Government-Mandated "Social Fund" Levied Solely on Grenlec Prompts Lawsuit, Suspension of GCPI Grants

Author: GRENLEC Blogger/Tuesday, February 13, 2018/Categories: General, Media Releases

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Tuesday, 13 February 2018: Grenlec is challenging the constitutionality of Government’s newly-legislated five percent (5%) “Social Fund” levied solely on the Company. On Monday, 12 February 2018, Grenlec filed a lawsuit to protect the rights of its nearly 1600 shareholders.

Grenlec contests the legality of Section 20 of the Electricity Supply (Amendment) Act 2017 which takes funds from private citizens—shareholders—to pay for a government-mandated “Social Fund” controlled by the Minister for Public Utilities and a Minister-appointed committee. 

The so-called “Social Fund” will effectively eliminate and replace Grenlec’s annual investment in the Grenlec Community Partnership Initiative (GCPI). Since 1994, the GCPI has invested more than $22 million in education, health, sports, culture and social services throughout Grenada, Carriacou and Petite Martinique.  

Due to the current “Social Fund” legislation and the subsequent litigation, Grenlec must suspend its GCPI grant awards until the matter is resolved in the judicial system.  


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