By KEN ALI
IN a country with several public agencies for road improvements, the Government is quietly setting a new firm with $100 million in start-up funding – on the eve of the Local Government election.
The establishment of Secondary Road and Rehabilitation Company is so hush-hush that it was only fleetingly mentioned during the mid-year budget review.
And even then, Finance Minister Colm Imbert had few details on the new State enterprise, except for its $100 million capitalisation.
It is “a matter for the Prime Minister,” Imbert told the Standing Finance Committee, in response to Opposition questions on the mystery company.
Prime Minister Dr. Keith Rowley did not attend the meeting of the Committee and has not provided justification for the new company, which is being funded from a deficit budget.
There is speculation that the taxpayer-financed firm would fall under Faris Al Rawi’s Ministry of Rural Development and Local Government, and would take effect before the LG polls.
The election is due before the third anniversary of the 2019 election, which was held on December 2.
The People’s National Movement and United National Congress each won seven municipal corporations in the hotly-contested 2019 poll.
This year’s poll is likely to be an acid test for the next general election, constitutionally scheduled before August 2025.
Road works are currently undertaken by the Ministry of Works and Transport, whose Programme of Upgrading Road Efficiency (PURE) is tasked with repairs to secondary and other thoroughfares.
The Public Sector Investment Programme (PSIP) spent $736 million on infrastructure works in 2021.
Minister Rohan Sinanan had earlier revealed that $40 million had been set aside during the current fiscal year for repairs to secondary and minor roads.
The Rural Development Company is responsible for roads, drains and other infrastructure.
In addition, all 14 municipal corporations are mandated to undertake infrastructure improvement works.
Opposition-held Local Government authorities have repeatedly groused about insufficient funding, resulting in inadequate dredging of water courses to avert rain-season floods.
The Ministry of Rural Development and Local Government was allocated $2.3 billion in the 2021-22 budget.
The Agricultural Society receives annual funding for the rehabilitation of farming roads and bridges.
A senior public servant expressed surprise at the establishment of the new company, stating that it “could contribute to further red tape and slow the delivery of much-needed road works to the national community.
“The country requires less bureaucracy from the public sector – not more.
“This new company could be seen by sceptics as a slush fund.”
Before the new Secondary Road and Rehabilitation Company could be commissioned, it must be formally structured, and legal costs would chip away from the $100 million allocation.
There must be the appointment of a Board of Directors and employment of workers.
Employees would be contracted, and would not be eligible for representation by the Public Services Association.
With the current abject state of the country’s roads, there is conjecture that the new company would handle selective projects in order to provide a political advantage to the ruling PNM.
The State enterprise would also be able to create its own pool of contractors.
Al Rawi, who is influential among historic backers of the PNM, was, in mid-March, surprisingly removed as Attorney General, in what was widely seen as a major Cabinet demotion.
If the new company is placed under his ministerial watch, it would strengthen his political value ahead of the LG election.
There is currently much intrigue among the PNM top brass over who would succeed 72-year-old Rowley as PNM boss.
Al Rawi has confided his interest to well-placed supporters, but he is the victim of sharp intra-party opposition from certain Cabinet colleagues.
A public relations operative who is funded by a State enterprise has been strongly critical of Al Rawi.
Political observers are suggesting that the setting up of the company was designed to assure Al Rawi’s influential backers of his continued importance to the Rowley administration.
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