MP for Oropouche West Davendranath Tancoo has accused Minister of Finance Colm Imbert of misusing the Heritage and Stabilization Fund (HSF) as a personal piggy bank.
Established in March 2007 to safeguard surplus oil revenues, the HSF has reportedly been dipped into for billions to bolster foreign exchange reserves and fund unspecified projects, Tancoo said.
Tancoo said that the Auditor General previously censured the Finance Minister for legal breaches related to delayed payments into the HSF. Despite this, a recent report from August 23, 2024, praised the fund’s growth due to strategic asset allocation and investment decisions by external managers. Tancoo dismissed this as election-driven spin, criticising the PNM government for economic mismanagement.
Tancoo said that from September 2010 to September 2015, the Kamla Persad-Bissessar government boosted the HSF by 56%, reaching US$5.66 billion. In contrast, from September 2015 to March 2024, the fund grew by a mere 4% or US$243 million, he said.
Tancoo said that the HSF report of August 23 report covered up to March 2024 and therefore omits recent economic challenges like market volatility and geopolitical tensions, which threaten the fund’s value. Nearly 48% of the HSF is invested in vulnerable equity mandates, raising concerns about future stability, he said.
Tancoo warned of potential future raids on the HSF due to the government’s failure to create new foreign exchange revenue sources. He urged citizens to scrutinise the Finance Minister’s actions, citing past controversies including alleged pressure on the Auditor General to alter financial records without sufficient evidence.
