Ex-Caroni workers are
awaiting word from Prime Minister Kamla Persad-Bissessar on whether an
investigation will be conducted into the VSEP “Sweetener Loan” offered
to them by the Agricultural Development Bank and the Unit Trust
Corporation.
Members of the ex-Caroni Workers
Association yesterday delivered letters to Persad-Bissessar, Works and
Transport Minister Jack Warner; Finance Minister Winston Dookeran, and
Attorney General, Anand Ramlogan, requesting an investigation into the
matter.
According to the Association’s General Secretary, Allan Praimdass, the ADB and the UTC offered ex-workers the opportunity to invest in a joint venture specifically designed and configured to attract those who received Voluntary Separation of Employment Packages in 2003. It was called the “Sweetener Loan” and those who invested their money would have received 98 percent of the investment as a loan from the ADB.
The money was placed in the UTC under the Individual Retirement Unit Account (IRUA). It was expected to yield an interest of 12 percent compounded over a six-year period up to August, 2009. Interest generated from the IRUA was expected to repay the loan and to provide a lump sum payment to ex-workers at the end of the period.
“We received quarterly statements saying that everything was going according to plan, interest was being accumulating.
“In August 2009 however, we received a letter from the ADB saying due to the economic downturn the investment failed. It did not live up to expectations so we did not have to repay the loan, but no interest could be paid to us. Up until the five and a half year period, we were told it was doing well,” he said.
He said cane farmers wanted to either meet with Persad-Bissessar, or deliver their letter to ask her to investigate what occurred that caused the investment to fail.
While Praimdass was speaking to the media outside of the Prime Minister’s Office, St Clair, Press Secretary, Garvin Nicholas came out of the building and met with ex-workers assembled there. After Praimdass explained the situation, Nicholas assured the letter would be delivered directly to Bissessar as soon as she arrived at the office.
According to the Association’s General Secretary, Allan Praimdass, the ADB and the UTC offered ex-workers the opportunity to invest in a joint venture specifically designed and configured to attract those who received Voluntary Separation of Employment Packages in 2003. It was called the “Sweetener Loan” and those who invested their money would have received 98 percent of the investment as a loan from the ADB.
The money was placed in the UTC under the Individual Retirement Unit Account (IRUA). It was expected to yield an interest of 12 percent compounded over a six-year period up to August, 2009. Interest generated from the IRUA was expected to repay the loan and to provide a lump sum payment to ex-workers at the end of the period.
“We received quarterly statements saying that everything was going according to plan, interest was being accumulating.
“In August 2009 however, we received a letter from the ADB saying due to the economic downturn the investment failed. It did not live up to expectations so we did not have to repay the loan, but no interest could be paid to us. Up until the five and a half year period, we were told it was doing well,” he said.
He said cane farmers wanted to either meet with Persad-Bissessar, or deliver their letter to ask her to investigate what occurred that caused the investment to fail.
While Praimdass was speaking to the media outside of the Prime Minister’s Office, St Clair, Press Secretary, Garvin Nicholas came out of the building and met with ex-workers assembled there. After Praimdass explained the situation, Nicholas assured the letter would be delivered directly to Bissessar as soon as she arrived at the office.
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