Minister of Public Administration and Communications Maxie Cuffie said the former People’s Partnership government spent $331 million on a Microsoft software agreement that could not be used and for which they were being charged.
He said this was a waste of money and mismanagement on the part of the public service.
Cuffie made the disclosure while delivering his budget debate contribution on Thursday night in Parliament.
Under the last administration, Cuffie said, a three-year software agreement costing taxpayers US$52.4 million (TT$331,564, 596.56 million) was signed by the Ministry of Public Administration and Microsoft Corporation, which governed the use of the software in T&T.
“That $331.6 million represented much software we could not use and were being charged for...and some we were using although we had not paid for it and were therefore penalised,” Cuffie said.
Cuffie said much of the “$331.6 million represented waste and mismanagement” on the “part of our local public service officials.”
Over the last four weeks, Cuffie said, a team from his ministry had been in negotiations with Microsoft.
“I am pleased to announce that we have reached consensus on a new agreement, subject to Cabinet approval, that will cost US$4.24 million a year amounting to just over US$12 million in three years.”
Cuffie said this new agreement will save T&T$272 million in payments to Microsoft in the next 36 months.
He also spoke about the Opposition not supporting the Foreign Account Tax Compliance Act (FATCA) in the last two weeks, which will have implications for our country’s competitiveness and ability to attract investments.
In a bid to move Government offices out of rental accommodations, Cuffie said his ministry returned the keys to a building which was being rented at over $1 million a month for three years for the Personnel Department, although it was never occupied.
“One million dollars a month for an empty building. We also took up occupation of One Alexandra Place (Tragarete Road, St Clair) which had not been occupied for six years and was incurring rent of $600,000 a month, a figure negotiated by members opposite, although they never occupied the building. We have saved the taxpayers money and are now in occupation of the building under the terms that had been negotiated previously.”
Cuffie said although the Government had been paying rent for several unoccupied premises over the years, they had given up more than 20 leases.
“In 2016 we have been able to reduce rents paid for unoccupied buildings from $3.3 million to $1.7 million a month. And we are moving, as swiftly as is allowed, to eliminate all rental expenditure on unoccupied properties.”