Public Transport Service Corporation (PTSC) chairman Dr Vincent Lasse says $57 million has been borrowed from Republic Bank to settle outstanding payments to bus workers.
Speaking at the launch of the PTSC’s new Granville to Point Fortin route at the Granville Activity Centre yesterday, Lasse said workers represented by the Transport and Industrial Worker Unions (TIWU) should be paid by today.
He said he expected a resumption of full bus service to the country yesterday as the corporation had told the union of the loan arrangement.
Asked how PTSC would repay the loan, since it does not turn over a profit, he said part would be paid by the Ministry of Transport while the balance would be covered by ticket sales.
Lasse said PTSC hoped to increase aggressively its customer base to achieve increased revenue.
“Yesterday I signed an agreement to secure a loan to settle all the outstanding matters which have caused us to have some delay in the bus service,” Lasse said.
“The Transport and Industrial Workers Union employees at PTSC have demanded their back pay in order to ensure that they go back to work and do the work they had signed up for.”
He added: “We negotiated a loan of $57 million to pay them and as I was preparing my few points to deliver today, at 4 am the general manager called me and said the cheque would be delivered to PTSC as I now speak at 10 o’clock. It shows that PTSC has been proactive at all times.”
Speaking by telephone last night, however, Transport Minister Stephen Cadiz said his ministry was experiencing cash flow problems as the fiscal year winded down and most of the funding for the nine statutory bodies he oversees had been expended.
Cadiz said it was not unusual for State companies to approach local banks for funding though, adding that under PTSC’s articles of incorporation the corporation could borrow money.
He said the Ministry of Finance sent out quotes to local banks and Republic Bank had the best deal, adding repayment of the loan will be covered in the 2015/16 national budget.
“What has happened is that we have come to end of fiscal cycle and funds are stretched,” Cadiz said.
“If it was earlier in the year we may have been able to get the necessary funding to pay the back pay but we came down to the end of our budget and there is little or no money left for excess.
“Therefore, we will borrow on a short term basis and in the new fiscal term we will pay back. Cash flow is the issue that we have right now.”
TIWU elated
Speaking about the decision, TIWU president Roland Sutherland said while it was worrying that the ministry had no money to cover the back pay, they were elated workers would get their payments. He said the lack of funds was something PTSC needed to work out with the Ministry of Finance.
“I am elated as president of the union because PTSC had retroactive payments due to workers for more than three months. There had to be some action this month from the corporation because they were getting difficulties to pay the money. If they got money borrowed from the bank then the workers are happy,” he said.
He denied, however, workers were ever on a strike, saying they were on a work-to-rule to ensure they got what was owed to them and that customers were safe while travelling on the buses.
He added: “It is worrying as to why Government could not guarantee the PTSC its money. That is something they will have to sort out with the Government.”
Despite the payments, he said workers would continue to work-to-rule until there were ample parts to repair defective buses and a full compliment of road worthy buses to ensure the public and workers’ safety.
Although yesterday’s ceremony was supposed to inform residents of the new service in their community, it eventually became more of a political meeting.
Lasse, PTSC general manager Carl Ramdeo, T&T’s High Commissioner to Nigeria Nyahuma Obika and members of the Siparia Regional Corporation (SRC) all used the podium to endorse United National Congress (UNC) candidate for Point Fortin Ravi Ratiram as the next MP.
Ratiram, who is PTSC’s deputy general manager of properties, promised to have the Point Coco Road paved so buses can use the road, improve bus sheds and have a deluxe coach operate between Point Fortin and Cedros.
Despite the new bus route being requested since 2013 by Cedros councillor Ramesh Seunal and SRC alderman Shankar Teelucksingh, Lasse said it was when Ratiram approached him to have the route implemented that they immediately acted.