(Trinidad Guardian) Works and Transport Minister Jack Warner confirmed on Monday night he was investigating several “high-priced” consultants at Caribbean Airline Limited (CAL).
Documents obtained by the T&T Guardian revealed Jean Frederic Mognetti was paid about (euros) €2.5 million over a four-and-a-half-year period. At today’s exchange rate that figure is equivalent to TT$20 million for services rendered for the period February 2006 to May 2010. A breakdown of the figures reveal Mognetti, of the firm JFM&FK Management Services, received €453,497 or TT$3.6 million for 193 days work in 2006—an average of €2,349 or more than TT$18,000 a day.
In 2007, the documents showed that CAL paid the consultancy €384,497 or TT$3 million for 137 days of work. This is an average of €2,807 or more than $22,000 a day. The consultancy was paid €588,868 or $4.7 million for 198 days work in 2008. This is about €3,000 or more than $23,000 a day. Mognetti worked 200.5 days in 2009 and was paid more than €600,000 or TT$4.8 million — an average of more than €3,000 or TT$24,000 a day. And up to May this year, the consultancy billed CAL more than €375,000 for 132 days of work. This is an average of just under €3,000 or less than TT$24,000 a day. Warner said he was aware of the name Mognetti and would do an investigation before he goes to Cabinet.
Social activist Devant Maharaj, who first brought the issue to the attention of the Guardian, said he was calling for a thorough investigation into the matter. He said he wanted a forensic audit into Caribbean Airlines because this was something that needed urgent attention. Maharaj said he also wanted clarified whether the Mognetti consultancy deserved these fees and what were the comparable rates for similar consultants in other parts of the region. Contacted on Monday, CAL chairman Arthur Lok Jack said he had no comment. Caribbean Airlines was incorporated on September 27, 2006 and began operations on January 1, 2007. It replaced BWIA.
Last week Finance Minister Winston Dookeran announced a committee to examine the airline. It is to be headed by former BWIA chief executive officer (CEO) Conrad Aleong, CEO of the Institute of Chartered Accountants Krishna Boodhai and former Finance Minister Selby Wilson. Dookeran also said there would be a review of the deal between Caribbean Airlines and Air Jamaica. He said that would be reviewed in relation to its viability and profitability.
