Judge slaps a ban on any more payout by Caroni

FORMER employees of the defunct Caroni (1975) Limited, uncertain about their future, yesterday suffered a major setback to receiving remaining monies owed to them through the VSEP package when a High Court judge granted a $10 million injunction against Caroni (1975) Limited, effectively halting all VSEP payments.

The injunction was obtained by sugar workers who are still members of the company’s credit union. Justice Amrika Tiwary-Reddy, presiding in the San Fernando High Court, ordered Caroni’s management to desist from paying out any further VSEP monies to daily and monthly-paid employees of the company. Caroni has almost completely paid out $700 million in VSEP packages to employees. The injunction which was sought by the Brechin Castle Credit Union Co-operative Society Limited against Caroni 1975 Ltd, also ordered that the company be restrained from disposing or transferring its property and assets, until it pays to the Credit Union approximately $10 million. The Credit Union is contending that Caroni’s management deducted a substantial part of the $10 million from daily and monthly-paid employees, but did not deposit the monies into the credit union’s account. The injunction was filed in the Sub-Registry, San Fernando, and successfully argued yesterday morning by attorney Anthony Manwah, instructed by attorney Dave Persad.

The credit union is contending the that there was an unwritten agreement with Caroni for its management to inform the union on the termination of service of employees. The reason for this was to enable the credit union to notify the company of the status of employees’ loans which they obtained from the credit union. Vishnu Lucky, manager of the credit union, stated in an affidavit attached to the injunction that 1,084 daily-paid and 194 monthly-paid employees owe the credit union $5,039,747.10. The Credit union is also contending that between March 14  and July 18, Caroni deducted $4,165,343.50 from the credit union members’ salaries. That sum was not paid, the credit union is alleging, into its account. The credit union is further contending that when staff employees received their VSEP packages on August 2, total deductions of credit union payments amounted to $832,551.82. The credit union’s injunction stated that the total sum deducted from the workers’ salaries, but which was not paid into its accounts by the company, totalled $10,079,494.20. As a result, the credit union’s management is unable to grant new loans to its members who are former sugar workers. It is also unable to pay monies into members’ deposit accounts when they become due as well as pay Credit Union Insurance of $45,000 a year. After Justice Tiwary granted the ex-parte injunction, a marshal of the High Court served the injunction around midday yesterday on Caroni’s acting CEO Chandra Bobart. Attorneys have asked the judge to deem the hearing of the injunction as a matter of great importance, fit to be heard by the Judiciary during its vacation.