Finance Minister Colm Imbert says Central Bank Governor Jwala Rambarran was fired in December because of breaches to the Central Bank Act which led to his misconduct and failure to perform his duties.
He said so in yesterday’s Senate debate on a private motion by Opposition Senator Wade Mark which called on legislators in the Upper House to condemn the Government for its dismissal of Rambarran who was appointed by the former PP government.
In his presentation of the motion, Mark, a former House Speaker, said Rambarran was forced out for political reasons. He also said the Central Bank Governor was not accountable to the Government.
However, Imbert said Mark was wrong in his claim, adding the President can terminate the appointment of the Governor on the advice of the Cabinet.
He said it was during the Cabinet meeting of December 23 it was decided to have the appointment of Rambarran revoked by acting President Christine Kangaloo.
Imbert said in such matters the President had no discretion.
He said Rambarran was in breach of the Act when he publicly disclosed some of the largest users of foreign exchange in T&T.
Imbert said that disclosure by Rambarran “was a breach of Section 56 of the Central Bank Act and Section 8 of the Financial Institutions Act.”
The Finance Minister told legislators Cabinet also “took note of the fact that there was a need to restore confidence in the confidentiality of the banking system and the governance of the Central Bank.”
The minister said several companies had expressed a lack of confidence in the system of allocation of foreign exchange under Rambarran.
Imbert said it was wrong for Mark to say the Central Bank Governor was not accountable to the Government or the Minister of Finance.
“If it is the Government that causes the appointment to be made and it is the Government that causes the revocation to be made, then certainly the Governor is accountable to the Government in the performance of his duties.”
Imbert said under Section 12 (e) of the Central Bank Act, the President “may terminate the appointment of the Governor if he is guilty of misconduct in relation to his duties or he fails to carry out any of the duties or functions conferred or imposed on him under this Act.”
He said he was in possession of a pre-action letter from attorneys for Rambarran indicating their attention to pursue the issue of his revocation in the court.
Imbert said he had no awareness of claims by Mark that three companies were involved in foreign exchange violations in T&T.
“That is a mystery to me,” he added.