T&T Government faces defeat on bailout bills

Keith Rowley refused to support government's bailout bill for subsidiaries of CL Financial when the matter went to the House Representatives Monday. The former cabinet minister said he cannot support a measure that would put billions of taxpayers money within reach of Calder Hart, the executive chairman of UDeCOTT, who is also chairman of NIB, which would take charge of some of the assets of Republic Bank.

The Diego Martin West MP told the House Hart is the same man who said he did not take instructions from Ministers of Government. Therefore he could not support any bill that puts assets worth billions of dollars in the hands of Hart.

Rowley was referring to testimony from hart at the Uff commission of enquiry into the construction sector and UDeCOTT.

The decision of a PNM member to back away from the bills to facilitate the CLICO bailout and a belligerent opposition refusing to support the two bills means the government faces defeat since it doesn't have the constitutional majority it requires to pass the amendments.

The government adjourned the sitting to pre-empt a vote and hopefully find some areas of compromise in order to get the majority it needs to pass the bills.

Rowley said he expects assurances from the Minister of Finance that the bailout plan would not give Hart additional responsibilities over public funds.

The government also took a beating from the opposition. Siparia MP Kamla Persad-Bissessar accused both Finance Minister Karen Nunez-Tesheira and the Central Bank Governor Ewart Williams withdrew their money ahead of the CLICO announcement last Friday.

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She joined Rowley is going after hart. "If NIB is going to be involved in this, Calder Hart must go, he cannot be left there," she demanded.

Opposition leader Basdeo Panday was among the line of MPs who raised questions about whether Hart would become involved after the takeover.

Panday expressed worry over the fact that the Government would have the power to appoint directors to the CLICO companies."What kind of directors? Calder Hart and Monteil?...If you are serious about appointing fit and proper persons, you will fire the board of UDeCOTT," Panday said.

The Trinidad Express reported Tuesday that Andre Monteil, former group financial director of the CL Financial, was an important behind-the-scenes figure in bailout talks between CL and the Central Bank. Monteil is also a former PNM treasurer.

The paper said Monteil has declined comment on the report that he was the chief negotiator for his former employer but reported that its sources were clear that Monteil was involved. Monteil's private company, Stone Street Capital, had been looking for a buyer for CL's 55 per cent interest in Republic Bank.