PORT OF SPAIN, Trinidad, Nov 2, CMC – The state has settled a multi-million dollar (One TT dollar=US$0.16 cent) out-of-court settlement with former Central Bank governor, Dr Alvin Hilaire, who had filed a wrongful dismissal action against the Kamla Persad-Bissessar government last year.
The settlement Monday came as the case was due to resume before Justice Ramsumir-Hinds, with the cross-examination of Planning, Economic Affairs and Development Minister Dr. Kennedy Swaratsingh and Hilaire scheduled to take place.
However, before proceedings began, the state approached Hilaire with an offer to settle the matter and following discussions between the parties, an agreement was reached on terms described as favourable to Hilaire.
The terms of the settlement were endorsed on counsel’s brief.
Hilaire had challenged the Cabinet’s decision to advise President Christine Kangaloo to revoke his appointment as Central Bank Governor on June 24, 2025, and the subsequent appointment of former finance minister Larry Howai to the position.
He also sought damages from the Attorney General for alleged breaches of his constitutional rights.
Hilaire was reported to have been seeking TT$9,866,303.40 in damages, claiming he had been the victim of an “orchestrated plot” to force him out of office.
In a pre-action protocol letter dated July 2, 2025, his attorneys, including former prime minister Stuart Young SC, arguing that the Cabinet’s decision to recommend the revocation of his appointment was illegal, null and void, and motivated by political considerations rather than any lawful grounds.
The six-page letter detailed a meeting on June 24, 2025, during which Swaratsingh visited Hilaire at his office informing him that the government wanted him to resign immediately.
According to the letter, Swaratsingh offered Hilaire full compensation for the remainder of his term if he agreed to step down. But Hilaire reportedly questioned the source of the proposed payment, noting that the Central Bank’s budget did not make provision for such an eventuality and that approval from the bank’s board of directors would, at a minimum, be required for a variation.
The minister allegedly told him the Government would use State funds and that he would sign off on the transaction in his capacity as a minister in the Ministry of Finance.
When Hilaire requested legal advice and refused to resign, Swaratsingh allegedly returned with a signed letter from the Attorney General and again urged him to step down.
Hilaire maintained his position, and by 7 pm that day, Swaratsingh returned with formal notification that his appointment had been revoked.
CMC/jh/ir/2026