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Caribbean Airlines (CAL) Board Fired

Philip-Marshall-Larry-Howai

Port of Spain, Trinidad, May 18, 2013 - FORMER Independent Senator and current Director of the Strategic Management Office of the Ministry of Finance and the Economy, Phillip Marshall, has been appointed Chairman of Caribbean Airlines Limited.

 

 

 

 

 

 

 

The announcement was made at a press briefing called by Finance and the Economy Minister, Larry Howai, at his Finance Building office in Port of Spain. Marshall was present at the press briefing.

Minister Howai told reporters: “It has been decided that a new, Interim Board of Directors will be installed at Caribbean Airlines. This new Board will be chaired by Mr Phillip Marshall.”

He added: “The mandate of the Board will be to conduct a thorough and comprehensive diagnostic of the Airline, with a view to formulating an action plan to take CAL forward.”

“Having addressed questions on Tuesday on the fundamentals and requirements of the operation of the Board of Directors, I believe it is in the best interest of the Airline to allow the Board to fulfil its mandate and report back to the Ministry of Finance and the Economy. When this diagnostic report is received, it will be discussed by the Cabinet and a further statement will be made.”

The Finance and the Economy Minister also gave a brief background of Mr Marshall, who is a former Independent Senator, speaking of his experience as a former Deputy Chairman of Ernst & Young Caribbean and Country Managing Partner of Ernst & Young Trinidad & Tobago, and saying: “I have no doubt that you will agree that Mr Marshall is the best suited for the kind of mandate the Board will have.”

In his brief statement to reporters, Marshall said he was humbled by the confidence placed in him by the Minister of Finance and the Economy and the Government.

Marshall said: “My mandate as Chairman of Caribbean Airlines Limited is clear and therefore I am determined to deliver and ensure that my small contribution is worthwhile and can benefit all stakeholders, especially, the people of Trinidad & Tobago.”

Howai  took responsibility for the financial losses, which CAL has racked up in the past two years. On Tuesday, he told the Senate that CAL’s losses for 2012 were $704 million.

Howai said: “The mandate of the Board will be to conduct a thorough and comprehensive diagnostic of the airline, with a view to formulating an action plan to take CAL forward.”

“Having addressed questions on Tuesday on the fundamentals and requirements of the operation of the Board of Directors, I believe it is in the best interest of the airline to allow the Board to fulfill its mandate and report back to the Ministry of Finance and the Economy. When this diagnostic report is received, it will be discussed by the Cabinet and a further statement will be made.”

Questioned on whether anyone on the new board had airline expertise, Howai said they would outsource that expertise as required.

Asked why it took so long to act on the CAL board, Howai said that he had waited for Moonan, who was appointed chairman last June, to settle in and see what decisions he would take to turn the airline around. However, it was the issue of bad corporate governance at the board level, which caused him to remove the board immediately.