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Kamla files writ to stop Govt transfer of funds to IDF

Saturday, August 8 2009

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Siparia MP Kamla Persad-Bissessar...
Siparia MP Kamla Persad-Bissessar...

UNITED National Congress, (UNC), Siparia MP and attorney-at-law, Kamla Persad-Bissessar has filed action against Finance Minister Karen Nunez-Tesheira in the High Court for administrative orders to declare “unconstitutional, null and void” of a $2.3 billion appropriation in the Finance (Supplementary Appropriation) Act 18 of 2008.

The writ identified Fyzabad MP, Chandresh Sharma as the claimant while Nunez- Tesheira together with Attorney General, John Jeremie, were identified as the first and second defendants respectively.

The 22-page lawsuit was filed in the San Fernando High Court yesterday, in follow-up to a pre-action protocol letter to the Government on March 16, 2009.

Persad-Bissessar said the writ sought to: “Declare the 2008 Act void; declare warrants for disbursement of funds under the Act void; Freeze the Minister of Finance’s powers to issue any such warrant, and compel the Minister to transfer the excess $2.3 billion to the Exchequer Account.”

“According to the court documents, it is alleged that the 2008 Act which sought to approve an appropriation of $3.9 billion from the Consolidated Fund and into the Infrastructure Development Fund (IDF) for future projects, was unconstitutional because no estimates of expenditure for the sum of $2.3 billion was laid in the House as required by the Constitution,” she said.

The IDF is used to fund infrastructure programmes, and the activities of the special purpose state enterprises like Udecott.

Persad-Bissessar continued, “The Constitution does not allow for the sums to be appropriated in one financial year for expenditure in a future financial year. Supplementary appropriation can only be sought where the allocated sums were insufficient to meet actual expenditure, or where a need has arisen for expenditure.

“And there was no actual expenditure for the sums which the Government attempted to record in the accounts as actual expenditure since the Government clearly indicated that the transfer to the IDF was for future projects,” she added.

The writ is asking the Court for an order of mandamus compelling the Minister of Finance to “transfer the said inconsistent excess sum from the IDF to the Exchequer Account, or to such other lawful account within 21 days”.

An order of mandamus is a judicial remedy which is in the form of an order from a superior court to any government, subordinate court, corporation or public authority to do or forbear from doing some specific act which that body is obliged under law to do, or refrain from doing, as the case may be, and which is in the nature of public duty and in certain cases of a statutory duty.

Persad-Bissessar is also seeking “any other relief” that the Court may deem just, as well as costs, and an interim injunction restraining the Minister of Finance from withdrawals of the monies.

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