Former Central Bank Governor, Dr. Alvin Hilaire

Dismissed Central Bank Governor, Dr. Alvin Hilaire, is seeking nearly TT$10 million in damages after he was removed from office in June in what he described as an “orchestrated plot”.

Hilaire told the Trinidad Express newspaper that since his termination, discussions initiated by the government  towards an out-of-court settlement have been “inconclusive.

“As a result, proceedings will commence in the High Court on my behalf seeking material declarations and orders against the State, including damages.”

Hilaire in his June 2, pre-action protocol letter sent to Attorney General John Jeremie and the Cabinet Secretariat, argued that the Cabinet’s decision to advise the President to revoke his appointment was “illegal, null, void and of no effect”.

The government has been given a 14 day deadline to respond to the letter, failing which the matter will proceed to court.

Through his lawyers that include former Prime Minister Stuart Young, SC, the former Central Bank Governor said he had been targeted for political reasons rather than lawful grounds.

The six-page letter detailed that Minister of Planning, Economic Affairs and Development Kennedy Swaratsingh visited Hilaire on June 24, 2025 at his office at the Eric Williams Plaza and informed him that the Government wanted him to step down immediately.

The letter stated that Swaratsingh offered Hilaire full compensation for the remainder of his term if he resigned.

Hilaire questioned where the funds would come from and also noted that the Central Bank’s current budget did not cater specifically for such an eventuality and, at minimum to his knowledge, the board of directors would need to approve such a variation.

Swaratsingh reportedly said the Government would use State finances and he would sign off on the transaction in his capacity as Minister in the Ministry of Finance.

The minister allegedly pressed Hilaire to have the Central Bank’s Human Resources Department calculate the payout, and said an accompanying letter from the Attorney General would confirm that the money would be transferred “as soon as possible”.

The pre-action protocol letter stated that when Hilaire resisted and requested legal advice, the minister returned later with a signed letter from the Attorney General and urged him again to resign. Hilaire again refused and on the evening of June 24,  Swaratsingh returned with a formal notice of revocation of his appointment.

The pre-action protocol letter noted that the interaction between Swaratsingh and Hilaire on June 24, 2025 was clearly unlawful and that there was no legal basis for the advice that was given to the President, that Hilaire’s appointment be terminated on the basis that he was guilty of misconduct and/or that he had failed to carry out any of the duties and functions conferred or imposed on him under the Central Bank Act.

“Instead, Dr. Hilaire’s case is that he was the victim of a clearly orchestrated plot to illegally procure his resignation from the office of Governor and, failing that, to illegally terminate his appointment as Governor,” the letter stated.

Hilaire’s attorneys are arguing that the Cabinet’s reliance on certain sections of the Central Bank Act, which provide for termination due to misconduct or failure to perform duties was unfounded.

They also  argue that the former governor’s refusal to have the Auditor General audit the Central Bank’s accounts, cited as “the last straw” by Prime Minister Kamla Persad-Bissessar, was mischaracterised.

The letter noted that Hilaire had previously explained to Swaratsingh that the Auditor General had ceased to be the Central Bank’s auditor in 2024 at the Auditor General’s request.

Hilaire’s lawyers maintained that the government’s actions were contrary to law and outside the powers given under the Central Bank Act, in breach of natural justice and his constitutional rights to fair hearing and protection of the law, carried out in bad faith and for an improper political purpose and unreasonable, irrational, and an abuse of power.

The pre-action protocol letter insisted that Hilaire’s termination was “null, void and of no effect” and that he is entitled to full compensation for the unexpired term of his contract, along with damages for emotional distress, inconvenience, and breach of his constitutional rights.

They are demanding TT$9,866,303.40 in damages and also payments of his legal costs in a sum to be agreed. (CMC)