Tancoo mum on Darbasie's resignation, focuses on forex ‘fallout’

Finance Minister Davendranath Tancoo, left, makes a contribution in Parliament. - Angelo Marcelle/File photo

Minister of Finance Davendranath Tancoo on August 22 has suggested the government’s drive to treat with the foreign exchange (forex) crisis has resulted in “fallouts” between the government and people who benefitted from the current forex system.

The minister made the statement while responding to questions from Newsday about the sudden resignation of First Citizens’ Group Financial Holdings chief executive officer (CEO) Karen Darbasie on August 20.

Newsday sent Tancoo questions about the resignation via Whatsapp on August 22.

The questions were:

1. Was the minister aware of Darbasie's plan to resign before she submitted her letter?

2. Does the ministry have any reason to believe that her resignation had anything to do with the ongoing probe into the distribution of forex by banks?

3. How far has the ministry got with its report on forex distribution? When will that report be submitted?

In response, the minister sidestepped the Darbasie issue but said the government is looking at several options to treat with the forex crisis.

“There are multiple aspects of the forex crisis, including the failure of the PNM government to take any steps to focus on improving existing or developing new sources of foreign exchange even as the energy sector was being stifled by PNM energy policy.

“Can we fix it? Yes. Will it take time? Yes. You cannot undo a decade of PNM deliberate mismanagement overnight.

“Will there be fallout? Yes. Because we will be focused simultaneously on enhanced and multiple streams of foreign exchange generation and a transparent distribution. Obviously then, those who have benefitted from the skewed system facilitated by the PNM, those engaged in money laundering or others hoarding foreign currency, will complain loudest.”

He said the government's approach will benefit the entire country.

“Unlike our predecessors, this Kamla Persad Bissessar government is focused on using our country's resources towards simultaneous growth and development of all of TT.”

He said the country can expect a varied and targeted approach to foreign exchange generation, allocation and use in the upcoming budget.

Newsday asked for clarity on his responses, but he declined to comment further.

In May during a post-cabinet media conference, the Prime Minister said the government will compile a report on forex distribution and leakage over the past ten years.

On August 22 Newsday reported that Darbasie tendered her resignation. Calls to Darbasie’s phone on August 21 went unanswered and chairman of the Group’s board declined to comment when asked to confirm it.

Newsday was told the board plans to meet on August 25 when it will consider Darbasie’s resignation and take the necessary steps to comply with the provisions of the Companies Act.

Darbasie in her bio on FCB’s website was hailed as a senior executive with more than three decades of experience in the financial services and telecommunications industries.

She started at FCB in 2015, coming from another global financial institution.

“Her extensive academic background coupled with her vast local and international qualifications which include a Bachelor of Science (BSc) degree in Electrical Engineering with first-class honours from the University of the West Indies (UWI), a master of business administration (MBA) with distinction from the University of Essex is bolstered by an innate technical business acumen,” FCB’s website said.

The bio said that Darbasie serves as CEO as well as a director on several subsidiary boards in the group.

Newsday tried contacting Darbasie by phone, but calls went unanswered.