Senior Reporter
kevon.felmine@guardian.co.tt
Tunapuna/Piarco Regional Corporation (TPRC) chairman Josiah Austin has rejected statements by Minister of Rural Development and Local Government Khadijah Ameen, describing as “false and misleading” the suggestion that corporations are prioritising cultural events over contractor payments.
Austin’s response follows Ameen’s warning that municipal corporations should avoid discretionary spending while carrying significant arrears, including her remark that they should “not throw a fete” while owing money, as debts across the system approach an estimated $1 billion.
In a statement yesterday, Austin said unpaid contractor balances—particularly for scavenging services—are a longstanding issue rooted in inadequate funding allocations from central government, rather than mismanagement at corporation level.
“Outstanding payments to scavenging contractors are a perennial issue, one that existed even during the minister’s own tenure as chairman of the TPRC. Municipal corporations are legally bound to operate within allocations approved by the central government, and when allocations fall short of contractual obligations, deficits are inevitable. This is a national funding issue, not a TPRC failure,” he said.
He stressed that funds allocated for contracted services cannot be diverted to cultural activities, noting such programmes are financed through approved budget votes, the Chairman’s Fund (with Ministry of Finance approval), donations and public-private partnerships.
Austin also defended the role of cultural programming, rejecting the characterisation of such activities as frivolous spending.
“The minister’s attempt to frame cultural expression as irresponsible spending is deeply unfair. Cultural programmes are not fetes; they are legitimate initiatives that uplift communities, support NGOs and preserve national identity,” he said.
Austin further pointed to what he described as inconsistencies, noting that state-supported initiatives have continued despite reports of unpaid workers.
“The reality is that delayed contractor payments stem from insufficient allocations and delays in the release of funds from the central government. Notably, the allocation for scavenging services at TPRC was significantly reduced in fiscal 2025/2026,” he said.
As debate continues over how to address the growing financial strain on municipal corporations, Point Fortin Mayor Clyde James said Government should reconsider property tax as a potential revenue stream. James said all corporations are facing similar financial constraints, with allocations often insufficient to meet both recurrent and development needs.
“To be frank, each corporation has debt, and whatever allocation the Government provides is not enough for recurrent and development programmes,” James said.
He explained that delays in funding under programmes such as the National Development Programme (NDP) often result in outstanding invoices rolling over into the following fiscal year, leaving corporations effectively starting with deficits. He said the Point Fortin Borough Corporation received $5.5 million for development programmes for fiscal 2026 but had outstanding debt of $4.89 million, leaving roughly $600,000 available.
“There is very little we can do under that vote. Regarding recurrent expenditure, back pay for workers and adjustments to salaries and rates this year depleted other allocations, resulting in a shortfall. That is why we held that meeting—to submit our figures so the Ministry can assess the gaps and forward them to the Ministry of Finance,” he said.
Property tax was scrapped following the April 2025 general election, fulfilling a campaign promise by Prime Minister Kamla Persad-Bissessar. The tax had been reintroduced under the previous administration, with valuation notices issued in 2023 and collections beginning in 2024, aimed at providing a stable revenue stream for public services and development.
However, James said the absence of that revenue has compounded operational challenges, including maintaining ageing vehicle fleets and sustaining service delivery.
Austin maintained that curtailing cultural activities would not resolve the underlying funding issues and argued that, if applied broadly, such a position would prevent state agencies from hosting events while carrying outstanding liabilities.
He said the TPRC remains committed to meeting its obligations as funds are released, supporting contractors and continuing community-based initiatives within the law.
