Trinidad and Tobago: Staff Concluding Statement of the 2024 Article IV Mission

https://www.imf.org/en/News/Articles/2024/03/11/mcs031124-trinidad-and-tobago-staff-concluding-statement-of-the-2024-article-iv-mission?cid=em-COM-789-48076

March 11, 2024

[A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.]

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

Washington, DC: March 11, 2024

An International Monetary Fund (IMF) staff team, led by Mr. Camilo E. Tovar, visited Port of Spain during February 26–March 8, 2024, and held discussions on the 2024 Article IV consultation with Trinidad and Tobago’s authorities. At the end of the consultation, the mission issued the following statement, which summarizes its main conclusions and recommendations.

A gradual and sustained economic recovery

For the first time in a decade, Trinidad and Tobago is undergoing a gradual and sustained economic recovery. Real Gross Domestic Product (GDP) rebounded in 2022 and is estimated to have further expanded by 2.1 percent in 2023.

This reflects the strong performance of the non-energy sector, which was partially offset by a contraction in the energy sector. Inflation has declined sharply to 0.3 percent in January 2024, after peaking at 8.7 percent in December 2022, mainly due to declining food and imported goods inflation. Banks’ credit to the private sector continues to expand and the financial sector appears sound and stable. The current account is estimated to have remained in a surplus in 2023, and foreign reserves coverage is adequate at 8.3 months of prospective total imports.

The fiscal balance in FY2023 was broadly in line with the budget. The overall fiscal deficit is estimated at 1.1 percent of GDP in FY2023, 0.2 percentage points better than initially budgeted. This reflects higher non-energy revenue and lower than budgeted capital expenditure.

Central government debt increased to 54.3 percent of GDP in FY2023 (from 50.7 percent of GDP in FY2022) and public debt reached 70.9 percent of GDP in FY2023 (from 67.0 percent of GDP in FY2022). Public financial buffers remained strong with total assets in the Heritage and Stabilization Fund at US$5.5 billion (19.2 percent of GDP) by end-FY2023.

Positive outlook with some uncertainties

Economic growth is projected to gain momentum in 2024. Real GDP is expected to expand by 2.4 percent in 2024, supported by the non-energy sector and new energy projects coming onstream—which will help offset the structural decline in energy production. Over the medium term, the delivery of several planned natural gas projects is expected to boost growth in the energy sector, while supporting economic activity in the non-energy sector. Inflation is projected to hover around two percent in line with international prices. The current account surplus is expected to stabilize in the medium term, exceeding 6 percent of GDP. Foreign reserve coverage is expected to remain adequate at 6.6 months of prospective total imports by 2029.

The balance of risks is tilted to the downside in the near term but to the upside in the medium term. In the near term, downside risks stem from external factors affecting energy markets (e.g., an abrupt global slowdown) and disappointments in domestic energy production (e.g., delays in new projects or unexpected disruptions in current production). In the medium term, the balance of risks is to the upside, stemming from additional new natural gas projects and the implementation of planned structural reforms, which could boost growth. Downside risks emanate from a faster-than-expected global transition to net-zero emissions, which could put pressure on the energy sector.
Maintaining fiscal discipline while strengthening the fiscal framework

The FY2024 budget envelope is appropriate to support the domestic recovery and address infrastructure needs. IMF staff estimates the fiscal deficit will widen to 2.7 percent of GDP in FY2024. This reflects lower energy revenues due to declining prices and domestic production, increased capital spending, and a higher wage bill—due to the long-standing public wage settlement with some unions. The planned capital spending would help address the country’s infrastructure needs and boost growth.

IMF staff recognizes that the proclamation of the Procurement and Disposal of Public Property Act in April 2023 will enhance the legal and institutional framework for transparent and competitive public procurement. It will also help improve the efficiency and quality of public spending. Central government debt is projected to increase to 56.0 percent of GDP and public debt to 73.4 percent of GDP in FY2024, below the authorities’ soft debt target of 75 percent of GDP.

Strengthening the medium-term fiscal position would be important to rebuild buffers to respond to potential shocks. IMF staff welcomes the authorities’ efforts to enhance revenue mobilization (e.g., property tax, gambling tax, and the operationalization of the Revenue Authority). Additional revenue could be generated by adjusting the fiscal regime of the energy sector, boosting non-energy revenue, and strengthening tax compliance and administration. It is advised to continue gradually phasing out subsidies while protecting the most vulnerable, streamlining transfers to state-owned enterprises (SOEs), and improving the efficiency and quality of public spending. The pace and composition of the adjustment should continue to support growth-friendly expenditure and protect essential capital spending. These measures would help strengthen the fiscal position and maintain public debt well below the authorities’ soft debt target.

Addressing potential fiscal risks stemming from the pension system and the global energy transition would ensure long-term sustainability. In the absence of reforms, the National Insurance System’s deficit is expected to widen, depleting its reserves by the mid-2030s. IMF staff welcomes the authorities’ proposal to increase the retirement age to 65 years. The authorities are encouraged to consider other measures to ensure the pension system’s sustainability, including increasing the contribution rate. The global transition toward low-carbon economies is expected to reduce global demand for fossil fuels. This will impact the viability of fossil fuel extraction and result in lower government revenues. To avoid disruptive policy adjustments, it is important to design a sustainable long-term fiscal strategy.

IMF staff welcomes the authorities’ efforts to develop a sound fiscal framework that strengthens fiscal management. In a highly uncertain global environment, a rules-based medium-term fiscal framework will enhance fiscal discipline, avoid procyclical spending, and mitigate fiscal risks. To enhance transparency and credibility, the authorities could clearly communicate how developments in central government debt remain consistent with the soft target on public debt. Moreover, it is important to broaden the fiscal data coverage of SOEs and other public bodies, which would strengthen the assessment of the government’s impact on the economy and any attendant risks. Finally, developing a sound debt management strategy would support the mitigation of macroeconomic and financial stability risks.

Maintaining consistent monetary and exchange rate policies

IMF staff encourages the authorities to maintain consistent policies to support the current exchange rate arrangement. The Central Bank of Trinidad and Tobago (CBTT) has kept its repo policy rate fixed at 3.5 percent since March 2020 to support the economic recovery. With the U.S. monetary policy tightening, the US-TT interest rate differentials widened. While these differentials have narrowed more recently, they incentivize potential capital outflows. Although this risk currently remains contained, the CBTT is encouraged to remain vigilant and stand ready to increase its policy rate if this risk intensifies.

Addressing foreign exchange (FX) shortages remains a priority. Although the CBTT’s additional FX intervention helped restore confidence and stabilize the FX market in 2023, it does not address the underlying structural FX shortfall in the market. IMF staff notes the authorities’ initiative to provide FX to small- and medium-sized enterprises (SMEs) through a new facility at the Export-Import Bank of Trinidad and Tobago (EximBank). Moving toward a more efficient and market-clearing infrastructure for allocating FX would help create a more conducive business environment for the private sector to invest and diversify the economy. The removal of all restrictions on current international transactions and greater exchange rate flexibility over the medium term would help meet the demand for FX, reduce the need for fiscal policy adjustments to restore external balance, and create room for more countercyclical monetary policy.
Toward a modern and resilient financial sector

The authorities need to remain vigilant to potential vulnerabilities in the financial system. While the financial system appears sound and resilient, it faces potential vulnerabilities emanating from high sovereign exposures and from interconnectedness. Closely monitoring financial sector risks is warranted, including those related to climate and cyber-security.

The authorities are encouraged to continue enhancing the financial regulatory and supervisory framework. IMF staff welcomes progress toward strengthening the resilience of the banking and insurance sectors in line with the recommendations of the 2020 Financial System Stability Assessment (FSAP). Going forward, the authorities are encouraged to prioritize and make progress on: (i) finalizing the implementation of Basel II/III standards; (ii) ensuring the orderly transformation of investment funds from constant to variable net asset value; (iii) enhancing the consolidated supervision of conglomerate groups; (iv) providing the CBTT with explicit macroprudential authority and tools; and (v) strengthening supervisory resource and independence in line with international best practices.

The authorities’ steady but cautious approach to Fintech is welcome. The authorities are leveraging on new technologies to improve the delivery of financial services, boost financial inclusion, and modernize the payment system. IMF staff welcomes the authorities’ efforts, supported by IMF Technical Assistance, to strengthen the regulatory and supervisory guidance of e-money issuers, promote e-money and foster financial inclusion, and raise awareness and strengthen cybersecurity practices.

IMF staff commends the authorities for the progress made in strengthening financial integrity and the international tax transparency frameworks. The authorities are encouraged to continue strengthening their domestic tax administration in line with international standards of tax transparency, good global governance, and anti-money laundering and combating the financing of terrorism standards. Efforts should continue enhancing the Exchange of Information on Request, Automatic Exchange of Information, Inclusive Framework on Base Erosion and Profit Shifting, and Country-by-Country Reporting.

Also, it is important to strengthen the Beneficial Ownership information framework. These actions will help comply with the European Union’s (EU) governance and the Organization for Economic Co-operation and Development Global Forum requirements and prepare the country for the 2026 Financial Action Task Force mutual evaluation.

Advancing structural reforms to address long-term challenges

Trinidad and Tobago needs all its engines to boost growth and secure a more diversified, green, resilient, and inclusive economy. The authorities’ efforts to foster the competitiveness of the energy sector and boost future natural gas production (e.g., the restructuring of the country’s main liquified natural gas facility) will help support economic growth and provide the financial resources needed for the transition to a low-carbon economy. However, it is important to strike a balance between leveraging the country’s maturing energy sector and providing conditions to foster growth of the non-energy sector. This will help shield the economy from global energy market volatility and green energy transition risks.

Advancing structural reforms is key to fostering private sector participation and promoting economic diversification. IMF staff welcomes the authorities’ commitment to diversifying the economy, attracting investment, promoting employment, and increasing trade integration. They are also commended for their efforts to leverage the digital economy to improve efficiency and inclusion. The authorities are encouraged to step up their efforts to enhance the business environment, tackle insecurity, and strengthen the efficiency of trade logistics (e.g., customs and transport infrastructure).

IMF staff welcomes the authorities’ continued efforts to advance their climate and energy transition agenda. Ongoing efforts to reduce greenhouse gas (GHG) emissions through various initiatives (e.g., solar energy and the road map to a green hydrogen-based economy) will help achieve the country’s target of a 15 percent reduction in emissions by 2030.

This will also help increase the use of renewable energy. The authorities are encouraged to continue accelerating the country’s low-carbon transition agenda, including to promote the development of the green-energy sector and address risks raised by border carbon adjustments (e.g., the EU’s Carbon Border Adjustment Mechanism).

Enhancing the adequacy of statistics

The authorities’ sustained efforts to improve the quality, timeliness, and the coverage of macroeconomic statistics are welcome. Transforming the Central Statistical Office into an independent National Statistical Institute would help strengthen the country’s institutional capacity. Additional efforts are needed to address the large errors and omissions in the balance of payments and to collect and disseminate comprehensive climate- and GHG emissions-related data, including at the industry level.

The IMF team is grateful to the authorities and the broad range of public and private sector counterparts for their warm hospitality, cooperation, and constructive discussions.

Economist Responds

Dr Vaalmikki Arjoon
While IMF data shows recovery, this positive trend follows a significant downturn due to the pandemic – after TT hit rock bottom,there is only a place to go and that’s up.

“It would be more intuitive to compare our current state to the pre-pandemic period, which shows that we contracted by 6.4 per cent from the end of 2019 to 2023, leaving us much below our 2019 economic performance.”

T&T may not reach 2019 levels until 2026, The Bahamas grew by 6.7 per cent, Barbados by 0.7 per cent, Jamaica by 1.1 per cent and Guyana by 287 per cent due to its hydrocarbon surge and foreign investment

To surpass 2019 performance, T&T needs to remove business barriers for the private sector, reduce crime, enhance foreign exchange earnings and accessibility and attract meaningful foreign direct investment (FDI).

“The latest FDI data from 2022 stands at negative US$913.5 million, indicating significant foreign investment leaving our shores. Improving on all these factors will rebuild the confidence in the economy, hasten the diversification thrust, increase productive employment opportunities, production, exports, and State revenues earnings, while also lowering poverty.”

Energy production remains a concern. Central Bank data reveals a shortfall of approximately 1.1 bscf/d in natural gas production to satisfy electricity, downstream plants and Atlantic LNG demands, which explains why nine downstream plants are currently closed and Atlantic LNG is operating at just over 60 per cent capacity.

“The success of the Dragon Gas project is crucial, as it promises 3.2 tcf of gas and could pave the way for more cross-border energy initiatives. Increased investment in enhanced oil recovery and small onshore fields by Heritage could also boost oil production, which currently stands at 54,400 bpd.”

While international agencies like the IMF, Moody’s, and S&P view foreign exchange reserves as healthy, the foreign reserve balance of US$5.8 billion was bolstered by foreign debt and withdrawals from the HSF.

“The net reserves, when factoring in our US$5.2 billion foreign debt, stand at approximately 600 million USD. However, the HSF maintains a robust balance of US$5.6 billion.“

 

 

 

Crime roadblocks and gang violence wracking business

2024, 03/16

Newly re-elected president Kiran Maharaj gave welcome remarks during the annual business meeting of T&T Chamber of Industry & Commerce in Port-of-Spain, on Thursday. Maharaj questioned whether enough is being done to tackle the worrying crime situation, urging greater collaboration. to end ferocious conflict.

“We have to fix it. We know it is not an overnight solution. But are we really doing enough? Are we addressing it properly via public-private partnerships (PPPs)? Are we leveraging the strengths and resources of both the public and private sectors to enhance the effectiveness of crime prevention and law enforcement strategies? Is there room for technological collaborations, community-based initiatives, and resource and infrastructural support?”

She also addressed other issues affecting the business community, including the ease of doing business, which continues to be problematic.

“How easy is it to register a business, or to ship cargo into or out of our country? What can we do to make the system easier? I do acknowledge and commend Government on digitisation efforts, in particular, the launch of the companies registry online system and measures taken to improve trade facilitation, but there are ongoing concerns that are consistently brought to our attention byr members and other key stakeholders.”

She hoped these issues could be resolved to ensure businesses, and by extension, the country, do not fall behind in the regional and international business landscape.There is still much work to do regarding access to financing for small and medium enterprises (SMEs).

“Where is the public sector reform? I reference Singapore and what I consider to be a pro-business environment. The regulatory environment was business-friendly and had a strong framework to attract both local and foreign investment. Singapore has a remarkable ability to innovate and adapt to changing global trends. It actively invests in research and development, encourages entrepreneurship, and embraces new technologies to stay competitive. Are there lessons we can take away?”

She underlined the challenge of VAT refunds. While the impact spans all sectors of the membership, the construction, agro-processing and food manufacturing industries appear to be the most impacted. The effect on cash flow and its knock-on impact on business operations cannot be overemphasised.

“The question remains – What systemic changes are needed to restore equilibrium in the VAT payment versus VAT refund mechanism? I certainly hope that this challenge can be resolved this year and I know that our minister of finance has been working towards a resolution.”

vation, key to unlocking new opportunities and driving sustainable growth in the years ahead.

“Whether it’s harnessing the power of technology to streamline operations or developing new products and services that meet the evolving needs of the public we serve, we must embrace innovation at every turn.”

Coupled with this, there needs to be greater collaboration to bring about more positive change.

“We know that our country is not in the place we would like to be. We acknowledge the uncertainty that exists. This is why we continuously call for collaboration and dialogue with all stakeholders, inclusive of Government.
“Collaboration is essential to overcome the complex challenges we face as a nation.

Working together across sectors and industries, we can leverage our collective strengths and resources to drive positive change and build a more resilient and inclusive economy. We need to do more in terms of public-private partnerships.”

Wielding major power, the rancorous regime lost control of the monster it created in 1962. 1970, 1973 and 1976 as pillars of the economy crumbled. The deadliest disasters this century unfolded as Petrotrin, Paria, Niquan, Train 1 and Gulfstream turned Strength to Weakness. Constitutional reform must abolish the presidency, a wastrel squandering precious resources while thousands languish, needing homes, jobs and security.

 

 

 

Higher borrowing ceiling for 2025 election?

2024, 03/16

In the debate on a motion to raise the borrowing limit under the Development Loans Act during yesterday’s sitting of Parliament, Opposition Leader Kamla Persad-Bissessar says she is not fooled by the Government’s attempt to increase the borrowing ceiling by a further $10 billion, claiming this is meant to facilitate the People’s National Movement’s (PNM) election finances. Responding to Finance Minister Colm Imbert’s proposal to increase the borrowing limit from $65 billion to $75 billion, Persad-Bissessar questioned why Government wanted to increase the borrowing limit for the fourth time in over eight years.

“This is the fourth time you are coming to raise the ceiling. In 2015, in 2020, in 2021 and again now. Over the past eight-and-a-half years, this Government has increased the debt ceiling by $45 billion. This is a 151 per cent increase. Where is that money going? There are other debt ceilings. There has been an increase in the statutory limit from $25 billion to $45 billion.”

While she admitted that the People’s Partnership increased borrowing by $30 billion,the country could “touch, see and feel” the projects which the Partnership achieved with the borrowed money. She outlined a range of projects under the Partnership and questioned whether the borrowed money was for the benefit of the elite.

“Give us ideas on what this money will be used for. What projects?”

Government must explain how t over $300 billion has already been spent.

“Anytime a general election is around, you raise the borrowing ceiling. It took 47 years between 1964 to 2011, a total of 14 governments to reach the debt ceiling of $30 billion. But in eight-and-a-half years, this Government has increased it by $45 billion. That is a dangerous gamble with our nation’s future.”

Under Development loans, the PNM increased the borrowing ceiling from $30 billion to $45 billion.

“Under the External Loans Act, this Government increased the ceiling from $15 billion to $30 billion and an increase in statutory limit under the Guarantee of Loans Act from $25 billion to $45 billion and again, another increase for Development loans. We are not fooled by you telling us you will not borrow the $10 billion. You will borrow it!”

There was nothing tangible to show after the Government had spent $500 billion.

“We are a nation under siege by criminals, people get shot while having a bath, while driving. It’s like a war zone we are in after all these billions have been spent.”

Over 50 per cent of the population does not have an adequate water supply.

“People have to keep their children at home and not send them to school because we have no water to bathe or cook. Still, in the hospitals, we have people sleeping on trolleys and corridors. The quality of life has worsened. People cannot access basic surgeries and hospitals are like virtual killing fields. Children are being forced into churches and mosques because there are not enough schools and people are protesting for better roads because of rural neglect.”

Responding, Imbert revealed that for the quarter ending in December 2023, the total Central Government external debt was US$5.184 billion, while the total external debt of state enterprises and other State agencies was US$2.105 billion. Total debt to GDP ratio was 70.8 percent and external debt to GDP was 18 per cent

The Government claimed revenues of billions of dollars from restructuring energy deals with multinationals, so it is fair to query the need for more debt. This energy windfall could compensate for massive losses from ravaged agriculture, deindustrialisation and escalating crime. After 5 decades of lost wealth, economic meltdown continues under the yoke of the ruling party, killing the geese that laid the golden eggs . Between a rock and a hard place, their goose was cooked in a web of scandal after scandal.

President and prime minister are under fire, lacking an atom of compassion for citizens in distress from ominous threats in an Information Blackhole.

 

 

 

Lack of accountability in public sector

2024, 03/15

A new economic model

Moderator of the annual business meeting of the Trinidad and Tobago Chamber of Industry and Commerce, president Kiran Maharaj joined other panellists, retired Republic Bank chairman Ronald Harford, economist Dr Marlene Attzs, Term Finance CEO Dr Christian Stone, HADCO Group CEO John Hadad, Fujitsu’s Vice President of Sales for the Eastern Caribbean Jean-Paul Dookie and economist Dr Terrence Farrell, for the Paving the Path to Prosperity discussion at the Trinidad Hyatt, yesterday.

Dr Terrence Farrell addressed public sector reform during a panel discussion. The current economic model created an enabling environment within the public sector that stifled productivity. For over half a century,  the economy prospered from the returns of the oil and gas sector which largely came from foreign companies and investors. As the country developed , the Government created a large public sector which stifled the development of the private sector.

The economic model created a bloated public sector that constricted the private sector, compounded by constitutional protection granted to public sector workers which shielded them despite lack of performance.

Notwithstanding escalating crime, even the prime minister was made powerless by this safeguard and cannot fire the commissioner of police.

“If a public servant is not performing, I want the ability to fire them. If I were the prime minister, I would want the option to fire the police commissioner if the police commissioner is not performing.”

Reforming the public sector was politically fraught and the structure has not changed for 50 years.  The IMF assessment, with a focus on specific criteria,did not do a thorough analysis of wider issues in the country.

Dr Marlene Attzs, observed that statistics masked shortcomings in society. While it appeared that digital penetration was high due to the high number of smartphones owned by the public, there were still concerns about literacy and numeracy.

She agreed public sector reform is urgent and advocated for greater public-private partnerships.

Retired banker Ronald Harford questioned the lack of apparent leadership and expressed anxiety that the once law-abiding country could follow Venezuela and Haiti, losing itself to crime.

“What kind of State do we want to live in? Remarkably, this is an oil and gas country and we have no plans for oil and gas production. That should be in the newspaper every day.”

Pugnacious prime ministers, petulant public servants, aggressive authorities, belligerent bureaucrats, splenetic ministers, cantankerous officials, sarcastic police, antagonistic forces, indignant professionals, acrimonious academics, irascible elites, irate agents, trenchant regulators, querulous managers, surly specialists and bellicose bosses must all share blame for the sorry state of the petrostate.

 

 

 

Central Bank report

DINESH RAMBALLY MP for Chaguanas West

 

The Central Bank’s latest economic bulletin dated January 2024 is woefully inadequate in revealing the entire truth about the state of the economy.

The report presented in February contained many instances of outdated data to justify its conclusions. The summary of fiscal operations has data up to October 2023, unlike previous reports which contained more current information. I have stated before that the Central Bank reports reflect a scenario which is inconsistent with the reality that businesses and citizens are experiencing on the ground. This report is no different.

TT’s national debt has been on an upward trajectory. The current total debt outstanding figure, according to the same Central Bank statistics, is $110,865 million (see Central Bank website). This does not take into account the recent bond issue. On closer examination, if you look at the central government’s bond issuances as liquidity-absorption measures you would see a figure of zero. This indicates that the bonds issued are actually to increase the debt stock of the country.

This continuing trend to use VAT bonds to pay refunds has not been recommended by all the experts. The Government has deferred the direct payment of the refunds to manipulate its revenue outcome to the detriment of businesses and investors. The impact has not been considered by the Central Bank in its report. With more than $10 billion owed to businesses for VAT refunds and bonds, it is clearly a recipe for disaster.

So what economic growth is the Central Bank actually speaking about?   Where is the data? I stated in my previous release on the Central Bank report of July 2023 that the revenue projections were overstated. This report confirms that the revenue estimate was in fact overstated by almost $1.8 billion. Why the manipulation? With this continuing mismanagement of the economy, I caution the Government on raiding the HSF and increasing the public debt.

Despite the escalating cost of living, salary increases have failed to keep pace, exacerbating income inequality and financial insecurity among the populace. This is leading to many individuals finding themselves trapped in a cycle of poverty, unable to build savings or invest in education and healthcare. The widening gap between earnings and expenses perpetuates social disparities and hampers long-term economic mobility. This further highlights the hidden truth behind the Central Bank’s report.

The inefficacy of state institutions poses a significant barrier to economic progress in TT. Bureaucratic red tape, corruption and bureaucratic inefficiencies stifle entrepreneurship, deter foreign investment and impede the delivery of essential public services. The National Insurance Board is in dire need of reformation as indicated by several actuarial reports. The Government is inconsistent on the way forward, jeopardising the retirement of the population and calls this responsible government.

The Social Welfare Division is keeping citizens waiting for periods of over 15 months and counting and still cannot deliver to them their old age pension and no one is taking responsibility for the situation.

The Prime Minister recently announced that he will request $100 million from the Minister of Finance to inject into crime hotspots. Once again the cart is being placed before the donkey. What is the objective of spending this $100 million? How will it be spent? Moreover, the societal costs associated with crime, such as increased healthcare expenditures and reduced productivity, further strain public finances and impede economic growth.

With an effective tax rate of nearly 57 per cent, citizens are facing an escalating tax burden as the Government grapples with revenue shortfalls and fiscal pressures. Rising taxes, coupled with stagnant incomes, diminish disposable incomes and diminish consumer spending power.

Additionally, high tax rates discourage entrepreneurship and investment, stifling innovation and hindering economic diversification efforts. How are you going to boost the local economy if citizens do not feel comfortable and do not have the disposable income to make discretionary purchases?

Foreign exchange reserves are dwindling amidst a backdrop of declining export revenues and persistent trade imbalances. The current balance is the lowest in many years and continues to decline. The erosion of forex reserves limits the Government’s ability to stabilise the local currency and manage external shocks effectively. Furthermore, dependence on volatile commodity markets exposes the economy to external vulnerabilities, exacerbating exchange rate volatility and hindering long-term economic sustainability.

The petrochemical sector is experiencing a steady decline due to factors such as dwindling reserves, ageing infrastructure and shifting global energy trends. The downturn in the petrochemical industry not only undermines export earnings but also threatens thousands of jobs and hampers efforts to diversify the economy away from reliance on hydrocarbons. Even the Dragon gas field yield is several years away, and possibly uncertain.

Addressing the country’s economic fragility requires a comprehensive strategy that tackles structural inefficiencies, fosters innovation and diversification, enhances fiscal discipline, and promotes inclusive growth. It is time the Central Bank paints a true economic picture.

 

 

 

New inter-island cargo vessel

2024, 03/12

National Infrastructure Development Company (NIDCO) launched a Request for Proposals for the construction of a new monohull inter-island cargo vessel. which must be delivered by December 2026.

The deadline for proposals is May 10, 2024.

The vessel will be used primarily for inter-island travel but may be used for an international voyage. The ship must have “200 VIP recliner seats with footrests and tray tables” with 40 en-suite passenger cabins and crew cabins for a maximum of 24 persons.

The vessel will carry trucks, trailers, construction equipment and should have an area to suitably store dangerous cargo, in compliance with the Trinidad and Tobago Shipping Act.

Risks to revenues

The electorate can expect to hear the Prime Minister discussing revenues in the coming days .

“While we have problems here and there, the Government – unlike our opponents in the Opposition – can’t be focusing on one issue all the time. We have to focus on a number of issues all the time.”

Rowley reminded a PNM public meeting he regularly mentions the country’s revenues.

“I am going to stay on that subject for a while…because it doesn’t matter what else is happening, if we lose sight of our revenue challenges, we could get into difficulties that we cannot get out of.”

While Trinidad andTobago was once a major supplier of liquefied natural gas (LNG) to the US, that situation has changed.

“The US is now a major exporter of LNG. In the last four years, even as we are struggling to keep gas in our plants at the level which is significantly down, the US has increased its exports of LNG fourfold. The market for energy is very soft and likely to remain very soft for quite some time.”

With March signalling the end of winter in the US, this meant a reduction in demand for LNG.

“There is nothing to push the price up, unless there is some problem somewhere in the world.”

Ongoing war in Ukraine is not making global oil prices rise higher than US$80 per barrel at present and they could drop.

“While we are getting our sustenance in those markets, we are not sufficiently large to influence those prices in the market. We have to take whatever price the market produces. That is why we have to be careful with our revenue stream.”

Many of the people complaining the loudest are the ones benefiting the most from the country’s economic circumstances.

“In our society, there are a lot of people who are doing very well because the country has given them great opportunity and they are required to pay some taxes.”

They refuse to do so and do their part in carrying the national economic burden.

“If they don’t want the gas from Dragon (field in Venezuela), they don’t want the TTRA (TT Revenue Authority) to collect taxes, they don’t want property tax – what do they want you to do? Tell me.”

Rowley claimed the UNC wants a situation where public servants cannot be paid their salaries.

“They want public servants marching in the street, to be able to say, ‘The government is the reason.’

He claimed the UNC is afraid to talk about anything else besides crime because it knows it has nothing useful to offer the population.

“We will discuss everything, because we are responsible for everything and we can explain everything that we are responsible for.”

Rowley said the UNC has a penchant for bad-mouthing the party and anyone associated with it.

He cited a recent attack by Opposition Leader Kamla Persad-Bissessar on newly appointed Integrity Commission chairman Hadyn Gittens as an example.

“The President appoints somebody as head of the Integrity Commission. The person whom the President appoints as head of the Integrity Commission lives in West Vale and the Speaker (Bridgid Annisette-George) lives there, and the Speaker’s friend is the Prime Minister friend because they play golf together.”

Rowley predicted the UNC will soon attack members of the private sector as the Government partners with them on different projects in the coming months.

The next general election is constitutionally due in 2025.

Rowley claimed the UNC strategy is to create a scenario where people become angry, violent and desperate, in the hope that the population will vote them back into office.

“That is where they want to lead you.”

He promised that the PNM would dispel all misinformation from the UNC by providing the public with the facts so they can make proper decisions. While admitting many challenges, Rowley said the PNM will preserve most, if not all of the gains the country made when economic times were better.

“You don’t get a government that you don’t deserve, because you choose the government. If you don’t defend the government that puts your interest first, the government that does not do that will put your interest last. That is what they are offering. An election is due sometime soon. You will be advised and you will be energised.”

Rowley was confident the population will see it is best served by a PNM government and this would send one message to all the PNM’s opponents in the next election.

 

 

 

Spill culprits not identified yet

7 March- Day 30

The Government continues to search for pertinent information that will identify owners of the two vessels involved in the February 7 oil spill off Tobago. Extensive local, regional and international investigations are under way to locate the owners of the tug Solo Creed and the barge Gulfstream, which overturned on a reef off the southwest coast of Tobago.

Responding to a question in the House of Representatives, the Prime Minister said, “To date, whilst there have been documents and information that indicate connections with the vessel, the confirmation of ownership has so far not been had to the satisfaction of the Government.”

Legal action against the owners remains an option available to the Government. Should this option be exercised, “The Government must be satisfied that we have pertinent and credible information as to who the perpetrators are and where liability lies.”

Oropouche East MP Dr Roodal Moonilal asked, “What do the documents say? Who is the owner of the barge? Who is the owner of the tug?“

Speaker Bridgid Annisette-George disallowed Moonilal’s request to Rowley to lay in Parliament the documents Rowley referred to. Rowley accused Moonilal of trying to mislead Parliament by creating the impression that he had said the Government had documents which clearly identified the owners.

“I did not say I had documents about the ownership of both vessels.”

Government MPs applauded when Rowley said Government would not adopt the Opposition’s approach to serious matters like the oil spill.

“The Government can’t act upon hearsay and how you feel. We have to act on evidence that is justiciable in a court of law.”

Efforts to identify the owners of the vessels include communication between the Foreign and Caricom Affairs Ministry and Panama, Aruba, Guyana and other countries. The Works and Transport Ministry’s Maritime Transport Division is communicating with the International Maritime Organisation and maritime divisions of other countries, including some in West Africa, where the tug could be registered.

The division “has also engaged a private satellite company to assist in satellite imagery of where the vessel originated and travelled from on its journey before the vessel tragically ended up on a reef in Tobago.”

 

 

 

Clean-up continues

Three weeks after cleaning up along the shore in Scarborough, the clean-up team was forced to return when another layer of bunker fuel blanketed the area again.

Tobago Emergency Management Agency director Allan Stewart explained that the fuel deposits that had become stuck on rocks along the affected area ultimately washed into the sea.

“We recognise that the hydrocarbons sometimes lodge onto the rocks and when the sun is extremely hot the hydrocarbon that is on the rocks becomes very soft and melts. When you have a high tide condition it flushed back into the sea and comes to the shoreline. However, it’s not a heavy deposit of (hydro)carbon. But, is it all over? I would say no. In certain Cove areas along the affected 15 kilometres like in the back of Scarborough Secondary school, which is a hard-to-reach area.”

It is one month since the Gulfstream ran aground on a coral reef off the coast of Cove, threatening the ecosystem.Reflecting on the past 30 days, Stewart said managing the operations had been challenging.

“This is not a sprint, it is a marathon. The emergency phase can go up to six to eight months. Then waste management of that sort can go up to a year and a half.”
He called on citizens to be patient as the process continued.

 

 

Joint investigation reveals identity of tug owner in Tobago spill

Bojan Lepic  March 4, 2024

In the hunt to find the owners of a tug and a barge responsible for one of the Caribbean’s worst oil spills in recent years, a joint investigation by Bellingcat and the Trinidad & Tobago Guardian has laid the finger of blame on Panama-registered company,

Melaj Offshore. According to Bellingcat, a Netherlands-based investigative journalism group and ship registration documents provided by the Zanzibar Maritime Authority, the listed owner of the Tanzania-registered, 1976-built tug Solo Creed which accompanied the Gulfstream barge during its disastrous journey was Melissa Rona Gonzalez, an official of Melaj Offshore Corporation. The authority confirmed that the period of registration for the tug includes the start of the journey on December 30, 2023, until it abandoned the Gulfstream barge on or around February 6.

The registration period expired on February 29. The Panamanian corporate registry shows that Gonzalez is an officer of Melaj Offshore and that the power of attorney for the firm belongs to her husband, Augustine Jackson.

The tug and the barge have a history of towing Venezuelan oil. On the final, fateful voyage the barge took some 35,000 barrels of oil on a trip that was meant to end in Guyana, but along the way, the barge ran into difficulties.

After the 48-year-old barge capsized off the coast of Tobago, the oil slick spread hundreds of kilometres west and reached the east coast of the Dutch island of Bonaire and later Aruba and Grenada. Curaçao is another island currently on alert.

Last Friday, Bonaire’s acting governor Nolly Oleana said that clean-up efforts are in full swing. Oil has washed up periodically on the island’s eastern coastlines but has not made it to the dive sites and heavily trafficked tourist areas on the western side. She has pointed out that more oil could spill into several inlets on the island. Officials are working with the government of Trinidad and Tobago regarding compensation for the spill.

“We are in contact with Trinidad and Tobago. Together, we do want to prosecute. A legal expert from the Netherlands is in contact with a lawyer from Trinidad and Tobago. We both just don’t know who owns the ship yet. And we also don’t know who owns the oil product on the ship. Once this is known, follow-up steps will be taken,” Orellana said.

 

 

 

Oil spill statements

2024, 03/05

Prime Minister Dr Keith Rowley rejected allegations that Government is affiliated with the Solo Creed, the tug behind the oil spill off Tobago’s coast. At the opening of the Diego Martin Public Library , Rowley said there is no shortage of negative conversations in the country.

“This morning I am hearing a Member of Parliament with a long conspiracy theory, that the only reason why that boat could have struck Tobago and leaked oil on our beaches is because it was sneaking through Trinidad and Tobago.”

Oropouche East MP Dr Roodal Moonilal said it appears this country’s waters have been used to facilitate sanction busting. However, Dr Rowley said people have forgotten the geography of this country.

“You know on one side you have the Atlantic Ocean and the other side the Caribbean Sea, and anybody going from one to the other must pass through between Trinidad and Tobago or between Tobago and Grenada going wherever they are going, whether legal or illegal, that is where you have to pass to go.”

“Something happened and all of a sudden the geography change, the only reason why that vessel could have been going there is because it was smuggling oil and the Government was involved and Rowley was involved and (Stuart) Young was involved.”

On Sunday, Energy Minister Stuart Young declared, “Trinidad and Tobago is not responsible for this incident as the vessel or vessels were in no way whatsoever associated with Trinidad and Tobago.”

 

 

 

 

No more oil leaking from barge

2024, 03/06

Nearly a month since the Gulfstream barge ran aground off the coast of Cove spewing bunker fuel, officials have announced that the leaking has stopped. The vessel was first spotted on February 7 after it separated from its tug, later identified as Solo Creed days before.

Currently, extensive salvage and containment efforts are in full swing, with multiple vessels and organisations—local and international—working collaboratively to control the situation.   While the salvage operations are ongoing, Tobago Emergency Management Agency director Allan Stewart is hopeful the strategy to contain and remove the Gulfstream barge would work.

Stewart told the media, “What we have experienced over the past 72 hours is the answer we have been looking for as I can report there is no longer any oil emitting from the vessel. The T&T Salvage team has taken control over that process of the vessel.”

The oil has spread west of Crown Point. The containment team was in the process of recovering the remaining volumes of bunker fuel on the sea surface . The focus is to contain the remaining fuel and salvage the barge while minimising the impact on Tobago’s coastal ecosystem.

Leading the operation is T&T Salvage in partnership with international company QT Environmental and technical staff at the Ministry of Energy and Energy Industries (MEEI).The ministry showed several vessels, including the NEC Spirit, NEC Pioneer, Altoka 7, Leadership, and the Atlantic Star, actively involved in the salvage operations off the coast of Cove.

The ministry has been conducting regular overflights of the response area, with the Air Guard under the command of Lieutenant Groome. Aerial observers from QT Environmental and T&T Salvage were aboard the Trinidad and Tobago Air Guard’s fixed-wing aircraft, the Fairchild C-26B.

This system will allow the team to detect and respond quickly to any potential spills.
As the containment and salvage efforts continue, support is also being provided by the Airport Authority of Trinidad and Tobago, the Port Authority of Trinidad and Tobago, and Chaguaramas Dock, among others. They have been working to deliver critical resources and equipment to Tobago.

 

 

 

Positive signs in oil-spill recovery

 

THA Chief Secretary Farley Augustine said there are positive signs in the island’s oil-spill clean-up and recovery efforts. Approximately 15 kilometres of Tobago’s coast was polluted by an overturned barge – the Gulfstream – lodged on a reef near Cove since February 7. The barge was being towed from Panama to Guyana by tug, the Solo Creed.

Bunker fuel leaking from the barge, contaminated Tobago’s south-western coast and forced the closure of schools, made the affected site a no-fishing zone, and damaged mangroves. Wind and currents carried the spill to other countries such as Grenada and Bonaire.

At a THA briefing in Scarborough, Augustine said on his way to the conference, he saw a clean-up team power-washing bridges and roads.

“That to me is a positive sign that we’re getting there. You pass and you look at the sea water between Lambeau and here, it’s much, much clearer than it was – another very, very positive sign. We are moving quickly to that place where you’ll see functional use of some of the roadways that are blocked at this time, so we are getting somewhere and we are very, very happy for that.”

The Institute of Marine Affairs (IMA) has been doing random testing of fish sold in Scarborough, Lambeau and Pigeon Point and results have shown that the fish in the public domain is safe for human consumption. Those tests would continue.

Director of the Tobago Emergency Management Agency Allan Stewart said over the past 72 hours, divers confirmed that the Gulfstream vessel is no longer contaminating the sea with hydrocarbons.

“I can report that there is no longer any oil emitting from the vessel. The T&T Salvage team, they have taken control over that process…

“In extension to that, we also have the NOFI ocean buster (a high-speed oil containment and recovery system) that has been in operation over the past three days or so. I was very moved when I saw the collection based on the technology that would have landed for this particular challenge that we had going forward.”

Extraction of liquids in the vessel is the next step.

“They would have done a hydrographic survey of the area. They would have engaged architects that to understand the construct of that type of vessel; for those who may know what the vessel looks like, they are able to look at the chambers as to how they are constructed and determine whether or not there are additional cells in the vessel that oils can be extracted from. So it’s a very careful process. At this stage what they are doing is moving the hydrocarbons that are on the surface of the water. They are mopping it up and doing a fantastic job.”

Augustine revealed that $15 million has been set aside by the THA towards offsetting the cost of the operations.

“That is nowhere close to being able to pay for the entire operations…As you would imagine, this started as an emergency, now that we are in the project phase of this, moving from it being an emergency to projectising it properly, we now have to begin to consider payments to those that are on the ground and have been working without payments to date. And so we have set aside $15 million to begin to treat with those expenses we expect to come in, and while that is happening then we have those in accounts dutifully doing their role, doing their part when it comes to looking at the invoices that they have been receiving – dutifully doing the checks and the balances so that payments can begin as soon as is possible.”

Stewart hesitated to say how far along the clean-up operation is, but it is still a marathon effort.

 

 

 

T&T Salvage divers search barge for more fuel

TT Salvage divers carry out contaminated salvage dive operations in Tobago
Divers from T&T Salvage are trying to determine the quantity of bunker fuel and other liquids still trapped in the overturned barge – the Gulfstream – which has been lodged on a reef near Cove since February 7.

Lt Colonel Jason Hills; chief of Tobago oil spill ODPM operations, gave an update on March 1 during a Tobago House of Assembly (THA) media briefing at the Shaw Park complex in Scarborough.

The oil spill attracted international attention and the search continues for the owner of the barge which caused the environmental disaster. The barge has been leaking bunker fuel and polluting Tobago’s south-western coast and other territories, including Grenada and Bonaire, according to a BBC report. The Ministry of National Security revealed that a tug boat was pulling the barge from Panama to Guyana. The HIT and RUN tug boat vanished and no one accepted liability,

With regard to salvaging the vessel, Hills said T&T Salvage, which has been contracted by the Ministry of Energy, commenced operations.

“They have done surveys to ensure that they identify the depth of the areas around the vessel to operate as well as some aerial surveys to identify the leaking fluid from the vessel. Also, they have secured some anchors to the vessel and would try to commence some diving so that they can ascertain if and how much quantity of liquid remains in the vessel at this point in time.

“A boom that was secured that was used to collect leaking fluid from the vessel, we need to have that removed so that T&T Salvage can commence operations within that area. We want to continue the clean-up throughout. We want to commence the transition process from the mechanical, based on the quantity of material found, to a more manual system.

“We want to start the collection of the fluid and T&T Salvage has brought a NOFI (current buster) system. Then we want to develop a really strong waste management plan which, based on advice from some of our international partners, can linger on as a plan that can go on for some time till thereafter the clean-up is completed.”

The Ministry of Energy mobilised marine assets of the National Energy Company to assist in the recovery of hydrocarbons utilising the NOFI current buster technology. It said that, “this system will be utilised in a near-shore tactic utilising a standard two-vessel configuration. Additionally, NOFI INAK Paravene System will be engaged for a single-vessel sweep tactic offshore; this allows for the use of one tow vessel providing a more efficient operation overall.”

Tobago Emergency Management Agency (TEMA) director Allan Stewart said the NOFI current buster should be in operation by early this week. The system is available in four sizes, and can collect any oil type at speeds up to five knots and is designed for maximum clean-up efficiency. It enables a single vessel to track down and collect scattered oil slicks quickly and effectively.

Hills said there was a 300-member team operating daily as well as a number of equipment ranging from backhoes, dump trucks, frac tank, excavators, trash pumps and marine vessels. The operation has three focal points: containment and collection, beach-line and shoreline clean-up and salvaging the overturned vessel. Both liquid and solid waste have been collected.

“These items have been collected at the frac tank located at both the Lambeau area and the Cove area. Some of the materials have been taken to the Studley Park area for collection and subsequent disposal.”

 

 

 

UNC seeks forensic probe into Tobago oil spill

 

 

After an investigative media report about the Tobago oil spill and owners of the capsized barge and governmental reports to the public, Opposition MP for Oropouche East Dr Roodal Moonilal is calling for a forensic examination into the matter. At a UNC media briefing on March 3, Moonilal described the February 7 spill as an “act of environmental terrorism” and said the country was no closer to understanding how and who caused the spill than when it was first identified.

“We have had this matter which constitutes a regional security issue and today an environmental disaster,” he said at his party’s headquarters in Chaguanas.

He noted the oil spill’s effects had gone beyond Tobago and was now affecting other islands such as Grenada, Bonaire and Aruba. Citing a report in a newspaper, Moonilal said the public had to rely on media reports which traced the origins of the barge and related matters and chain of activities that led to the oil spill.

“If the newspaper and investigative journalists across the transatlantic ocean can do this, what is the Government doing? How come the Government of TT – with all the multilateral support at their disposal… Mr (Fitzgerald) Hinds runs the Ministry of National Security where we have spent billions on intelligence and so on, and the Government cannot respond today to tell us who are owners of that vessel called the Gulfstream barge. They cannot tell us, conclusively, where did it originate from? Where was it going? What was it doing?”

On February 17, the Prime Minister said while good progress was made and many leads identified, there was no definitive identification of the vessel’s operators or owners and confirmation of the offending parties. The report said a Panamanian firm was at the centre of the spill. Moonilal said TT was in a fascinating position where its agencies and waters might have been used to facilitate sanctions-busting (the act of trading with a country with which trade is not officially allowed).

Moonilal said the Government had not produced a report as to the owners of the vessel and what steps were being taken to call those responsible to account and to pay for the damage incurred.

He repeated the damage was long-term as the country was dealing with fisheries, livelihoods, jobs and environment.

“This Government has not been able – in 21 days or so – to bring any conclusion in terms of investigation….”

He said while the Ministry of National Security had spoken to an ongoing investigation into the matter, the country was no nearer to having questions answered. That was why the country was now depending on press reports for information. He said the report might be accurate but required state and international agencies to verify ownership.

UNC called for a full criminal forensic investigation to trace the “digital footprints of this environmental act of terrorism and sanctions-busting,” Moonilal said. The account should be multi-divisional, multi-agency and cross-border to ensure questions were answered.

“This is a serious threat to tourism in the Caribbean; the life-blood of Caribbean economies, generally, is tourism. And when certain islands are affected this way, there are long-term problems.”

Questioned by the media on its call for a forensic examination into the spill and why it would be different to what was currently being done by the Government, Moonilal asked what was being done by Government. The public did not know what was being done as the public was not being told every week or two weeks what was happening.

“There has been no report to the community here on what has been the outcome so far on their investigation, while we have in the newspaper today, the outcome of their investigations. Newspaper accounts are not official accounts, of course. But the Government needs to tell us first what they are doing and if they have arrived at any preliminary conclusions based on the enormous resources at their disposal.”

When asked how the examination could be done, Moonilal said there were several units in the National Security Ministry that coordinated with international and regional bodies.The Government could establish a small team that works with the international community in real time to track and trace “vessels, owners, persons (sic).” It should also trace the owners of the vessels involved in the oil spill, what are they, when did it happen and what are they to account for. There were environmental laws and marine legislation that could be inspected for pollution, recklessness, negligence, destruction of the environment to hold individuals and entities accountable.

“Just the act of abandoning a barge in the sea may constitute some offences as well. So you have to find people and companies to call to book and a forensic investigation into that led by a Ministry of National Security that is awake, a minister that is awake, with a multi-divisional team – a very small team of about four-five people – working with the international agencies. The US has agencies that deal with this, Europe has agencies that deal with this, you would think a preliminary conclusion on this could come in seven days.”

Moonilal said, about 25 days after the spill, there was not a preliminary conclusion from the Government about who caused it. The Opposition filed a question in Parliament on Friday but it was not approved as an urgent question and it was redrafted and filed on notice. He expects an answer from Hinds in the coming days on the matter.

 

 

Security, border control crisis

 

JSC report finds:Border control is very lax in Trinidad and Tobago which suffers from a security crisis and a border control crisis owing to the inefficiency of the Customs and Excise Division and the Trinidad and Tobago Coast Guard; and a gun retrieval crisis, owing to the inefficiency of the Trinidad and Tobago Police Service.

Because the Customs and Excise Division—the agency with the sole responsibility for the examination and clearance of all cargo entering Trinidad and Tobago—tends to put more focus on tax collection, there is a need to set up a separate agency specifically to monitor and control the entry of contraband in Trinidad and Tobago

These are among the findings in the Report of the Joint Select Committee (JSC) on National Security on the inquiry into the safety, security and protection of citizens with specific reference to the factors that contribute to the prevalence of illegal firearms and gun violence in Trinidad and Tobago, which was laid in Parliament on Friday.

The JSC recommended that the Border Protection and Security function of the Customs and Excise Division (CED) be separated and placed in a new agency which should fall under the Ministry of National Security as issues of border protection and security are essentially national security concerns.

“The committee contends that the CED would exclusively operate as a financial and administrative division tasked solely with revenue collection and protection, the correct application of trade policy and collecting and disseminating accurate trade related information and statistics,”

The Border and Protection Security Agency focuses on conducting specialised screening, examination and inspection of barrels and containers for illicit cargo; the interdiction of illicit items and persons; and collaboration with relevant law enforcement agencies on the development of strategies geared towards the interception, retrieval and destruction of contraband and the charging and arrest of persons involved.However, the JSC recommended collaboration between the two agencies.

The committee took note of the Government’s intention to amalgamate CED with the Board of Inland Revenue in order to establish the Trinidad and Tobago Revenue Authority.The JSC is chaired by Port of Spain South MP Keith Scotland and its other members are Paul Richards, Dr Roodal Moonilal, Ayanna Webster Roy, Kennedy Richards, Randall Mitchell, Jayanti Lutchmedial and Richie Sookhai.

1,000 new firearms on the streets yearly

The committee found that a “reasonable estimate” was that every year, 1,000 more illegal firearms are available for criminals in the streets and homes of Trinidad and Tobago but that during the same time the total efforts of law enforcement managed to only intercept 50 firearms (0.5% of the 1,000 illegal firearms), the report said.

The committee concluded that the firearms industry was lucrative in T&T, valuing anywhere from $56,169,000 to $144,363,000 with an average black market price of $17,429 per firearm. Traffickers moving arms by freight used different techniques for concealing their identity and illicit cargo, which included adopting fictitious or intermediary addresses, fake paperwork like misidentifying the arms as objects of similar shape and density such as metal tools and engine parts, as well as undervaluing the goods.The Joint Select Committee was informed…that most importers who have brought in contraband utilise fake names and fake addresses in the Customs documentation.

Moreover there are instances when cargo with contraband is never collected from the Port which certainly shows that “somebody working inside the Port facilities has warned the consignee that the contraband has been uncovered.”

There was also a poor record of arms discoveries in imported vehicles.The committee noted that imported second-hand vehicles which are stored in the Port of Spain Spectrum parking lot did not pass through a scanner and that it was likely that concealed weapons if present (in these vehicles) would not be found by Customs agents.

“In Trinidad and Tobago not a single firearm has been discovered inside an imported vehicle since 2017,” the report said, as it noted that criminologist Darius Figuera had stated that professional smugglers had been dismantling guns and hiding them in engine blocks, automobiles, appliances, coffee cans and even cartons.

The JSC learned during a visit to the Spectrum area that imported cars were not searched on arrival, assuming that they had to be searched at the port of departure. Furthermore these cars would stay seven-ten days in the parking lot before being taken away by the consignee, with a “superficial search of the bonnet, trunk and interior being carried out when the vehicle is ready to leave the port”. The committee said since November 2022 improvement in the Spectrum area, including the installation of 25 CCTV cameras and the locking of cars with the keys deposited with the Port authorities.

“Every long-arm rifle smuggled through the border has generated a gross profit of on average US$5,500 while the gross profit for handguns ranges from about US$1,000 to US$2,000 based on demand,” the JSC said.

Corrupt personnel

The report also noted that the traffickers in contraband were aided by corrupt personnel. According to the Strategic Services Agency (SSA) assessment, the distribution of the number of corrupt law enforcement personnel (on duty) as at December was as follows:

1. Customs and Excise Division—four active personnel;
2. Immigration Division—seven active personnel;
3. T&T Prison Service—52 active personnel;
4. T&T Coast Guard—five active personnel (excluding one who had been discharged);
5. TTPS—109 active personnel (excluding one who had been discharged);
6. T&T Regiment—seven (excluding four who had been discharged)

for a total of 184 active personnel and six discharged personnel.

According to the SSA, there is a total of 123 illegal ports in Trinidad and Tobago of which 66 facilitated the entry/exit for illegal firearms and ammunition. But it said nine legal ports were flagged as key locations for the entry of contraband:

1. Alcoa Bauxite Terminal—Tembladora,
2. Caridoc—Chaguaramas;
3. King’s Wharf—San Fernando;
4. Labidco Port—La Brea;
5. Medway—Freeport;
6. National Petroleum Company—Carenage;
7. Pier One—Chaguaramas;
8. Pier Two—Chaguaramas and
9. Point Lisas Port.

The SSA in its submission to the JSC said, “most of the weapons, including high-powered weapons are generally imported through the legal ports” and the majority of interceptions had been made at various transit/commercial/courier sheds and bonded areas.

“The SSA submission dated October 21, 2022 mentions, ‘there are high-powered weapons, revolvers and pistols coming through Venezuela via pirogues and fast boats’. In this case, none of them has been intercepted by the Coast Guards within the last two years.”

The JSC noted that the Customs Act empowered solely personnel appointed by the Customs and Excise Comptroller to implement the control of the discharge of cargo, the clearance of the cargo and the collection of Customs and Excise duties.

“There are two airports, 13 seaports and six transit sheds under the purview of the Customs and Excise Division. While CED officers were mandated to be stationed at each point of entry under their purview, human resource challenges did not permit each point of entry to be sufficiently manned at any given time.

The issues of limited scanner usage and a lengthy procurement process for replacements have severely impacted the functions of the CED, creating an evident correlation between inefficient technological capabilities and the prevalence of illegal firearms in recent years,” the report stated.

As at November 30, 2022, the CED said that based on an Inter-American Development Bank Non-Intrusive Inspection Needs Report, the present fleet of Mobile VACIS scanners are “all and have been determined to be not fit for purpose” and cannot be upgraded due to their emission source. Containers are checked primarily through physical examination, and inadequate staffing does not permit efficient and timely physical examinations, “with only three of the 14 bays being utilised by officers at the Port of Port of Spain”. For the period January to August 2022, the CED scanned 3,998 containers out of 23,000.

The results of illicit firearms discovery by scanning general cargo at Customs were poor. “Within the four-month period of October 12, 2018 and February 20, 2019, no single firearm or narcotics was detected amongst an estimation of 3,960 scanned containers…In 2021 and 2022, no single firearm was discovered during the container scanning process. Indeed the seven discoveries in 2021 and 2022 were discovered through the physical examination of cargo,” the report said.

The report said CED had made numerous proposals to bolster their staff, but could only make recommendations to the line Ministry, the Ministry of Finance. The report said CED was operating with only 50% (352 employees) which was based on the “obsolete requirement” of a total of 700 employees stated in the Customs Act which “pre-dates the explosion of containerised cargo that occurred after 1990”.

Even though CED got 80 new personnel after June 2022, the training of this staff which started in January 2023 meant that these officers would not be fully competent until after three years of experience. “The fact that CED personnel have not detected any illicit firearms through screening in two years is not an encouraging result,” the report stated.The committee recommended more staff at CED, PATT (Port Authority of Trinidad and Tobago) and to address issues of integrity, that staff be subjected to security screening including polygraph testing and increased penalties for infringements by employees, particularly in relation to firearms trafficking and firearm-related crime.

It also recommended increasing the technological capacity of the primary agencies responsible for customs and excise and border protection and security with a view of increasing the number of containers scanned and the number of instances of contraband being discovered. It recommended that priority be given to the “swift procurement” of mobile scanners, additional fixed scanners and portable scanners attached to vehicles for patrols as well as increased oversight at transit sheds and private bonded warehouses.

Poor results from Coast Guard, TTPS

With respect to the T&T Coast Guard, the seizure results were equally unimpressive. According to the submission to the JSC dated October 28, 2022, the TTCG seized the following number of firearms from intercepted vessels:

• • • • 2018—NIL
      • 2019—One SIG Sauer pistol
      • 2020—One shotgun
      • 2021—NIL
      • 2022—NIL

With respect to the TTPS, the committee was “troubled” by the Commissioner of Police’s statement that there were not many visits to premises of FUEC holders (security companies) or firearm dealers, even though the Police Standing Orders, Section 22 require that the licensed premises of firearm dealers are to be visited at least once a month and the audit is to be done on the Gunsmith and Firearms Dealers once a year.

“A lack of enforced checks and balances on legal operations can leave room for guns and ammunition to simply ‘leak’ into the populace, under the radar,” the committee stated.

Recommendation

The committee recommended that the Prime Minister “move immediately to adopt the recommendations of the Fifth Report of the JSC on National Security on the Final Report of Manpower Audit Report, particularly with respect to the commencement of a Cabinet-approved TTPS Institutional Strengthening Project with a primary mandate, among other things, to implement a new structure of governance and oversight for the TTPS, inclusive of a Police Inspectorate.”

It also recommended the establishment of a code of conduct which should contain behavioural expectations from Customs officers, importers and exporters, with Customs administration taking “appropriate action” when the expected standards are not met.

The committee awaits the response of the Ministry of National Security, Ministry of Finance and the Office of the Prime Minister to the recommendations, some of which affected them, noting that the Standing Orders of the Senate and the House state that the Minister responsible for the Ministry or Body under review shall not later than 60 days after a Standing Committee has tabled its report, “shall” present a paper to the House responding to any recommendations or comments contained in the report which are addressed to it.

The report said that during the period January 1, 2019 to September 2023, some 3,531 firearms were found and seized, including 68 sub-machine guns, with the most prevalent firearm seized being the pistol (1,915) followed by revolvers (673). Fifty-two per cent were either manufactured in the US or first imported into the US and 48% from an undetermined country of origin, according to the Bureau of Alcohol, Firearms and Explosives Firearms Trace Data for the Caribbean.

It noted that a Small Arms Survey estimated that of the one billion firearms in global circulation as of 2017, 85% (857 million) were in civilian hands; 13% (133 million) were in military arsenals and 2% (23 million) were owned by law enforcement agencies.

“Unfortunately, Trinidad and Tobago (and by extension, the Caribbean region) finds itself in a geographically problematic position; as a historical transshipment point for the transfer of illicit weapons and substances from South America to North America and from North America to Europe…Corruption enables weapons to enter the country, encouraging gang presence and fostering crime and criminality,” the report stated.

 

 

German ENVOY hails Proman’s contribution to T&T

2024, 03/03

Germany, Europe’s largest economy, is the fourth biggest investor in T&T and will continue to treat the country as a major trading partner.   German ambassador to T&T, Christophe Nicolas Eick, discussed Germany’s confidence in T&T as a business partner at the T&T Coalition of Services Industries’ (TTCSI) Doing Business with Germany’s webinar.

“We hope to deepen our bilateral relations which exist not only in the economic sector but others as well. It has been shaped by mutual interests with a total of US$4 billion in direct investments in the petrochemical sector. Germany is the fourth largest investor in T&T after the United States, Canada and the UK. The company, Proman, with 14 petrochemical plants in Point Lisas alone stands out. It has been present in T&T for more than 30 years. I remember very well when they set up their first plants in T&T.”

Proman employs 1,000 nationals and contributedover US$11 billion to T&T’s economy.

“Proman is also a partner using ships fuelled with methanol, which significantly reduces greenhouse gas emissions from shipping. We also have other German companies such as the German car companies BMW, Mercedes Benz, Porsche, Audi that are well known here. Siemens Energy does maintenance of turbines and transformers. There is courier service DHL and car rental company Sixt.”

Germany’s contribution to T&T’s tourism sector, continues as airline Condor has resumed flights from Frankfurt to Tobago.

“German tourists already make up the third largest group of visitors to Tobago enjoying this beautiful island.”

There is visa-free travel for T&T nationals who visit Germany as tourists as well as for business travellers.

“This makes it easier to start businesses and connections.”

He also highlighted growing bilateral trade.

“An investment protection agreement was ratified by both countries in 2010. The bilateral trade volumes amount to around $350 million euros annually and, of course, there is room for more. This webinar will hopefully contribute to the expansion of the trade.”

He p[resented an overview of Europe’s largest economy:

• Germany has a population of 83 million and is the third largest economy in the world and Europe’s largest;

• • Germany has a Gross Domestic Product of US$4.4 trillion which represents 25 per cent of the economy of the European Union;
• • Germany ranked eight out of 132 countries in the Global Innovation Index in 2023;
• • Germany’s workforce has a population of more than 43 million, which is the largest pool of skilled labour in the European Union; and
• • Germany also has Europe’s largest healthcare market.

“This makes it the preferred choice for many international companies preparing to expand their footprint. Germany’s growing market is driven by global trends. Social developments like demographic change and technological trends such as digitalisation are some key examples.”

He said science and innovation in Germany leads to cutting edge technology.

“This is the case in the life sciences sector which comprises a variety of high-tech sectors like molecular, diagnostics, bio-pharmaceuticals and materials such as medical devices.”

The TTCSI’s president, Mark Edghill, who addressed the webinar, highlighted the billions of dollars in investment Germany has made in T&T’s economy.

“German companies have invested heavily in T&T’s petrochemical sector to the tune of billions of euros through the bilateral investment promotion and protection agreement between our countries, which has been in place for the past 14 years. We also have an active bilateral agreement on mutual assistance and exchange of information on tax matters and tax offences, which was signed in October 2010.”

Edghill used Germany as an example of how T&T can diversify and expand its services sector.

“We, here in T&T, are certainly eager to learn from our German counterparts about developing and strengthening the services-related economy. Our services sector contributes roughly 11 per cent to our Gross Domestic Product—a figure that we at the TTCSI are determined to help grow.”

Both countries have been working towards strengthening trade and sustainable development in a multi-lateral setting  through the agreements between the European Union (EU) and the Africa, Caribbean, Pacific (ACP) states, as well as between the European union EU and Cariforum, and there is hope for a deepening of economic relations with the EU under its Post-Cotonou Agreement with ACP countries. In terms of development co-operation, Germany is working on regional projects with Caricom neighbours that focus primarily on promoting renewable energies, adapting to climate change and fostering biodiversity.

“For almost as long as we have had diplomatic relations, T&T and Germany have had strong partnerships in the area of higher education and there are partnerships between the University of the West Indies (UWI) and several German universities. Today, the state vocational training institute MIC is working with the Aachen Chamber of Crafts and Trade on dual-system training courses in the field of automotive engineering. Although German support and cooperation in technical-vocational education in T&T extends back to the 1970s.”

The United Nations COMTRADE database on international trade, shows that in 2022, T&T exported roughly US$214 million worth of products to Germany. The bulk of that came from the petroleum and petrochemical sectors such as inorganic chemicals, precious metal compound,and isotopes, worth US$136.52 million, organic chemicals valued at US$43.51 Million and mineral fuels, oils and distillation products, worth US$33.17 million. In that same year, 2022, the COMTRADE data shows that Germany exported US$152.34 million to T&T.

Germany’s top exports to T&T in 2022 were machinery and boilers worth US$35 million; pharmaceutical products valued at US$25.91 million; and paper and paperboard, articles of pulp, paper and board valued at US$11.15 million.

He described Germany as a “powerhouse” in the services sector and it leads the world in Banking, Finance, FinTech and Logistics.

For the year 2022, data from Statista shows that the services sector is the largest contributor to GDP for the German economy— 69.3 percent and industry runs a close second with 23.5 percent; construction is third and generating 6 percent; and agriculture-Forestry-Fisheries the fourth largest GDP contributor at 1.2 percent.