Former banker and government minister, Robert Le Hunt has dismissed as ridiculous a plan by the UNC to use funds in the Unit Trust Corporation (UTC) and the National Insurance Board (NIB) to finance government projects.
At a recent virtual meeting, UNC Leader Kamla Persad-Bissessar promised the creation of an infrastructure fund of $4 billion, with funding coming from the UTC and NIB. This proposal is also contained in the UNC’s economic master plan 2020.
However, Le Hunte said this “works for no one.”
He explained, “UTC funding is made up of depositors’ funds, investors’ funds and basically some of their retained earnings. “That money is there to protect against future risk and to ensure that depositors get back their money.”
He warned, “You can’t just go in there and take out that money. Doing that will put that financial institution at risk.
On her mention of NIB as well, Le Hunte said, “The money in NIB is made up of contributions you have made so that when you make a claim, you will get your funds and you will be entitled to your pension over a period of time.”
He said if money is withdrawn from NIB for the purposes outlined by Persad-Bissessar, people will be unable to be paid their pensions.
Meanwhile, in light of her claims, the Unit Trust Corporation has since issued a statement highlighting the fact that their obligation is to manage money on behalf of YOU, the unitholders.
The company maintained that each of their funds is governed by a prospectus, which dictates how unitholders’ funds are to be invested.
This means funds can only and WILL only be invested in accordance with the terms detailed in the prospectus under the oversight of the Regulator.
See the full statement: