VZCZCXRO9111
RR RUEHGR
DE RUEHSP #1111/01 3101254
ZNR UUUUU ZZH
R 061254Z NOV 07
FM AMEMBASSY PORT OF SPAIN
TO RUEHC/SECSTATE WASHDC 8784
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEHCV/AMEMBASSY CARACAS 3721

UNCLAS SECTION 01 OF 02 PORT OF SPAIN 001111 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
E.O.12958: N/A 
TAGS: PINR PGOV KCOR ECON EFIN EPET TD
SUBJECT: CORRUPTION IN TRINIDAD AND TOBAGO 
 
REF: (A) PORT OF SPAIN 987, (B) PORT OF SPAIN 643 
 
SENSITIVE BUT UNCLASSIFIED; PLEASE PROTECT ACCORDINGLY. 
 
¶1. (SBU) SUMMARY:  There is concern in Trinidad and Tobago over 
alleged corruption in the public and private sectors.  This is a 
black mark for the ruling People's National Movement (PNM) and an 
impediment to Prime Minister Patrick Manning's goal of achieving 
developed country status by 2020.  Transparency International's 
Global Corruption Report 2007 suggests that perceptions of 
corruption have stabilized, but the country's reputation is well 
below its high mark of just seven years ago.  The GOTT has pledged 
to combat corruption and has some functioning mechanisms in place, 
but its implementation of relevant treaties, laws and regulations is 
insufficient, and its relations with interested civil society 
organizations are uneven.  Throughout the 2007 general election 
campaign season, corruption charges have surfaced, though generally 
failed to gain any traction.  Many candidates also have called for 
campaign finance laws, though this electoral season concern may fade 
after the November 5 vote.  END SUMMARY. 
 
----------------------------------- 
STATUS OF CORRUPTION: SOME EXAMPLES 
----------------------------------- 
 
¶2. (SBU) Despite its oil and natural gas resources, Trinidad and 
Tobago is a functioning and vibrant democracy and not a kleptocracy 
as is true with some other nations in a similar resource situation. 
Nonetheless, alleged corruption among public officials continues to 
be a concern. According to Transparency International's recently 
released Global Corruption Report 2007, Trinidad and Tobago received 
a Corruption Perceptions Index (CPI) score of 3.4 out of 10, a 
slight improvement from the 2006 rating of 3.2 but down from 5.3 in 
2001, indicating that the perceived levels of corruption among 
public officials and politicians fall between "serious" and 
"rampant."  In prior years, GOTT ministers have chafed at the CPI 
scores, complaining that TI's focus on perceptions has penalized T&T 
when the country ought to be getting credit for bringing high 
profile corruption cases to light and prosecuting officials from 
both ruling and opposition parties (several former parliamentarians 
and Ministers are facing charges).  They also have complained that 
past leadership of TI's local chapter was politically motivated. 
Nevertheless, there are numerous allegations of continuing 
corruption at both high and low levels of government as well as 
allegations of police involvement in corrupt and illegal activities. 
 
 
¶3. (SBU) There is a widespread perception that the police force is 
corrupt; however, the number of actual reported incidents is small. 
In 2006, prison service Commissioner John Rougier claimed there was 
a "rogue element" of police officers trafficking drugs, cell phones, 
and weapons within the country's prison systems. Petty corruption in 
connection with public services is widespread.  In the case of the 
Transport Division Licensing Office, the widely acknowledged ability 
of unqualified applicants to obtain a driver's license and license 
plates for unsafe vehicles in exchange for a bribe, is cited as a 
factor in deteriorating road safety. 
 
¶4. (U) In one of the most notable corruption cases (ref a), the 
Privy Council is examining charges against suspended Chief Justice 
Satnarine Sharma for allegedly trying to influence a case against 
former PM and current UNC opposition leader Basdeo Panday. Panday's 
case involved his failure to declare a London bank account in 
violation of the Integrity Commission regulations (see below para 
seven for an explanation of the Commission; Panday lost his seat due 
to the still-in-court charges). Sharma's defense team is seeking to 
discredit his main accuser, Chief Magistrate Sherman McNicolls, by 
saying that the McNicolls took a bribe when handling Panday's case. 
Sharma's lawyers have also implicated Attorney General John Jeremie, 
stating that he assisted with securing this bribe. Jermie dismissed 
the charges as rubbish and refused to testify in person, choosing to 
provide a written statement instead. 
 
¶5. (U) Corruption is not only an issue among government and public 
officials; it is also an issue in Trinidad and Tobago's business 
world. A number of former government officials and business 
executives are still under investigation for complicity in 
bid-rigging by Florida-based companies that defrauded the GOTT 
during the Piarco International Airport development project. 
Several T&T business executives are currently fighting extradition 
to the U.S. to face charges under the Foreign Corrupt Practices Act 
in connection with the Piarco project. 
 
¶6. (SBU) During the 2007 general elections, the Trinidad and Tobago 
Transparency Institute and many opposition politicians publicly 
stated that the country needed finance reform.  Manning also agreed 
that this issue should be reviewed.  How diligently this possibility 
might be pursued in the next parliament is an open question, though 
many observers expect it to quietly disappear from the list of 
priority concerns. 
 
PORT OF SP 00001111  002 OF 002 
 
 
 
-------------------- 
COMBATING CORRUPTION 
-------------------- 
 
¶7. (U) The GOTT has taken a number of steps to deal with corruption. 
For example, over the years it has ratified the Interamerican 
Convention Against Corruption and the United Nations Anti-Corruption 
Convention, and has generally honored its obligations under those 
treaties. While numerous anti-corruption plans have been announced, 
the actual implementation of the plans is frequently weak and 
lacking in transparency. The legislation that established an 
Integrity Commission, an independent body that acts on allegations 
of impropriety against officials, for example, does not clearly 
specify which public entities fall under its jurisdiction.  As a 
result, executives at state-owned enterprises are not required to 
file financial disclosures.  That the law has some teeth, though, is 
clear in the legal suit that was brought against Panday. 
 
¶8. (U) Trinidad and Tobago has a Freedom of Information Act that 
provides for public access to government documents upon application. 
However, critics charge that a growing number of public bodies are 
exempted from the Act's coverage. GOTT claims the exemptions were 
intended to avoid frivolous requests and searches for information. 
 
-------------- 
PUBLIC FINANCE 
-------------- 
 
¶9. (SBU) In public finance, the GOTT is relatively transparent on 
the revenue side of its balance sheet, particularly when compared 
with other oil and gas producers in the developing world.  The GOTT 
Finance Ministry publishes aggregate revenues and has been a 
consistent supporter of the Extractive Industries Transparency 
Initiative (EITI).  While EITI implementation stalled in 2006-07, 
the GOTT Cabinet recently approved plans to revive its candidacy and 
the Energy Minister publicly announced this intention.  Industry 
contacts support the view that T&T will have an easy time meeting 
its EITI commitments on transparency.  The one weak spot in this 
picture is the government's reluctance to engage civil society 
organizations, including the local chapter of Transparency 
International (ref B).  TI's uneven relationship with the GOTT, 
which even some impartial observers blame in part on its previous 
confrontational director, hampers its ability to advance its agenda 
in this and other areas. 
 
¶10.  (SBU) GOTT spending, on the other hand, suffers from a lack of 
transparency, as large amounts of public expenditure are effectively 
off budget. Special-purpose State Enterprises spend huge amounts of 
public money on "mega projects" outside strict legal and 
institutional procurement frameworks. A government-appointed 
committee of experts issued a white paper in 2005 with a series of 
proposals to reform the procurement regime to enhance public 
accountability and reduce opportunities for corruption.  However, 
after promising to implement the white paper in 2006 and 2007, the 
Prime Minister announced in August 2007 that its proposals were too 
cumbersome and would only slow the pace of infrastructure 
development. The GOTT claims infrastructure projects are all being 
done in full accord with the principles of "Value for Money, 
Transparency, and Accountability," but hard evidence of this is 
lacking.  A frequently cited example is the USD$1.1 billion Rapid 
Rail Project.  This project, despite being a subject of intense 
political debate, is being implemented outside formal procurement 
procedures and with no financial feasibility study. 
 
 
---------------------------- 
COMMENT: SOME GOOD, SOME BAD 
---------------------------- 
 
¶11.  (SBU) The corruption picture in Trinidad is mixed, with 
transparency in some sectors and opaqueness in others.  On the 
positive side the courts, press, Integrity Commission, and 
politicians show no hesitation to raise (and sometimes make up) 
these charges.  Prime Minister Manning has occasionally been brushed 
by corruption charges from opposition figures, but these allegations 
have gone nowhere and his supporters assert he is scrupulously 
honest and a bulwark against corruption.  The GOTT also is fairly 
transparent on the revenue side of the ledger, but less so on the 
spending side.  That corruption, public and private, is a problem is 
widely believed and the growing lawlessness in society and 
drug-money influence also adds weight to this concern.  To the 
extent the perception - or reality - of corruption grows, it could 
hamper Trinidad's drive toward first world status. 
 
AUSTIN