Tuesday, June 22, 2010

Warner investigating $20M consultancy for CAL

Works and Transport Minister Jack Warner is investigating several “high-priced” consultants at state-owned Caribbean Airline Limited (CAL).

A report in the Trinidad Guardian cites documents that it says show Jean Frederic Mognetti was paid about TT$20 million (€2.5 million) over a four-and-a-half-year period from February 2006 to May 2010.

The paper said a breakdown of the figures reveal that Mognetti, of the firm JFM&FK Management Services, received TT$3.6 million (€453,497) for 193 days work in 2006—an average of more than $18,000 a day.

The documents show further that in 2007 CAL paid the consultant TT$3 million for 137 days of work, an average more than $22,000 a day. The next year, 2008, the figure went up again, with TT$4.7 million for 198 days, about $23,000 a day.

Other figures reveal:
  • 2009 - 200.5 days - TT $4.8 million — an average of more $24,000 a day
  • Up to May 2010 - 132 days of work at an average of $24,000 a day
The Guardian quoted Warner as saying that he is aware of the name Mognetti and that he would do an investigation before he takes the matter to Cabinet.

The Guardian said social activist Devant Maharaj first brought the issue to its attention. Maharaj is calling for a thorough investigation into the matter through a forensic audit into Caribbean Airlines.

He is also seeking clarification on whether the Mognetti consultancy deserved these fees and what were the comparable rates for similar consultants in other parts of the region.

The Guardian said it contacted CAL chairman Arthur Lok Jack who said he had no comment.


Caribbean Airlines was incorporated on September 27, 2006 and began operations on January 1, 2007 as the successor to BWIA.


Last week Finance Minister Winston Dookeran announced a committee to examine the airline. It is to be headed by former BWIA chief executive officer (CEO) Conrad Aleong and includes CEO of the Institute of Chartered Accountants Krishna Boodhai and former Finance Minister Selby Wilson.

Dookeran wants a review of the deal between Caribbean Airlines and Air Jamaica to determine the viability and profitability of the agreement.

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Jai & Sero

Jai & Sero

Our family at home in Toronto 2008

Our family at home in Toronto 2008
Amit, Heather, Fuzz, Aj, Jiv, Shiva, Rampa, Sero, Jai