NJAC: Probe TSTT/Massy deal

On May 2, TSTT CEO Dr Ronald Walcott announced the company had signed a share purchase agreement to acquire 100 percent of Massy Communications Limited.

NJAC in a release yesterday stated that such a significant transaction involving a substantial amount of public funds “should not be shrouded in secrecy, especially at a time when citizens are being faced with so much economic hardship and increasing taxation” NJAC also stated it considered the alleged failure of the TSTT board to disclose this acquisition to the Finance Minister, and by extension the Cabinet, “to be a direct breach of the law governing State enterprises as outlined in the State Enterprises Performance Monitoring Manual.

The party also pointed out that chapter three of the manual states that “State Enterprises or their subsidiaries are required to obtain prior approval of the Minister of Finance for the acquisition of significant assets, new investments in non-government securities, the incurrence of new/additional long-term debt and entering into significant contracts (relative to the company).” NJAC pointed out that is in accordance with the Incorporation Act No. 5 of 1973, Chapter 69:03.

“NJAC is also in total disagreement with the chairman of TSTT, Mr Emile Elias, that the acquisition of Massy Communications by TSTT, is an operational decision, and therefore falls within the remit of management. NJAC is of the view that any decision by a corporation, either private or public, that would have a long term effect on the entire direction of the firm is a strategic one. The responsibility for strategic decisions within state enterprises lies strictly with the board of directors.

“NJAC therefore calls for full transparency and accountability in this matter involving TSTT and Massy Communications.”