Karen Nunez-Tesheira, minister of finance, Trinidad and Tobago, will face a no confidence vote at the end of March.

Trinidad and Tobago's Finance Minister Karen Nunez-Tesheira, under pressure from the public to resign over the non-disclosure of her connections to CL Financial, will make another effort to clear the air in an appearance in Parliament today to explain her interest in group companies.

The appearance comes amid a push by the opposition for a corruption probe against the finance minister and accusations against central bank governor Ewart Williams - which he denied - that he too acted pre-emtively to secure his assets before the collapse and rescue.

No-confidence vote

A no-confidence vote against Nunez-Tesheira is also in the making, and could happen as nearly as next week.

The finance mnister, who participated in Cabinet level decisions to bail out three CLF subsidiaries - CLICO, CLICO Investment Bank and British American Insurance Company - came under fire after revelations that she 'broke' a US bank account held with CIB at the end of last year, accessing it before its maturity date.

Since then, the possibility that she might have used confidential information has come into question, amid reports that the finance minister owns 10,410 shares in CLICO which has a net asset value in excess of TT$1 million at the last audit and earned dividends up to January 2009.

In the case of CIB, Nunez-Tesheira earlier stated that the account had matured.

She maintains that the transaction was done well before she was advised of trouble within Lawrence Duprey's conglomerate, whose businesses range chiefly across insurance, energy and spirits. But documents produced by local media showed that the finance minister held not one but two accounts at CIB which she broke before the maturity date of April 30, 2009 and August 13, 2009.

PM's confidence

Still, Nunez-Tesheira will face lawmakers with the backing of her boss, Prime Minister Patrick Manning, who announced that she retains his confidence.

Indeed, Manning painted the situation as the continuation of a politically motivated witch hunt, saying Nunez-Tesheira has been the victim of a long-standing smear campaign by the Opposition United National Congress (UNC).

"I want to reaffirm the confidence that I had in the minister of finance when she was first appointed to that position and until such time as something happens to cause me to want to change that, then the status quo remains," Manning said.

But Victor Hart, chairman of the Trinidad and Tobago Transparency Institute (TTTI), said if Nunez-Tesheira does not resign, it could erode foreign investor confidence and deter investments.

"TTTI is of the view that the minister may have left herself no option but to resign over this conflict of interest issue," said Hart. "If she decides not to go, then the prime minister should, in the interest of sending the right message to these potential investors out there, take the necessary action."

Responding to allegations by the opposition that she had privileged information about CL Financial's liquidity crisis and closed the bank account, Nunez-Tesheira said she was only made aware of the level and extent of CIB's difficulties on January 14 by the central bank governor Williams.

Ewart Williams, governor of the Central Bank of Trinidad and Tobago, also stands accused.

Nunez-Tesheira says records show that she applied to CIB on December 30, 2008 for the withdrawal of a certain sum, as did a member of her family.

"I wish to unequivocally state that I never advised any family member, friend, acquaintance or anyone for that matter to withdraw moneys from Clico Investment bank after I was fixed with the knowledge of the bank's liquidity difficulties on or after January 14 , 2009," she said. "I can state categorically and without fear or favour that I did not use any privileged information to my advantage."

Parliamentary Opposition member, Kamla Persad-Bissessar has requested a formal investigation, asking prosecutors to determine whether the finance minister by her actions had breached the Prevention of Corruption Act.

In her letters to Acting Commissioner of Police James Philbert, Acting Director of Public Prosecutions Carla Brown-Antoine and head of the Fraud Squad, Persad-Bissessar cited Section 5 (a) and (b) of the act, which says that any person who uses or communicates official information to any other person in order to obtain or enable another person to obtain any gift, loan, fee, reward or advantage whatsoever is guilty of an offence. The penalty is a fine of TT$500,000 and 10 years in prison.

Investigation of bank chief

Persad-Bissessar is also asking for a similar investigation of the central bank chief.

In response, Williams said he has two small deposits with CIB, one of which he opted to withdraw following a notice dated November 19, 2008 from CIB advising that his deposit would mature on December 27, 2008.

"Let it be known for the record, that the central bank was not approached by CL Financial until mid-January 2009," Williams said.

"The other deposit is still with CIB up to this time. I will insist on being given the same treatment as all other depositors."

The Opposition has filed a motion of no-confidence in the Parliament against Nunez-Tesheira, calling for her appointment to be immediately revoked. The motion is expected to be debated at the end of March.

business@gleanerjm.com