CEPEP maintains same number of contractors

According to the fourth report of the Public Accounts Enterprises Committee (PAEC) on an examination of CEPEP’s financial statements from 2009 to 2014, the committee said written evidence from CEPEP showed, “In 2016, CEPEP’s cost pertaining to contractors and the Government’s subvention were $36,662,000 and $40,000,000, respectively.” However, the PAEC observed that this year, while the total cost with respect to contractors remained constant, Government subvention decreased by $5,000,000 which resulted in a deficit. In light of this, the committee recommended that CEPEP should conduct an immediate review of the quantum paid in management fees. The committee also recommended that CEPEP “take immediate steps to monitor, evaluate and review all contracts and management fees.

In its report, the PAEC noted that CEPEP moved its head office from Chaguanas to Ste Madeleine in 2016. The committee said this was “a very cost effective move” because the rent at the facility in Chaguanas began at $288,154 a month in 2009 and increased to $422,173 by 2012. It added that the building in Ste Madeleine which CEPEP now occupies “is free.”