A Joint Select Committee inquiry has found that the Rural Development Corporation (RDC) is grappling with a major financial crisis, which is affecting over 100 hundred community projects.
RDE officials told the Committee the situation occurred when 75% of a $200 million loan secured for infrastructure works was repurposed by the Treasury.
RDC Chairman Raees Patel said this has severely impacted their operations.
“It’s been a challenge managing having to pay contractors. We do have outstanding payments for contractors past the outstanding payment dates,” he said.
“We ask contractors to bear with us. It is what it is, based on the availability of funds. We have been in discussions with the Ministry as well as with the Ministry of Finance in order to get funding for these payments and for these works as well.”
Officials from the Ministry of Finance explained the decision to repurpose approximately TT$158 million was part of a policy directive.
They said it left the RDC with roughly TT$42 million to continue both project execution and operational expenses.
