An estimated 10,500 people who were fired from Community-Based Environmental Protection and Enhancement Programme (CEPEP) will be receiving money soon.
Public Utilities Minister Barry Padarath has confirmed that over 300 contractors terminated from the programme last Friday, who were collectively responsible for the 10,000-plus workers, will receive one month’s payment “in lieu of notice,” enabling them to compensate their workers for the month of July.
“They are not just going home without anything; CEPEP contractors will be paid and are expected to pay their employees,” Padarath told Guardian Media yesterday.
Addressing concerns over the sudden move, Padarath emphasised that Government’s decision was not aimed at leaving workers without income or support. He said in addition to the payment, workers can access assistance from the Ministry of the People, Social Development and Family Services, which has been placed on standby if needed.
He said the compensation clause was part of the original contract and was deliberately triggered to ensure employees under the outgoing contractors will still be paid during the transition period.
“In the interim, what will happen is that they will receive that one month in lieu of notice, so it is not just a slapdash measure that we just cut people and send them home. We have invoked that clause; therefore, contractors will be paid and are expected to do the right thing by their employees as well,” Padarath said.
Last Friday, hundreds of CEPEP contracts were terminated after the Government announced plans for a full audit of company’s assets, contracts, and operations on June 5 during the post-Cabinet media briefing.
Audits had not been conducted since 2020, and the Government claimed more than 360 CEPEP contracts were signed on the eve of the April 28 General Election.
On Monday, several former workers explained how the sudden termination would affect them financially. They admitted they were scared and confused.
Padarath yesterday insisted that measures were being taken to mitigate the fallout from the move.
“There is another area, which is social support. The Ministry of People, Social Development and Family Services are engaged. We are not working in silos. We are working in tandem with each other and, therefore, a lot of the support that may be needed is directed through the Ministry of Social Development. However, as indicated in lieu of the notice, contractors will be paid and they will have to pay their employees.”
Asked whether the funds were already disbursed to the former contractors, Padarath said the funds were expected to be made accessible this week.
“You would recall that we just did the mid-year review and there was an application for just over $60 million and that is before the Senate, and therefore, once it is passed in both Houses, then the disbursement will be carried out. So, over the next few days, I anticipate that will happen.”
Padarath said the audit into the programme was still ongoing.
“We have received some information based on internal documents but there are some areas that are still outstanding. So, I am hoping that over the next month or two that that exercise should be completed.”
Padarath had previously accused the People’s National Movement (PNM) of prostituting CEPEP and using the programme as a slush fund to benefit senior party officials.
Padarath also announced that a new CEPEP board will be installed today. He said the new board’s immediate mandate will be to begin the process of registering new contractors under updated stipulations aimed at improving transparency, efficiency, and delivery of service across communities.
“We are looking to cut out that wastage, mismanagement and corruption that occurred in CEPEP during the PNM’s administration and, therefore, we envisage a more transparent process. But we are putting a stipulation on contractors that you have to operate out of the communities from which your company is based and the contractors are expected to hire persons from within the community from which the business is registered.”
He said following the streamlining of the process, prospective contractors will be invited to apply for contracts.