Property Matters – Pay Day? Part Two

past-dueI previously estimated State debt to the construction industry in the $3.2-3.5 Billion range. I have since been reliably informed that construction industry claims against WASA are estimated to be in the $600M range, which of course would be subject to verification as discussed previously. My revised estimate (see table below) is now in excess of $3.8 Billion, compared to the JCC’s 27 July 2016 estimate of $2.3 Billion.

The size of my more recent estimate gives a severe picture of the State’s indebtedness to the construction industry, which is the sector that Central Bank research shows to be the largest employer in the national economy. Apart from that, the construction industry also has deep links to other important parts of the national economy such as quarrying; banking/finance/insurance; hardware stores; a range of manufacturers; transportation and so on. Continue reading “Property Matters – Pay Day? Part Two”

Advertisements

AUDIO: The Power Breakfast Show interview on 102.1 FM – 1 June 2016

Power 102 FMAfra Raymond is interviewed on the ‘The Power Breakfast‘ show on Power 102 FM by Rhoda Bharath and Richard Ragoobarsingh discussing the ongoing CL Financial bailout saga. 1 June 2016. Audio courtesy Power 102 FM

  • Programme Date: Wednesday, 1 June 2016
  • Programme Length: 35:04

Board Games – part 2

state-boards-logos

SIDEBAR: Correction on Court Case

With apologies to readers, in the previous article, I mistakenly named UTT as the SoE which had sued its Directors over allegations of a negligent 2005 investment, in fact it is eTeck which sued its Board. A lawsuit was launched by UTT on a similar series of allegations, but that was abandoned in July 2015.

Both those Boards were headed by Professor Ken Julien.

The previous article prompted a series of extremely interesting responses, so I will continue this examination of the State Controlled Agencies. That phrase includes State-owned Enterprises (such as UDECOTT, Caribbean Airlines and EFCL) and Statutory Agencies (like WASA, TTEC, CDA, PATT and HDC).

Some sharp objections were made to my comparison of the relation between the State, the Government and Citizens to a Company, its Board of Directors and its shareholders. I maintain that this is a valid comparison for us to reflect on the proper roles and responsibilities of the various public officials, but perhaps more importantly, the responsibilities of us citizens. Continue reading “Board Games – part 2”

CL Financial bailout – Duprey’s Story: SIFI vs PIFI

Artwork by NiCam Graphics

On Sunday 22nd May 2016, the front-page story in this newspaper was headlined ‘We will pay it back‘. That article featured very interesting quotes from former CL Financial Executive Chairman, Lawrence Duprey as well as the Minister of Finance & the Economy, Colm Imbert, on the prospects for repayment of the huge sums of Public Money spent on this CL Financial bailout.

Duprey claimed to have made a formal proposal to the State to repay taxpayers and all stakeholders who are owed money, while insisting that the amount owed was yet to be determined. The failure or refusal of the State to publish any audited statements in relation to this CL Financial bailout appears to be impeding the discussions as to a settlement of this massive debt. The sidebar contains a summary of how the Public Money spent on this bailout has grown from the initial 2009 estimates of $5 Billion to a 2016 figure now said to exceed $24 Billion. Continue reading “CL Financial bailout – Duprey’s Story: SIFI vs PIFI”

CL Financial Bailout – Duprey’s Gambit

Lawrence Duprey. Photo courtesy the T&T Review
Lawrence Duprey

Last week we learned that Lawrence Duprey and his fellow CL Financial shareholders are victims of a badly-handled bailout. According to the Duprey version, the State must halt all asset disposals and he must regain control of the CL Financial group of companies. In what seemed to be an immediate response, Minister of Finance & the Economy, Colm Imbert, said he was so alarmed at the gross mismatch in the bailout figures that he decided to order a forensic audit on the entire process. These two contrasting stories are the latest big news on the CL Financial bailout.

I have always objected to the CL Financial bailout and it has become a strong example of how the Public Interest can be perverted under a series of disguises.

The Duprey Gambit is just the latest attack on good values in our country. It is a nasty, shocking outbreak of moral hazard. It needs to be dismantled and discredited, nothing less will do.

The Imbert Initiative looks like a welcome move to examine the details of this scandalous waste of Public Money. The proposed forensic audit seems to signal some official appetite for disclosure. However, if this is to properly protect the Public Interest, there are some ‘litmus tests’ which can show the official commitment to disclosure

This article will examine those two proposals so that some meaning might emerge from this utter, deliberate confusion.
Continue reading “CL Financial Bailout – Duprey’s Gambit”

Property Matters – Housing Issues – part 4

hdc-logoAlthough the HDC is the State’s main implementing agency for its housing policy, there are other important elements to be considered. The main one I will examine here is the role of public subsidy in the housing program.

Given that we live in a relatively wealthy and very densely-populated small island state which operates a free market system, the prices charged for property sales or rentals have moved upwards historically. One of the objectives of the housing policy is to assist those who are unable to compete in the market, so it is justifiable to apply State resources to reduce the cost of housing to those needy persons.

That allocation of Public Money and land to the housing program is intended to create the new homes for the applicants. In addition to the direct construction of the new homes, Public Money is also used to reduce the cost of housing.
Continue reading “Property Matters – Housing Issues – part 4”