Panday slams Warner's HCU bailout plan; Warner says Panday is 'inconsistent'

Jack Warner and Basdeo Panday are now squaring off over Warner's attempt to raise $300 million in capital to buy back the Hindu Credit Union (HCU) so the tens of thousands of people whose money is tied up in the organization could recover some, if not all of their investments.

The majority of HCU members and shareholders are from UNC constituencies.

Last Sunday, Warner announced that he is putting the first $1 million of his own money to start a new company to run the affairs of the HCU once the company buys the assets and liabilities. He said the company would comprise representatives of the current HCU members and new investors but made it clear that HCU President Harry Harnarine would not be involved.

But Panday is against the idea and is telling his supporters not to put their money into such an enterprise because they will lose even more. The UNC leader said only the government has the kind of resources needed to deal with the problem.

But Warner doesn't believe the government will help so he is taking the initiative to do something. He told HCU depositors and shareholders that as far as the Manning administration is concerned they are lesser citizens, adding that that was the real reason why the government stepped in and helped out CL Financial and left the HCU with a begging bowl in hand.

The CL Financial bailout would cost between six and seven billion dollars according to one high ranking government official. The HCU's total assets were listed at about $700 million with liabilities exceeding assets by about $300 million.

Warner's plan is to get business people to raise enough money to create a viable company on behalf of the HCU members.

Panday has problems with the plan on two fronts. First, he made it clear that contrary to what Warner suggested, the plan is not a UNC one. And second, he is wary about the capital to be raised. "Where will the other $299 million be coming from?" was the question he raised, adding that no one is clear who would manage all that money. "In whose name the account will be stated, and who will be responsible for administering the fund?" he asked.

And he digressed from his constitutional platform at his Monday Night Forum to put the HCU matter on the agenda. "Do not do it, I warn you. Do not do it," he told supporters in reference to heeding Warner's call to raise the capital. He said he continues to look out for them as he has done in the past. "Remember I have warned you in advance on each occasion when you were about to make a fool of yourself," said Panday.

"There are many schemers in Trinidad and you need to be careful...Do not fall for any scam that promises to get back your money but first of all you have to put more money into a scheme. I warn you, you will regret it."

He predicted that if they go after the Warner plan they would be "high and dry and broke."

But Warner is not amused by Panday's take on the whole matter. And in an interview with the Trinidad Express he wondered why his money was good enough to bail out Panday, but not good enough to help "poor Indian people" who form the bulk of the depositors in the Hindu Credit Union.

The UNC Deputy Political leader said he has avoided any confrontation with his leader but said he is "a bit surprised at Mr Panday's sudden discovery."

Warner said, "When he (Panday) was using my financial resources to help him in his legal battles and to help him in the recently concluded general election campaign and to help him in other areas that I would not care to disclose at this moment, there was no problem.

"But now I choose to assist poor Indian people in the main, there is a problem. And therefore it seems to be that there has to be some kind of inconsistency in Mr Panday's behaviour."

Warner told reporters, "In some ways, I am sorry for Mr Panday...At the end of the day I have been helping Mr Panday financially for several years and not once has he questioned that and called me a scamp and schemer.

"I find it difficult to accept the fact that Mr Panday is questioning my generosity and my loyalty. It is not normal for people to behave this way."

Warner has been putting money into the UNC for several years. media reportes quoting UNC sources suggest thyat he has put about $55 million into the party.

While he is bothered by the kind of "indignity" being hurled at him, he is not giving up on the UNC. The Chaguanas West MP said he would continue to finance the party but "I will be more analytical of what I finance, when and for whom."

He is not worried about attempt to expel him from the UNC. In fact he is confident that the membership would come to accept that he is doing the right thing.

And he has pledged to fight any attempt to remove him. "I will fight those steps and win," he said.