Home' Trinidad and Tobago Guardian : May 17th 2013 Contents Minimum wage still to be reviewed --- McLeod News --- Page A6
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From Page A1
Around 5.30 pm yesterday, letters were being
drafted for the new board members.
Prime Minister Kamla Persad-Bissessar, a Gov-
ernment source said, is expected to peruse the sit-
uation and have final say before the expected news
A special emergency Cabinet meeting will also
have to be held before the announcement, since
the board has to be officially appointed by Cabinet,
Arrangements were being made to try to fit
everything in with today s Parliament session. Other
sources said efforts may be made to place outgoing
CAL board members in other positions.
On Tuesday, Howai had commented on the
CAL board s handling of the complimentary ticket
issue. Describing the issue as one of governance,
Howai said he had received a report which he had
requested from CAL on the matter.
He said CAL s report had contended that the
procedure which took place with the tickets was
previously used in a marketing arrangement for the
airline and documentation was provided to support
this. But Howai said the ministry had additional
questions on this and sought further clarification
"to get answers" before proceeding "with a position
Howai had expected the additional information
by yesterday, and to raise the matter at yesterday s
Cabinet meeting. He said there was the concern
that despite Jaikaran had a company that was doing
business with CAL, a director was not expected to
be involved in any way in discussions concerning
their business aspect.
Howai said it was expected the director would
be excused from board deliberations in such situ-
Howai had said his ministry had tried to find out
if this was done in the current issue, since that
information was not included in the document
which he received. He had said there ought to have
been "some protocol" by which such issues were
Howai said it seemed the director may have
liaised directly with the management in the current
issue. In fact, reliable sources had told the T&T
Guardian that acting CEO Robert Corbie objected
to the number of airline tickets, said to be worth
more than US$20,000, requested, but was pressured
to approve the request.
Friday, May 17, 2013 www.guardian.co.tt Guardian
Cabinet yet to receive
report on CAL 'freebies'
for 16TH MAY, 2013
No report was submitted to Cabinet
yesterday on the 19 airline tickets received
by Caribbean Airlines Ltd (CAL) vice-
chairman Mohan Jaikaran for Mother s
Day concerts held in New York and
Toronto last week.
Cabinet sources yesterday told T&T
Guardian that the report may be submitted
next week when the matter is expected
to be discussed.
Finance Minister Larry Howai had
requested a report from CAL chairman
Rabindra Moonan on the matter after a
T&T Guardian exclusive report on May 8.
The report was submitted earlier this
week, but Howai requested additional
information to determine whether Jaikaran
was part of the decision-making process
for the complimentary tickets he received.
Reliable sources told T&T Guardian that
acting CEO Robert Corbie objected to the
number of airline tickets requested but
was pressured to approve the request.
Both Corbie and Jaikran were absent
from Tuesday s board meeting as they
were dealing with personal matters.
Sources said Corbie, who took seven
days leave last week, requested an exten-
sion and is not expected back until next
Minister in the Ministry of Finance Vas-
ant Bharath, Howai and Moonan could
not be contacted for comment yesterday.
Meanwhile, T&T Guardian learned the
CAL/Air Jamaica agreement is also expect-
ed to be raised with top management in
the upcoming weeks.
Only on Wednesday, Howai said a US$32
million loss was incurred on the Air Jamaica
route. But top CAL officials, both present
and former, yesterday told the T&T
Guardian that the loss was expected, given
that the Government was warned of the
It is all stated in a High-Level Business
Appraisal of CAL. This report evaluated
the financial standing of CAL and was
submitted on June 22, 2010, to then
Finance Minister Winston Dookeran, who
took it to Cabinet.
It was compiled by Conrad Aleong, for-
mer CEO of BWIA; former finance minister
Selby Wilson; former vice-president of
General Electric Capital Aviation Services
Michael Dolsingh; and chartered account-
ant Krishna Boodhai.
The report recommend against the Gov-
ernment entering into the CAL/Air Jamaica
deal. In fact, Cabinet sources told T&T
Guardian that Dookeran and others "were
taken by surprise" by Prime Minister
Kamla Persad-Bissessar s July 2010
announcement at Jamaica House,
Kingston, of the decision to honour the
agreement on the US$30 million transition
plan for CAL to acquire and operate six
Air Jamaica aircraft.
• Regulatory risk: The Government of Jamaica
still has to acquire the Jamaica route approvals
from the United States Department of Transport,
the Canadian Department of Transport and others.
During the transition, the Government of Jamaica
secured waivers of its existing bilateral agreements
to permit CAL to operate on behalf of Air Jamaica.
The current US waiver expired on July 14, 2010.
• Execution and assumption risks: CAL's
evaluation of the Jamaican routes and its
contribution to CAL is premised on synergistic cost
rationalisation to achieve savings of US$25.2 million
and to increase revenues by 60 per cent by the end
2011. The present board of directors has stated that
the execution of this integration plan requires a
strengthened and focused implementation team. In
addition, there is concern that a large portion of the
estimated savings of US$15.2 million in respect of
fleet renewal and maintenance may not be
• Market risk: Jamaica entered into an open-skies
agreement with the US a few years ago. This
means that any Jamaican or US carrier can fly to
any destination in the respective countries. At the
present time two low-cost carriers---Spirit Air and
Jet Blue---maintain routes into Montego Bay and
RISKS IDENTIFIED BY THE CAL APPRAISAL TEAM
Pupils of the
look on in awe as
during a career
day event held at
We are happy to be able to report that the
Verandah restaurant at 10 Rust Street, St Clair, is up
and running and open for business.
Contrary to the Page 3 photo caption yesterday, the
fire that broke out on Rust Street on Wednesday was
in fact in another building.
Our apologies to the management and customers
of the Verandah for any inconvenience or distress
caused by the error.
GETTING IT RIGHT
new board today
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