The Government of Trinidad and Tobago is seeking the assistance of the Auditior General to clarify an investment undertaken by the state-owned Unit Trust Corporation (UTC) on December 31, 2009.A report on the matter will be paid in Parliament on Friday.
Finance Minister Winston Dookeran told reporters Thursday while the UTC’s financial position and cash flow at the end of last December met international standards, “one investment exceeded ten per cent of the securities issued by an entity.”
Dookeran said that seems to be in contravention of the UTC Act of 1981 which states, “the board shall not invest more than ten per cent of its funds on any one scheme in the purchase of securities in any one company or other corporations..."
Dookeran said Cabinet has instructed him to seek further clarification from the Auditor General on the matter.
The UTC issued an immediate response to the minister's concerns.
“The Corporation has in its portfolio a bond that was considered sovereign debt. As a result, the Corporation’s participation which was in excess of ten per cent of the securities issued was not considered to be in contravention of Section 13 (3) of the UTC of TT Act 1981,” it said.
The UTC said its management restructured the bond, which is due in 2029, on December 30, 2009.
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