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By SEAN DOUGLAS Saturday, May 5 2012
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ON NOVEMBER 30, last year, amid much fanfare, then Caribbean Airlines (CAL) chairman George Nicholas III presented a replica cheque in the sum of US$5 million (TT$32,150,000) to Prime Minister Kamla Persad-Bissessar for deposit into the Children’s Life Fund.
Yesterday, it was revealed in the House of Representatives by Finance Minister Winston Dookeran, that in reality, US$200,000 (TT$1,286,000) was paid by CAL to the Children’s Life Fund, even as the local airline carrier and its Air Jamaica affiliate, racked up debts of more than a half-billion TT dollars in one year.
Dookeran made these revelations as he answered a question asked by Opposition Leader Dr Keith Rowley in the House of Representatives, Tower D, International Waterfront Centre, Port-of-Spain
In calendar 2011, CAL lost a whopping US$52.8 million (TT$339,504,000) and Air Jamaica lost US$38.1 million (TT$244,983,000), for a total loss of US$90.9 million (TT$584,487,000) Dookeran stated. But in a reaction to these revelations yesterday, recently appointed CAL chairman Rabindra Moonan assured, “The situation is not as gloomy as it seems.”
Dookeran further told the House that for calender 2012, up to March 31, CAL has claimed a TT$141 million fuel subsidy (of which $40 million is still to be paid) and the airline is seeking a US$3.18 million (TT$20,447,400) fuel-subsidy from the Finance Ministry, for Air Jamaica.
Dookeran said the Air Jamaica fuel-subsidy could only be paid after claims are audited by the Finance Ministry’s Central Audit Committee, an exercise which is now underway. He listed for the House, CAL’s individual debts exceeding $2 million.
These are: Airports Authority - US$8.1 million; United States Inland Revenue - US$6.1 million; National Petroleum - US$4.9 million; Norman Manley International Airport - US$3.8 million; International Air Transport Association - US$3.5 million; Automated Clearing House Customs and Excise (passenger taxes) - US$3.1 million; Strategic Air Services (Cargo Handling) - US$2.1 million; Boeing (Maintenance) - US$2.05 million; Avions de Transport Regional (ATR) - US$1.89 million; VAT (Board of Inland Revenue) - US$1.73 million; AON Insurance (Passenger and Aircraft) - US$1.35 million; ACC Aviation (Wet Leases) - US$1.28 million; Synergy Aviation (Aircraft Parts) - US$933,250 and Ross Advertising, US$544,829.
After Dookeran’s revelations, Rowley rose to ask if he was aware that CAL had once declared a profit and had given a percent of its earnings to the Children’s Life Fund. Dookeran replied, “I am not aware of that information”. On hearing that reply, Rowley muttered: “I am in shock.”
At the tea-break, Rowley lambasted both the performance of CAL and the actions of the Government. He expressed shock that rather than a $200 million profit as once declared by Nicholas III in 2011, CAL had in fact made a loss of $300 million. He also wondered how, given this loss, CAL is supposed to be expanding its operations by re-entering the London route next week.
He recalled his previous warning to Government not to acquire Air Jamaica, which he said gets a fuel-subsidy from TT to the tune of $7 million per month.
Saying he thought all such problems had been fixed when TT had paid a huge sum to close down the former BWIA, Rowley said Government has now re-created the BWIA problem with a vengeance, but moreso in an era of deficit-spending.
He said Dookeran may now have under-funded schools and hospitals in order to instead pay the CAL debt.
Rowley called for an apology from Persad-Bissessar and Dookeran over the US$5 million donation to the Children’s Life Fund, which he called an “absolute scandal”. He alleged that a State enterprise had misled the population.
click on pic to zoom in
« prev photo next photo »
ON NOVEMBER 30, last year, amid much fanfare, then Caribbean Airlines (CAL) chairman George Nicholas III presented a replica cheque in the sum of US$5 million (TT$32,150,000) to Prime Minister Kamla Persad-Bissessar for deposit into the Children’s Life Fund.
Yesterday, it was revealed in the House of Representatives by Finance Minister Winston Dookeran, that in reality, US$200,000 (TT$1,286,000) was paid by CAL to the Children’s Life Fund, even as the local airline carrier and its Air Jamaica affiliate, racked up debts of more than a half-billion TT dollars in one year.
Dookeran made these revelations as he answered a question asked by Opposition Leader Dr Keith Rowley in the House of Representatives, Tower D, International Waterfront Centre, Port-of-Spain
In calendar 2011, CAL lost a whopping US$52.8 million (TT$339,504,000) and Air Jamaica lost US$38.1 million (TT$244,983,000), for a total loss of US$90.9 million (TT$584,487,000) Dookeran stated. But in a reaction to these revelations yesterday, recently appointed CAL chairman Rabindra Moonan assured, “The situation is not as gloomy as it seems.”
Dookeran further told the House that for calender 2012, up to March 31, CAL has claimed a TT$141 million fuel subsidy (of which $40 million is still to be paid) and the airline is seeking a US$3.18 million (TT$20,447,400) fuel-subsidy from the Finance Ministry, for Air Jamaica.
Dookeran said the Air Jamaica fuel-subsidy could only be paid after claims are audited by the Finance Ministry’s Central Audit Committee, an exercise which is now underway. He listed for the House, CAL’s individual debts exceeding $2 million.
These are: Airports Authority - US$8.1 million; United States Inland Revenue - US$6.1 million; National Petroleum - US$4.9 million; Norman Manley International Airport - US$3.8 million; International Air Transport Association - US$3.5 million; Automated Clearing House Customs and Excise (passenger taxes) - US$3.1 million; Strategic Air Services (Cargo Handling) - US$2.1 million; Boeing (Maintenance) - US$2.05 million; Avions de Transport Regional (ATR) - US$1.89 million; VAT (Board of Inland Revenue) - US$1.73 million; AON Insurance (Passenger and Aircraft) - US$1.35 million; ACC Aviation (Wet Leases) - US$1.28 million; Synergy Aviation (Aircraft Parts) - US$933,250 and Ross Advertising, US$544,829.
After Dookeran’s revelations, Rowley rose to ask if he was aware that CAL had once declared a profit and had given a percent of its earnings to the Children’s Life Fund. Dookeran replied, “I am not aware of that information”. On hearing that reply, Rowley muttered: “I am in shock.”
At the tea-break, Rowley lambasted both the performance of CAL and the actions of the Government. He expressed shock that rather than a $200 million profit as once declared by Nicholas III in 2011, CAL had in fact made a loss of $300 million. He also wondered how, given this loss, CAL is supposed to be expanding its operations by re-entering the London route next week.
He recalled his previous warning to Government not to acquire Air Jamaica, which he said gets a fuel-subsidy from TT to the tune of $7 million per month.
Saying he thought all such problems had been fixed when TT had paid a huge sum to close down the former BWIA, Rowley said Government has now re-created the BWIA problem with a vengeance, but moreso in an era of deficit-spending.
He said Dookeran may now have under-funded schools and hospitals in order to instead pay the CAL debt.
Rowley called for an apology from Persad-Bissessar and Dookeran over the US$5 million donation to the Children’s Life Fund, which he called an “absolute scandal”. He alleged that a State enterprise had misled the population.
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