Prime Minister Owen Arthur “invested” YOUR money in Nigeria. A predictable result.
Millions stolen with not one solar water heater made

by RLL

The short story: In 2006, your BLP Owen Arthur government “invested” $2.4 million dollars into a Nigerian solar water heater project. The Nigerian factory was never finished, not one water heater was made and your money is gone.

Question #1: Nigeria? What was Arthur thinking?

Question #2: For all the BLP “joint business ventures”, name one that was truly successful as a business.

There is the BLP hype about Owen Arthur being a brilliant economist, and then there is the reality. Owen Arthur borrowed 2.4 million dollars in your name, loaned it threw it away in Nigeria on a project that any drunk (except our drunk) knew would fail – and now you and your children have to pay.

Not one job was created in Barbados or Nigeria, and your money is not only gone – it is untraceably gone. There was no accountability built into the project to ensure that the money “invested” on behalf of Barbados taxpayers was used as intended.

Your government “invested” $2.4 million dollars of your money in Nigeria, one of the most corrupt countries in the world. What did they think would happen?

Who took the money?

Nigeria. Joint business venture with our tax dollars. Everybody knew what was going to happen.

Owen Arthur is truly an idiot… or… did he or anyone else in government have a piece of the action as a shareholder, supplier or consultant?

Somebody in your government probably made a quick five or ten percent on your lost $2.4 million.

Without transparency and accountability laws, we’ll never know. In any event, conflicts of interest like that are not illegal in Barbados. Your government officials are free to take kickbacks consultancy and supplier positions with companies that benefit from government grants, loans and contracts.

Compared to some of the past hits, the Nigerian solar water heater scam was a relatively small loss, but it perfectly illustrates why our country is on a downward slope without integrity, transparency and accountability laws. Once in power, the politician piggies have a field day and there is nothing that can be done.

Further Reading

You should read the news article at Barbados Today: Water heater write-off, but we’ll reprint the entire article here because the Bajan news media often removes or modifies news stories to change history and the BT gang did that when they worked at The Nation.
Gov’t loses $2.4 million in failed solar power project.

by Shawn Cumberbatch, Barbados Today

Government has lost almost $2.5 million on a Barbados/Nigeria solar venture that was launched with great fanfare and promise, but ended up being “a terrible failure”.

Barbados TODAY investigations revealed that the Freundel Stuart Administration decided to cut its losses worth more than $2.4 million, loaned to local company Aqua Sol Components Limited five years ago.

This was after the company teamed up with Barbadian interests and partners in the African nation to establish a solar water heating plant there.

Well-informed sources said Aqua Sol, which was recently renamed Solaris Global Energy Limited after being acquired by Solaris Energy Limited, a subsidiary of Mora Ven Holdings Limited, had found it difficult to repay the funds after the venture failed.

The money was borrowed from the Industrial, Investment and Employment Fund operated by the Enterprise Growth Fund Limited, and officials revealed that the Ministry of Finance, Investment, Telecommunications and Energy had agreed to write off the amount owed by Aqua Sol.

This, they said, was except for $150,000, which the said company had previously owed “another financial institution”. In so doing EGFL was able to reversed this substantial amount in loan losses.

Efforts to reach EGFL CEO Timothy Simmons up to time of writing were unsuccessful, but another official, speaking anonymously because he was not authorised to speak on the matter, told Barbados TODAY a write-off of the loan was the best option in the circumstances because it was clear the institution would be unable to recover the substantial loan.

“The joint venture between Aqua Sol, other Barbadian investors and their Nigerian counterparts was an utter failure, so it stands to reason that there would have been some type of write-off of the investment,” the official noted.

“Aqua Sol was in a joint venture arrangement with a Nigerian company to manufacture and develop solar water heating units in Nigeria. That venture was a terrible failure, which did not materialise in the way expected for several reasons.”

“Subsequent to that fiasco, Aqua Sol has entered this new arrangement with a Trinidad company, but I doubt that arrangement will see it venturing into Nigeria anytime soon,” the official added.

The provisions under which EGFL operates gives it the leeway to write-off loans under certain conditions, this newspaper was informed.

“The fund writes off a loan/security balance, and any related allowances for impairment, when it determines that the loans/securities are uncollectable,” the specific policy stated.

“This determination is reached after considering information such as the occurrence of significant changes in the borrower’s/issuer’s financial position such that the borrower/issuer can no longer pay the obligation, or that proceeds from collateral will not be sufficient to pay back the entire exposure,” it added.

It was in late May 2006 when the announcement came that a consortium of Barbadian investors led by CEO of then named Aqua Sol, Vincent McClean, announced they would be partnering with public and private sector interests in Akwa Ibom, Nigeria to establish a $4.2 million solar water heating plant.

The expectation then was that by September of that year much of the structural work at the plant, to be run by a company called Akwa Sol Nigeria Limited would have been finished.

Plans at the time were for the production of 10,000 solar water heating units per year, but the venture soon ran into major difficulty, primarily of a financial nature. The fund from which the money now written-off was borrowed was “created to encourage development within the manufacturing sector, through the provision of concessionary financing to facilitate retooling and expansion of the industrial base”. It was started with an injection of $25 million in 2002.

At the end of last year the Industrial, Investment and Employment Fund had total assets of $8.2 million and total liabilities of more than $108,000.

ISNT it time that people realize and admit that CLICO financed the Governing party during the election campaign ?????
DID this happen or not ???
WILL you please answer the questiona ?
DIDN’T the Governing Party spend money like they had a large bottomles well full of ca$h to draw from

“Owen your hands are dirty | September 24, 2011 at 9:42 PM |
Prime Minister Owen Arthur “invested” YOUR money in Nigeria. A predictable result. Millions stolen with not one solar water heater made”

The company was not doomed to failure. Nigeria has a certain reputation for corruption so therefore very, very tight controls should have been put in place. Thousands of foreign companies successfully invest hundreds of billions of dollars in Nigeria. Isn’t Virgin Nigeria a successful company? What is it that Richard Branson with only a secondary school education knows that we don’t know.

There is still room for a company to manufacture and distribute solar water heaters in Nigeria and in all of the tropical world. If we don’t do it somebody else surely will. The truth is people like nice warm baths, and the hundreds of millions on middle class people in the tropical world can afford the solar water heaters needed for warm baths.

Who will manufacture and sell to this market?

The Bajans?

The tough Chinese business people?

5 options and no farther forward.

1. Did Deloitte find enough evidence of mismanagement for the DPP to launch criminal prosecutions against Parris at al? NOW. Surely YES.

2. Who’s paying for the forensic audit? Do we have a commitment it will lead to prosecutions?

3. A spin-off company would be undercapitalised and toxic – it cannot work. Nobody in their right minds is going to pay premiums into this company. It is dead before it is born. These are not viable options.

4. How are Caribbean TAXPAYERS supposed to come up with hundreds of millions of dollars to capitalise the new company and service the existing policies with their enormous rates of interest when they can’t pay their own light bills? Policyholders licking their chops at OUR expense.

5. How have the remaining assets been valued? Has the real estate been marked to market? They stated that a large amount of the assets belonged to counterparties – have they verified they are still realisable? What about the assets they have stated are unverified – are they included in the total? Assets matching 60% of liabilities is horrendous and it probably worse.

It seems to me the only workable way forward would be a sale of the “good assets” and related liabilities to an existing insurance company and let the bad stay bad.

@Questions for Deloitte

Your suggestion would mean a very low haircut for CLICO investors.

If one understands what has been stated in the public the two are being treated as separate transactions.

This is interesting because one would have thought CLICO Holdings had legal responsibility for British American.

Forensic Audit my foot! We all know what such an audit will reveal. But the questions that need to be answered are:

Can we really rely on any local or regional audit firm to carry this audit in an unbiased fashion? If such an audit is to be conducted it should be performed by an independent entity from outside the region with no local ties to the existing cartel.

Who were the auditors that signed off on the balance sheets for CLICO Holdings Barbados and its subsidiaries? How could they certify that the balance sheets represented a true and fair view of the financial status of the businesses when so much money worth of assets is unaccounted for? Can’t the policyholders bring a class action suit against the Auditors for negligence and incompetence? Remember Arthur Andersen?

Since the CLICO operations in Barbados are in such a financial mess can anyone explain why the Chief Financial Officer (CFO) Mr. TT is still on the job? It should be obvious to the JMs that if so many assets are unaccounted for there is a high possibility that the “books have been cooked” and the CFO should be asked to explain this state of affairs. We don’t want a similar occurrence at the EGFL where taxpayers’ money is involved.

A forensic audit would result only in a waste of policyholders’ ongoing premium payments. This could be a very expensive exercise and should be undertaken only if policyholders can be given the assurance that something productive would come of it.

When the evidence is established, do we really expect the main political parties to be supportive of any move to prosecute any officer or director of CLICO for fraud or misuse of policyholders’ funds? A forensic audit will certainly reveal that millions of dollars were used to finance political campaigns, some of which ended up in individual politicians’ pockets.

BU you are mistaken about investors being lured into EFPA’s through greed, at least those investors who started years ago. At that time, CLICO’s interest rates were higher than those at the commercial banks, but not that much higher, and in any event, CLICO’s rates came down over time. It is important for everyone to know this, because CLICO’s rates were nowhere near as high (in Barbados) at those offered by Trade Confirmers or by CLICO in Trinidad. The adverse publicity aimed at “greedy”” investors has resulted in many of them refusing to come forward and join BIPA. Those of us who invested in CLICO have nothing to be ashamed about. The company was supposed to be monitored by the Supervisor of Insurance – it wasn’t. The books of CLICO were also audited with no mention of problems. So far no fingers have been pointed at the auditors, but they should be, and they may be liable for future lawsuits. All investing involves risk. A calculated risk taken on the mistaken impression that companies like CLICO are being monitored and “kept in line” cannot be the fault of the investor. The anecdotal evidence of serious wrongdoing at CLICO by persons who were formally employed there cannot be brushed under the carpet. After a forensic audit, I would expect charges to be brought, and some people trying out for orange jumpsuits. It won’t happen, of course. What we will see is a bale-out by government just in time for the next election, and the hope by them that at least someone will remain to help finance it.

@Disgusted Investor

We can agree to disagree. CLICO’s rates offered have always been high based on BU checks. The rates skyrocketed it is true in the last 8 years with many agents who peddle the EFAs driving high priced luxury cars.

The Nation has this story over its pages today.

http://www.nationnews.com/articles/view/in-or-out/

Was the judical manager not chairman of the BTI after the last general elections, a position approved by the Cabinet of Barbados. Did Faye Parris aka LeRoy Wife not on the same board of directors?

What is the nature of the relationship between LeRoy and Oliver?

it seems like a lot of wool is being pulled over the faces of the policyholders, so much overhand deals were done in T&T that both parties seem unwilling to have a full investigation into the Clico collapse. No wonder neither party wants the transparentcy act passed!!!!! Time we the taxpayers demand more from our government, maybe it is a pity the DLP is in government, because all of this started in the BLP regime, true most of the sweets went to the DLP, let’s not forget the late P.M Thompson was Clico’s attorney and Leroy Parris’ best friend. Let’s also not forget that the said Leroy Parris is to get the first 10 million dollars dispursed, a deal sign by himself and the late David Thompson. This is in addition to the many millions that were alleged withdrawn by the same individuals.

Did CLICO lay-off (a better word would be fire) employees who refused to handle the Executive Flexible Premium Annuities?

Will the oversight committee call these laid off employees to testify under oath?

And if so why not?

Is it that we do not want to hear the truth?

Is it that we would rather squander taxpayers money, rather that hear the truth and deal with the criminals?

Is Leroy Parris still Freudel Stuart’s friend?

Din’t Mr. Stuart’s mother teach him to choose his friends carefully?

Is Mr. Parris a carefully chosen friend?

Has a Prime Ministerial friend ever been locked up in all of Barbados’s history?

And if so why not?

Has David Thompson’s dealings been scrubbed from CLIOC’s records?

And if so why?

And who scrubbed these records?

Was the $10 million letter of comfort that David Thompson provided to CLICO really $10 million of our tax money provided to CLICO so that the family of the then dying and subsequently dead David Thompson could get his insured death benefits?

While other taxpayers orphans and widows wait, and wait and wait?

And the PM is still telling us that Leroy is his friend?

And asking us to vote DLP when the election is called?

My question to the DLP is why should I vote for you?

Quoting Caswell Franklyn | September 25, 2011 at 12:40 PM |
“It is Government’s responsibility to make whole the persons who invested in CLICO”

No Caswell. It is not.

I do not want the government to take up MY tax money to pay CLICO investors nor to build a tomb for David Thompson.

If it is felt that David meeds a tomb (and I really don’t see why he needs a tomb. He is DEAD, DEED, DEAD. He won’t be coming back to life anytime soon) he has a mother, wife and 3 children alive who can and should pay for it.

Politicians never seem to tire of using the taxpayers money for damn nonsense.

David there is now and has always been nepotistic incestuous relationships in every aspect of business and politics in Barbados.

Nobody complained when there was a very fat calf to slaughter and distribute.
Now there are only bones left to make soup.

Hants you can stay up there in Canada and talk.

But not one cent of my tax money.

Damn taxes in Barbados giving we goadies and the politicians can’t seem to get tired of giving away our tax money to their friends and other silly people.

And Hants both you and I know that there was never any fatted calf. When I heard David Thompson talking that nonsense about “the fatted calf will be slaughtered and shared” I knew that something was wrong”

I thought to my self, what fatted calf what?

I say to myself that I bet he is looking for a way to screw the taxpayers to his benefit and the benefit of his family, friends and yard fowls.

No I wasn’t fooled then and I am not fooled now.

Not that I think the BLP is much better, but in the upcoming election there is no way any DLP candidate can get my vote.

NOT ONE ON THEM.

It is scary how the Supervisor could have been allowed to fall asleep on the job reaching back beyond this adminstration.

It makes one wonder to what extent is the Registrar of Cooperatives on top of the job as well.

This is another regulator who has been criticised by the IADB.

We now have the FSC and await their initial assessment, Jeff Cumberbatch hope you and your other Commissioners are on the job!

There was a time when Barbados was like Manhattan for Politicians Lawyers and other professionals.

The construction boom also made a lot of people “rich.”

Every time I was invited to “expensive restaurants” half the diners were black. That was the “Owen” era prior to 2008.

Now there is no solution to bring back that level of prosperity so I gine tek Random Thoughts statement literally. “Hants you can stay up there in Canada and talk (on BU).

Government had a duty of care to all of CLICO’s policy holders and investors. They failed to do their duty and as a direct result those policy holders and investors suffered loss. I am sure that those individuals would not have invested in CLICO if Government had done its duty. The loss that those people suffered is a direct result of a total failure of the Government to regulate the company.

I would not like to see taxpayers money go to reimburse those policy holders and investors but it is the right thing to do. Maybe we can prosecute those who failed to do their duty because they were getting kickbacks from CLICO. The charge is misfeasance in public office.

@Caswell

What precedent does this set for Barrack?

@Independent

George Nicholas resigned as Chairman of CAL in August.

http://caricomnewsnetwork.com/index.php?option=com_content&view=article&id=4874:trinidad-minister-confirms-resignation-of-caribbean-airlines-chairman-george-nicholas&catid=54:latest-news

@ David
George Nicholas III indeed resigned,but his resignation was not accepted.He was back as chairman within a couple of days. Unless he resigned for a second time, he’s still the chairman.

@Independent

Thanks, missed it!

@Caswell

What about trade confirmers investors, what about the policyholder of narwan insurance that was headed by sharma, what about those pensioners from the foundry etc. I have difficulty with my money being used to bail out investors in clico. Sell off the property of the parris, the duprey and others. And those who ripped off the comany by paying themselves large salaries, go after their property as I consider that action to be money laundering..

What about the auditing firm, should it be asked to PAY AS WELL.

The auditing frim is the biggest culprit in all of this. Did they express any concerns in their audit.

Investment is about risk and those who invest should be prepared to hit our miss. I have an investment and it value less than what i bought it for after 5 years. i KNEW i was taking as chance.

Balance

Would you had put your money in CLICO if the Government agencies responsible for regulating CLICO had published information to the efect that the company was not complying with the law and was therefore unsafe for investment. Well that information was available to Government but they kept it hidden and received campaign funding.

I am saying that those responsible for protecting policy holders and investors and refused and or neglected to do so should be made to pay for their actions. They were agents of the state and the state should be held vicariously liable for the wrongful acts of its agents and should be responsible for making those who suffered a loss whole. By the way, I do not have a single cent in CLICO. As a matter of fact, before the failure, I saw the writing on the wall and suggested to two friends to take their money out of CLICO. One did, and I received a small financial benefit for my advice.

Since the CLICO debacle, Government has passed legislation to protect the Financial Services Commission and the Registrar of Co-operatives from suit for negligence. I feel that is shameful and no right-thinking Government should be so treacherous to its people.

Since we are down the road of bad business practice. Is Mucovado sugar labelled made in Barbados really Guyanese sugar?

It might not be significant that as Guyanese sugar has disappeared from the shelves, so has any signs of Mucovado sugar.

When Mucovado was first produce the distinction between that and Guyanese sugar was the size of the crystals. Today, there are quite similar in appearance.

Are we buying specially packaged Guyanese sugar at a higher price?