Take your pick: Roytrin Mutual, Republic Money Market Fund or even UTC Growth and Income Funds, they are there for the taking.

Local investors are being bombarded with advertisements encouraging them to sink their money into these funds. Eye-catching ads like “You know you’re a Trini when you invest in UTC units” and “Have great expectations – Invest in Roytrin Units” greet potential investors every morning in newspapers and during prime time slots on television at night. The returns are spewed out like clock work. According to the latest Central Bank Economic Bulletin money market funds (MMF) and equity funds (EF) are the most popular mutual funds, even though the MMFs may attract more investors than equity funds.

However, equity funds out performed money market funds primarily because money market fund returns average about six to eight percent while equity funds produce in double digits. The Bulletin revealed that in the six months to June 2002 overall investments in the mutual fund industry amounted to $9,904.8 million, registering growth in excess of $808 million or 8.9 percent. The majority of these investments (86.4 percent) were held in the country’s four TT dollar and two US dollar denominated MMFs. Overall investor savings doubled in the six months to June 2002 as compared with the corresponding period the year before. The Central Bank noted that consistent with a general softening in short term interest rates in the financial system, investors in the TT dollar MMFs earned smaller returns compared to 2001. However, these rates remained well above those available in the commercial banking system and comparable with yields on treasury securities.

“The industry’s ability to out perform the market in this regard is a major factor informing the expanding portfolio of MMFs,” the Central Bank said. Returns on money market investments ranged between 8.64 and 7.25 percent with a median rate of 7.75 percent as compared with a range of 11.14 and 10 percent and a median of 10.35 percent during the corresponding period in 2001. With such a strong performance last year, financial gurus are predicting that this year’s performance might be even better, with a more stable interest rate and Government’s heavy borrowing in the market which will “mop up” some of the excess liquidity in the system. It is in this light that investors are being urged to invest in mutual funds.   

Clarry Benn, executive director, the Trinidad and Tobago Unit Trust Corporation (UTC) said now is the best time to buy units, especially in long-term funds.  He noted that since the UTC’s funds are primarily invested within local financial markets, any deterioration in the local economy would have a simultaneous effect on the returns that they can offer to their customers. “However, our funds are invested in a diversified portfolio of financial instruments which would mitigate the risks to our unitholders. Therefore, the UTC would be in a position to offer the best possible returns to our unitholders,” he assured.

Described as the pioneer in the local mutual fund industry, the UTC is still the major provider of mutual funds representing 51 percent of the total mutual fund industry. The UTC offers five mutual fund products which include The Growth and Income Fund; The Money Market Fund; The Universal Retirement Fund; The US Dollar Money Market Fund and the Chaconia Income and Growth Fund. They have a total of 409,393 accounts in all these funds, except the Chaconia Fund which has 6,193 accounts. This is the largest number of investors mobilised by any single financial institution. The UTC has also expanded its operation to include consultancy and advisory services with regards to the establishment of mutual funds in other countries such as Dominica, Belize and maybe Nigeria. Distribution to unitholders from all funds in 2001 totalled $388.35 million, a 32 percent increase over the distribution for 2000 which totalled $294.97. For the year 2002, $473.66 million was paid out.

Benn said the response to mutual funds has indeed been greater than that to normal savings products, mainly because of the higher returns that can be obtained from investing in them. The average returns on a regular savings account is one to two percent while a fixed deposit can average returns between three and four percent. It often involves the individual foregoing access to their funds. Benn said the current annualised return on the UTC money market fund is in excess of six percent and their participants have full access to their funds.

Additionally, unlike the traditional savings products, he noted that there are no service fees or withdrawal charges applied to any of their funds. “The prospect of higher returns with continuous access to one’s resources makes mutual funds more attractive than the traditional savings products. In fact, for the past three years the growth of resources in mutual funds has exceeded the growth of deposits in deposit taking institutions,” he said. Higher returns is just one reason to invest in mutual funds. They also provide an easy way for the average individual to participate in the equity and bond market, he said, noting that the funds are invested in a diversified portfolio, which reduces the risk to the mutual fund participators.

Stephen Bayne, managing director, RBTT Trust Ltd agreed with Benn, saying that now is a good time to invest in mutual funds. He said the stock market’s performance for 2002 was very positive — the All TT Index increased by 32.65 percent and has shown continued growth for 2003 to date. “Our present economic indicators continue to be strong. Hence the reason for it being a good time to invest,” he said. RBTT Trust Ltd currently offers five mutual funds — Roytrin TTD Income and Growth; Roytrin Mutual USD Income and Growth; Roytrin Mutual TTD Money Market; Roytrin Mutual USD Money Market and the Praetorian Property Mutual Fund ( an initial public offering (IPO) issue that is now traded on the TT stock exchange. It was launched jointly with Guardian Life and RBTT). There are about 50,000 investors in these funds. Bayne said while mutual funds were not traditionally offered at the bank it was introduced to satisfy the needs of clients who were looking for portfolio diversification; wealth accumulation; professional management; cost effective investment opportunities; affordability and flexibility. He said that their TTD money market rates declined in 2002 due to the soft interest rate environment, noting that they have seen an improvement in the interest rate environment and expected this to continue in the coming months.

“Clients who invest in mutual funds will benefit from the returns of pooled investments, which include stock, bonds, mortgages, money market instruments and other short term investments. A person who invests in mutual funds can, therefore capitalise on the opportunity for higher returns at a lower level of risk.” “Clients are now more informed and sophisticated, and require a product that could maximise their returns, in relation to their risk tolerance. Mutual funds present this option, and so although a client will conduct a savings account to facilitate his ‘everyday expenses’ the savings and investment aspect are done via mutual funds.”

“Return is just one aspect of the advantages in investing in mutual funds. It is also important for a person to understand higher returns means higher risk,” he added. Bayne recommended that every investor consider mutual funds as part of their portfolio mix. However, he advised investors to always read the prospectus before buying any fund. Simone Penco, manager, Commercial, Scotiabank said the old adage, ‘buy low, sell high’ is certainly at the forefront of the minds of investors who feel now is the time to get into the market before the recovery takes full effect. But, the question still remains, ‘is this the best time to start investing in mutual funds?’” She said if mutual funds are an appropriate investment choice for an investor (and they are not for everyone), then now is certainly the right time to start investing in them. “To enjoy compounded growth with any investment, it is better to start early.” 

The Scotiabank family of mutual funds currently available in TT consists of: Scotiabank Money Market; Scotiabank USD Bond Fund; Scotiabank Global Growth; Scotiabank US Growth; Scotiabank Canadian Growth funds. Penco noted that these funds were introduced to the bank’s branch network in October 2002 in an effort to broaden the line of products and services available to their customers. She said the response from customers has been favourable, despite the difficult time equity investors have been experiencing in the last few years.

Christopher Sandy, manager, Fund Management, Republic Bank said while it is always a good time to begin investing in mutual funds, it should be noted that one should only invest in them after having established a “rainy day” fund. This “rainy day” should comprise of funds saved for three to six months living expenses in case of unforeseen circumstances like loss of regular income; funds required for known liabilities that will be due over a three year period like vehicular expenses. Local mutual funds were first introduced to Republic’s customers in April 1998 because the bank wanted to provide both individuals and corporations who were seeking short and medium term to long term investment growth, with simple, convenient and efficient avenues for investing in various portfolios of securities.

The bank offers: Republic Money Market Fund (RMMF); Republic Caribbean Equity Fund (RCEF). Sandy said during 2002, interest rates fell as a result of liquidity build-up in the banking system that was driven by reduced economic activity. However, in 2003, he said interest rates are likely to be more stable as Government is expected to be a heavy borrower in the market, and as a result excess liquidity will be taken out of the system. “At the commencement of 2003, we find the TT economy better placed than at anytime in the past two years. With continued low interest rates and good economic growth expected, the stock market is well placed for positive returns in 2003,” he said. “In the long term, we envisage that the market for mutual funds will continue to grow at a more rapid rate than previously experienced.”

Nadia Ali, manager, Trust Services, First Citizens Bank Trust and Merchant Bank Limited, advised that each investor should always’s read the fund’s prospectus before investing in order to make an informed investment decision. The Prospectus gives information such as sales charges, the fund manager, investment objectives, tax considerations and risk factors. She added that since mutual funds qualify as securities and not deposits they are neither guaranteed nor insured. “A general rule is that the higher the potential rule, the higher the risk. In mutual fund investing, the volatility and return will depend on market trends, investments held by the fund and the fund manager’s investment strategy,” she observed.

FCB currently offers one mutual fund product : the Abercrombie Fund, a TT dollar money market fund with over 18,000 investors. Ali said there has been a phenomenal response to this fund since its introduction in October 1998. The value of the fund in 2001 was $599 million and jumped to $774 million in 2002. “We expect this fund to continue to perform as well as it has been performing,” she assured.

For BHP Billiton and its partners, the Angostura field off Trinidad’s northeast coast represents a US$6 billion investment.

For Josianne Poujade and other local engineers it means getting the chance to work for an international company, designing one of the wellhead protector platforms, one of four that will be placed in the Angostura field. Poujade is in her first job out of university, working for Worley Trinidad Ltd, an Australia-based design firm which has worked on a variety of projects around the world. Worley won the contract to build the Aripo wellhead protector platform. While it is an international company, about half of its staff in Trinidad is local.

“They’re giving me what no other company could offer; a chance to work in design engineering. It will also give me experience with process engineering as well,” Poujade said. That’s critical to BHP Billiton which has made local content one of its measures of success in the Angostura development. It would be better for a fully local company to do the work but, even as the Angostura project is getting off the ground Trinidad and Tobago is still grappling with getting a bigger stake of the services industry. It hasn’t been easy. It’s possible that none of Angostura’s wellhead protector platforms will be built in Trinidad. While plans are on the cards for a fabrication yard, it will not be ready in time. Even if it were, there are other issues.

The production sharing contract which governs the block does not give figures for how much local content should be used. What it says is that local firms should be used where competitive and along industry standards. Country manager Nick De Verteuil said definite figures would be dangerous. “If you establish quotas here in Trinidad and Tobago and the Government dictates that local industry has to do a certain minimum percentage…I just want everyone to think back to the negative list,” he said, adding that the negative list led to local firms not being competitive.

Unfortunately, when BHP Billiton did offer a contract to build one of the platforms, local firms were not competitive. Many passed on the opportunity and the one that tendered came in 25 percent higher than the foreign bids. “We are trying very, very hard,” he said. “Let’s be realistic about this. We enter into a project like this in Trinidad it has to be a concern. If this country is trying to make its mark with respect to fabrication and so on you don’t want failure initially because the word is going to go out into the international community that, ‘Hey they tried to do this in Trinidad and they stumbled’,” he said.

While the Angostura project is going ahead there will probably be other opportunities. Just next door to 2(c) is 3(a) which also looks promising, while companies are also starting to look at what is called the ultra deep blocks further east. “It makes sense for us, the industry to build local capability because it is my hope that in that very expensive block 3(a) we will find additional hydrocarbons and need to put in additional platforms out there,” De Verteuil said. “If we can get it done here in Trinidad at a cost competitive with or less than the international marketplace we’re ahead of the game.” For De Verteuil and BHP Billiton, the real opportunity lies in design, not fabrication.

Design and engineering in the Angostura project is going to account for nine percent of the capital expenditure and about 180,000 man hours. Fabrication will account for 11 percent and 140,000 man hours. Darryl Rattai, director at Worley Trinidad said the firm will be looking to bid on design projects in other sectors. That, he said, would give local engineers like Poujade more opportunities.

Point Lisas Industrial
Port Development Corporation Limited
Results for the Year Ended December 31, 2002

Point Lisas Industrial Port Development Corporation Limited (PLIDECO) released its results for the year ended December 31, 2002 last Friday.  It is to be noted that the Group’s operating profit has been restated to reflect the effects of adopting IAS 40 — Investment Properties — on January 1, 2002.

Using the restated profits for comparative purposes shows that for the year ended December 31, 2002 over the corresponding period in 2001 the earnings per share increased from 86 cents per share to 99 cents per share, an increase of 15.12 percent. The main reason for this is a 91.11 percent fall in the taxation from $8.987 million in 2001 to $0.799 million in 2002. 

This is mainly due to the credit of $5.402 million resulting from the change in the corporation tax rate from 30 percent to 35 percent. Also a factor was the tax allowances arising out of the significant capital investments in 2002. Turnover increased from $128.720 million in 2001 to $136.847 million in 2002, an increase of 6.31 percent.  According to the company this is mainly due to:

1. An increase in cargo handling from $78 million in 2001 to $82 million in 2002.  This occurred mainly because the Group was able to secure the business of Maersk Sealand.  It was also bolstered by the over spill of cargo from the deteriorating situation at the major Venezuelan ports.  However the Group fell short of its goals because of the loss of Bernauth Lines;
2. The industrial estate turnover increased from $37 million in 2001 to $39 million in 2002 as a result of the sale of small lots of land for warehousing activity; and
3. The towage turnover grew from $11.5 million in 2001 to $13.1 million in 2002.

However profit before tax declined by 15.57 percent moving from $31.872 million in 2001 to $26.909 million in 2002.  This as a result of:

1. A one-off charge of $3.9 million due to the enhancement of the Group’s pension plan; and
2. Increased depreciation and finance charges from Berth 5 which commenced usage in November. The Directors have recommended a final dividend of 17 cents per share making the total dividend for the year 27 cents per share. The dividend if approved by the shareholders will be paid on May 19, 2003. The current share price is $11.11, which means the share is trading at a PE of 11.22. We believe the Group has a bright future although the benefits from berth 5 would not accrue in the short term.

Transparency International’s (TI) Integrity Pact has found its way into some of Latin America’s corruption hot spots:   Columbia, Panama, Ecuador, Mexico, as well as countries in Eastern Europe and Asia.

The billion dollar question is, can it find its way into Trinidad and Tobago?

At a symposium organised by Transparency International and held at Normandie Hotel last week a number of stakeholders involved in the procurement process, including members of various Government Ministries, members of State owned enterprises and the private sector, were given an insight into what the pact was all about.

The pact is a system designed to prevent corruption in public contracts and one in which the government and companies pledge that they will not offer bribes or take any themselves. The parties could be sanctioned, when the pact is broken. Executive Director of TI in Ecuador, Valeria Merino Dirani, in an interview at the symposium,  noted that one of the major problems facing TI was how to reduce corruption, adding that this was a prevailing problem in every part of the public sector.

The procurement of public contracts though was particularly worrying, she added.
Trinidad and Tobago has been listed at number 33 on the Transparency International’s (TI) Corruption Perception Index (CPI) for 2002 with a score of 4.9. The 2002 CPI score relates to the perceptions of the degree of corruption as seen by business people, academics and risk analysts. It ranges between 10 (highly clean) and zero (highly corrupt). Finland was listed at number one on the survey with a score of 9.7, whilst Bangladesh came in at number 102 with a score of 1.2.  The 2002 Index ranks 102 countries — the highest number ever.

According to Peter Eigen, Chairman of TI, corruption is perceived to be dangerously high in poor parts of the world, but also in many countries whose firms invest in developing nations.
He said, “Corrupt political elites in the developing world, working hand in hand with greedy business people and unscrupulous investors, are putting private gain before the welfare of citizens and the economic development of their country.”

Eigen revealed in a press release that corruption was rampant in Indonesia, Kenya, Angola, Madasgascar, Paraguay, Nigeria and Bangladesh, all with a score of less than two. He further noted that countries with a higher score than nine which signified very low levels of perceived corruption were predominantly rich countries, namely Finland, Denmark, New Zealand, Iceland, Singapore and Sweden.

The 2002 CPI complements the TI’s Bribe Payers Index (BPI) which addresses the tendency of companies from top exporting countries to bribe in emerging markets. The 2002 BPI revealed high levels of bribery by firms from Russia, China, Taiwan and South Korea followed closely by Italy, Hong Kong, Malaysia, Japan, USA and France. Ironically many of these countries signed the OECD Anti-Bribery Convention which outlaws bribery of foreign public officials. Trinidad and Tobago was not listed. Dirani, a lawyer, has been involved with TI International in Ecuador since its inception eight years ago. She has also been a member of Transparency Inter-national worldwide and was the former Executive Director of TI Latin America (TILAC) for three years. Additionally she was appointed by the General Secretary of the United Nations to serve as a member of the Council of the United Nations University for six years. What led to her work with in Ecuador, she said, was a belief that officials there turned a blind eye to rule of law and, in such an environment, corruption flourished.

“When you live in a developing country like Ecuador and you are told that more than one billion dollars per year is lost because of corruption, you wonder what can be done to change this.” With nothing to lose, Ecuador, she said, decided to give the Integrity Pact a chance. Contracts that fell under the pact where those that had strategic value for government or those that involved a lot of money, she explained. One of the reasons Ecuador opted to take the Pact, she said, was to try and plug the holes in the public procurement systems. Ecuador, she said. has a fairly good procurement system, but it still is still flawed.

Dirani noted Ecuador had used the pact to try and clear up problems that existed in its telecommunications sector. There was a major conflict of interest in the telecommunications sector, especially in the provision of cellular services, since service providers were not open to competition, she explained. The result was that the price of cellular services were exorbitant. The local chapter of Transparency International was eventually called in to oversee negotiations between local providers and parties interested in being providers, she explained.

After a year of negotiations, at a cost of over one million dollars, the process finally went through, and the country was finally able to have a third competitor providing cellular services. A good procurement system needs competition, Dirani asserted. “Procurement is an area in which both the government and the private sector have a vested interest,” she said. “We are still losing money in Ecuador because of corruption,” she lamented,  “but now the biggest contracts are going to be under this type of supervision.”

According to Chairman of the TT chapter of Transparency International, Boyd Reid, the Integrity Pact would help reduce the pressure on firms to bribe by establishing what most companies want — a level playing field, where the “rules of the game are the same for all and known for all.” Reid believes that if an agreement like the Integrity Pact was in place when the Piarco Terminal was under construction there would have been no need for a Commission of Inquiry. “They can be confident that public authorities will follow transparent procedures,” Reid asserted, adding further that the Pact would reduce costs.

The pact helps ensure that the desired product or service is obtained at a competitive price and in accordance with specifications, he said, noting that the high cost and corruption are avoided. Reid further added that the pact would help to increase public trust in Government contracting and encourage a more hospitable investment climate. Dirani explained that one main characteristic of the Integrity Pact is that once the document is signed, the parties must adhere to the rules of transparency process. If they don’t, they will face the consequences or be blacklisted. “If you are found to be trying to pay someone off to win a contract or illegally determine the outcome of a process, you can be fined or face being blacklisted,” she said, noting that “you would no longer be allowed to compete in any government procurement process for two to three years.”

Dirani further noted that a number of Latin American and European countries have established an arbitration process who decides whether a penalty can be imposed on a company. The pact also has a “due process” facility which allows companies to defend themselves or their cause. “The interesting thing about the Integrity Pact,” she said, is that the burden of monitoring the procurement process is shifted from the government and given to the competitors. The pact, she observed, provided her government with a lot amount of expertise for free.

There is a saying that if you want to know where TT’s economy will be in ten years time, you just have to look at Jamaica’s economy now. A brief look at the current situation in Jamaica provides a frightening picture. The information provided here was gathered recently during a week of interviews by this author across sectors and industries in Jamaica.

The informal sector is threatening the stability of legal traders. A recent study showed that some 43 percent of the annual GDP of Jamaica is generated by the informal sector, which competes with the formal sector in every conceivable product. Container loads of products are brought in duty free, oiled in its passage through customs by bribes to customs officers and security guards. Liquor is smuggled into the country from the Cayman Islands and elsewhere, and sold at a much lower price than the legal traders could afford to offer. For every case of Johnny Walker Black sold legally, at least 10 or more cases are sold illegally. Workers steal the local liquor from the factory and re-fill bottles and sell them on the black market. There is grave concern about the quality of the products being offered by informal traders. Used car tyres are brought in with no guarantee of quality, and retailed at what is cost price for formal traders, who just cannot compete.

The market is very price conscious. It is not a disincentive that there is no guarantee of quality. Food that has been rejected in the US is brought into Jamaica and Haiti. Food vendors do not have to go through the rigorous scrutiny by health authorities to get a certificate. They simply buy it. According to one interviewee, one can buy any licence in Jamaica. Health problems are magnified by the lack of infrastructure for the large mass of higglers who use the facilities of fast food shops if they are available. Moreover, the sector is growing. It has become standard practice that those who lose their jobs set up a stall to sell imported goods.

In response to this challenge, many legal traders have started “fronting”, that is, supplying goods to higglers. “If you can’t beat them, then join them” is the guiding philosophy for most now. In the process, the economy is becoming increasingly destabilized, with the private sector facing possible demise. Government is losing a lot of revenue that should be derived from customs duties and taxes on businesses. Indeed, there was the view that the private sector is being punished by having to follow the rules and compete with those for whom there are no formal rules. Interestingly, there is no black market for pharmaceuticals because the customs duty is very low. Maybe lower tariffs may go some way to resolving the problem.

Money laundering is another source of unfair competition for the private sector. Imports of “deportee” cars, or what we call “foreign used”, has become a prime avenue for money laundering. Car parts also feature high in the outlets for money laundering. The legitimate car dealers are having a hard time surviving, and there are other sectors that are plagued by money laundering. The cost of these goods is so low that the legal traders cannot compete. There seems to be a complete breakdown of law and order in Jamaica, spanning corruption in the wharfs, the reign of Dons administering justice according to their norms and values, and bandits taking over the society. Construction was started on Highway 2000, but the project was brought to a standstill because, for every truckload of materials dropped, the government had to give the local bandits US$300.

A local newspaper began constructing a new building, and the Don in the area demanded the security job. The owners conceded, materials began disappearing, and so they removed the bandits and hired a real security firm to take control. The security guards were beaten just short of death. The construction project was shut down. Legitimate security companies are competing with the Drug Dons and Zeek, the feared downtown Don. Businesses have to pay such high costs for security that their cost of production is considerably higher than the rest of the region. They cannot use their equipment to full capacity and take advantage of cheaper electricity rates at night by having night shifts, since workers are unwilling to work beyond 6pm. How can they compete?

We are witnessing a serious case of poor governance and lack of social equity. Without the massive unemployment problem, and the rampant corruption on the wharf, and other government institutions, the illegal traders would not have grown so phenomenally so as to now threaten the very existence of the legal private sector. The society is under siege from the drug lords, to the point where a simple matter of construction a building cannot be done because demands for “security” payment are outrageous. One interviewee described the Jamaican culture as a hustle culture, where crime pays and the thief prospers. Is this where TT is heading? Should we not take pre-emptive action?

The views expressed in this column are not necessarily those of Guardian Life. You are invited to send your comments to guardianlife@ghl.co.tt

Republic Bank Limited has announced the appointment of Dr Marjorie Thorpe to the Bank’s Board of Directors. Dr Thorpe is the first woman to be appointed to the Republic Bank Board of Directors in seventeen years.

A graduate of McGill University and Queens University in Canada, Dr Marjorie Thorpe served on the faculty of the University of the West Indies for some twenty years before being named Trinidad and Tobago’s Ambassador and Permanent Representative to the United Nations, New York in 1988. In 1992, at the end of her term of office, Dr Thorpe joined the United Nations Development Programme. Between 1992 and 1995 she served as Deputy Director of the United Nations Development Fund for Women (UNIFEM). In 1995 she returned to the region and, until 1999, held the post of Resident Coordinator of the UN System Operational Activities for Barbados and the Eastern Caribbean and Resident Representative of the UNDP for the same area.

Dr Thorpe is currently a member of the Trinidad and Tobago Police Service Commission. She is a Director of Junior Achievement of Trinidad and Tobago and The Trinidad and Tobago Institute of the West Indies. She also serves on the Project Advisory Committee of the Canada-Caricom Gender Equality Programme in Trinidad and Tobago. Dr Thorpe brings to the Board her experience as an educator and a development practitioner with a strong interest in gender issues. Her publications include articles, conference papers and addresses on Women in Literature; Gender and Development; and Sustainable Human Development. She sees these areas of study as being seamlessly linked. “Literature,” she observes, “encourages us to reflect on the nature of human existence. Its truths can promote the establishment of an order that is more just, more humane, more civilised. This too, is the goal of the development process.”

As the recipient of various fellowships and awards, Dr Thorpe’s tenure of office at the University of the West Indies included appointments as Vice-Dean of the Faculty of Arts and General Studies (1983-1985) and University Dean, Arts and General Degrees (1987-1988). She was also part of the team that spearheaded the introduction of Women and Development Studies at that institution and, from 1985-1998, served as the Coordinator of the programme at the St Augustine campus. Dr Thorpe’s appointment took effect on April 1, 2003.

Persad Rooplal admits to being a novice in the horse racing industry. Deflecting criticism that he should not be in the saddle, Rooplal is slowly fashioning a plan for an ailing business. 

As newly appointed chief executive officer (CEO) of the Arima Race Club (ARC), he has big plans to make Trinidad and Tobago the horse racing hub of the Caribbean. Installed as CEO in December last year, Rooplal openly admits that this is the first time that he has been involved in horse racing. He is a graduate of Ryerson’s University in Toronto where he studied Business Administration. He has worked in the retail industry in both Toronto and TT, his previous job was that of a marketing and management consultant. He was formerly employed at Club Liquid.

He replaced Christopher J Armond, who resigned January last year to take up the position of operating manager and racing secretary of the Barbados Turf Club, the body responsible for managing the horse racing industry in Barbados. Before Rooplal’s appointment, Financial Comptroller of the ARC, Joan Mitchell was acting CEO. Rooplal was chosen by an ARC  management committee which comprised nine people. The committee includes Peter Ganteaume, Emmanuel Lawrence, Derek Chin, Richard Smith, John O’Brien, president, ARC; Dr Jagdis Suratsingh, Tyrone Kowlessar, Neil Poon Tip and Roopchand Chadeesingh, chairman, Betting Levy Board (BLB).  

As green as he is, Rooplal says he is confident that he can turn the industry into a more profitable and exciting one. “I am not here because of horse racing, I am here to administer the horse racing track, there is a difference,” he said in an interview last week at the Santo Rosa racing facility. Rooplal said the industry right now is worth about $60 million and he is going to try and increase that figure. He noted that it is much bigger than the racing industries in Jamaica and Barbados. With this in mind he has embarked on a major campaign which is aimed at promoting the industry. However, he now has to work with small amounts of funding which comes from the Betting Levy Board (BLB). He explained that the BLB has a funding figure of about $136,000. This funding varies from time to time depending on the race card, he said.

Rooplal said the race card was about $280,000 and the BLB provided half of that sum. The other half  had to come from the ARC. He added that last week’s race card was one of the biggest unsponsored cards thay have had in a while. “This is the kind of field that we are looking at for the future,” he said, noting that there were about 120 horses in that racecard. Usually a race has about 80 horses, he noted. “I would definitely like to see the BLB’s contribution to the industry increase. It will give it a major boost,” he said, adding, “the more money they give us, the more money we will have for stakes money and everything else.” But apart from the BLB, the ARC sometimes gets the help of corporate sponsors which sponsor major races like the Easter Guineas and other big races. Sometimes the sponsors’ contribution is more than the BLB’s input, he said, noting that with more money he can speed up the plans he has for the ARC.

Rooplal said that at present the ARC has a massive advertising campaign in place to promote the industry. “We have a couple of newspaper ads and through various promotions we are looking for corporate sponsors. We are doing any and everything to place the industry at the forefront,” he said. Additionally, he said the ARC is building new barns to accommodate new horses. He said the racing body is trying its best to encourage owners to bring their horses to races to increase the stakes. “We have about 120 two-year olds which are going to be ready for racing sometime in August,” noting that these horses are going to be trained for races in July and August.

The ARC also plans to increase the stakes by June and intends to give racing enthusiasts bigger race cards. Rooplal added that in order to encourage more bets, the ARC is developing more off track betting systems (OTB). The ARC currently has 16 OTBs and hopes to increase that number to 20 by the end of the year. As part of its drive to boost the industry, the ARC is also trying to get more women involved in racing, they are also trying to bring back the family atmosphere into racing.

The new CEO said ARC was working on putting a whole new line of entertainment for the family like games for the children and a playground. Additionally, Rooplal said they recently spent $750,000 to upgrade the horse racing track. “The track is now one of the best in the region. It is much better than the two other major centres for racing — Jamaica and Barbados.” In the latter part of this year, the ARC will also be running extra races. Currently they have races three times per month, but Rooplal hopes to have weekly races.

The ARC also has an exclusive cable pay-per-view channel, its aim is to increase public awareness about the sport. Rooplal said proceeds from the station will go towards helping the ARC become more self-sufficient. The CEO said they are also spending money on landscaping the premises. “It is a product that we are developing and it has to be done in all areas — not only horses, stakes and race cards, we also have to make the environment pleasant for people.” The ARC also recently painted the entire grand stand. Rooplal added that sometime later this year, they hope to have a million dollar stake, but he said they are still working on sponsorship. “I am like a beggar looking for sponsorship.”