By FRANCIS JOSEPH
It was an out-of-court settlement on Monday morning for fired Central Bank Governor, Dr Alvin Hilaire.
When all parties were heading before Madame Justice Lisa Ramsumair-Hinds for battle, came the news that discussions were held and Dr Hilaire was happy with the offer made by the State. That means no public trial.
Dr Hilaire was seeking more than $9.8 million in damages over his dismissal.
Dr Hilaire challenged the Cabinet’s decision of June 24, 2025 to advise the President to revoke his appointment as Central Bank Governor and appoint former Minister of Finance, Larry Howai to the position. He also sought damages from the Attorney General for alleged breaches of his constitutional rights.
At the trial, there was going to be cross-examination of Dr Kennedy Swaratsingh, Minister of Planning, Economic Affairs, and Development and Dr Hilaire. However, before the trial got going, both parties reached an agreement, which Dr Hilaire approved.
Dr Hilaire was seeking $9.8 million in damages for what he described as an “orchestrated plot” to illegally remove him from office.
His attorneys sent a pre-action protocol letter dated July 2, 2025 to the Attorney General. His team of attorneys argued that the Cabinet’s decision to advise the President to revoke his appointment was illegal, null, void and of no effect, contending that he was targeted for political reasons rather than lawful grounds.
The six-page letter detailed that Minister Swaratsingh visited Hilaire on June 24, 2025 at his office at the Eric Williams Plaza and informed him that the Government wanted him to step down immediately.
The letter stated that Dr Swaratsingh offered Dr Hilaire full compensation for the remainder of his term if he resigned.
Hilaire questioned where the funds would come from and also noted that the Central Bank’s current budget did not cater specifically for such an eventuality and, at minimum to his knowledge, the board of directors would need to approve such a variation.
The pre-action letter stated that when Dr Hilaire resisted and requested legal advice, the Minister returned later with a signed letter from the Attorney General and urged him again to resign. Dr Hilaire again refused and by 7 p.m. that same day, Dr Swaratsingh returned with a formal notice of revocation of his appointment.
The letter stated that the interaction between Dr Swaratsingh and Dr Hilaire on June 24, 2025 was clearly unlawful.
It added there was no legal basis for the advice that was given to the President, that Dr Hilaire’s appointment be terminated on the basis that he was guilty of misconduct and/or that he had failed to carry out any of the duties and functions conferred or imposed on him under the Central Bank Act.
“Instead, Dr Hilaire’s case is that he was the victim of a clearly orchestrated plot to illegally procure his resignation from the office of Governor and, failing that, to illegally terminate his appointment as Governor,” the letter stated.
Dr Hilaire’s attorneys contended that the Cabinet’s reliance on sections 12(e) and 12(g) of the Central Bank Act—which provide for termination due to misconduct or failure to perform duties was unfounded.
Hilaire’s lawyers maintained that the Government’s actions were:
• Contrary to law and outside the powers given under the Central Bank Act.
• In breach of natural justice and his constitutional rights to fair hearing and protection of the law.
• Carried out in bad faith and for an improper political purpose.
• Unreasonable, irrational, and an abuse of power.
The letter concluded that Hilaire’s termination was null, void and of no effect and that he was entitled to full compensation for the unexpired term of his contract, along with damages for emotional distress, inconvenience, and breach of his constitutional rights.
His attorneys demanded $9,866,303.40 in damages and also payments of his legal costs in a sum to be agreed.
Hilaire was represented by Stuart Young, SC, Anthony Bullock and Imran Ali. The State was represented by Tom Richards, KC, Gerald Ramdeen, Krysta Jalim, Radha Sookdeo and Laura-Lee Hackshaw.
