PORT OF SPAIN, October 16, 2025 — Caribbean Airlines Limited (CAL) has finally delivered its long-delayed audited financial statements for the year ending December 31, 2016—nearly a decade after the financial period closed—revealing massive losses and serious concerns about financial management and recordkeeping.
The audit, completed in April 2025 by KPMG Chartered Accountants, issued a qualified opinion, citing the firm’s inability to verify the accuracy of key financial items due to missing records and incomplete documentation. The auditors stated that both the opening and closing balances were unverifiable, preventing them from determining what adjustments might be necessary to accurately represent the airline’s financial position for that year.
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For 2016, CAL reported an accumulated deficit of $2.175 billion, following a total comprehensive loss of $695.4 million—a 543% increase from the $108.1 million loss recorded in 2015. The State-owned carrier still has eight sets of financial statements outstanding, covering 2017 through 2024.
Finance Minister Davendranath Tancoo tabled the report in Parliament during Monday’s budget presentation, noting that the findings highlight years of mismanagement and a lack of fiscal oversight at the national airline.
Audit Uncovers Major Irregularities
KPMG’s report detailed several troubling findings. The airline listed $137 million in inventory, but the auditors were unable to confirm its accuracy due to missing documentation. “Sufficient and appropriate audit evidence to support the accuracy of the carrying amounts is not available,” the report stated.
The auditors also questioned the validity of $24 million in vacation leave liabilities, citing insufficient evidence to verify the figures. Furthermore, KPMG said lease arrangements for land and ground facilities were not properly disclosed, indicating potential non-compliance with international accounting standards (IAS 17).
Despite these gaps, KPMG affirmed that the audit evidence obtained was “sufficient and appropriate” to form a qualified opinion.
Political Backlash and Management Shakeup
Prime Minister Kamla Persad-Bissessar has sharply criticized CAL’s handling of its finances, describing the airline as “a corrupt mess” with “no profitable routes” and years of unaudited accounts. She revealed that the company’s 86-member finance department spent over $60 million on external audits conducted by Ernst & Young and PricewaterhouseCoopers.
“I am giving the management of CAL two years to sort it out; otherwise, everyone there will be looking for a new job,” she warned, vowing that taxpayers would no longer subsidize failing state enterprises.
The audit documents were signed on April 3, 2025, by CEO Garvin Medera and CFO Varuna Kuarsingh, both of whom have since resigned, along with Chief Commercial Officer Martin Aeberli and Corporate Secretary Nalini Lalla.
Following the United National Congress (UNC) election victory in April, sweeping changes were made to CAL’s leadership. Reyna Kowlessar was appointed chairman of a restructured board on June 24, replacing Shameer “Ronnie” Mohammed, who had served since 2016. The new board includes Videsh Praim, Sharlene Maharaj, Prof. Selwyn Cudjoe, Amit Krishan Mahabir, Larren Peart, Alicia Edwards, and Adam Moss.
Tancoo Accuses Former Minister of Negligence
In his budget address, Minister Tancoo accused former finance minister Colm Imbert of turning a blind eye to years of fiscal mismanagement and repeatedly approving financing for CAL despite the absence of audited accounts.
“The former Minister of Finance closed his eyes as CAL descended into inefficiency, non-compliance and fiscal indiscipline,” Tancoo charged. “He actively fueled this reckless behavior by approving billions in financing without demanding accountability. This is nothing short of criminal negligence.”
Tancoo defended the airline’s new board, saying it has been making “hard but necessary decisions” to transform CAL from a “national liability” into a viable enterprise.
New Leadership and Reform Plan
Following Medera’s resignation, Chief Operating Officer Nirmala Ramai has been appointed acting CEO, with a mandate to implement full internal audits and reinforce accountability. The airline said it will be conducting comprehensive audits across all departments, focusing on governance, safety, and operational efficiency.
Under the direction of its board, CAL identified five key priorities to guide its restructuring:
- Supporting employees and stakeholders through transparent communication.
- Reviewing operations to boost efficiency and modernization.
- Enhancing customer experience with improved service.
- Developing a long-term, financially sustainable growth plan.
- Strengthening governance through full departmental audits.
CAL reaffirmed its commitment to regional connectivity and internal talent development, emphasizing that operations will continue uninterrupted.
“Caribbean Airlines will continue to serve the region with pride, reliability, and a steadfast commitment to safety,” the company said. “The board remains dedicated to open communication with employees, customers, and stakeholders as this leadership transition and strategic plan are implemented.”
