Big profits for CEPEP contractors

THE EDITOR: Newsday’s editors are now almost singing hymns of thanksgiving that the Caroni VSEP discord appears over, and with it, to quote, the “alarming trend of rising subsidies”, calling it “sweet change”. Hallelujah, the taxpayer will be saved! I wonder when they will begin singing for a similar display of prudence in governance with regard to CEPEP perhaps. That Mr Manning considered the formation of such an entity, initially to the tune of $44m, a vital necessity immediately prior to the October 02 election during his “honeymoon” (in or out of) Parliament is passing strange. Given that he had finally been forced to return to the polls on October 14, 2002 since there was no other way to obtain new Budget funds one would have thought that at that late stage he would have included it as one of his Manifesto pledges for voter support. He has, however, already indicated that he intends to increase this project to somewhere near the $400m mark!

Seems that we are getting rid of one subsidy to subsidise another — and I don’t think CEPEP’s grass can do anything for tea, except make it bitter and brackish. Matter of fact, it can’t do anything for those seeking real “grass” — or can it? The cavalier attitude of Mr Manning towards the hard working natives of Central Trinidad whilst welcoming them to join his bandwagon is only surpassed by a “free and independent press” who barely question CEPEP expenditure. In answer to Opposition questioning it was recently disclosed in Parliament by Mr Demas that 4,880 persons had been employed in the CEPEP project through 110 “contractors” and that $93.3m had been injected into this project between October 02 and April 03. (Was the cut off date April Fools Day or April 31? ie covering a 6 or 7 month period. If it was April Fools Day it was a good choice). Mr Demas did not mention whether the 4,880 persons he referred to had been employed at all times over the period in question or whether the figure was a cumulative one for the period under review. Did any of the dailies stop to assess the implications of Mr Demas’ disclosure? I did. For what it is worth I will pass it on. Any with better substantiated figures are quite free to refute my findings based on (a) a 6 month period or (b) a 7 month period if his figures covered October 1 2002 to April 30, 2003).

The formula employed for my exercise is quite simple and assumes a constant daily employment figure of 4,880 persons over a 40 hr work week at $8 per hour, which I believe is the minimum wage. (I envisage absolutely no call for “overtime” pay given the unemployment situation Mr Manning is attacking with the programme; they should, therefore, not enter any equation). After deducting wages I allowed a very generous 75 percent of the balance remaining as “expenses” (office expenses and presumably uniforms, brush cutlasses, bags, paint brushes, paint and transport) to arrive at each individual contractor’s profit — which could obviously be much higher. My little mathematical fact find mission revealed that each of the 110 contractors netted conservatively $19,900 per month if Mr Demas’ figures covered a 6 month period or $14,871 if they covered 7 months. A CEPEP worker’s annual wage would be $16,640 according to my calculations whilst the 110 “selected” contractors would be collectively banking profit in excess of $19.6m annually based on figures for 6 months or $26.29m on figures for 7 months or roughly a minimum of one third of the cost of the entire scheme funded by the hapless taxpayer represents profit to the contractors. The administrative costs (and profits) of this programme seem inordinately high. It is generally accepted that many of these 110 contractors are integrally connected with the PNM party, so offended by corruption in high office. To me that grass from the hills sounds equally unsatisfactory in terms of return, to maintaining the 9000 odd Caroni sugar workers being VSEPed and not even offered a chance to be CEPEPed instead! Any comments? (Apart from the sudden increase in murder/kidnap —with an attendant fall in “serious” crime, of course; of which the Government are inordinately proud!)

VIRGINIA VERITY
Port-of-Spain