Tourism Minister Shamfa Cudjoe has called on former permanent secretary in the Tourism Ministry Jualiana Johan-Boodram to answer questions about a $7 million payment for a project done by FV Marketing which had no contract and wasn't approved by the past PP cabinet.
Cudjoe posed the questions during her 2016 budget contribution in Parliament yesterday.
Noting there was a $10 million project, Cudjoe said the former minister approached Cabinet for approval for the $7 million payment to FV Marketing. She questioned how the payment was done since there was no Cabinet approval for it.
She noted a March 2015 letter to the ministry's permanent secretary in which the former minister sought approval for the $7 million. Cudjoe said Cabinet didn't approve it and sent back questions on why approval was not sought, who FV Marketing and Advertising Agency was, and if the tender process was in keeping with Central Tendering procedure? She noted correspondence from one Ted Ramsammy, adviser to the minister/PS at the time.
Cudjoe said the PS Donna Ferraz's letter on the execution of the programme noted the queries from the Cabinet subcommittee and had responded that the information she had was all that was available from the ministry's record and the Company Registry. If any information was required, Ferraz's letter recommended contact be made with Johan-Boodram who held the post when the project was executed. "So PS Jualiana Johan-Boodram has some questions to answer, the nation would like to know how you managed to move $7 million of public funds into the hands of a private company for marketing...?" Cudjoe added, questioning the past People's Partnership administration. Cudjoe also said the Tourism Development Corporation (TDC) was a law unto itself, a "runaway horse" and beyond the control of the board and ministry. She said there were complaints of the TDC acting like "the tail wagging the dog." She warned that the new Government would run the TDC and not the other way around. She noted TDC had base salaries of a total of $16 million with employees in the highest pay range. "I see strange hirings and firing; a former tea lady becoming an accounts employee, telephone operator, a marketing specialist–everyone in TDC is a specialist!"
Cudjoe said TDC was a well-resourced, well-travelled company, present at every tourism event, including half million spent on one trip with four people attending. She listed trips for October including Chile ($91,880), Curacao ($120,000), and others for $400,000. Deeming them "junkets," Cudjoe said in some cases there was no ministry knowledge or communication with the Tobago House of Assembly. Cudjoe said among board expenses, cricketer Daren Ganga brought a $70,000 issue for CPL to the board and a $90,000 matter was brought by another member. Although TDC was supposed to market T&T, she said, TDC had agents from Scandinavia the US, UK, Canada, India and Germany costing an average of US$10,000 monthly. She also noted $194,000 in TDC grocery bills from the Massy group for Christmas, and a Christmas party costing $153,000.
"Someone has abdicated their duty regarding TDC, they don't feel any need to inform the ministry–but we're in charge now!"
Hadeed responds, Johan-Boodram says she'll have to wait
Yesterday, Johan-Boodram, commenting on the matter, said she will have to wait to see Cudjoe's statement before she said anything.
Former tourism minister Hadeed, meanwhile, said the matter was started before he entered the ministry and he met it there when he assumed office. He said the company had sought the payment and he had passed the issue to the PS. He said he had enquired about the $7 million payment and was given information but didn't remember exactly what the context of the response was.
Issues with Kallco in Maracas Bay project
Cudjoe noted issues with the Kallco contractor in the Maracas Bay facilities upgrade which she said the PNM would continue via a $13 million allocation in the budget.
She expressed concern it wouldn't be ready for Carnival and she had concerns regarding value for money.
She said Kallco was encouraged to do the work quickly and advised to hold a launch in July. Kallco submitted claims of $274,000 for the launch but to date it had not been approved, she said. Kallco also made claims for "unforseeable physical" matters concerning a swamp the company said it had not known existed in the area before. Cudjoe said engineers said the project was two to four months behind time.