A new government invariably means a changing of the guard, as the incoming administration appoints persons who better understand its objectives. Boards are being changed, and managers in state enterprises are at risk. The key criteria that should be used in the selection process for the new appointees are competence and capacity. In the last week, the CEO of the Water and Sewerage Authority (WASA) and nine others were dismissed, the Central Bank Governor’s contract was terminated, and a new governor was appointed.
Personnel changes at WASA were inevitable, given the current administration’s opposition to the restructuring plan designed by the previous government. The media release stated that the new acting CEO demonstrated “the board’s commitment to redefining the path forward for the authority, focused on achieving equity in the supply and distribution of pipe-borne water across Trinidad and Tobago.” The implication is that WASA’s water distribution policies were skewed and inequitable, not that it was inefficient. The words carry political connotations that would appeal to this administration’s supporters.
Public Utilities Minister Barry Padarath was scathing in his condemnation of the dismissed CEO, without providing any supporting details or outlining the alternatives to be pursued. It was notable that the media release bypassed the fact that WASA requires state support of approximately $2 billion annually and has been the subject of several restructuring attempts and organisational changes, which made no permanent improvement in its operations. These include organisational and personnel changes which took place during the current Prime Minister’s first stint in office. What is the alternative to the restructuring plan? How will WASA be made a viable entity and fulfil the promise of “water for all?”
The appointment of a new Central Bank governor was not unexpected. Different ministers implied that the names of the highest forex users would be disclosed. One could speculate that Dr Alvin Hilaire’s comment that he would not disclose confidential data may have created a rift with the new administration, though no reason for the termination was given. However, the judgment in the case of the former governor said disclosure of confidential data was not the Central Bank governor’s prerogative.
The new governor is a career banker as a former First Citizens CEO and a former finance minister. He brings gravitas and experience to the position. His appointment has been welcomed by business stakeholders who called for him to place greater emphasis on improving access to foreign exchange.
In an interview with Guardian Media, he acknowledged that addressing the forex shortage was a major, if not the critical task he would face. He noted that the public should feel comfortable that foreign exchange was being utilised in the best way. He indicated that policies to arrive at the best use of the forex should be informed by understanding the data showing its actual use. He also emphasised the need for confidentiality.
Changing personnel is only one step in successfully addressing the serious challenges and complications that this administration must face. Many more steps are required to improve water distribution and reduce government subsidies; to manage government expenditure whilst reducing the deficit; to generate more tax revenue, whilst making the bureaucracy more efficient; to improve the country’s economic performance; the foreign exchange situation; and to address the social security system challenges. These are complex problems that must not be underestimated, and expectations are high.