The government of Trinidad and Tobago has approved a pension payout of $400 million to former employees of Caroni (1975) Limited.The Manning government shut down the sugar company in 2003 shortly after taking office, putting more than 10,000 people out of work.
The money is due to the former employees from their pension fund.
The company's Chief executive Officer issued a statement Wednesday noting that the process for disbursement has already started and that the money will be secured through annuities from Republic Bank Trust and Asset Management Division.
"Government is making available, on or before December 31, to the trustee, an amount equivalent to $400 million to meet the annuity purchases," the statement added.
The database of Caroni pension beneficiaries comes up to 10,508 people.
The company's annuities and cash are held by CLICO. The company said CLICO and the trustee "are in the process of issuing individual annuity certificates setting out the benefits for the former workers, with a completion date by the end of March 2010."
It added, "The Government and Caroni are fully confident that the guarantee arrangements it had put in place with CLICO are secure and sustainable."
The company said it is working with the Government to deliver other commitments in Caroni’s 2003 VSEP, including residential services lots and agricultural plots.
It expects to deliver residential lots on or before March 31, 2010.
But the sugar union is skeptical.
Rudy Indarsingh, president general of the All Trinidad Sugar and General Workers Trade Union, said Wednesday he fears this might be another case of "pronouncements without actual implementation".
He said he is happy that the government appears to be finally delivering on the pensions by next March, but noted that the Manning administration made promises before and failed to keep them.
"We have to view this with a degree of scepticism. Is it another public relations exercise to hoodwink the public?" he asked.
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