Gopeesingh hits money bill

The bill bans certain mergers and acquisitions of companies which could result in an unfair dominance of the local market.

Gopeesingh began by arguing that the bill requires the backing of a special majority of Parliament as he said it interferes with the right to the enjoyment of property which is guaranteed by the Constitution.

At that claim, Attorney-General John Jeremie rose to make a point but Gopeesingh refused to give way. Gopeesingh continued. Again Jeremie rose, this time backed by Senate President Dr Linda Baboolal who suggested that Jeremie might be offering to clarify something, but again Gopeesingh refused to give way. He stormed, “This bill takes away people’s freedom to enjoy property and is a dictatorial situation”.

Noting that at present financial institutions were variously regulated by the Central Bank, Supervisor of Cooperatives, and Securities and Exchange Commission, Gopeesingh urged the creation of a single entity to regulate all finance houses.

Further, he said the current bill only covered mergers and acquisitions, but ignored a list of other ways in which companies could collaborate to dominate markets. These strategies listed by Gopeesingh included joint ventures, strategic alliances, cross financing, franchises, sub-contracting, outsourcing, licensing, and cross-licensing. “So, mergers and acquisitions are one out of 12 areas for intercorporate linkages for economies of scale and economies of scope”. Why weren’t these measures also included in the bill, he asked.

Gopeesingh also complained that the bill was putting financial regulation into the hands of what he called a politically-appointed governor of the Central Bank and a politically-appointed minister of finance.

He lamented that the Central Bank was exempt from scrutiny under the Freedom of Information Act.