Chambers call for fair forex distribution as Eximbank CEO axed

AXED: Navin Dookeran -

BUSINESS CHAMBERS have called for equity and balance in distribution of foreign exchange (forex) from Eximbank after the newly-appointed board fired chief executive officer (CEO) Navin Dookeran.

“What is at issue here is the ability of this new administration to find a fair and balanced, equitable way of forex distribution for those of us that are the most vulnerable,” said Vivek Charran, president of the Confederation of Regional Business Chambers.

“We are talking about businesses that have operated for decades, generational family businesses, many of whom are retail SMEs and are fighting for survival.”

“This is a balancing act between making large manufacturers happy and allowing SMEs to do business so they can grow into larger organisations,” said Ramon Gregorio, president of the Greater Tunapuna Chamber of Industry and Commerce. “It is really about equity and getting the balance right is what we are calling for as a chamber.”

“This chamber has always impressed on the importance of fairness, predictability, and transparency in the allocation process,” said Baldath Maharaj, president of the Chaguanas Chamber of Industry and Commerce.

“Whatever strategic direction is chosen, businesses must have confidence that the system is equitable and accessible. This stability is essential for growth, investment, and overall national development.” Chambers expressed the hope that new directors will improve Eximbank’s policy on forex allocations to cover a wider range of sectors, as opposed to only manufacturing and other stakeholders.

Edwin Chariah – chairman, Suresh Maharaj – deputy chairman, Nandini Narine, Bhushan Singh and Joseph Ridge Paul were appointed to the Eximbank board on September 25.

“We really hope that the board has a new strategy, new ideas and an injection of new thoughts to be able to really create more priority in terms of the distribution,” Gregorio said.

“Oftentimes the goods and services sectors are left out of the equation and they have their own challenges in terms of access to foreign exchange. We really want it to be a holistic approach.”

Maharaj noted that many of the members in his chamber, especially in retail and manufacturing rely heavily on the window to keep operations afloat. Charran also noted that the survival of many businesses is directly linked to the supply of forex.

“We have already, all of us, been affected by the system of distribution or the supply of forex which has been severely curtailed,” he said. “We understand why, we understand that there are shortages and challenges, but the fact is, we need to find a way where we can secure a line of forex available to us to import our goods at key seasonal points during the year with which we can be able to earn an income, survive, pay our staff, pay our financial liabilities to the bank or even to pay off foreign suppliers, many of whom have been on hold for a very long time.”

Chambers call for swift replacement of CEO

Chambers have also expressed confidence that the board will do its due diligence in replacing Dookeran.

“We believe that this signifies what we think hopefully is an actual change to not only the administration within Eximbank but maybe with regard to policy and system of forex distribution within Eximbank,” Charran said.

“We don’t hold Dookeran personally responsible for what is really the system of forex distribution under the Eximbank. It was touted as a facility where SMEs could be assisted with the shortage of US dollars that plagues our survival. That didn’t really occur.”

Charran said, in meetings with Eximbank and former minister of finance Colm Imbert his chamber was told categorically that there was no forex available, despite the window being open.

“In fact we were told that more controls may be coming and that seems to be the way going forward,” he said.

Maharaj said his chamber has been discussing the matter with a level of concern over continuity in access.

“We understand that the government and the newly appointed board may be charting a refreshed strategic direction for the Eximbank, and we respect their authority to make the decisions they believe are necessary.

“(However) history has shown that leadership transitions often come with a period of adjustment and continuity is important so that businesses can plan properly and manage their foreign exchange needs without disruption.

“Because of this the chamber would like to see the appointment of a new CEO with solid expertise and a deep understanding of export development and manufacturing in the short term. Strong leadership will be key to ensuring that the Bank can move forward smoothly while staying connected to the immediate needs of the business community.

News of Dookeran’s termination began circulating over the weekend. When contacted for a response he referred to an article in another local paper where he expressed pride in his accomplishments since his appointment in 2019.

“I would prefer not to say more at this time,” he told Newsday.