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  • 6 hours ago
Regional Corporations across the country are in dire financial straits.
That's according to Mayor of the City of Port of Spain Chinua Alleyne.
So dire is the situation, that he says salaries, statutory contributions and garbage collection are all at risk of being undeliverable by June of this year.
In this regard, there is an urgent call to Minister of Finance Davendranath Tancoo.
Alicia Boucher has more in this report.
Transcript
00:00Coming out of a meeting convened by the Ministry of Rural Development and Local Government with local government heads last
00:07Wednesday, a major problem would have come to the forefront. All regional corporations are in dire straits financially.
00:14Port of Spain Mayor Chinua Allen says the issue has the potential to cause serious ramifications.
00:19All corporations complained that they were short of money to meet their obligations for salaries for public servants and in
00:28many instances for the NIS contributions for public servants as well.
00:33I can say that in the case of the Port of Spain Corporation, our budget to pay salaries to our
00:41public servants will be exhausted at the end of May of 2026 and we have a shortfall of somewhere in
00:50the order of $30 million to pay salaries.
00:54Mayor Allen indicates that while these funds are usually allocated, the situation stems from the December 2025 back pay to
01:01public servants.
01:02He tells us the various regional corporations were ordered to make the advance payments to which they complied.
01:08But the back pay had not been budgeted for by the ministry.
01:13And so now because of poor budgetary planning, we find ourselves in a fiscal fiasco where we in very short
01:22order, we are not going to be able to pay salaries.
01:25In addition, the city corporation will not be able to pay garbage collectors by the end of June and has
01:31a shortfall of $5.25 million after having faced a 40% cut in this line item in the 2025
01:38budget.
01:39He adds that a cut in the public sector investment program from $19.7 million to $4.1 million is
01:46stymie in critical works and contractors are being owed millions of dollars.
01:51As a result, an underground drain in Belmond, which could lead to the collapse of the roadway, is unable to
01:57be fixed.
01:58A portion of the East Rye River wall that is collapsing and is threatening several townhouses have done site visits
02:05at the space, have spoken with the residents,
02:08and we have not been able to get any money to be able to fix this portion of the East
02:14Rye River wall before it totally collapses and it causes these townhouses to collapse.
02:19Meanwhile, he states that the Chaguanas Corporation got an increase of $20 million for its PSIP.
02:26On another note, Allen says Point 14 Regional Corporation has not been able to pay traveling allowances since last year.
02:35Government is due to undertake a media budget review soon, but Allen isn't certain that a problem, in particular,
02:41what is being faced by his corporation will be addressed, given what he says transpired in the media review following
02:49the general election.
02:51Our budget for goods and services was cut from $50 million to $30 million.
02:56Allen states that it was not resolved in the last fiscal plan either.
03:00The Port of Spain mayor is calling for good sense to prevail on the part of Finance Minister Devindran Atanku.
03:07And the time for corrective action is now, and we're making a call on the ministry to take immediate corrective
03:14action,
03:15restore the budget of the city of Port of Spain.
03:19Sixth demesda has been created.
03:21Alicia Boucher, TV6 News.
03:25The Port of Spain mayor is a part of the city of Port of Spain.
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