accounts of the bank shall be audited annually by auditors who shall be appointed by the bank each year with the approval of the finance minister. She added notwithstanding this section, the minister may at any time require the Auditor General to examine and report the accounts of the bank, and the bank shall provide the Auditor General with all necessary and appropriate facilities for an examination. “The Minister of Finance is instructed and advised to utilise Section 52 to send in the Auditor General into the Central Bank. Let’s find out where the money of the people of Trinidad and Tobago is.” Persad-Bissessar said the Auditor General could not express an opinion on the public accounts of TT for 2024, similar to the previous year. Persad-Bissessar said the Auditor General gave several reasons for not being able to give an opinion, including the inability to examine the Electronic Cheque Clearing System and GoAnywhere Platform managed by the Central Bank. “The permanent secretary, Ministry of Finance gave authorisation for the examination of the ‘Electronic Cheque Clearing System and the GoAnywhere Platform’ managed by the Central Bank related to government’s transactions. "Despite the scope of the examination being confined to government-issued cheques, the Central Bank further restricted the scope which frustrated the entire examination process. Approval by the Central Bank to conduct the examination was not given. Hence the examination was not conducted.” Persad-Bissessar said the Auditor General said those restrictions meant she was not able to gain assurance on the reliability of data from the platform since its implementation. In December 2015, the contract of then Central Bank governor Jwala Rambarran was terminated on the advice of then finance minister Colm Imbert. Kangaloo, who was Senate president in 2015, was acting president when Rambarran was fired. Rambarran was appointed governor in July 2012 under the then UNC-led People's Partnership coalition government. His dismissal came shortly after he publicly announced Trinidad and Tobago was in a recession and disclosed the names of some of the country's largest forex users. In June 2022, a High Court judge ruled that Rambarran’s termination was “seriously flawed” and violated his constitutional rights to a fair hearing and protection of the law. The state challenged that ruling. In February, the Court of Appeal upheld the previous High Court decision that Rambarran's termination breached his constitutional rights. CENTRAL BANK ACT: Section 7: (1) The governor, deputy governors and the other directors shall be appointed by the President by instrument in writing. (2) The governor shall be appointed for a term of five years. (3) The term of office of a deputy governor shall be for such period as the President may fix in the instrument of appointment. (4) The ordinary directors and the public service directors shall be appointed for a term of three years. (5) All directors shall be eligible for reappointment Section 12: The President may terminate the appointment of the governor or a deputy governor or any director if the governor, deputy governor or any director— (a) becomes of unsound mind or incapable of carrying out his duties. (b) becomes bankrupt or compounds with, or suspends payment to, his creditors (c) is convicted and sentenced to a term of imprisonment (d) is convicted of any offence involving dishonesty (e) is guilty of misconduct in relation to his duties (f) is absent, except on leave granted by the Board, from all meetings of the Board held during two consecutive months or during any three months in any period of twelve months (fa) fails to comply with section 16(1) (fb) contravenes any provision of any prescribed Code of Ethics in respect of which he is liable to termination of his appointment (fc) becomes disqualified for holding office by virtue of section 9 or (g) fails to carry out any of the duties or functions conferred or imposed on him under this Act. Section 16: (1) Any member of the Board, whose interest is likely to be affected whether directly or indirectly by a decision of the Board on any matter whatsoever, shall disclose the nature of his interest at the first meeting of the Board at which he is present after the relevant facts have come to his knowledge. THE CONSTITUTION: Section 80: (1) In the exercise of his functions under this Constitution or any other law, the President shall act in accordance with the advice of the Cabinet or a Minister acting under the general authority of the Cabinet, except in cases where other provision is made by this Constitution or such other law, and, without prejudice to the generality of this exception, in cases where by this Constitution or such other law he is required to act: (a) in his discretion; (b) after consultation with any person or authority other than the Cabinet; or (c) in accordance with the advice of any person or authority other than the Cabinet. 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