Finance Minister Colm Imbert is set to review the tenure of Central Bank Governor Jwala Rambarran.
The move comes in the face of a pending audit by the Office of the Auditor General, which is expected to wrap up its exercise before year’s end, and a series of public complaints by financial institutions over the shortage of foreign currency.
The T&T Guardian understands that the State is seeking to use provisions of the Central Bank Act in order to remove Rambarran, who was appointed on July 13, 2012—for a five-year term—from office. The government would have to prove that he failed to conduct his duties or functions as prescribed by the Act.
The issues being raised against Rambarran include his implementation of a foreign exchange system that has created shortages for both the public and businesses and that under his watch the staff ballooned by over 200 people, Central Bank sources said.
Former Clico chairman Gerald Yetming, who was sacked on June 5, has called for Rambarran to be fired over his decision to terminate his (Yetming) and Carolyn John’s appointments at Clico.
Sources said former finance minister Larry Howai had requested a report from Rambarran regarding the sacking of Yetming and John but the report was only sent on September 7, the day of the general election.
The T&T Guardian has learned that Rambarran has already retained lawyers to sift through the Central Bank Act in order to defend his position as governor, should the question of his dismissal or suspension arise.
Central Bank insiders said under Rambarran’s tenure he stopped the bank’s monthly meeting with regulatory and financial institutions leaving them in the dark and with little option but to raise their concerns in public.
“We have never had such a scenario before,” said one long-standing Central Bank employee.
One of the key legacy items under Rambarran’s tenure, the issuance of a $50 note, which the bank spent a considerable sum to launch, has also hit several crippling hurdles, including the fact that Automatic Teller Machines, used by commercial banks, cannot dispense the new polymer note.
Sources said that the Central Bank suggested that commercial banks change their machines to accommodate the note, but this was rejected.
Imbert last night in an email exchange said his primary focus was preparing the 2016 budget.
“I have already made it clear on more than one occasion since being sworn in, including as recently as this morning on the radio, that my primary focus at this time is on preparing the 2016 budget, which, by law, I must have debated and passed by October latest.
“In the circumstances, why on earth would you think I would be ‘looking’ at something else, like this, at this time?” Imbert asked.
Communications Minister Maxie Cuffie told the T&T Guardian that he was unaware of such reports and referred the T&T Guardian to Imbert.
Attorney General Faris Al-Rawi said last night the matter had not been referred to him and also referred it back to Imbert.
In May last year, the People’s National Movement (PNM) openly criticised Rambarran for implementing a new foreign exchange system which led to critical shortages in the commercial banking sector.
The PNM said then that Rambarran’s new system had the potential to create a shortage and hoarding of US currency.
In a statement issued on Friday, the Central Bank responded to one of the questions posed by the T&T Guardian regarding the hiring of over 200 more staff under Rambarran’s tenure.
“As indicated in the Central Bank Annual Reports 2012, 2013 and 2014, the bank’s manpower numbers grew consistent with expanded accountabilities of the institution and improvements in operational efficiency,” the bank said.
It said the Financial Institutions Supervision Department (FISD) accounted for the second largest piece of the recruitment pie at 14 per cent.
This was primarily due to the bank’s expanding responsibility to supervise Systemically Important Financial Institutions (SIFIs)—Unit Trust Corporation (UTC), the National Insurance Board (NIB), Home Mortgage Bank (HMB), T&T Mortgage Finance Company (TTMF) and the Agricultural Development Bank (ADB)—as well as the increased importance of anti-money laundering efforts.
According to the bank’s statement, the newly-created Statistics Department accounted for approximately six per cent of the recruitments.
The bank established a Statistics Department in 2013 out of the Statistics Unit of the Research Department, as there was a need to streamline the statistical functions being undertaken by a number of bank departments.
It was apparent that these processes had inherent inefficiencies that led to delays in information dissemination, the bank said.
The bank also cited retirement as one of the reasons for the increased hires, saying that 38 per cent of employee separations over the past three years were as a result of retirements.
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In June 2014, then Opposition MP Colm Imbert contributing to a motion on Government’s failure to deal effectively with the current foreign exchange crisis described Rambarran as an “on-the-job trainee.”
Imbert also accused Rambarran of having no experience managing a large organisation.
“I am speaking the truth and going to take full responsibility for that. The governor of the Central Bank has introduced a system where 90 per cent of the available foreign exchange is auctioned to 12 foreign exchange dealers, including foreign exchange dealers who have a very small customer base... giving large sums of foreign exchange to financial institutions that don’t need it,” Imbert said then.