The Prime Minister's Children's Life Fund may not be getting that $US5 million from Caribbean Airlines (CAL) promised by CAL's former chairman George Nicholas III.
Transport Minister Devant Maharaj told reporters Tuesday he cannot give any guarantee that the money would be paid. He also stated that Nicholas may have erred in making the pledge.
On November 30 last year Nicholas presented a replica of a US$5 million cheque to Prime Minister Kamla Persad-Bissessar, representing a donation to the fund from CAL. However Finance Minister Winston Dookeran told legislators last Friday that the airline has only handed over $US200,000 to the fund so far.
"I asked the board even before it was raised publicly and they provided me a business plan, a projection of the London route, where they have in the first ten months or so a projected loss and thereafter it was going to be positive," he said.
Maharaj said according to the plan money will be injected in marketing and building the CAL brand in the first 10 months with a projection of a profit "within a short space of time".
Transport Minister Devant Maharaj told reporters Tuesday he cannot give any guarantee that the money would be paid. He also stated that Nicholas may have erred in making the pledge.
On November 30 last year Nicholas presented a replica of a US$5 million cheque to Prime Minister Kamla Persad-Bissessar, representing a donation to the fund from CAL. However Finance Minister Winston Dookeran told legislators last Friday that the airline has only handed over $US200,000 to the fund so far.
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| Money for the Children's Life Fund - Newsday photo |
Dookeran also disclosed that contrary to what had been previously announced CAL's unauditied statements show the airline recorded a loss of TT$339.5 million for 2011 and its subsidiary, Air Jamaica, showed a loss of TT$245.2 million.
Maharaj did not want to blame Nicholas. He stated he didn't know on what basis Nicholas made the commitment. However he said it would have been better if Nicholas had waited to see the airline's "definitive figues" before making such a commitment.
He also did not commit himself and the airline to making good on the promise. "I would not want to make such a commitment on the finances of CAL without the audited statements being presented and without some of the new initiatives being given a chance to reach some fruition," Maharaj said.The minister also spoke about plans for CAL's direct service to London, beginning next month.
Maharaj did not want to blame Nicholas. He stated he didn't know on what basis Nicholas made the commitment. However he said it would have been better if Nicholas had waited to see the airline's "definitive figues" before making such a commitment.
He also did not commit himself and the airline to making good on the promise. "I would not want to make such a commitment on the finances of CAL without the audited statements being presented and without some of the new initiatives being given a chance to reach some fruition," Maharaj said.The minister also spoke about plans for CAL's direct service to London, beginning next month.
"I asked the board even before it was raised publicly and they provided me a business plan, a projection of the London route, where they have in the first ten months or so a projected loss and thereafter it was going to be positive," he said.
Maharaj said according to the plan money will be injected in marketing and building the CAL brand in the first 10 months with a projection of a profit "within a short space of time".
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