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Tesheira to Dookeran:
Clear the air on HSF deposit
Published: 16 Jun 2010
Former finance minister Karen Tesheira is calling on her successor, Winston Dookeran, to clear the air regarding his statement at last week’s post-Cabinet press conference that no funds were put into the Stabilisation Fund during 2009-2010.
Last Thursday, Dookeran had said: “In respect to the Stabilisation Fund, no funds were put into the Stabilisation Fund during 2009-2010. “It is a legal requirement to do so, we have to find a way to honor that legal requirement and the fund now stands in the vicinity of about US$3 billion. In a statement issued yesterday, Tesheira said, “In response, I wish to place on record that the allegation, (carried in other print and electronic media), that no funds were deposited into the Heritage and Stabilisation Fund (HSF), in fiscal 2009/2010, is wholly inaccurate. “Indeed, as I have stated on previous occasions, a warrant dated April 28, 2010, was issued under my hand in my capacity as the then finance minister for the withdrawal for the Consolidated Fund and deposit into the HSF, the sum of $659,770,446. This sum represents surplus revenues generated from oil and gas up to quarter two of fiscal 2009/2010.
“I am confident the Honourable Minister will have no difficulty correcting this misinformation, particularly given its potentially negative implications for the T&T economy.” According to A Report on the Nation’s Business: The State of Our Finances and Initiatives for Future Action, issued yesterday by the Ministry of Finance, “In fiscal 2007/2008, $6,588 million was transferred to the Fund. “No funds were transferred in fiscal 2008/2009. In May 2010, $650 million was transferred to the HSF. As required by law, a further $1.3 billion is projected to be deposited into the HSF in consideration of the prevailing energy prices during fiscal 2009/10.”
Yesterday, Central Bank Governor, asked to respond to Dookeran’s statement that the last government did not make any deposits to the HSF in the last year, Williams said: “In the Central Bank account, there was a transfer of the equivalent of US$103 million made at the end of April in to the Heritage and Stabilisation Fund.” Responding to further questions as to how the Finance Minister could have made such an error, Williams said: “What would have happened is that, firstly, it was done by the previous government. They would have made the transfer and then sent details to the Central Bank. That’s all I can say about that.”
"The aggregate HSF
"The aggregate HSF portfolio as at December 31st 2009 was valued at approximately US$2,992 million, up from US$2,964 million at the end of September 2009. In October 2009, US$135 million was reallocated from deposits to the international fixed income and equity mandates and there were
no contributions or withdrawals by the Government during the quarter". HERITAGE AND STABILISATION FUND - Quarterly Investment Report (October – December 2009).
The Annual Report for the HSF for year ending September 2009 shows that no contributions were made to the HSF for the fiscal year ending September 2009. The capitalised contribution October 1st 2008 as stated in the report is USD 2,778,058,656. The capitalised contribution as at 30th September 2009 is the same.
The central bank governor stated that the USD 103,000,000 approx. was placed in the fund at the end of April 2010.
The report for second quater fiscal year 2009-2010 has not as yet been published. Accounting is a creative science with such things as income accrual accounting etc.
So will all concerned please really clear the air.
FUNDAMENTAL MISTAKES
FUNDAMENTAL MISTAKES -
1) Jack appointment before fully divesting interest.
2) Panday’s appointment without being a Minister.
3) Declaring the date for commencing Priority Route plan when all procedures were not all thought out .
4) Making pronouncements on HSF deposits when false information could easily be verified.
These are experienced parliamentarians. Jack boasted that the NEW UNC would be run properly even though he made some faux pax at the start of his tenure as Chief Whip. This seems to be continuing into the new government.
We have, I fear, confused power with greatness. ~Stewart Udall
Disappointed that the Hon.
Disappointed that the Hon. Finance Minster and a man of such substance as Winston Dookeran would have made such a strategic mistake. I, like TriniToni, hope it wasnt an act of pettiness that prompted such an inaccurate statement. But, with that being said, the fact that such an inaccurate statement about the nation's financial situation could have been made doesn't speak well to the capabilities and competency of the minister's staff or even himself.
lets hope he makes another speech to clear the air.
Don S. NY
Why No HSF Deposit in 2009?
Why No HSF Deposit in 2009? One has to ask this question.
What happened in 2009 Fiscal year that the PNM could not make a deposit in the HSF?
Why did they make one in 2010 then?
Was this an 'election gimmick' intended to fool the people?
Nunez Teshiera needs to come clean on this issue. Dookeran can easily defend his 'misplaced' facts but can Karen Tesheria tell us why no deposits in 2009 and why there was on in 2010?
Where did the money miraculously come from?
Did the PNM take a Chinese loan to 'window dress' the HSF deposit?
Imagine we had "negative growth" in 2009 and Karen never alerted us to it. What an irresponsible act. I am disappointed in Karen. First it was the 'insider dealing' on the Clico Shares, and now this aberration in the HSF Deposit. This is very disappointing from a person who claims to be a 'professional'.
Regards,
pnm_fanatic_no#1
Having worked for the
Having worked for the british government (the Kings of bureaucracy and red tape) I can understand that a situation may have developed where something done in late April is not yet reflected in the reports of May. I think Mr. Dookeran would have looked up the last reports regarding the HSF at the Ministry and made a judgement, rather than checking the fund/CBTT itself to verify what may have occurred.
At least I would like to think that is what happened and this wasn't some attempt to score political points by making his predecessor look bad. Because if it was, it was an extremely petty and naive act, which could have consequences in terms of how the country is viewed by the financial world, our ratings and therefore our attractiveness to investors, etc.
The last thing you want to do if you see impending economic slow down is to sing it to the top of your lungs for everyone to hear, and thus preventing the same investment and cash injection that you will need from coming in. That's just common sense and business/finance acumen 101. You would think someone who purports to be such a finance expert would know this.
We have to encourage the
We have to encourage the current government to get down to work in the interst of the pPeople of Trinidad and Tobago. They appear to be still in election mode, but they are now in charge and have responsibilities to shoulder going forward. This appears to be a misstatement
If you take some money from
If you take some money from your right pocket and put it in your left pocket that means you have some money right? ,so what if you got some from a friend and put it in your pocket you still have money right again?