The Negative Effect of Political Financiers in Trinidad and Tobago

Running head: Campaign Financing and Political Financiers

UNIVERSITYOF THE SOUTHERN CARIBBEANMARACAS ROYAL ROAD, MARACAS,

ST. JOSEPH.

THESIS PAPER:

Campaign Financing and the Negative Effects of

Political Financiers In Trinidad and Tobago

ENGL215 English Composition 2

Lecturer: Mr. Kevin Holder

By Garth Bertrand

Date of Submission (13th September 2013)

Approval………………….

Campaign Financing and the Negative effect of Political Financier

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Abstract

With the drastic change in the nature and style of election

campaigning in Trinidad and Tobago, and the growing need for

funds by political parties with the turn of the 21st century,

there has been a new phenomenon, political financiers, who knows

that the sinew to run any election campaign is money and lots of

it. In contrast, however, they see campaign financing as an

investment in which they and the political leader and his or her

party can profit at the expense of the citizenry. As such this

paper will seek to argue how political financiers are conceived

and how they are negatively affecting the republic of Trinidad

and Tobago democratically, economically and socially. This paper

will examine, and present several published articles, electronic

sources and news paper prints that support one’s arguments, and

as such, one will show that an independent political committee

needs be established to effectively treat with political parties,

their election campaign effort and political financiers


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Keywords: election campaign, political financiers, Trinidad and

Tobago

The Negative Effects of Political Financiers in Trinidad and

Tobago

The style and nature of election campaigns in Trinidad and Tobago

have changed drastically with the turn of the 21st century, when

compared to the post – independence era of the same ilk.

According to Professor Selwyn Ryan (2005), former director of the

Institute of Social and Economic Studies, St. Augustine, and at


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present a columnist for the Trinidad Express, in his article,

Political Party and Campaign Financing in Trinidad and Tobago,

whereas in the post – independence era, political parties

obtained financial and other means of assistance from “party

membership dues”, “union contribution”, and “donations” from

minority group merchants; whereas, party supporters working

in the ideology of nationhood and did a great deal of house

to house work voluntarily, much of that has since changed…

as in the United States and other countries, political

campaigning has resorted to a full fledge “air war” fought

by newspapers, radio and television. (p.5)

Thus, as a result of this change; of this full fledge “air war”

between political parties in Trinidad and Tobago, there is a dire

need for funds to support their campaign efforts that is also

inclusive of posters and flyers; entertainment; pollsters; spin

doctors, and registering of candidates with the Election and

Boundaries Commission (EBC). However, one unearthed that these

political parties don’t have the funds to offset these expenses,

and their miniscule effort of fund raising is even worthless or


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of no helps neither. Thus, they turning to various contributors

locally and internationally, who in turn will require some sort

reciprocity for their investment, have placed them in a very

negative light, as there’s no accountability, or transparency for

the monies obtained. As a result of this sort of corruption, one

will treat with one of their major contributors, namely,

political financiers, who prized themselves of corrupt societies

and its leaders, for their gain, without fear of prosecution, and

their negative impact on the republic of Trinidad and Tobago,

democratically, economically and socially.

To this end, this thesis paper is subdivided into four sections.

In the first section, The Debacle Of Campaign Financing, one

argued that a weak electoral system that doesn’t account for

party politics, mixed with a lack of transparency and no

accountability on the part of political candidates in their

attempt to solicit funds for election campaigns, has bred

political financiers who are ostentatious and vicious in their

schemes. In the second section, The Economic Fever, one argued

that political financiers’ actions have negatively affected the


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economic process and outlook of this country. In the third

section, Socially Justifiable Malpractices, one argued that

malpractices will continue to flourish as politicians and their

financiers give credence to the citizenry to follow in their

nefarious and corrupt practices. And, in the fourth selection one

concluded the paper with recommendations that an independent

political committee is critically needed to rescue this country

of wonton spending, corrupt practices, and politicians and their

financiers who use the electoral process as a formula to quench

their voracious appetite for greed and power.

The forever growing need for monies by politicians to finance and

maintain their party pre and post election has bred political

financiers who negatively affect the republic of Trinidad and

Tobago democratically, economically and socially.

The Debacle of Campaign Financing


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In treating with the debacle of campaign financing resulting

in political financiers’ conception and nefarious schemes, one is

the informed opinion that three parameters, namely, The law

regarding campaign financing, the style and nature of election

campaigns, and the source of funds, must first be established as

arguments going forward.

The Law Regarding Campaign Financing

According to (Ryan, Selwyn, 2005), in his book segment,

Political Party and Campaign Financing in Trinidad and Tobago, a

major portion of the laws and regulations for financing of

elections in Trinidad and Tobago are held in the Representation

of the Peoples Ordinance (RPO), which was enacted in 1961 and,

subsequently, modified in 2000. As such, in treating with the law

regarding campaign financing, one examined the subsection of the

Ordinance, for which one is concerned. According to the

subsection of the RPO:

No sum shall be paid and no expenses shall be incurred by a

candidate at an election or by his election agent on account


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of or in respect of the conduct or management of an election

in excess of fifty thousand (TT$50,000.00) dollars in the

case of a parliamentary election or twenty – five thousand

(TT$25,000.00) dollars in the case of Municipal Council or

Regional Council Election. (US $1 = TT$6.30)

In other words, a political leader and his or her party is

entitled to a princely sum of US $8000 or TT$50,000 as stipulated

by the RPO. In contrast, however, this legislation has several

flaws to it, in that, it provides a loophole for the political

party to not disclose who their financiers are, second, it

doesn’t treat with political parties, and third, it doesn’t

reflect the reality of the monies spent to run an election

campaign. According to the said author:

When these laws were enacted, independent candidates were

still the norm and party politics hadn’t been rooted deeply, as

yet, in the society. And as such, by 1996, when it, party

politics, became a part of the fabric of the society, Trinidad

and Tobago, independent candidates were the exception and party

the rule, but the RPO hadn’t made any changes to recognize the


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existence of parties. Therefore, there are no limits as to how

much monies parties can raise or spend. (p. 3 - 4)

Moreover, according to (Campaign Financing Reform and the role of

Political Debates, 2013),

The obvious “loophole’ in the act allows for the candidates

to have a third party pay for the expenses when holding

political meetings, (and where such expenses can include

advertising, party paraphernalia, et cetera.), as the act

doesn’t make it mandatory for political parties to say who

are their financiers. (para. 4)

Thus, the first issue to the debacle of campaign financing

is that this RPO is archaic; it has been enacted since 1961 and

it doesn’t treat with the modern realties of election campaigns;

and, as a result, political parties can garner monies from

illegitimate sources and can spend these funds without fear of

prosecution or accountability.

The Style and Nature of Election Campaigns


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On the other hand, the second issue is the style and nature of

election campaigns, which have moved from a volunteer based to

one that is capital intensive:

Whereas, in the immediate post – independence era, the

parties received financial and other kinds of support from “party

membership dues”, “union contributions” and “donations from elite

merchant who sought to controlled party leaders”; whereas

supporters who believed that they were working for a national

cause, labored voluntarily – “the island circling motorcade or

whistle stop using railway trains were essential features of the

old style, “rum, roti and sardine”– has since changed

significantly in respect to the style and nature of election

campaigns. Political campaigning has now become very capital

intensive and market oriented, and financial resources to pay

media elites, public relation experts, spin doctors and

pollsters, many of whom are brought from the United States and

the United Kingdom at high costs, have to be sourced and secured.

(p. 5)

The Source of Funds


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Therefore, these two issues gave credence to ask, “How do

they generate funds?”, or “who provides them with funds, and for

what reason (s)?” To which one responded by arguing that

political party members’ are susceptible to receive monies from

illegitimate sources for reciprocity to be return in kind, as

there’s no law to stipulate whom they can source these funds

from. This will serve as the third issue to the debacle of

campaign financing in Trinidad and Tobago. One unearth that the

only legitimate means of generating funds for the political

parties are through fund raising activity: “at the basic level,

the political parties host fund raisers in the form of dinners,

parties and other social activities, to build loyalty, but it

doesn’t amount to anything significant.” (p.6). In contrast,

however, there are several means through which funds are obtained

or channeled illegitimately:

Around elections years, major businesses consistently

budget and allocate funds to all significant parties on

the premises that the electoral system will serve to

provide the right environment for the conduct of


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business and as such this ought to be sustained.

Democracy is recognized as being expensive, and that

much of the giving is justified as prudential practice.

However, they want access to whichever party that wins.

Then there are family – owned businesses that split

their support between major parties, so that the family

is always “in power.” These firms usually have

preferred parties, candidates, or political elites, and

privilege one group more than the other; and, who use

ethnicity

He also argued monies are allegedly given to political

parties and candidates by nacro – traffickers and money

launderers in order that these drug – traffickers can

execute nefarious, illegal activities without fear or

serious interference from the police.

Then there are businesses or individuals who make

informal donations directly to the party leader or his

nominee, “bagman”, spontaneously or on request of the

leader, so as to avoid paper trail, and so as to let


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him, the party leader, know subtly that reciprocity

will be expected in near future. (p. 6 - 7)

Thus, reader, It is in this light, in this milieu, where an

Ordinance does not account for party politics; where no

accountability and lack of transparency in accounting for monies

received by political party candidates, run rampant as rats in

Port – of – Spain, and susceptibility to accept monies from

illegitimate sources, that political financiers come to the fore

with their deceptive ploy to prey on these weaknesses and to

benefit themselves, the political party and its leader who

supported them. According to (Ryan, Selwyn, 2005), what is rather

new to the Trinidad political environment is the type of

professional political financiers whose donations to the party

leaders are “ostentatious”, “vulgar”, “substantial”, “sustained”

and fashioned to capture a considerable amount of the financial

resources of the state with or without having to follow protocol

in the bidding process. Moreover, he said that the financiers

plan is to make a fast return “that far exceeds what is available

elsewhere in the market” through fixed award of “public


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procurement contracts” to deliver goods and services, or to build

huge project on behalf of the state, and in kind, to return a

disproportionate sum to the political leader. The aim in essence,

he said, is for political or campaign financing to serve as a

method for the financiers and his cronies and politicians to loot

the Treasury. (p. 7)

In other words, political financiers and their political

agent are working in a vicious, corrupt tandem – they contribute

a disproportionate sum of monies to finance the major political

parties campaign efforts, who in turn will expect to be awarded

contracts for state projects – which they have not bid for, and

which is in utter violation of the awarding of contract

procedures – from which they pocket monies for themselves and

some to run the election campaign when that period comes again.

In the Republic of Trinidad and Tobago, Political financiers

are born out of a weak electoral system – where the laws is yet

to be updated, and political party candidates are not held

accountable for monies channelled to them to fund their electoral


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campaign efforts; and, they prey on these weaknesses to benefit

themselves and their political party of choice.

The Economic Fever

And as such, As a result of political financiers’ lack of

decorum for democracy and good governance of this country, their

corrupt and reprehensible actions, such as bid rigging, failure

to declare their assets according to the Integrity in Public Life

Act, tax evasion, and taking and offering bribes, to name a few,

have resulted in the republic experiencing an economic fever – a

term coined to mean, that when a country is castigated as

corrupt, it will negatively affect its ability to attract

investors both locally and internationally; its ability to be

granted international loans; and, the quality of social services

offered to its citizenry are starved.

According to the Market Facts And Opinion (MPO), conducted

during the period April 30th - May 11th 2013, to gather the

populations’ perception on the Peoples Partnership and the state

of the economy, and published by newly appointed Treasurer for


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the Media Association of Trinidad and Tobago, and Journalist for

the Trinidad Express, (Bridglal, 2013), in her article,

Corruption Widespread In Business and Government, revealed that

approximately nine out of 10 persons surveyed or 70% are of the

belief that corruption is more rampant than a year ago. She said

that this strong belief was so, when, since its inception, the

People’s Partnership had taken Mr. Jack Warner into its fold,

whom was a political financier and chairman of the party then;

and of whom, compelling evidence of financial misbehaviour was

found against his person, which eventually saw him severing all

ties with them. She also revealed that the Section 34 scandal and

the “Emailgate” have also led to the strong belief on the

perception of corruption amongst the citizenry; and, according to

the Trinidad and Tobago Chamber of Industry and Commerce’s

President, Mr. Moonilal Lalchan, there must needs be a swift and

thorough investigation of the latter, the Section 34 scandal and

the “Emailgate”; and, that Mr. Warner had made the correct

decision in stepping down, as it is negatively affecting the

continued flow of foreign direct investment (FDI), which at


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present, is slowly flowing into the country; and, that “these

allegations, and spiralling crime rates are having a negative

effect on local investor confidence, hindering production in

manufacturing firms, and adding costs to output for extra

security.”

Corruption, reader, According to (Nazario, 2007), Senior

Associate at Casals and Associates, and an international

specialist on political governance and social development in

Latin America and Africa, in his paper, a Strategy Against

Corruption, subsection II., Why Corruption Matters, is “the abuse

of public office for private gains”, which “deprive citizens’

expectations for improvement in service deliveries”, “undermines

trust in public institutions, particularly in the judiciary and

the security forces”, and “hinders investment by increasing the

costs of doing business and distrust in investment security”, is

entrenched, varied and wide spread in this country.

In contrast, however, the current Prime Minister, Mrs. Kamla

Persad Bissessar, have argued that there is no evidence of

corruption in her government. According to (Ramdass, 2012), in a


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report filed for the Trinidad Express, No Proof of Bobol, the

Prime Minister said that “they talk of corruption in my

Government and up to today they cannot give me one specific

instance of corruption. They call names, they blame people,

there’s nothing I’ve seen evidence of and I promise you this -

the day any evidence of corruption comes in my face, I will deal

with it.” She further argued that “no minister will stand, no

councillor will stand, and no board member will stand. I’ve

already demonstrated my commitment to transparency and

accountability.”

On the contrary, there may be truths to her utterances, but

these are easily repudiated, when according to (Javeed, 2012), in

her article, T&T Must Work to Being Cleaner, Purer, revealed that

for the year 2012,

Trinidad and Tobago is ranked 80 out of 176 countries in

Transparency International’s annual Corruption Perception Index;

and, on a scale of zero to 100 (with 100 being a corrupt – free

society and zero a corrupt society), this country scored only 39.

(p. 1)


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According to Deryck Murray, chairman of Transparency

International, Trinidad and Tobago (TTTI), who called a press

briefing to discussed the results, this score is not good for the

twin – island republic as “the credibility of the rankings would

impact the country’s international image and companies which seek

to do business with it, as well as development grants, as donors

would want to see resources used for development and not hived

for private gain.” (as cited in Javeed, 2012, para. 2)

But had she taken heed to these findings and

recommendations put forward by the local chapter, (TTTI) to

reverse this ranking?

When according to (Raymond, Spending The People's Money,

2011), revealed that in the Government’s manifesto, they

committed to “prioritising the passing of procurement legislation

and appropriate rules and regulations, and establishing equitable

arrangement for an efficient procurement system ensuring

transparency and accountability by all government departments and

state enterprises.” And when it was disclosed by (Hassanali,

2013), in her article, Point Fortin Highway Contractor Under


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Scrutiny in Several Latin American Countries, that “Construtora

OAS, the contractor involved in the controversial multi – billion

dollar highway, linking San Fernando to Point Fortin, has been

questioned for alleged payments of bribes to politicians,

committing administrative irregularities and low social and

environmental responsibilities in several Latin American

countries.” Had she, as prime minister of this country, committed

to the very statement that her cronies and her, had stated in

their manifesto?

When, according to (Wilson, 2012), in her article Day of

Protest In South, fiery protest and riot broke out in “Rio

Claro”, “Tabaquite”, “Barrackpore”, “Cedros”, “La Brea”,

“Whiteland” and “Moruga”, over bad roads, no water, no government

representation, no jobs and a dilapidated school building. Had

she met and treat with these issues through her social ministries

then, or are they the same to date or worse?

Although the prime minister, Kamla Persad – Bissessar may

argue that there’s no corruption in her Government, the weight of

evidence indicated that political financier’s are negatively


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affecting the country’s status and credibility, and the quality

of service offered to the citizenry, and she has no intention of

cut tailing their corrupt and culpable actions – thus an economic

fever.

Socially Justifiable Malpractices

Finally, as a result of political financier’s fraudulent

activities and the Government’s negligence to speedily bring

reform in the spending of public monies, of the population of

the twin – island Republic, who had faced the brunt effects of

their negligence, such as their inability to provide social, and

basic amenities to certain communities across the country; an

effective, regulated medical management system to deal with

medical negligence; their inability to effect a regulated water

and waste management system; high food prices at the grocers and

increased taxes, to name a few, a vast majority have committed to

socially justifiable malpractices – that is committing fraudulent

activities of every type and form as a justifiable, profitable

act, and as a means to get a process done, though they appear to

be of no harm to outright barbaric and nefarious. According to


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(Bruzual, Society of Corruption, 2010), “we have grown up in a

society of high corruption on an everyday basis. There are

everyday instances of where we (as a people) facilitate payments

to get goods cleared on ports, or get building plans approved, or

install WASA connections.” Moreover according to (Braithwaite,

2012), management consultant for Everest Management and

Communication Services, when corruption goes unchecked and

perpetrators are not persecuted, a negative message that it is

acceptable is conveyed, and it psychological effects are

inescapable. He said that

corruption can be costly and can create “shortfalls in

revenue and investment” resulting in citizens having to deal

“with poorly equipped clinics, with not having enough school

place for their children, with having to navigate poorly

constructed roads, with suffering from inadequate water

supplies, with having to bear heavier taxes.” (para.2)

Additionally, he also revealed that as a result of such a

cost, it is imperative that corruption be curtailed, for “when

offenders walk free, or appear to be untouchable it sends a


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signal to the rest of society that corruption is ‘no big thing’

(para. 3); and, it left “unchecked can contaminate almost every

aspect of daily life poisoning the hearts and minds of citizens

especially the youth.” (para. 4)

Thus, When political financiers and their cronies engaged in

fraudulent acts, such as Jack Warner; Calder Hart; PM Patrick

Manning, to name a few, and they are not held accountable, or

prosecuted, what can you tell the citizens who engage in the

same?

Why should Eintou Grant of Tobago, who pleaded guilty to 213

counts of fraud, and imprisoned for two (2) years; or, Rhea La

Roche, who was charged for defrauding her own employer of

approximately three (3) million dollars, when political

financiers and their cronies are looting the treasury of billions

of dollars in bid – rigging contracts? What’s the difference

between the acts committed?

Reader the citizenry have grown up in a highly corrupt

society and fraudulent activities will continue in this country,


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as long as political financiers continue their devastating feats

in defrauding the country of billions, and are not prosecuted.

Conclusion

Therefore, it can be evidently seen that in the Republic of

Trinidad and Tobago, Political financiers are negatively

affecting the country democratically, economically and socially.

Democratically, they emerged from a weak electoral process, and

politician’s voracious need for funds, upon which, they exploit

to create a vicious tandem between them and the political parties

that facilitate them.

Economically, they are negatively affecting the country’s status

and credibility, and the quality of service offered to the

citizenry, although opponents argue to the contrary.

Socially, a vast majority of the citizenry will continue to

commit fraudulent activities, as long political financiers’ are

not prosecuted for their reprehensible actions.


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Therefore, one recommended that an independent committee

needs be established. They must be backed with legislative and

prosecuting powers to effectively treat with political parties,

their financiers and their election campaign efforts. All

political parties have to be registered and their source of

income must be disclosed to the independent body, if they are

desirous of running for any national election to be had in this

country. Conversely, this committee will be made up of ten (10)

persons who are rigorously scrutinized and trained in the fields

of Accounting, Law, Risk and Communication Management, Law

Enforcement, Economics, Finance, Government and Government

Policies, or combination of these. They will exercise their

office as a full time job, and will not be allowed to hold job in

any other establishment. They will have election every two (2)

years. Further, they will have the backing of parliament to

investigate any reports concerning financial impropriety, as well

as the sources of funds being channelled to and from the

political parties; and, once sufficient evidence can be determine

for any corrupt activity (ies) they will execute their powers to


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fullest extent of the law of $500,000 to be paid by the party,

and 10 years hard labour for the party leader and financier and

any other person abetting with them and a permanent disbanding of

the party. To this end, one is of the informed important opinion

that this measure will treat more effectively with campaign

financing and political leaders as each party has to register

with this entity, as well as to declare their financial resources

and who they are, else one can run for any office in this

country, and will be severely prosecuted if one attempts to do

otherwise; and, second, any report(s) of corruption along with

the parties involve will be investigated and on finding cases of

financial impropriety, they will feel the full effects of the

law, of a fine $500,000 and an imprisonment term of 10 years hard

labour, and permanent disbanding of that party.


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Business Express: http://www.trinidadexpress.com/commentaries/The_costs_of_corruption-162439236.html

Bridglal, C. (2013). Corruption Widespread In Business and Government . Business Express , 4 -5.

Bruzual, A. (2010, March 20). Society of Corruption. Retrieved from Trinidadand Tobago Newsday: http://www.newsday.co.tt/news/0,117633.html

Cambridge, U. (2013, July 7). Billion in Contracts for UNC financier. Retrieved from Guardian Media Ltd: http://guardian.co.tt/news/2013-07-07/cash-sent-out-tt

Campaign Financing Reform and the role of Political Debates. (2013, November 13). Retrieved from Trinidad and Tobago Chamber of Commerce: http://chamber.org.tt/articles/campaign-financing-reform-and-the-role-of-political-debates/

Commerce, T. a. (2011, April 13). The Corruptions Perception Index and the Private Sector. Retrieved from Trinidad and Tobago Chamber of Industry and Commerce: http://chamber.org.tt/articles/the-corruptions-perceptions-index-and-the-private-sector-part-1/


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Hassanali, S. (2013, March 17). Point Fortin Contractor Under Scrutiny In Several Latin American Countries. Retrieved November 1, 2013, from Trinidad Guardian: http://www.guardian.co.tt/news/2013-03-17/point-highway-contractor-under-scrutiny-several-latin-american-countries

Javeed, A. (2012, December 6). Trinidad and Tobago Must Work Being Cleaner, Purer. Retrieved November 1, 2013, from Trinidad Express: http://www.trinidadexpress.com/news/TT-must-work-on-being-cleaner-purer-182307351.html

Nazario, D. O. (2007). A Strategy Agaisnt Corruption. Caricom, Conference on the Caribbean: A 20/20 Vision (pp. 5-6). Washington DC: Casal and Associates Inc.

Ramdass, A. (2012, October 22). No Proof Of Bobol. Retrieved November 1, 2013, from Trinidad Express: http://www.trinidadexpress.com/news/NO_PROOF_OF_BOBOL-175336551.html

Raymond, A. (2011, May 2). Spending The People's Money. Trinidad & Tobago Review, The Lloyd Best Institute Of The West Indies, pp. 3-6.

Ryan, Selwyn. (2005). Political Party and Campagin Financing in Trinidad and Tobago. In I. I. Organisation of American States, From Grassroots to the Airwaves: Paying for Political Parties and Campaigns in the Caribbean (pp. 27 - 30). Port of Spain, Trinidad and Tobago: OAS unit for the promotion of Democracy - International IDEA.

Wilson, S. (2012, March 14). Day of Protest In South. Retrieved from TrinidadGuaridian: http://guardian.co.tt/news/2012-03-14/day-protests-south

The Negative Effect of Political Financiers in Trinidad and Tobago

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