分类： business

A parliamentary hearing on December 1st revealed significant vulnerabilities within the national foreign exchange allocation framework, with the Public Administration and Appropriations Committee (PAAC) uncovering how systemic weaknesses enable importers to exploit the system through ‘double-dipping’ practices.

During the intense scrutiny before the committee, Eximbank executive Navin Dookeran detailed the institution’s verification protocols for pharmaceutical importers, emphasizing their multi-layered approach. The bank’s pharmaceutical facility, serving approximately 30 companies, employs comprehensive financial assessments including financial statements, cost-of-goods-sold analytics, monthly trade reports, usage pattern analysis, and rigorous supplier due-diligence checks to determine foreign currency allocations.

“Our validation process extends far beyond invoice examination,” Dookeran asserted. “We demand complete financial documentation and utilize multiple empirical data points to calculate appropriate allocation amounts for each enterprise.”

The bank’s safeguard measures include direct payments to international suppliers and enhanced due diligence for unfamiliar vendors, incorporating corporate background searches and banking verification. Dookeran cited one instance where Google Street View revealed a supposed supplier operating from a residential address, prompting immediate transaction termination.

Committee Chairman Speaker Jagdeo Singh persistently challenged these controls, highlighting how importers establish US-based supply companies with obscured ownership structures to conceal related-party transactions. “These arrangements facilitate hidden common ownership patterns. What mechanisms exist to verify that invoice-issuing parties aren’t related entities?” Singh questioned.

The most critical exposure emerged regarding cross-bank verification. Dookeran acknowledged that Eximbank lacks transaction-level cross-referencing systems with other financial institutions, creating opportunities for importers to submit identical documentation to multiple banks. “You are correct,” Dookeran conceded when Singh pointed out this enables ‘double or triple dipping’ into foreign reserves.

Independent Senator Dr. Marlene Attz contextualized the forex shortage within Trinidad and Tobago’s energy sector decline since 2014, which has reduced foreign-exchange earnings while maintaining high demand. This economic mismatch directly impacts pharmaceutical pricing, with limited competition in generic drug importation keeping costs artificially high.

Pharmacy sector representatives identified regulatory obstacles as primary barriers, noting that outdated drug-registration laws and restrictive recognition of foreign regulatory authorities prevent affordable, high-quality generics from India and Eastern Europe from entering the market. Pharmacist Glenwayne Suchit estimated potential savings of $174 million through regulatory reform.

Ministry of Health permanent secretary Astif Ali defended the current approval process, emphasizing that while requirements may be burdensome, they are essential for preventing substandard medications from reaching consumers. The chief chemist and drug inspector maintain uniform standards for both brand-name and generic pharmaceuticals, with particular challenges in verifying products from countries without local regulatory representation.

During a parliamentary hearing on December 1, the head of Trinidad and Tobago’s Private Pharmacy Retail Business Association (PPRBA) revealed that no official antitrust complaint has been filed with the Fair Trade Commission (FTC) despite two years of public allegations about pharmaceutical market dominance.

Glenwayne Suchit, president of PPRBA, testified before the Public Administration and Appropriations Committee (PAAC) at Port of Spain’s Cabildo Building, acknowledging that only an informal complaint was submitted to the FTC on September 6, 2024. PAAC Chairman Jagdeo Singh presented correspondence showing the FTC had responded within seven days, requesting extensive documentation to initiate any potential investigation.

Suchit confirmed that despite receiving a comprehensive list of required evidence from the commission last September, the association had not provided the necessary materials to trigger a formal probe. When questioned by Singh about whether any investigation had commenced, Suchit responded, “No investigation has been launched.”

The hearing revealed ongoing tensions between independent pharmacies and major pharmaceutical distributors. Suchit repeated previous claims that Aventa, part of the Agostini Group, controls approximately 74% of the private pharmaceutical market and 70% of the wholesale distribution sector alongside two other major players.

According to the association’s submission, approximately 700 of Trinidad and Tobago’s 900 most prescribed medications are concentrated within a single supplier’s supply chain. Suchit alleged widespread pricing discrimination, citing examples where SuperPharm (also owned by Agostini) could sell common medications like Panadol at lower prices than independent pharmacies could purchase them wholesale.

Works and Infrastructure Minister Jearlean John intervened, suggesting that the FTC cannot fulfill its statutory duties without proper formal complaints and evidence submission. “Why don’t you use your own impetus?” she challenged, implying the association needed to take more concrete action.

The session grew heated when Suchit claimed independent pharmacies were being denied access to subsidized Chronic Disease Assistance Programme drugs and accused distributors of “unfair trading” and having “no principles.” Chairman Singh cautioned him to avoid “emotional hyperbole,” prompting an apology from the association president.

The revelations come five months after Aventa Group CEO James Walker publicly dismissed monopoly allegations, setting the stage for continued tensions in Trinidad and Tobago’s pharmaceutical sector.

In a significant development for labor relations in Trinidad and Tobago, the National Insurance Property Development Company Ltd (Nipdec) has successfully concluded negotiations with the Public Services Association (PSA), resolving a longstanding collective agreement for permanent monthly paid workers. The settlement, finalized between PSA president Felisha Thomas and Nipdec chairman Vijay Gosyne, addresses compensation dating back to the period spanning January 1, 2014, through December 31, 2016.

The breakthrough agreement implements a five per cent wage increase and provides accumulated back pay totaling $5,613,535.69. This financial package will benefit 57 individuals comprising both current and former personnel—specifically 28 existing employees and 29 who have since departed the organization.

Nipdec’s leadership emphasized the agreement’s broader significance beyond financial compensation, characterizing it as a testament to the workforce’s dedication and a reinforcement of collaborative industrial relations. The company acknowledged the PSA’s constructive engagement throughout negotiation proceedings, highlighting the settlement as a milestone in strengthening institutional relationships with both employees and their union representation.

The resolution aligns with government commitments to workforce welfare while supporting Nipdec’s strategic vision to position itself as the region’s premier project and procurement management agency. Company officials reiterated their commitment to maintaining principles of fairness, transparency, and respect in all employee-related matters, suggesting this agreement establishes a positive framework for future labor relations.