CORRUPTION IN TRINIDAD AND TOBAGO

UNCLAS SECTION 01 OF 02 PORT OF SPAIN 001111

SIPDIS

SENSITIVE

SIPDIS

E.O.12958: N/A
TAGS: PINR PGOV KCOR ECON EFIN EPET TD
SUBJECT: CORRUPTION IN TRINIDAD AND TOBAGO

REF: (A) PORT OF SPAIN 987, (B) PORT OF SPAIN 643

SENSITIVE BUT UNCLASSIFIED; PLEASE PROTECT ACCORDINGLY.


1. (SBU) SUMMARY: There is concern in Trinidad and Tobago over
alleged corruption in the public and private sectors. This is a
black mark for the ruling People's National Movement (PNM) and an
impediment to Prime Minister Patrick Manning's goal of achieving
developed country status by 2020. Transparency International's
Global Corruption Report 2007 suggests that perceptions of
corruption have stabilized, but the country's reputation is well
below its high mark of just seven years ago. The GOTT has pledged
to combat corruption and has some functioning mechanisms in place,
but its implementation of relevant treaties, laws and regulations is
insufficient, and its relations with interested civil society
organizations are uneven. Throughout the 2007 general election
campaign season, corruption charges have surfaced, though generally
failed to gain any traction. Many candidates also have called for
campaign finance laws, though this electoral season concern may fade
after the November 5 vote. END SUMMARY.

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STATUS OF CORRUPTION: SOME EXAMPLES
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2. (SBU) Despite its oil and natural gas resources, Trinidad and
Tobago is a functioning and vibrant democracy and not a kleptocracy
as is true with some other nations in a similar resource situation.
Nonetheless, alleged corruption among public officials continues to
be a concern. According to Transparency International's recently
released Global Corruption Report 2007, Trinidad and Tobago received
a Corruption Perceptions Index (CPI) score of 3.4 out of 10, a
slight improvement from the 2006 rating of 3.2 but down from 5.3 in
2001, indicating that the perceived levels of corruption among
public officials and politicians fall between "serious" and
"rampant." In prior years, GOTT ministers have chafed at the CPI
scores, complaining that TI's focus on perceptions has penalized T&T
when the country ought to be getting credit for bringing high
profile corruption cases to light and prosecuting officials from
both ruling and opposition parties (several former parliamentarians
and Ministers are facing charges). They also have complained that
past leadership of TI's local chapter was politically motivated.
Nevertheless, there are numerous allegations of continuing
corruption at both high and low levels of government as well as
allegations of police involvement in corrupt and illegal activities.



3. (SBU) There is a widespread perception that the police force is
corrupt; however, the number of actual reported incidents is small.
In 2006, prison service Commissioner John Rougier claimed there was
a "rogue element" of police officers trafficking drugs, cell phones,
and weapons within the country's prison systems. Petty corruption in
connection with public services is widespread. In the case of the
Transport Division Licensing Office, the widely acknowledged ability
of unqualified applicants to obtain a driver's license and license
plates for unsafe vehicles in exchange for a bribe, is cited as a
factor in deteriorating road safety.


4. (U) In one of the most notable corruption cases (ref a),the
Privy Council is examining charges against suspended Chief Justice
Satnarine Sharma for allegedly trying to influence a case against
former PM and current UNC opposition leader Basdeo Panday. Panday's
case involved his failure to declare a London bank account in
violation of the Integrity Commission regulations (see below para
seven for an explanation of the Commission; Panday lost his seat due
to the still-in-court charges). Sharma's defense team is seeking to
discredit his main accuser, Chief Magistrate Sherman McNicolls, by
saying that the McNicolls took a bribe when handling Panday's case.
Sharma's lawyers have also implicated Attorney General John Jeremie,
stating that he assisted with securing this bribe. Jermie dismissed
the charges as rubbish and refused to testify in person, choosing to
provide a written statement instead.


5. (U) Corruption is not only an issue among government and public
officials; it is also an issue in Trinidad and Tobago's business
world. A number of former government officials and business
executives are still under investigation for complicity in
bid-rigging by Florida-based companies that defrauded the GOTT
during the Piarco International Airport development project.
Several T&T business executives are currently fighting extradition
to the U.S. to face charges under the Foreign Corrupt Practices Act
in connection with the Piarco project.


6. (SBU) During the 2007 general elections, the Trinidad and Tobago
Transparency Institute and many opposition politicians publicly
stated that the country needed finance reform. Manning also agreed
that this issue should be reviewed. How diligently this possibility
might be pursued in the next parliament is an open question, though
many observers expect it to quietly disappear from the list of
priority concerns.

PORT OF SP 00001111 002 OF 002



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COMBATING CORRUPTION
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7. (U) The GOTT has taken a number of steps to deal with corruption.
For example, over the years it has ratified the Interamerican
Convention Against Corruption and the United Nations Anti-Corruption
Convention, and has generally honored its obligations under those
treaties. While numerous anti-corruption plans have been announced,
the actual implementation of the plans is frequently weak and
lacking in transparency. The legislation that established an
Integrity Commission, an independent body that acts on allegations
of impropriety against officials, for example, does not clearly
specify which public entities fall under its jurisdiction. As a
result, executives at state-owned enterprises are not required to
file financial disclosures. That the law has some teeth, though, is
clear in the legal suit that was brought against Panday.


8. (U) Trinidad and Tobago has a Freedom of Information Act that
provides for public access to government documents upon application.
However, critics charge that a growing number of public bodies are
exempted from the Act's coverage. GOTT claims the exemptions were
intended to avoid frivolous requests and searches for information.

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PUBLIC FINANCE
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9. (SBU) In public finance, the GOTT is relatively transparent on
the revenue side of its balance sheet, particularly when compared
with other oil and gas producers in the developing world. The GOTT
Finance Ministry publishes aggregate revenues and has been a
consistent supporter of the Extractive Industries Transparency
Initiative (EITI). While EITI implementation stalled in 2006-07,
the GOTT Cabinet recently approved plans to revive its candidacy and
the Energy Minister publicly announced this intention. Industry
contacts support the view that T&T will have an easy time meeting
its EITI commitments on transparency. The one weak spot in this
picture is the government's reluctance to engage civil society
organizations, including the local chapter of Transparency
International (ref B). TI's uneven relationship with the GOTT,
which even some impartial observers blame in part on its previous
confrontational director, hampers its ability to advance its agenda
in this and other areas.


10. (SBU) GOTT spending, on the other hand, suffers from a lack of
transparency, as large amounts of public expenditure are effectively
off budget. Special-purpose State Enterprises spend huge amounts of
public money on "mega projects" outside strict legal and
institutional procurement frameworks. A government-appointed
committee of experts issued a white paper in 2005 with a series of
proposals to reform the procurement regime to enhance public
accountability and reduce opportunities for corruption. However,
after promising to implement the white paper in 2006 and 2007, the
Prime Minister announced in August 2007 that its proposals were too
cumbersome and would only slow the pace of infrastructure
development. The GOTT claims infrastructure projects are all being
done in full accord with the principles of "Value for Money,
Transparency, and Accountability," but hard evidence of this is
lacking. A frequently cited example is the USD$1.1 billion Rapid
Rail Project. This project, despite being a subject of intense
political debate, is being implemented outside formal procurement
procedures and with no financial feasibility study.


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COMMENT: SOME GOOD, SOME BAD
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11. (SBU) The corruption picture in Trinidad is mixed, with
transparency in some sectors and opaqueness in others. On the
positive side the courts, press, Integrity Commission, and
politicians show no hesitation to raise (and sometimes make up)
these charges. Prime Minister Manning has occasionally been brushed
by corruption charges from opposition figures, but these allegations
have gone nowhere and his supporters assert he is scrupulously
honest and a bulwark against corruption. The GOTT also is fairly
transparent on the revenue side of the ledger, but less so on the
spending side. That corruption, public and private, is a problem is
widely believed and the growing lawlessness in society and
drug-money influence also adds weight to this concern. To the
extent the perception - or reality - of corruption grows, it could
hamper Trinidad's drive toward first world status.

AUSTIN