Tancoo – PNM forcing T&T into the abyss of debt
Yesterday, I called on the Central Bank to explain the sudden and confusing policy decision earlier this week to release nearly $4 billion into domestic circulation. Today, I am convinced that the only reason for the Central Bank lowering the reserve requirement is because the Rowley-led Government plans to borrow even more on the local market.
So says Opposition Shadow on Finance, MP Dave Tancoo, who is putting citizens on notice of the Government’s apparent plot to bankrupt the country for good. “They are already borrowing and have signed agreements over the last three (3) months, allowing them to borrow more than US$1.2 billion over and above the already massive foreign debt, which they need to create the illusion of our economy being afloat. Over the last month, the Central Bank has switched from saying the country has adequate liquidity to facilitating the entry of approximately $4 billion in available cash into the financial system.”
Tancoo says that these recent revelations by the Central Bank have raised substantial concerns about the financial status of Trinidad & Tobago’s economy and the continued secrecy of the PNM Government in the financial affairs of the State.
“This seems to have become necessary because of new borrowing by the Government via State Enterprises to the value of over $1.1 Billion within a 9-month period. When this is added to the pre-existing borrowing by these State Enterprises, the indebtedness of state enterprises would be immense. All of this would have been clearly authorized by Finance Minister Colm Imbert, whose signature would have been required for approval.”
The Oropouche West MP says that while it is clear that these State entities (all run by PNM appointed boards of directors) are entitled to borrow, citizens remain unaware of exactly what these funds are being used for, and how exactly these State Enterprises intend to repay this massive debt.
“Citizens must remember that under the PNM, a PNM board of directors borrowed billions to invest in three ill-conceived projects under Petrotrin, none of which were completed; all experienced massive cost overruns, were mired in controversy and corruption and for which not a single soul has been held accountable.
In fact, the employees and taxpaying citizens have had to bear the brunt of the PNM-appointed board’s recklessness in decision-making and free-spending of our taxpayers’ dollars. We are still reeling from the financial, social and economic impact of those horrendous decisions while some political operatives benefitted from those billions in their accounts. Taxpayers need to pay close attention and demand accountability for the billions being borrowed without transparency and public justification by these State Enterprises.”
In addition to borrowing through State Enterprises, Tancoo said that the Government recently admitted in parliament, in response to questions raised by the MP himself, that agreements have been signed to facilitate additional borrowing of upwards of US$1.2 billion on the foreign market and has already shown a willingness to raid the national savings in the HSF .
“After 9 years of the PNM, no new major revenue stream has been created. Instead the PNM policies led to the closure of several companies including Petrotrin, Arcelor Mittal, the imminent closure of Atlas Methanol and other companies which generated foreign exchange, jobs and supported the domestic economy and local communities. With no new major revenue streams and the nosedive in revenue from existing sources, the Government seems comfortable borrowing to stay afloat, and to increasingly tax an already tax-weary population.”
Recently, the Leader of the Opposition revealed a Cabinet note which highlighted various scenarios including increased taxes, new taxes, fees and penalties being considered by the Government. The Minister of Finance and the Prime Minister in Parliament both insisted that no such document existed, however the Minister of Finance was forced to admit, with tail between legs, that the Cabinet Note was real, but it only referred to scenarios developed for the Cabinet’s consideration.
With public debt currently at the worse level ever, it is troubling to learn of this massive level of new borrowing without any comments or explanation by the Minister of Finance. MP Tancoo states that it is completely unacceptable for the PNM hand-selected Boards of Directors or even the Minister of Finance himself to hide behind anonymity in dealing with public expenditure and borrowing. Tancoo warns that citizens must be wary because of Minister Imbert’s refusal to come clean with the population.
“This does not remove the fact that it is taxpayers and generations of our children who will have to repay these loans. I challenge the Minister of Finance Colm Imbert to call a press conference now and reveal to the country what the true state of the country’s finances are. I challenge Minister Imbert to tell the country what these billions are being borrowed to fund and how/when exactly these loans will be repaid! It is high time that the Minister provides some accountability for his actions which have pushed our Nation into the abyss of debt.”