President David Granger has assented to the bill capping benefits for former Presidents and yesterday Minister of Governance Raphael Trotman said that the APNU+AFC administration is fully prepared to defend the amendments in court.
The enactment of the legislation culminated an epic battle waged by APNU and the AFC over three separate administrations to slash what was deemed as unnecessary and unaffordable expenditure.
Trotman emphasised during a post cabinet press conference held at the Ministry of the Presidency that the benefits of former presidents will be affected by the amended act and while “we can’t go back to recover that which was already be spent, there will be caps.”
He said that it was an expectation that the assenting of the Former Presidents (Benefits and Other Facilities) (Amendment) Act would mean that the act was enforceable and that caps would be placed on spending.
Trotman downplayed criticisms by the former Attorney General Anil Nandlall by stating that the government was properly advised by the current Attorney General Basil Williams along with senior counsel that the law was sound. He said that the media must take into consideration that Nandlall was the former Attorney General and that the APNU+AFC government would not be passing legislation it was not prepared to defend in a judicial setting.
Nandlall had said he was “of the considered view that if enacted, the 2015 Bill cannot in law, retroactively or retrospectively affect the entitlements conferred by the 2009 Act. These entitlements have already accrued to the former Presidents. In the case of Mr Granger …these benefits also accrued to him the moment he assumed office, because when he did so, the 2009 Act was in force.”
In a letter to the Stabroek News of July 2, Nandlall wrote that “More significantly, any attempt to utilize this Bill as an instrument to deny and deprive any or all of the aforementioned persons their entitlement under the 2009 Act, would be unlawful, unconstitutional, null, void and of no effect.”
He stated that under Article 222 of the Constitution salaries and allowances of the President “charged upon the Consolidated Fund signifies that they are not subject to the approval (or disapproval) of the National Assembly. It is but indicia of the level of protection and the security of tenure which the constitution accords to these office holders.”
The former Attorney General argued that Article 233 (3) specifically protects the salaries and allowances of the President and pension of the former presidents, “It is clear therefore, that while the remuneration package of these office holders can increase, no diminution is permitted even after they would have left office.”
Nandlall had argued that Clause 5 of the now assented to Act stated that a former president is not entitled to benefits and other facilities should he or she engage in business, trade or employment. He referred to the clause as unconstitutional noting that Article 149A says “No person shall be hindered in the enjoyment of his or her right to work, that is to say, the right to free choice of employment.”
When the bill was passed on July 9, Finance Minister Winston Jordan had stated that the 2009 Act was “vulgar.”
He had said that “It disregards the plight of lower and middle-class families whose taxes are funding these exorbitant, excessive, uncapped benefits.”
Under the Act the allowances allocated for water, telephone and electricity were capped at $75,000 per month compared to the uncapped amount that averaged $370,000 a month for former President Bharrat Jagdeo. Additionally the Act stipulates that all benefits and facilities granted are subject to taxation.
The Act does not affect the $1.4M monthly pension that former presidents receive, however under the new legislation household staff would be limited to three persons; security personnel limited to two persons; and clerical or technical staff limited to three persons who must not be engaged in any political work. The Act also seeks to limit a former president to two vehicles to be owned and maintained by the State.
