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Submitted by Douglas

taxwaiverSometimes it is essential to “Rub Salt (even some brine) in an old Wound”

Yesterday, I  read that the local Court of Appeal had ruled against First Caribbean CIBC, and it has to pay out over $6Million in an age-old case.

But, that is really chicken-feed for CIBC. It would still have in excess of $79Million left in its ‘serendipitous kitty’ from the agreement between the “Great Economist” and First Caribbean, following the merger of the regional operations of CIBC and Barclays Bank in 2002. Who could forget that!

Remember, this country’s  Solicitor General officially informed the “Great Economist” not to proceed with that waiver; noting that it was not only illegal, but unprecedented as well. We all know the outcome: the Great Fellow TOTALLY IGNORED the sound and correct advice offered. Check Hansard and the Auditor General’s Report of the  following year.

First Caribbean made a whopping extra $85Million in profit at the public’s expense. Oh, Lawd Have Mercy!  Yes, that huge amount should have been lodged in the Consolidated Fund.

Do you know how many national projects that could have financed. Given the current economic situation, many public sector jobs could have been saved; the David Thompson Polyclinic and Social Centre (oops, look how I inadvertently let that slip out) could have been open already – hey don’t panic, it’s official opening could still coincide with his birthday this Xmas; our roads would have been in better shape; the UWI debt would have been slashed; all SJPP evening classes would still be offered; the QEH would not have to cut back on certain services and the Ambulance Service would have an ample number of gurneys for daily use. Maybe, Al Barrack could have had all his money that the BLP refused to pay him back in 2002; and, at that time, it was nowhere near $80Million. Just imagine!

As they say, hindsight is 20/20 vision, and I am sure the “Great Economist”, on reflection, would agree with the aforementioned.

And, while we are at it, we should ask the Cobweb Man: who were the beneficiaries? Well, he was the head-honcho at the time, and sang tenor in the Great Economist’s  How Great Thou Art Choir. Cobweb certainly wasn’t viewed as a Negrocrat; he was included.

So, please don’t feel sorry for CIBC; it can more than afford to pay out a little $6Million. Hey, it makes a killing in the region, as shown in the yearly excess profits, in addition to all the outrageous and unconscionable banking fees it charges.

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48 responses to “Rubbing a Little Salt in an Old Wound”

  1. Rubbing a Little Salt in an Old Wound – Vibe Audio StationVibe Audio Station

    […] Rubbing a Little Salt in an Old Wound […]

  2. ac Avatar
    ac

    Douglas u sure know how to bring the house down..another one of them houses the Blp built.

  3. St George's Dragon Avatar
    St George’s Dragon

    The DLP has been in power for six years now. Can I suggest that the party thinks hard about whether it is beneficial to continue to run this “blame the BLP for the current economic woes” story? The post is about something that happened 12 years ago. Check that – 12 years. As a party, even if it is true, you gain no support for posts like this. People see it as past history. They are interested in what is happening now, so what the current Government is doing to help the economy, jobs, taxes. foreign exchange, new projects starting etc.
    It would help your political credibility if you stopped harking back to an alleged political failure by the now opposition a third of a generation ago. No-one cares about it. What they do care about is people being sent home….the sugar industry…..new taxes…..tax repayments…..potholes in the road…..VAT refunds…..
    Why not tell us what you are doing to solve those issues, rather than seek to cast blame back on previous generations of Government.

  4. John Hanson 1781-1782 i serve Avatar
    John Hanson 1781-1782 i serve

    Let no one for get this was the start of the BLP Owen and MIA, as AG MIA and her CROWN LAND CROOKS of Violet Beckles and Beatrice Plantation lands over 200 to 300 Plantations ,,lets not forget Sir Ham and Sir COW to crook ass PIGS of Barbados then took over Queen Henry Bank accounts at Barclays , Also dont for get when you mix the Math of Queen Beatrice and Queen Violet , with CLICO money laundering takes you all in to the UDC and NHC and Ministers Like Todd now getting into the MIX,

    That give you more VAX and TAX for there is no land base taxes for the Island , That new crooks ass bank need to be closed and Sir Ham and Cow need to be in Jail
    Nothing will never equal to those who dont add all the names and numbers to the equation ,

  5. Artaxerxes Avatar
    Artaxerxes

    “Do you know how many national projects that could have financed.”

    Point taken, Douglas…… I must agree with you that the waiver of that $85M for CIBC, would have done wonders for our economy.

    On Tuesday November 5, 2013, this DLP administration exempted Sandals for the next 25 years, from paying all import duties, taxes including VAT, imposts and levies of any nature whatsoever on the importation or local purchase on all capital goods needed for the equipping, operation and promotion of the hotel, as well as on all food and beverages; all import duties taxes, imposts and levies of any nature whatsoever on all vehicles required for the operation of the Hotel including vehicle assigned to senior managers; all import duties taxes, imposts and levies of any nature whatsoever on personal and household effects and vehicles for senior staff (as outlined above) who are contracted to work in Barbados and are not citizens or permanent residents of Barbados. These are just a few of the tax concessions Butch will enjoy.
    When that tax holiday period is over, Sandals will only be required to pay half of the “applicable rates and taxes prevailing” for the next 15 years.

    Now Dougie, would you like to calculate how much tax revenue Barbados will be losing for the next 40 years, which Butch will realizing in profits “at the public expense”? Money that could be used to pay the former RDC Director, Peter Scott, the $1.7m and finance many “national projects”?

  6. Dr Love Avatar
    Dr Love

    AW!! Lay off Butch.
    He NEARLY white.

  7. The People's Democratic Congress Avatar
    The People’s Democratic Congress

    Both these intellectually and politically backward, bankrupt, discredited and virulent DLP and BLP disorganizations must be PERMANENTLY ABSOLUTELY removed by the broad masses and middle classes from the parliament of Barbados in less than four years from now, or else within the next seven to twelve years Barbados will become a virtual failed state, with so many of the wholly negative degrading appalling social political material and financial features and conditions associated with such a status being in attendance.

    PDC

  8. Lincoln Carrington Harper Avatar
    Lincoln Carrington Harper

    David:

    Have you ever tried to walk forward, not to speak of run, while steadfastly looking back? I feel that contributions of the type offered by “Douglas” are worse than useless, to use a phrase attributed to the late Bree St. John, in our current situation. Unfortunately, Governments spend little time evaluating the impact of the concessions that they have granted, and, indeed, lack a consistent methodology for doing so. The recent IMF authored study of the reform of the taxation system in Barbados contains an appendix discussing the impact of tax concessions in which it makes the point that such “concessions” frequently fail to compensate for infelicities and distortions which are created by both governmental action and inaction.

    As the garbage piles up in our neighbourhoods and the ravages of chikungunya continue unabated, I wonder whether the Cabinet can divert a little time from their self-interested confusion to give some direction to the Minister of Finance. After all his “consultations” with interested parties he has to get off the pot and offer up something that will make a positive difference to our woeful economic situation.

  9. David Avatar
    David

    @LCH

    The contribution is useful because it allows some of us to peer into the strategies thinking of those who govern Barbados.

  10. Rubbing a Little Salt in an Old Wound – Black Caribbean On-Line

    […] By David […]

  11. Weston Avatar
    Weston

    “So, please don’t feel sorry for CIBC; it can more than afford to pay out a little $6Million. Hey, it makes a killing in the region, as shown in the yearly excess profits..”

    Really? FCIB actually made a LOSS of USD176 million in the nine months to July 2014. following a loss of USD21.8 million in the year to October 2013.

  12. David Avatar
    David

    @Weston

    You are correct when you commented that CIBC has struggled in recent years.

  13. Green Monkey Avatar
    Green Monkey

    Brits to find out how banks have been awarded a license to “make money out of nothing”?

    For the first time in 170 years the British Parliament is going to debate how money is created. Amazing! Debate will be broadcast live on Thursday, Nov. 20, starting between 12:30 and 1 pm GMT, or 07:30 EST on the Parliament channel:
    httpCOLONSLASHSLASHwww.parliamentlive.tv/Main/Home.aspx

    More info about money creation at:
    httpCOLONSLASHSLASHwww.positivemoney.org/

  14. Hants Avatar
    Hants

    David wrote “You are correct when you commented that CIBC has struggled in recent years.”

    To be clear David. CIBC has struggled in the Caribbean in recent years while making BILLIONS IN PROFIT over that same period.

    Canadian banks enjoyed success (profitability) in the Caribbean over the last 50 years.
    However it is their right to to do what is in the best interest of their Canadian owners and share holders.

    David can you publish a list of commercial banks in Barbados?

  15. David Avatar
    David

    @Hants

    The fact that CIBC has made profits in the past in the Caribbean and remains profitable in Canada does not change the fact that the bank is performing poorly now and must be of concern to management and shareholders.

    Republic Bank Scotiabank Royal Bank First Citizens Bank CIBC

  16. SITH Avatar
    SITH

    CIBC recently took a impairment charge of just over 1 billion dollars Barbados for it Caribbean operations. Business in Barbados. simply expressed. is dam bad. Canadian Banks are among the strongest in the world. CIBC is not a charity, it is a business. In the big picture it has been hugely successful and has paid dividends to its owenrs since the mid 1800’s and has never missed a payment of those dividends. The Bank is well managed and will make moves to maintain its position and profitability as the Royal has done and as Scotia Bank is in the process of doing with its announcement of reducing staffing by 1500 people. When ones looks at the general economic condition of Barbados, shrinking FX reserves, and the inability to trade currency freely, the conclusion has to be made that further investment by CIBC or other international standards bank is not going to happen without some significant concessions .

  17. old onion bags Avatar
    old onion bags

    The three (3) concrete molasses tanks costing in excess of $12 Million Bds are in the news again, leaking even. That’s a hell of a lot of money Mr.Maloney\Mr.Estwick to fracture away at this time . Do tell us someone, have we poured four foot thick walls of solid concrete structure, with dimensions of 35 feet height x radius 30 feet to leak in less than 2 years ? We were told they could easily withstand the stress as good as steel tanks. Now we hearing of LEAKAGE AGAIN.

    The last molasses tanks at the Harbour Rd. were made of steel, lasted some fifty years or more and have adequately served their purpose. So what’s up with these new ones made of concrete? Is this not the second time molasses has been reported to be escaping down the drains around the Harbour Rd?

    On Brasstacks we hear Mr.Maloney saying the tanks have not been breached but that an employee had left a value open. He also says it was only about few pan carts of the sweet black substance loss? Not from what is being reported Mr.Maloney. by workers in the surrounding area.The fancy sweet had been seen in the drain all round the Harbour Rd.

    Question remains is CONCRETE the wrong material for the building of Molasses tanks?…only time will tell.

  18. old onion bags Avatar
    old onion bags

    The DLP has been in power for six years now. Can I suggest that the party thinks hard about whether it is beneficial to continue to run this “blame the BLP for the current economic woes” story? The post is about something that happened 12 years ago. Check that – 12 years. As a party, even if it is true, you gain no support for posts like this.

    >>>>>>>>>>>>>>>>>>>>>>>

    I agree with St.George’s Dragon…..come on Douglas, 12 years ago?…second term for this administration..?

    Why not ask why with the price of crude oil dropping from $ 120 to $ 77 per barrel we in Bdos cannot see a DECREASE in gasoline or BL@P fuel oil prices?….now that is MORE CURRENT Douglas….how about..where is the so called BUYER for the property down Paradise (Four Seasons)….the deal was said by Chrissy to be on the verge of a closed sale to some Arab?…..more CURRENT again Douglas.

    Let’s deal with how this administration plans to get us out these murky waters.

  19. old onion bags Avatar
    old onion bags

    Even more CURRENT Dougie…..how about the $800 Million in VAT that is just lying out there in merchants coffers.. this administration seemingly FART frighten to collect….With $800 million we can do even more that in your posit don’t you agree Doug?…and MORE CURRENT !!!!

  20. David Avatar
    David

    @Onions

    About the price of gas the MoF in his last press conference made mention of future contract buying the reason. He stopped short of being specific neither was he grilled by the reporters about it. The question unanswered is the period of future contract agreed between the BNOC and the banks, 3 month, 6 month, what is it? When we get the info we can get a bead on the issue.

  21. Hants Avatar
    Hants

    Interesting.

    It is important to note that the letter is not a notice of any impending wide scale changes to fees or interest rates, but speaks generally to the possibility of future changes. Our fees are reviewed at intervals and are adjusted – upwards or downwards – in line with a number of conditions within a particular jurisdiction. Should there be an adjustment to any fees or rates in the future, this would of course be done with the appropriate notice to both our regulators and our customers, as is customary.

    The change in our approach to processing our data within consolidated centers, which was approved by our regulators, is necessary to improve our efficiency in delivering quality banking services to our valued customers. There is no change to the way our customers operate or access their accounts. Their funds remain accessible through the usual customer channels such as the branches, internet and telephone banking and our network of ABMs.

    Centralized processing of client transactions, including through third parties, is standard across financial institutions and other companies, both inside the Caribbean and beyond.

    Source.

    http://www.cibcfcib.com/index.php?mact=News,cntnt01,detail,0&cntnt01articleid=384&cntnt01origid=61&cntnt01returnid=67

  22. old onion bags Avatar
    old onion bags

    I heard that before…(future contracts)…but I am sure Bajans can recall in the past when gasoline prices went up every fortnight just so… what are we seeing here then…negotiating futures in 2 weeks? Why then has John Public not seen a schedule of these negotiated futures so that businessmen can plan? Gimme a break….don’t we buy oil from Trinidad? Is it that difficult to confirm these assertions?

  23. Hants Avatar
    Hants

    @old onion bags ac said you died recently. You is a duppy or wuh?

  24. old onion bags Avatar
    old onion bags

    @David
    Corr: buy gasoline fron T&T……

    @ Hants
    As a ole cawmere boy…..(which you are not)….a command of the English language is paramount when blogging in these parts….where ever did I say that?…LOL…..how D fishing ole HC buddy? D Cavalias down hay brekkin off ya hand pun a nite…(murda)

  25. Hants Avatar
    Hants

    @ Old onion bags

    ac said you died. Yuh have to cuss her fuh tellin lies pun you.

    De salmon an rainbow trout brekkin off de rod up hay but had to stop fishing this week. Too freekin cold.

  26. Hants Avatar
    Hants

    http://www.ctvnews.ca/business/canadians-paying-less-at-the-pumps-as-gas-prices-drop-1.2104897

  27. old onion bags Avatar
    old onion bags

    You should know better than to believe anything ac or her damm lying party (dlp) does put out…….for Halloween we had a party and I rose up from a veneer mahogany box to the delight\fright of the kidds n all…that’s all….now we got ac saying Sparrow Dead!….Onions Dead!!

  28. Hants Avatar
    Hants

    @ old onion bags you are not a good imitation of Ole Onion Bags. lol

  29. Artaxerxes Avatar
    Artaxerxes

    @ old onion bags | November 18, 2014 at 11:20 AM |

    “The DLP has been in power for six years now. Can I suggest that the party thinks hard about whether it is beneficial to continue to run this “blame the BLP for the current economic woes” story?”

    Douglas’ argument is that with the $85M waiver in 2002, given the current economic situation, many public sector jobs could have been saved in 2014; the UWI debt, which increased under the DLP’s watch, would have also been slashed. Obviously, this political yard-fowl wants to convince rational thinking people, that $85M would have lasted 12 years, to finance many national projects and the other items he mentioned as well as finish the polyclinic.

    Onions, if Dougie and the 4 or 5 yard-fowls [using one name] are the best the DLP can pay to represent them on BU, we can see why they have so much trouble governing Barbados.

  30. David Avatar
    David

    @Artax

    To your earlier comparison about concessions to CIBC and Sandals. CIBC was committed to the transaction Sandals had to be wooed.

  31. Weston Avatar
    Weston

    Without that tax waiver the CIBC-Barclays merger might not have gone ahead in which case the government would still not have received anything

  32. old onion bags Avatar
    old onion bags

    Artaxerxes | November 18, 2014 at 12:34 PM |

    …..Drowning men duz clutch at straws…..Poor Dougie, he pick the wrong fish to fry (a ole wife)…..but what you expect..just a couple of weeks ago..we could not get a word from DEM…..just so,, like diarrhea…all dem want to use D toilet.

  33. Due Diligence Avatar
    Due Diligence

    @ David | November 18, 2014 at 8:16 AM | .
    @LCH
    The contribution is useful because it allows some of us to peer into the strategies thinking of those who govern Barbados.

    Can someone peer into the strategies thinking of those who govern Barbados and explain to this observer from the Great White North, how it is possible for it to take 30 years for this Gypsy case to work its way through the “justice” system in Barbados?

    AND

    Can someone estimate the amount of fees generated for the legal profession in Barbados by a “justice” system that allowed the litigation process to take over 30 years, before the Court of Appeal led by Chief Justice Sir Marston Gibson finally come to its decision?

  34. ac Avatar
    ac

    @ole onion bags ac Rolling off the Floor deading wid laughter..u duppy fuh trute! Ha!Ha! muh belly..

  35. Due Diligence Avatar
    Due Diligence

    @ SITH | November 18, 2014 at 10:57 AM |

    Well said

    See-http://en.wikipedia.org/wiki/CIBC_FirstCaribbean_International_Bank

    CIBC FirstCaribbean International Bank (FCIB) (TTSE: FCI), (BSE: FCI) is a publicly held Caribbean financial services company based in Barbados. Formed in 2002 as a merge the Caribbean operations of Barclays Bank PLC and Canadian Imperial Bank of Commerce (CIBC), in March 2006 both CIBC and Barclays announced that Barclays wished to exercise their option to exit the Caribbean venture completely resulting in CIBC gaining majority-control of the bank. in June 2011 it was announced the bank would be renamed CIBC FirstCaribbean Bank “to be more closely aligned to the CIBC brand, while still maintaining the FirstCaribbean name and local identity.”[1]

    Prior to 2002, the operations of what is now FirstCaribbean were run as the separate businesses of Barclays Bank and CIBC West Indies, part of CIBC’s group of companies. Barclays had been active in the region since 1837 and CIBC’s foray into the region began with branches in Jamaica in 1920.

    So, Barclays wished to exercise its option to exit the Caribbean venture completely – ie terminate its 170 year direct exposure to business in the Caribbean; and CIBC bought Barclay’s position/exposure for an amount of in excess of US$ 1 billion.

    While not stated, it appears the Barclays may have seen the 2002 merger as a way out of a market to which it did not want have exposure.

    In buying out Barclays, CIBC showed its confidence in the region, including Barbados.

    In hindsight, with “CIBC recently taking an impairment charge of just over 1 billion dollars Barbados for it Caribbean operations” CIBC may be thinking its 2006 decision to buyout Barclays was a damned bad decision.

  36. SITH Avatar
    SITH

    @Due Diligence

    There is also the issue of the general tightening up by Canadian tax authorities on the IBC tax avoidance “game”. No doubt this pressure is seen by the banks as something that is going to continue and is a poor business for them to base their future on. Two years ago CIBC stock was trading at about $75.00, to day it is about $105. One of the things that we need to realize is that in the worldly scheme of things for these large Corporations, the numbers generated by Barbados would hardly even effect the rounding of numbers presented.

  37. Gabriel Avatar
    Gabriel

    Sith
    I keep making the point,Barbados is small but was once a powerhouse
    of extraordinarily skilled statesmen who had us punching above our weight.
    We have been taken down by a mix of poorly trained university educated
    lawyers,doctors and economists.Our future lies in a political and economic union with the OECS.Forget Guyana and Trinidad…the Indian element of those societies will always be manipulated to believe that the Afro element of the populace is not to be trusted.Forget Jamaica.For all their intelligence and natural abundance,they consider this part of the Caribbean as small islands.They look yearningly towards the USA.We are all paddling our small canoes with nobody taking us seriously.When we learn to get into one boat and speak with one voice is when we might be in a position to call some shots again.Think of the savings:One President of a new state of Caribia,One Central Bank,One High Commissioner,one Ambassador,one UN Rep,free movement of labour to bring down the inflated union bullying tactics for negotiated salaries/perks,one currency,one Governor in each State,State legislatures,a Federal or Provincial legislature with powers pf taxation and law enforcement etc etc.A pipe dream?It may be forced down our throats sooner than we think.Big Airlines pulling out.Big Banks pulling out.Big petrol suppliers pulling out.Time for change.Time running out.

  38. enuff Avatar
    enuff

    Agree Gabriel.
    Anybody remember the waivers to CLICO and the plantations–now bush and sendjn home workers?

  39. Due Diligence Avatar
    Due Diligence

    SITH

    May 2007, CIBC stock traded at $107.45.

    You are correct that, due to the tightening by global tax authorities,the IBC tax avoidance “game”.is likely to become less attractive and less remunerative for offshore domiciles like Barbados; but that is an entrtirely different “game” from the retail, commercial and wealth management business that FCIB is in.

  40. Dompey Avatar
    Dompey

    Gabriel

    Your argument seems rather counterproductive when you decry an academic system that you yourself and others here have probably been products of. Unless you yourself were educated elsewhere? And it is disingenuous on your part to compare as well as contrast the statesmen of yesterday with the statesmen of today. Who are obviously faced with an unprecedented set of economic challenges which hadn’t been seen in previous generations.

  41. Exclaimer Avatar
    Exclaimer

    @ Gabriel,
    Interesting piece. But what is wrong with organised labour? Are you seriously suggesting to me that the working classes should not be allowed to establish an organise workforce. I am sorry to say this but you are a fool.

  42. Georgie Porgie Avatar
    Georgie Porgie

    BALLAAMS ASS
    YOU ARE BEING REDUNDANT WHEN YOU STATE ” Who are obviously faced with an unprecedented set of economic challenges which hadn’t been seen in previous generations.”

    WERE YOU EDUCATED AT A THIRD WORLD SCHOOL OR A BOGUS UNIVERSITY?
    WHAT IS WRONG WITH COMPARING STATESMEN OF DIFFERENT ERAS?

  43. Simple Simon Avatar
    Simple Simon

    Due Diligence November 18, 2014 at 1:57 PM “how it is possible for it to take 30 years for this Gypsy case to work its way through the “justice” system in Barbados?”

    We were waiting for the lawyers to be born.

  44. David (not BU) Avatar
    David (not BU)

    “Do you know how many national projects that could have financed.”

    if we are to take this point which applies to 12 years ago, what do we say to the $19 million David Thompson wave to some of the richest people in this country?

  45. Dompey Avatar
    Dompey

    George Porgie

    Now, would it be fair and well founded for anyone to compare as well as contrast Ronald Reagan’s economic strategies for addressing the economic recession in his day, to that of Mr. Obama’s? Because firstly, we are dealing with a set of economic forces unlike that in the Reagan’s era. So then, how is it fair for Gabriel to employ for an argument, Barrow’s antiquated vision for dealing with the economic-vicissitudes of his day to that of the present DLP administration? Now, PG, I think that it is best for you to stay fixed on your medical theory. Which in my estimation, you’re incapable of convey to the Practical-Man with some manner of simplicity. And you’re beginning to behave like the bully back in primary school, who during lunch time hour, would beat the boys and tek way their rockcakes their intended to eat very slowly throughout the allotted lunch time hour. In other words, you’re steadily becoming the cyberbully, cyberstalker and cyberterrorist, which by the way is illegal in certain parts of this country.

  46. Georgie Porgie Avatar
    Georgie Porgie

    dompey

    you are very consistent at talking shite in my estimation

    Gabriel is an intelligent man

  47. Georgie Porgie Avatar
    Georgie Porgie

    http://www.espncricinfo.com/magazine/content/story/655633.html

  48. SITH Avatar
    SITH

    http://www.ctvnews.ca/business/rbc-exits-wealth-management-in-the-caribbean-layoffs-expected-1.2112594

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