The time has come for the Corporation Sole as represented by Finance Minister Larry Howai to step in and rescue the public interest from the politics and mismanagement at Caribbean Airlines (CAL). With red ink running across the airline’s balance sheets, Minister Howai needs to invoke his authority as the representative of shareholding taxpayers and assume his responsibility for taking the airline in hand. That he has already allowed so much wrong to continue without acting is unacceptable. Given his vast experience in banking, Mr Howai of all people should understand the importance of financial prudence and strict accounting controls, all of which are clearly lacking at CAL.
If ever there was a classic case of the damaging impact of politics on business, CAL is it.
With the abysmal state of affairs at CAL now going public, it seems everyone involved has someone else to blame. The appointment of UNC financier Mohan Jaikaran as deputy chairman of the board is just another state board mistake to be laid squarely at the Prime Minister’s desk. The fact that Mr Jaikaran is still on the board despite the question over his fitness after he was successfully sued over dealings involving his television station is unfathomable. Mr Jaikaran, however, is not the only misfit on the CAL board. To address CAL seriously, the Government must abandon its penchant for rewarding party supporters and immediately assemble the best expertise available to guide the airline out of the storms into which it has been flown.
CAL’s management, however, cannot escape blame by simply pointing to board decisions or pressure from directors. If that is the source for the bad decisions and poor judgment being displayed at CAL, then the executive management stands accused of being either too weak or too self-interested to provide the expert capability that they are being paid to deliver by taxpayers.
One can only imagine the low level of morale among staff at CAL who, along with taxpayers, will take the brunt of the airline’s poor decision-making.
The urgent requirement now is for Minister Howai to install a board with the required level of expertise to take control of the airline. Given the mess it will meet, as well as this Government’s dismissive attitude to the previous board led by businessman Arthur Lok Jack, he might not find it easy to persuade some of our better talents, but he will must find a way.
A new board must be given a clear policy direction that is consistent with the airline’s best interest. Its first task must be to demand professional competence and accountability from the executive management. An airline with CAL’s problems cannot operate with an acting CEO. Robert Corbie either has what it takes to do the job or he doesn’t. On the evidence of the fiascos at CAL, he may not be the man.
Over to you, Minister Howai.
