Contractors willing to take T&T government bonds to settle part of outstanding debt

The president of the Trinidad and Tobago Contractors Association (TTCA) said Sunday local contractors are willing to accept government bonds as part-payment for the billion-dollar debt onwed by the state.

Mikey Joseph told local media it's an option that members had discussed in September at the TTCA's last annual general meeting.

"Our membership had generally agreed that we would eventually have to settle for some payment in bonds and we don't have an issue with that," Joseph told the Trinidad Express.

He was responding to a statement that Works and Transport Jack Warner made on Saturday night when he addressed the association at a dinner at the Trinidad Hilton.

The minister said the People's Partnership government is committed to settling the debt, which was left by the previous Manning PNM administration. However he suggested that contractors could consider accepting bonds as part payment.

"We all know that settlement in cash is not an option we have at this time. It is not that we do not want to settle in cash, now, it is simply not possible. So let us work together to find the next best options," Warner said.

Read the story: Jack promises PP gov't will pay contractors, urges them to consider accepting bonds in lieu of $

Joseph confirmed that contractors would accept bonds. He said an agreement in principle was reached last week in discussions between Finance Minister Winston Dookeran and the Joint Consultative Committee (JCC) on the construction industry.

He said it was agreed to establish a committee comprised of members of the JCC and the Ministry of Finance to deal with the issue.

"You first have to go through and verify and deal with the sum to be paid, after which the terms and conditions of the bond have to be agreed to. The bonds will have to carry interest because you're asking me to settle for my money a couple years down the road," he said.

On Saturday night when Joseph addressed association members at the dinner at the Hilton he urged the government to settle the debt to contractors before giving consideration to the demands of he CLICO policy holders.

"The Government has no obligation to settle this debt other than what is provided for by statute, so my advice to the honourable Minister of Finance is to pay the debt owed to contractors and consultants before giving any further consideration to CLICO depositors," he said.