Finance Minister Larry Howai said yesterday that he has "never indulged, and never will engage in any form of inappropriate–far worse–dishonest or illegal conduct at any stage of my professional life."
In his first substantive response to allegations that have been in the public domain since Wednesday when he was named on a national radio station, Howai said: "It is extremely irregular and questionable that a confidential report on an issue that arose and was properly adjudged to have been a non-matter 10 years ago, would be resurrected in the public domain for what can only be deemed as purposes of mischief and even malice."
In a statement, Howai said he has asked his attorneys "to examine all aspects of this matter to address clearly what appears to be an injustice to my character and professional persona.The allegations involve the role played by executives of institutional investors in Trinidad Cement Ltd (TCL) in 2002, when the Claxton Bay-based cement producer was the subject of an ultimately unsuccessful takeover bid by Mexican cement giant Cemex.
The T&T Securities and Exchange Commission (SEC), in March 2007, sought an opinion of an eminent Barbadian Queen's Counsel, who was asked to assess the strength of the cases against four of the executives who were suspected of illegal insider trading in shares of TCL during the first half of 2002.It is alleged that the four executives purchased TCL shares after they were made aware of price sensitive information concerning the Cemex bid for TCL.
The Market Regulation and Surveillance division of the SEC conducted an investigation and submitted a report on the suspected cases of insider trading in TCL shares in December 2002.
That report identified certain executives whom the staff suspected of insider trading and recommended that the SEC launch a formal investigation into the trading of TCL shares in the relevant blackout periods, which is a period when a public company's directors, officers and specified employees or investors cannot trade the company's stock. The blackout periods for the Cemex bid to takeover TCL were January 21 to February 5, 2002 and May 6 to June 24, 2002.
The opinion by the QC refers to an earlier investigation, which described Cemex's actions of discussing the proposed takeover bid with certain shareholders in advance as "constituting selective disclosure, undesirable activity, contemptible and a violation of fairness and equity."
Insufficient evidence
In a public notice on November 20, 2008, the then chairman and CEO of the T&T Securities and Exchange Commission, Osborne Nurse, stated that "while our investigation found considerable evidence of unacceptable market conduct, the evidence was insufficient to meet the requirement of the law to prove intent, or to overcome defences provided in the law."
Contacted last night, the current chairman of the SEC, Patrick Watson, said: "We are not involved in any investigation of any matter concerning the trading of TCL shares in 2002."Mr Nurse made a statement on this issue in 2008."Sources told the T&T Guardian that the QC's opinion was leaked by a disgruntled former TCL employee who had shopped the document to several media houses for some weeks.
In his statement yesterday, Howai added: "Up to this time, I have neither seen the report referred to in the media nor have I been given an opportunity to address the allegations said to be contained therein. To have such spurious assertions circulated in this manner is certainly a breach of natural justice."
PM responds
Prime Minister Kamla Persad-Bissessar yesterday said she had spoken to Finance Minister Larry Howai on the SEC probe matter and was satisfied with the response he gave her."Mr Howai has given us an explanation on the matter," she told the media during a cheque distribution ceremony for churches at the Diplomatic Centre, St Ann's.
"I am not concerned given his explanation, that is why I suggest you get it from the horse's mouth. I have read the media reports on the matter and I suggest you get a statement from him."