The disclosure of information on the local business community’s use of foreign exchange was lawful, necessary and in the best interest of T&T’s financial system. That was the response made by the Central Bank of T&T late yesterday following criticism from the private sector and concerns raised by Finance Minister Colm Imbert.
Following public concern regarding the disbursement of and access to foreign exchange, Central Bank Governor Jwala Rambarran revealed the top users of foreign exchange in T&T.
During Senate debate on Wednesday Imbert claimed the release of the information may have been a criminal offence. He said there was a view that Rambarran breached at least three laws, namely the Central Bank Act, the Financial Institutions Act and the Exchange Control Act.
Imbert said he had received letters from financial institutions and others condemning the governor’s actions.
He said information in the banking system was transmitted to the Central Bank and “for one reason or another the Central Bank gathers the information about the purchases, transactions of banks and their customers and it keeps the information and each one of these laws says it is an offence to disclose that information.”
He said he could not ignore the letters he received and added that legal advice was now being sought. “It would be irresponsible of me not to seek advice as to whether the allegations made have any kind of basis or not.
“It would be irresponsible of me, having received this correspondence to just bury my head in the sand, throw it in a draw and forget about it. I am telling you tonight that it was not a good idea.This is what happened after the dissemination of that information,” he added.
The Trinidad and Tobago Chamber of Industry and Commerce also berated Rambarran for sharing the information.
On Monday, the chamber said it wholly condemned the “clear breach of confidentiality on the part of the governor of the Central Bank” when he deliberately opted to identify by name, companies and businesses deemed to be top users of foreign exchange in the country.”
Referring to the same laws as Imbert, the Central Bank maintained there had been no breach of confidentiality. In the release, the bank said it was of the firm view that information regarding T&T’s foreign exchange was of public concern and was therefore justified in its decision to name the companies with the highest demand for it.
The bank said the disclosure was necessary and in the best interest of the financial system, depositors, customers and other shareholders.
“Those who have publicly criticised Governor Jwala Rambarran for the disclosure have suspiciously failed to refer or consider the Central Bank's mandate which guides its independent functions,” it added.
Chapter 79 of the Financial Institutions Act states that information may be disclosed if it is deemed to be in the best interest of the financial system in the country. The bank said it was of the firm view that information regarding T&T's foreign exchange was of public concern and it was therefore justified in its decision to name the companies with the highest demand for it.
Conspiracy claims
During Senate debate Opposition Senator Wade Mark said he felt there was a conspiracy against the Central Bank governor and pointed fingers at the Government.
“I believe this is all part of a conspiracy on the part of the Government to undermine the Central Bank governor,” he said.
He claimed Government was mobilising its forces and accused the Chamber of Commerce of trying to undermine the independence of the Central Bank.
However ,Independent Senator, Dhanayshar Mahabir, said focus needed to be placed on the concerns of private citizens.
“I hear the business community complaining all the time. The information from the governor showed me that the business community was getting large sums at the same time no one is heeding my case as a private citizen when I need $40,000 Canadian and all I could get in a bank is $1,000,” he added.
He said the disclosure of information placed the access to foreign exchange in a different context.
“Maybe the business community is crying a little louder than it should and the private citizens are not being heard and I was very happy to know that some people are getting $150 million and I can’t get $40,000 Canadian,” he added.
Conspiracy claims
During Senate debate Opposition Senator Wade Mark said he felt there was a conspiracy against the Central Bank governor and pointed fingers at the Government. “I believe this is all part of a conspiracy on the part of the Government to undermine the Central Bank governor,” he said.
He claimed Government was mobilising its forces and accused the Chamber of Commerce of trying to undermine the independence of the Central Bank. However ,Independent Senator, Dhanayshar Mahabir, said focus needed to be placed on the concerns of private citizens.
“I hear the business community complaining all the time. The information from the governor showed me that the business community was getting large sums at the same time no one is heeding my case as a private citizen when I need $40,000 Canadian and all I could get in a bank is $1,000,” he added. He said the disclosure of information placed the access to foreign exchange in a different context.