Arts and Multiculturalism Minister Dr Lincoln Douglas is now trying to secure a $75 million loan from First Citizens in order to clear up debts accrued as a result of his miscalculating last year’s budget. Until that loan is secured, Carnival 2015 winners cannot be paid. Stakeholder for the carnival fraternity, the National Carnival Bands Association (NCBA), yesterday confirmed that without the $75 million there would be no money in the coffers to pay out prize money, despite Douglas’ ministry having received a $314 million budget allocation last year.
Finance Minister Larry Howai has also confirmed the loan amount being sought by Douglas. In January, the Sunday Guardian reported that Douglas had approached Howai for some $150 million, in addition to the already approved allocation for the Culture Ministry. It was reported then that both Douglas and National Carnival Commission (NCC) chair, Lorraine Pouchet, met with Howai in order to secure the funds, but were told to renegotiate with contractors to have that figure reduced.
At the time, Douglas had staunchly denied that report, saying that there was nothing amiss in his budget allocation. He admitted then that he was seeking additional funding through Howai and the Cabinet, but stated that it was for upgrades to event venues for the physically challenged, improved public facilities, hiring of more staff at the NCC and more research and analysis into future carnival-related projects. At no time, however, did Douglas say that the shortfall would affect the payments to the mas fraternity.
However, the Sunday Guardian understands that the $75 million hole has now left Douglas going cap in hand to the banks, seeking a loan that will cover payments to the winning mas makers. “The Ministry of A&M (Arts and Multiculturalism) has requested additional funding in the form of a loan to meet additional committents for Carnival 2015. “The Minister (Douglas) has made several representations regarding this matter, which is the subject of consideration by the Ministry of Finance and the Economy,” Howai said.
“I understand that their bankers are First Citizens, but I'm not sure whether they have approached any bank regarding the financing. This won’t be able to be progressed until the Cabinet has provided approval.” Douglas cannot seek the loan without Cabinet approval, and with the oil price dipping below the $50 mark Cabinet insiders say that he is unlikely to get it.
http://www.guardian.co.tt/news/2015-04-05/ncba-woes-continue
Replies
I think this is related to the $150mill. that the Minister forgot to include in his budget.
Cecil,
Did you mean to say conveniently forgot. You wonder what type of accounting principles these people use.
odw, these guys have a Master Plan they working with, whenever he leave office he set for life, as a matter of fact he probably won't mind being voted out in the upcoming election so someone else will have to find the money to pay people.
Ok, let me see if I understand this correctly, the minister is now told to go to the “special” bank to get a loan to cover the difference, if and when the loan is approved it’s going to be guaranteed by the government who in the first place is not willing to pay out the 150 million.
The bank then gets to add its interest say 10% as the cost for issuing the loan. The government ministry of finance then ends up paying say 165 million to settle outstanding prize monies.
This sounds like mafia accounting principles. Patrick you may be right about the handbook or should I say playbook, it’s about markup and shakedown. Life Sport program comes to mind.
I think I can answer that, odw. I believe that they are using the same accounting principles that the previous administration used. Same handbook.
So where the money gone? 75 million is no small change. If your budget is 75 million off you are either a fool or a thief.
The various ministries and boards are always playing fast with the people's money but it also a tactic they use to pretend their budget is not crazily high and then ask for more after approval.
If the majority of money the ministry gets is for prizes etc. and there is no money for prizes, then you have to ask, "where the money gone?"
Check the contractors whose costs must have skyrocketed to use up all the money before prizes are even paid.
I figured that someone would have all the answers. Thanks Wayne.