While the turbulence continues on the board of Caribbean Airlines Ltd (CAL), the national carrier is reportedly suffering losses.If left to its own devices, a well-placed airline source said it could very well end up like cash-strapped BWIA.In a March 17 report compiled by permanent secretary in the Ministry of Works and Transport Cheryl Blackman and sent to Prime Minister Kamla Persad-Bissessar, Finance Minister Dookeran and Works and Transport Minister Jack Warner it was recommended that a new board be appointed to prevent exposures to adverse risk to the national airline.As a result of CAL's inability to accomplish its strategic objective, Blackman stated that the situation with the board can lead to widespread financial implications for the company and country, a return to a loss-making airline, continued drain on the treasury and a return of the days of the nomenclature as an inefficient airline.
CAL, Blackman insisted, must be governed by a board that is by law collectively responsible for its success and must operate as a strong unit."The board in its present structure and/or composition does not appear to be able to fulfil this critical mandate since it is now embroiled in matters which are clearly distracting it from focusing on its main legal responsibilities towards the company and meeting the legitimate expectations of the Government," Blackman had noted.Upon receipt of the report Persad-Bissessar, a source said, referred it back to Cabinet who in turn forwarded it to the Financial and General Purposes Committee and Dookeran last Monday.
Last Wednesday, the committee comprising Dr Roodal Moonilal, Vasant Bharath, Winston Dookeran, Fazal Karim, Emmanuel George and Chandresh Sharma met at the Ministry of Finance to discuss the future of the board. Warner did not attend the meeting, sources said.It was agreed by the Ministers that the board be retained, despite Blackman's recommendations.CAL's board comprises George Nicholas III as chairman, vice chairman Mohan Jaikaran and five directors.CAL has been mired in controversy for the past several months, the first being when the directors and Warner were at loggerheads over the decision to fire former captain Ian Brunton.Warner had called on the board to do the ethical thing and resign.Nicholas and Warner subsequently mended fences.
Dookeran to take control of CAL
A source stated that it was even recommended recently that Dookeran take full control of the board over Warner."The Government is refusing to face reality. While they are refusing to act, CAL is haemorrhaging millions monthly, which we cannot afford at this time," the airline source said.The source indicated that all the directors were not seeing eye-to-eye with Nicholas.Among some of the findings coming out of four meetings in March, raised by CAL's vice chairman and directors which the Ministry of Works mediated, were:
• Lack of trust between directors and chairman.
• Lack of adherence to the company's bye laws as it relates to the convening of meetings.
• Alleged use of derogatory remarks on the part of the chairman in regarding the functions of individuals.
• Actions taken were perceived to be tantamount to undermining the integrity and functionality of the board.
The report stated that Nicholas did not offer any cogent denouncement of the various statements raised."It did not appear that in the environment established the board was operating with any level of cohesiveness, confidence and trust to develop and guide the implementation of activities to bring about the strategic objectives as identified for the company," Blackman wrote.In putting forward recommendations, Blackman stated that the ministry's senior legal adviser was at pains to identify the following:
• Every company should be headed by an effective board."While individually the members may posses excellent skill sets, as a group, they do not appear to be functioning and as such should be redeployed to serve in other fields of endeavours and a new board appointed to prevent exposure to adverse risk to the national airline," Blackman noted.
In a meeting with board members last Monday at the Ministry of Finance, Dookeran heard a litany of woes from directors.Threats of legal action by one member against another was also raised."Concerns about embarrassing the party was also raised."The board members were asked to work together by Dookeran," the source said.Contacted yesterday, Warner refused comment.However Allan Clovis, CAL director, said the board was still awaiting the determination of the meeting.Asked about his stormy relationship with Nicholas, Clovis refused comment.Attemps to meet Dookeran proved futile.
