Arts and Multiculturalism Minister Dr Lincoln Douglas is now trying to secure a $75 million loan from First Citizens in order to clear up debts accrued as a result of his miscalculating last year’s budget. Until that loan is secured, Carnival 2015 winners cannot be paid. Stakeholder for the carnival fraternity, the National Carnival Bands Association (NCBA), yesterday confirmed that without the $75 million there would be no money in the coffers to pay out prize money, despite Douglas’ ministry having received a $314 million budget allocation last year.
Finance Minister Larry Howai has also confirmed the loan amount being sought by Douglas. In January, the Sunday Guardian reported that Douglas had approached Howai for some $150 million, in addition to the already approved allocation for the Culture Ministry. It was reported then that both Douglas and National Carnival Commission (NCC) chair, Lorraine Pouchet, met with Howai in order to secure the funds, but were told to renegotiate with contractors to have that figure reduced.
At the time, Douglas had staunchly denied that report, saying that there was nothing amiss in his budget allocation. He admitted then that he was seeking additional funding through Howai and the Cabinet, but stated that it was for upgrades to event venues for the physically challenged, improved public facilities, hiring of more staff at the NCC and more research and analysis into future carnival-related projects. At no time, however, did Douglas say that the shortfall would affect the payments to the mas fraternity.
However, the Sunday Guardian understands that the $75 million hole has now left Douglas going cap in hand to the banks, seeking a loan that will cover payments to the winning mas makers. “The Ministry of A&M (Arts and Multiculturalism) has requested additional funding in the form of a loan to meet additional committents for Carnival 2015. “The Minister (Douglas) has made several representations regarding this matter, which is the subject of consideration by the Ministry of Finance and the Economy,” Howai said.
“I understand that their bankers are First Citizens, but I'm not sure whether they have approached any bank regarding the financing. This won’t be able to be progressed until the Cabinet has provided approval.” Douglas cannot seek the loan without Cabinet approval, and with the oil price dipping below the $50 mark Cabinet insiders say that he is unlikely to get it.
Big shortfall
One month ago, the Sunday Guardian contacted Douglas regarding the financial status of the National Carnival Bands Association (NCBA), as it was responsible for paying the Carnival 2015 competition winners. There was no response. The Sunday Guardian again e-mailed Douglas about this latest development, but again there was no response. Attempts to reach NCBA head David Lopez were also unsuccessful, but the Sunday Guardian contacted the NCBA’s retained public relations company, Cirrus Communication, through its director Colin Greaves.
In an e-mailed response yesterday, Greaves confirmed that the shortfall was holding up payments to the Carnival 2015 winners. “The association is operating within the boundaries of the approved budget for 2015, which includes operational costs and prizes for the various competitions,” Greaves said. “The government subvention that the organisation receives covers the value of the approved budget. To date, the NCBA has not received the full subvention for 2015. When the subvention is released, the requisite payments to the winners of Carnival 2015 will be made.”
The NCC, in response to questions, said: “The Ministry of Finance and the Economy is aware there was a significant shortfall in the amount allocated and the NCC requires additional funding to handle the operational expenses for the balance of the fiscal year.”