Opposition Leader Kamla Persad-Bissessar says there is now a heightened need for an inquiry into the recent purchase of Massy Communications by TSTT for $255 million.
Persad-Bissessar made the call during a press conference during yesterday’s tea break in the Parliament, in the wake of two new pieces of information she said her party received.
She said TSTT had taken out a $1.9 billion deed of debenture from Republic Bank and the purchase price for Massy Communications was $30 million in excess of the board-approved limit.
The former prime minister said: “This definitely demands that an enquiry be done with respect to the entire (Massy/TSTT) deal and now this $1.9 billion dollar loan.”
Chaguanas West MP Ganga Singh then read a document which he claimed was the board minutes of TSTT meeting dated March 15, 2017.
Among those who attended that meeting were chairman Emile Elias and directors Wendell Berkeley, Vishnu Dhanpaul, Annalean Inniss, Ingrid Lashley and Judith Sobion. He said Director Gerry Brooks was excused from that meeting.
Singh said the minutes stated that “it was further agreed that the negotiating team, which will include the chairman, the chief executive officer and the corporate secretary should negotiate a price up to a limit of $225 million.”
He said the minutes further sated: “Should there be a need to exceed that limit, the approval of members of the board will be required.”
Singh said based on what was said by Elias and Prime Minister Dr Keith Rowley, the agreement price for the acquisition of Massy Communications was $255 million.
Singh said there was $30 million to be accounted for as $255m was in excess of the approved maximum limit by the TSTT board.
Singh said: “There was no such agreement by the (TSTT) board (and) at the board meeting yesterday Mr Elias indicated that he sent an email and that was sufficient for him.”
According to Singh, the board members “were adamant that they had not agreed to the price of $255 million.”
Singh said with respect to the issue of due diligence and the issue of a valuation, “how did Mr Elias and the (TSTT) negotiating team agree to that sum of an additional $30 million?”
Persad-Bissessar then said Cabinet members were “washing their hands of this matter.” She said while the Prime Minister has said the matter was discussed in the Cabinet, other ministers have said they were unaware of it.
She noted that there were discrepancies from what was agreed at the board level. She said it now appears that the TSTT board “had not given final approval for this acquisition” and called for an enquiry.
She said the purchase was at a time when citizens were experiencing severe economic hardship. She said TSTT borrowed $1.9 billion from Republic Bank and then “you buy out a company where you have interlocking directorates.”
Opposition MP Roodal Moonilal added that this latest matter was the third involving the Prime Minister and a contractor. He said the population would like to know “where the money gone.”
Elias could not be reached for comment yesterday as calls to his cellphone went unanswered.
