IMF Program Unpacked – Our Way of Life Will Change, FOREVER

STAFF APPRAISAL

30. Over the last decade, Barbados economy has experienced very low growth, and fiscal and external imbalances have gradually led to an unsustainable situation, with very high debt, and very low reserves. These challenges must be addressed by a combination of fiscal consolidation, measures to boost growth, and debt restructuring. The authorities’ Economic Reform and Transformation program seeks to address these long- standing structural imbalances and implement an aggressive front-loaded and comprehensive reform agenda – extracted from p.18 of the IMF Report 2018

 

The 77 page IMF package detailing the REQUEST FOR AN EXTENDED ARRANGEMENT UNDER THE EXTENDED FUND FACILITY; STAFF REPORT; STAFF SUPPLEMENT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR BARBADOS was posted to the International Monetary Fund website on October 4, 2018. It is no surprise the traditional media has not seen the value in unpacking the details of the arrangement secreted in the voluminous and technically worded documents.

What has been widely communicated is that in record time the new Mottley government has been able to secure the approval of SDR 208 million or USD290 million. The government’s PR has been quick to point out that the draw down from the IMF represents 220% of Barbados’ IMF quota and is a ‘homegrown’ program.

Key elements of the program are:

  1. Fiscal adjustment: increase primary surplus to achieve 6% by 2019/20
  2. Reform state owned enterprises (SOEs): reduce transfers to SOEs by 2%
  3. Structural reforms to support growth: improve business facilitation
  4. Debt restructuring: debt is deemed unsustainable and government has aggressively moved to administer ‘haircuts’ to bond holders

In the background section of the document (p.7) the IMF delivers a negative synopsis of the performance of the Barbados economy post the 2008 global financial crisis. One of the program objectives of interest to the blogmaster is item 8, p.9: “Increased investment demand can restore growth and increase its potential. Restored credibility in the macroeconomic framework is expected to increase investment. Higher net FDI inflows will contribute to improving the stock of capital and, through this channel, actual and potential growth could reach close to 2 percent by the end of the program“.

 

Other key deliverables of the IMF program:

  • Fiscal discipline will help address external imbalances and rebuild international reserves.
  • Fiscal reforms over the program period aim to address structural weaknesses in Barbados’ fiscal framework.
  • Streamlining, restructuring, and privatizing SOEs will substantially reduce transfers to public institutions
  • Vulnerable groups will be protected by strengthening social safety nets
  • The authorities remain strongly committed to the exchange rate peg, which has been in place since 1975 and has provided a key anchor for macroeconomic policies.
  • The program will lay out a roadmap for normalization of monetary policy.
  • The CBB Act will be amended, with the help of IMF TA, to strengthen the autonomy of the CBB and the limitation on CBB financing of the government, among other enhancements
  • The authorities have made progress in identifying debt restructuring parameters that would provide debt relief without jeopardizing financial stability.
  • Significant progress has also been made in discussions with domestic and external creditors.
  • Debt management capacity will be strengthened.
  • To promote long term and potential growth, labor, product and service markets will be liberalized
  • The authorities intend to establish an Economic Program Oversight Committee (EPOC) to strengthen societal ownership and build public support for the measures in the program.
  • Data inadequacies continue to hamper understanding of key macroeconomic aggregates.

 

The part of an IMF agreement that raises the most concern are the condition or in the case of Barbados what are the targets we will have to meet to be able to draw down on the SDRs approved.

 

Quantitative performance criteria:

  • Floor on the central government primary balance (excluding repayment of central government arrears)
  • Ceiling on the stock of Net Domestic Assets of the CBB
  • Floor on the Net International Reserves of the CBB
  • Non-accumulation of central government external arrears (excluding arrears resulting from nonpayment of debt service for which the government is pursuing a debt restructuring).
  • Ceiling on grants and transfers to public institutions
  • Ceiling on the stock of public debt

Indicative targets:

  • Ceiling on the stock of central government domestic arrears
  • Floor on CG social spending Structural benchmarks

Structural benchmarks

  • These will focus on SOE reforms, growth and business climate, CBB autonomy, tax policy and revenue administration, public sector reform, and public financial management (Table 2 MEFP). The structural benchmarks will be critical to underpin the adjustment effort.

The average citizen will not read the IMF report and others will ‘scan’ to satisfy a mild curiosity.  It is obvious to the blogmaster after reading the report that there are significant changes still to come that will drastically affect Barbadians from all walks of life. As a people are we ready to be that chanage?

 

Link to Barbados : Request for an Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Barbados

468 comments

  • “Your may find it very difficult to be a national and at the same time be a capitalist. SOL has no explaining to do.”

    That stems from when you started out with nothing and got an opportunity to get something…many lose their humanity along the way, some never get it back…and some only realize too late that despite all the billions and all the capitalism, the only thing you get at the end is a hole in the ground….

    It’s the fools who sell out the island for nest to nothing got the explaining to do to the people, I don’t think Simpson was ever in parliament, he may control the clowns in parliament, but he need not be in there to do it.

    Like

  • Was it a silly sale or was it corruption
    Will Mia Launch an investigation?

    Like

  • “I made that comment during a blog that was going back in 2013…5 years ago…I was living in Canada at the time, the relative I spoke about is now 2? years old…you kept that in you head like that idiot ya are..lol…….”

    Hmmmmmmm……

    Okay, I accept that I’m an idiot………… but as the saying goes, “it takes one to know one,” therefore, we’re “birds of a feather.” Hahaha

    However, don’t flatter yourself………..I did not keep that lie you wrote “in my head” as you suggested (actually I hardly read anything you post)……..but came across it THIS AFTERNOON after reading Hal Austin’s article about Mauritius and his comment posted “thereto” today………

    ………. as well as another comment relative to him mentioning that, “at one time or the other,” Canadian universities were not accepting CXC certificates…..and I subsequently came across your outrageous claim about a relative gaining “8 CXCs and 10 CAPE subjects.” Surely, the 8 CXC is within reason…….but the 10 CAPE certainly raises a “red flag.”

    Yes, “all scholarships/exhibitions…are highlighted…IN THE PRESS…every damn year…”……….and that feat would have obviously merited a scholarship……… or at least an exhibition. But there was never a situation where it was highlighted in the press (or otherwise) that someone gained 10 CAPE subjects…….dat would uh be a big t’ing ‘bout hay.

    If the topic is about banking, law, mechanics, computer science, law enforcement…..or whatever, conveniently…….either you or a relative worked in that environment. Or you conveniently have a relative that gained some “outstanding achievement.”

    The 10 CAPE subjects shiite is just another thing you “made up to make things interesting.”

    The fact remains that you’re a LIAR……….and when anyone reminds you of that characteristic, you become a “highly annoyed and defensive” (your usual mental breakdown follows after…….defined by repetitive pots).

    Fortunately for you, there are several medications to treat mental illness………

    ………. unfortunately, there isn’t any prescribed medication to stop people from telling lies.

    I’ll leave you to contemplate your humiliation…….and fret fuh de balance uh de nite.

    Uh gone…….yuh hear???

    Hahahahahaha…….bare sport in de rum shop. (uh borh dah wun from Dr. Georgie P).

    Like

  • “A two generation multi billionaire, and we have some asking why Buhbaydus can’t produce a Butch Stewart? Simpson makes Stewart look like a dwarf.”

    I think Simpson is the only true local millionaire/billionaire Barbados got, he kept it low key while the other frauds were boasting and bragging all over the place…those Willams and others just a bunch of crooks tiefing from poor, vulnerable people…pretending to be millionaires and magnets and making videos but are just two penny crooks and land thieves.

    Simpson actually had the cash flow from the 70s and expanded…making money hand over fist…the others were just hustlers tiefing what they can..

    Don’t know about Butch’s net worth.. because I don’t know if you know about Air Jamaica…man, that was around for many, many years….lol

    Like

  • “Yes, “all scholarships/exhibitions…are highlighted…IN THE PRESS…every damn year…”……….and that feat would have obviously merited a scholarship……… or at least an exhibition. But there was never a situation where it was highlighted in the press (or otherwise) that someone gained 10 CAPE subjects…….dat would uh be a big t’ing ‘bout hay.”

    It was highlighted enough..if you missed it..your problem, that happened so many years ago..the person is in their late 20s…anyway..the top 3 students in French were not highlighted in Barbados..but it was highlighted in Trinidad and across the Caribbean although they took the CAPE in Barbados…so ya talking rubbish…

    In that scenario..it is the foreign university to be impressed….with 10 CAPE subjects..in case you have not noticed in the last 10 years…there have been most years up to 40 or 50 exhibitions AND scholarships every year…

    ….I have never seen the ministry highlight anything other than the receipt of scholarships and exhibitions, the press gives the amount of subjects and more than once, there were kids who got 10 CAPE subjects…you just can’t wrap ya head around that…besides..it is not like if the DLP government cared anything about their scholars enough to make a big splash anyway…anyway…no matter how many subjects they got..

    The ministry has the info..go ask them, you are the one want to know and if you said they did not give you the info, I will understand, cause it is still none of your business.

    Like

  • Parkland’s stock is interesting. It seem to be just increasing over time. Oil related stocks were having a tough time the past few years, but Parkland seem to have done well.

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  • Apparently ya have not been around for enough years..lol

    ya have no clue what goes on with scholars and exhibition winners…have you ever even met one…cause if ya did, they will tell you differently..ah know you are not one for sure, sure, sure…

    Like

  • What you people fail to realize is that if Simpson had the terminal, you can bet your bottom dollar it would have gone with the rest for $2 billion. come to think of it, I remember someone on these blogs saying that Simpson started his business with FREE GOVERNMENT MONEY. If that is true, is he going to pay some back, help out the said government or invest some in other ventures?

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  • Theo…I don’t think they sold the oil terminal yet..thanks to FTC who probably saw Simpson was pulling a fast one on the blind government …lol

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  • Compare where AJ landed….the value…and appreciate SOL is only one piece. He has business interests stretching from PR to Brazil and then some. Haven’t seen your buddy liesalot for a while, but would guess he knows something.

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  • @Vincent

    You give his fellow Commissioners no credit?

    Like

  • Bajans….it is true.

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  • “Haven’t seen your buddy liesalot for a while, but would guess he knows something.”

    maybe he is quietly waiting for his cut.

    I can’t remember him commenting on the oil terminal and the whole mess back then with FTC and RUBIS, but ya can guarantee interesting days ahead…

    Like

  • @TG
    Parkland is really gas retailing not oil and gas. Their competitor is CoucheTarde and Brookfield etc etc. CT is all the Circle K and Brookfield all the Mobils at Loblaw.

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  • Thanks No.
    WARU: I went back and read the SOL story… I had it so wrong you would think Haha was the reporter,

    In a sense SOL has moved from being a private company to a public one. Buy Parkland stock and you are buying some of SOL….
    Wondering if he ever thought of listing on the BSE,,,,

    Like

  • Interesting that these Canadian mega businesses are investing heavily in Barbados …. and in areas that are targeted for elimination by Government over the next few years in its greening initiatives….

    If Bushie now sees Simpson investing bigly in renewables, then the bushman would be tempted to claim to have been right (again) about Sir K’s clear eligibility to be given a LEADING role in the financial management of Brassbados.

    These days are funny Knights…..

    Liked by 1 person

  • “In a sense SOL has moved from being a private company to a public one. Buy Parkland stock and you are buying some of SOL….’

    The 10% in Parkland appears to have been an exchange of sorts, am wondering if the oil terminal is the deal breaker for the remaining 25% of SOL.

    Canada is the place to invest your money right now.

    Bushman..the way the fools of parliament are floating around all clueless…the island cannot do any worse having the Canadians take over every damn thing, I much prefer see them with it than Dale Marshall or George Payne et al who are going to sell it out to foreign people ANYWAY ……..AND …..it is much better than that goat Estwick trying to borrow 6 billion dollars from the UAE…

    Like

  • Would have been a good year for BSE
    crypto, sol, ,….
    probably would have put money in the pockets of locals

    9of9: Seem like only the poor should love and make sacrifice for the country
    You got muh dedding

    Like

  • All of this is happening ONLY because your politicians/ministers/governments lack the mental and intellectual acuity, ethics, morals.. to do better…they are still stuck at basics…even after 52 years of “independence”.

    Like

  • @sirfuzzy (i was a sheep some years ago; not a sheep anymore) October 10, 2018 5:23 PM) “There is nationalism and capitalism.”

    “Merchants have no country. The mere spot they stand on does not constitute so strong an attachment as that from which they draw their gains.” Thomas Jefferson, Enslaver.

    Liked by 1 person

  • @ Peter lawrence Thompson and Tron

    Both of you refered to this excerpt of the IMF report which went “…“program implementation will be challenging. Risks to the program include limited implementation capacity, untested ability to maintain high primary surpluses over a sustained period, and risks related to the debt restructuring process…”

    Tron gove no interpretation but you gave one that was seriously incorrect.

    “…Programme implementation WILL BE CHALLENGING MUST BE CONCATENATED WITH “risks to the programme include limited implementation capacity and untested ability….”

    De ole man IS NOT DE MOOLAH Jeremy Stephens nor Mascoll.

    But de ole man understands insults and put downs and derogatory remarks very well – it is my trade

    THe IMF was and IS REFERING TO THE SKILL SETS OF THE CURRENT BLP ADMINISTRATION with their limited implementation capacity – this is the 21 of 26 incompetent ministers ddat de ole man tell wunna dat Mia Mao Mugabe Mottley Inherited.

    And then they go on to strike out at Mottley herself as being untested in her ability to implement and sustain anything.

    Of course de pooch suckers going come heah and talk bout how she borrow US$ all dem millions and walk bout wid dem chest high but de ole man going by what the IMF has written which is tha she got nuff jokers round she and dem considers dem overextending 220% of Barbados’ borrowing level to be reall effing risky…

    Watch de shite flies gather now…

    Like

  • @ the Honourable Blogmaster your assistance please with an item here for Peter Thompson and Tron thank you

    Like

  • “I know I like to make things up to keep things interesting…..”

    Hahahahaha……

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  • lol..that will be your lullaby tonight, don’t worry, I got some more for you when ya get tired of that one..

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  • Sol laughing all the way to the bank while govt holds on to non profitable assets running with cup in hand looking like beggars at the IMF doorsteps

    Like

  • “All of this is happening ONLY because your politicians/ministers/government lack the mental and intellectual acuity, ethics, morals.. to do better…they are still stuck at basics…even after 52 years of “independence”.

    Ron White…. “You cannot fix stupid”

    Liked by 1 person

  • My hero… Mariposa
    I like the way she struts through the yard like she is a rooster. 🙂 People say she ugly but she kinda hot 🙂
    Murdah
    I does kill myself

    Like

  • Blogmaster check your spam folder please.

    Like

  • Stephens dont sound 100% sure that Barbados will benefit from that sale of SOL…particularly on the taxes.

    It is instructve that it’s Parkland put out the press release about buying SOL and not Simpson.about selling..ah guess he don’t think Bajans have a right to know…the upside, if Mia still plans to sell the oil terminal…she can now sell it directly to the Canadians for much more money than the peanuts Simpson was offering and with none of the strings he attached to get it a 15 year monopoly for Parkland as he planned and promised them….cut out the greedy, deceitful middleman who wañted to benefit from the sale of SOL …while the majority population on the island did not.

    Mia has other state entities she can offload while waiting for the 2 years to pass to sell the terminal directly to the Canadians or to RUBIS….and not for any shite money either.

    “And in an hour-long investor webcast and conference call with securities analysts and investors, Parkland president and chief executive officer Bob Espey also revealed “after the second anniversary of the transaction, there are rights for the Simpson Group to sell the remaining 25 per cent of Sol to Parkland”.

    Financial analyst Jeremy Stephen expected the transaction to benefit the Simpson family by as much as “$1 billion before taxes”. He said Barbados would also potentially benefit via increased foreign exchange and, possibly, taxes. (SC)”

    Like

  • Ah wonder if this secret sale will finally open the eyes of the dumb asses in parliament…who love to please, appease and enrich these ungrateful minority parasites who have no such sentiments and who NEVER remember that if not for the majority black population and weak, corrupt leaders.., they would still have only that old, broken down house in CATTLEWASH…and nothing else…Barbados and its people made Simpson, he did not get there by himself, least he has forgotten.

    …not holding my breath on it though.

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  • Parkland is a big conglomerate not going to buy govt debt.The oil terminal has debt
    Barbadians think foreign investors are stupid
    Barbados had a way out to unload that debt ridden oil terminal now they can keep the dam time
    Sol at this point could not care less Sol is in the winning circle laughing all the way to the bank. Not going to do any bidding for Barbados
    barbados is saddle with an oil terminal that delivers less financially than it’s worth in a barrell of oil and the taxpers will get another chance of owning a debt laden asset

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  • What is the debt of the BNTCL?

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  • Simpson outsmart this govt
    Now the blp yardfowls are sitting with plate in hand looking forward for a cut of Sol pie
    Not going to happen
    This sale was done outside of Barbados with all probability the monies would be deposited in the financial instituions that handled the transactions and reinvested in outside businesses or other projects
    outside of barbados
    Sol/ Parkland commitments to barbadosvare those which are agreement with Sols business interest within barbados prior to any sale of the company

    Like

  • David go figure or goggle

    Like

  • “The oil terminal has debt.”

    So yall saddled the oil terminal with debt and then was giving it away to Simpson for a song…it would not have benefitted the people anyway, that sale, so it is no loss…if ya being practical..

    Everything single thing the DLP touched turned into debt or fraud…yall habve no shame.

    In case ya firgetting RUBIS needs an oil terminal…they spent years begging for one..of course Fruendolittle ignored them..

    You dobnot know what Parkland is planning, these people do no operate with limited intellect and short vision…only Barbados governments operate at that level..

    Like

  • Ya are 1 billion in debt and that is just the arrears…ya carrying a 15 billion dollar deficit. .

    So what is selling the oil terminal for 100 million bajan dollars , which sounds like a lot of money…but is not…

    Selling Hilton for 100 million bajan dollars…going to do for the DEBT or the DEFICIT..nothing, the debt will not move…cause yall did not know anything about reducing debt.

    Yall were holding a fire sale…like selling a hotel worth 11 million dollars for 5 million to Maloney and Crooks..

    The electorate could not get yall gone fast enough.

    Simpson can sell his business if he wants…it’s yall allowed him to trick ya…if not for Jeff and his team.

    Like

  • Woman u need to STFU u sound like a raging greedy jealous lunatic
    The oil terminal has been living off the taxpayers money for years as a mean for survival
    Past govt tried selling the unprofitable oil terminal
    Now surprise barbadians are expecting a big business conglomerate to buy the junk at a price which would be unprofitable to their business and marketing strategy
    Hell if barbadians prefer to hold on to junk so be it
    However do not expect any businees that has made a significant name for itself to be pulled into barbados politics at a level where there aim to make a profit becomes a loss

    Like

  • Woman u need to STFU u sound like a raging greedy jealous lunatic(Quote)

    @Mariposa,

    Spot on. You got it in one. She needs pity and medical attention.

    Like

  • Vincent Codrington

    @ WARU

    Is SOL a registered Barbados company? Can the proceeds of the sale be taxed? If the answers are in the affirmative then Barbados may benefit. And Jeremy Stephens is right.

    Like

  • ” Painting a picture of the current state of the economy in comparison to other countries that have experienced restructuring, including Greece, Grenada and Jamaica, Dukharan said Barbados ran the risk of seeing an increase in poverty while having to undergo a painful restructuring.”

    https://barbadostoday.bb/2018/10/11/poverty-threat/

    Like

  • pieceuhderockyeahright

    De ole man hope dat de comment I going mek ent going get certain people panties in a knot.

    In 2004 “…the accolade of Knight of St. Andrew was conferred on Sir Kyffin in recognition of his extraordinary contribution to the development of Barbados by the establishment of the first Caribbean Company in the energy industry and his lifelong contribution to business and philanthropy…”

    De ole man was wondering bout dat knighthood and a sentiment that has been floated about rescinding it, in light of Kyffin’s recent sale of said Bajan? resources and an Opportunity to sell said assets to local corporate entities…

    De ole man was dirrcted to a feller called Benedict Arnold by these patriotism bent people.

    And fuh wunna who ent know Arnold “…Benedict Arnold was an American Revolutionary War general best known for his defection from the Continental Army to the British side of the conflict in 1780…”

    Some are say that dis smell like a sellout, as opposed to a sale, and for them, seems like a Benedict Arnold move

    Like

  • Vincent…I did not say Stephens is wrong…I said he does not sound 100% sure, particularly about the taxes…are there any guarantees.

    Personally I dont know what arrangements Simpson has with government and the payment of taxes so I cannot expound..

    “The oil terminal has been living off the taxpayers money for years as a mean for survival
    Past govt tried selling the unprofitable oil terminal.”

    And when did yall find out all of that…before OR after Rubis said they needed an oil terminal…during yall 10 year BLIGHTED reign.

    ..all of you lived off the taxpayers for 10 years without any returns to the taxpayers…you and ya fellow parasites..and their parasite masters.

    The oil terminal can still be sold…it is still a taxpayer owned entity..ya just jealous it was not given away to Simpson so yall can tief the little bit of money ya gave it away for…..yall lowlifes.

    Like

  • Vincent Codrington

    David BU

    We may be spinning top in mud. Since you unpacked this IMF program , I have not seen what I expected to see. Are you any clearer than I am as to what are the real problems with the Barbados Economy? Are the measures specified addressing these problems?
    When one moves a service out of a ministry where it was for over a century and make it a SOE how can it suddenly be a drain on the Treasury? One adds insult to injury by asking the tax payer to pay user fees. The taxes he paid for this service when it was a department of the Public Service is not subtracted. Is not the taxpayer paying twice for the same substandard services and goods.

    Examine carefully the list of SOEs. The intention for transfer was to increase their efficiency. Has this happened? The intention was to make them cheaper is this so? Pray tell me how can a conditionality to reduce the dependence of these on the taxpayer going to be achieved without a reduction in quantity and quality of services. User fees are taxes on top of taxes. Imposition of taxes however renamed still has to come from a diminishing tax base – income.
    But we can carry on smartly. We will all carry our pigs to a fine market.

    Like

  • BTW… some people may or may not know..but Canada has a double taxation treaty with Barbados…which Simpson is free to utilize…so again I ask…what arrangement does GOB have with SOL as it relates to paying taxes…when the man has businesses stretching across the Americas…AND OPTIONS.

    When ya see Ha, Ha the FRAUD and empty headed Marisopa ganging up…nothing good will come of it…lol

    Again for the ones who cannot see futher than their idiocy…I need nothing from Barbados…as the world can see…. if ya even invest ya money on the island, including with government ya can end up dying without it…and your beneficiaries will get nithing, that is not my cup of tea, te, the.

    I NEVER envy anyone, because as the decades old adage clearly educates…you never know whose wings they are flying on.

    Like

  • Vincent Codrington

    @ David BU

    I hate to follow bad company. But pray tell. Why were you enquiring about Quantitative Easing? Did you discover that liquidity was holding back growth? Are you planning to go to war and need to pay your army of occupation?
    QE creates money but not real resources. Money is a medium of exchange. Butit must be backed by real resources – existing or futuristic.
    So do not even think it.

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  • This is the most amazing discussion. What we need to discuss is how a man who started ,apparently selling a low end motta car, can end up selling a portion of his business for more than four times the amount of money, that his entire country is going through all types of hoops to borrow from a well known international loan shark , known as the IMF.
    The fundamental point here is that this family ,is literally guaranteeing, that not another single generation ,will ever be in poverty while an eighty two year old pensioner is seeing his extremely modest life savings accumulated after six decades plus of hard work,go up in flames.
    I hope the irony of theses two compelling stories is not lost on all the experts who frequent BU, expounding their esteemed knowledge on a broad range of social and economic matters.
    Sometimes we need to abandon the petty intellectual/ academic one up manship, and zoom in on the broader reality of the type of country, we now live in.

    Like

  • Vincent Codrington

    WARU at 9 :32 AM

    I still want to find out if SOL’s head office or domicile is Barbados. If it is not are the proceeds of a sale of its assets and Barbados’ brass bowls taxable.

    Like

  • Hi Vinny,
    Keep on believing.
    If Barbados is to survive, it needs men like you, Jeff ….. who remain positive and kept the faith despite the obvious flaws
    Don’t let those who write the eulogy get you down.

    Like

  • Also while the blp yardfowls are counting Sol chickens with an expectatiion of great dividends coming to barbados
    Do not forget that shareholders interest are also locked into Sol/Parkland deal before if or any chicken struts up to barbados door for the taking

    @William Skinner
    I like your spirit

    Like

  • Two of the most corrupt and dishonest groups in Barbados.

    Call to include Cops and Customs

    Members of the police force and Customs officers, as well as people in the private sector who seek to corrupt politicians and public officers, must also be captured in the net of the Integrity In Public Life Bill 2018.

    Those suggestions came from former diplomat Orlando Marville and former Member of Parliament Mark Williams on Wednesday when they appeared before the Joint Select Committee in the Senate Chamber.

    Marville, who said he was asked by late Prime Minister David Thompson to draft similar legislation, which went into File 13 on his death, argued it was easier for Customs and police officers to be corrupted, than a “minion” in the public service because decisions were not made by them, but permanent secretaries, for example.

    When prompted by chairman Attorney General Dale Marshall whether it was necessary to extend it to the junior ranks of the force, Marville said emphasis should be on situations. (SAT)

    http://www.nationnews.com/nationnews/news/203376/cops-customs

    Like

  • Vincent Codrington

    @ William Skinner at 9 :57 AM

    You are quite right. They demonstrate how austerity programs ,whether home grown or grown in Washington,transfers wealth from the middle and working classes to the wealthy. That is financialisation at its best. That type of capitalism converts the provision of real goods and services into money.

    Like

  • Vincent…that is a question for BRA…ah hope ah got the tax office name right.

    I wish people would stop counting Simpson’s money as some win for Barbados WITHOUT knowing if any of it will come to the island outside of HIM…making the decision to INVEST some if it in Barbados…he does have investments in 26 other countries to juggle.

    .” What we need to discuss is how a man who started ,apparently selling a low end motta car,”

    This sale is the direct result of starting with one tiny gas station in Harmony Hall…he expanded over the last 45 years, he was not bragging and boastful about being a slave master and millionaire and magnet like the well known thieves and parasites are…he actually took that business around the Caribbean and to the Americas.and stayed focus ..that is why he was able to reap a 1 billion US windfall..

    Much much different to the other clowns now infesting the island and waiting to see which old person they could rob with the help of ministers to continue the pretence of being millionaires…Cow could have done the same if he was not such a petty minded little rat going to St. Lucia with the same nasty practices he has in Barbados, trying it out on St. Luciand and they had to chase him out, they should have beaten his slave master wannabe ass..

    .Simpson despite his slick tricks has a higher level of intelligence, a recipe for success anywhere.

    What we should be checking for is if Simpson plans to secretly offload Simpson Motors also.

    Like

  • Northern Observer

    @VC
    SOL operates in MANY places. Since KS had one of the finest minds as his right hand, one Kirby, you can bet the setup is elsewhere and stuctured to pay minimum tax.

    Wasn’t the SOL proposed buyer of BNTCL in St.Lucia?

    @WW&C
    Parkland is public, SOL is private. Hence where the announcement came from. SOL has to inform NOBODY publicly.

    The Barbados component of SOL is small, that SOL pie has many slices.

    Liked by 1 person

  • @Wiliam Skinner,

    This year is the 50th anniversary of Black Star newspaper. We cannot allow Leroy’s great work to just pass unappreciated.

    Like

  • @NO
    I read that the Simpson Empire is all over Latin America so I understand that the Bajan component is only a small piece of the pie it is not like BS& T being sold out.

    Some of us will speculate as to the reason, I am all for Estate planning as most of these singular individuals who establish these conglomerates realise that it is difficult for the second generation to maintain the same level of success and selling avoids the kind of infighting that happens a la Sobara (Ontario).

    Like

  • Also of relevancy all of the sale does not have to be in cash but can be partially divided up in different forms of financial equities in avoidence of tax
    It is obviuos that Simpson is no fool and does not need barbados govt for financial direction

    Like

  • The Minister responsible for cooperatives supports the establishment of a Credit Union Bank – only if it means easier access to funding than through commercial banks.
    Minister of Small Business, Entrepreneurship and Commerce, Dwight Sutherland made the comments to journalists during a courtesy call to the St George Farmer’s Market Co-operative Society Limited and the Barbados Pig Farmers’ Marketing Co-operative Society this afternoon.(Quote)

    Has he spoken to the minister of economic affairs or any of the minister’s economic consultants about this idea? Or to his colleague Ryan Straughn? Has he seen the report prepared a few years ago by a former governor of the central bank?

    Like

  • Vincent Codrington

    @ Northern Observer at 11 :06 AM

    The answer I expected. I have to keep bloggers thinking. The interest of private entrepreneurs and the interests of Barbados seldom coincide.
    Decision makers need to ask :
    “How do these actions benefit Barbadians as a whole”?.

    I remembered that the money for the purchase of the terminal was to come from St. Lucia. Did not the same process obtain with Banks Holdings?

    Yes. We must trust. But we need also to verify.

    Like

  • “Parkland is public, SOL is private. Hence where the announcement came from. SOL has to inform NOBODY publicly.”

    NorthernObserver

    Am I missing something………… or perhaps you could inform me why would Simpson selling 75% of his shares to Parkland spark a discussion which seems to be implying there were untoward intensions behind his decision?

    Why would he have to make a public declaration if he decides to sell Simpson Motors?

    Much ado about nothing.

    ++++++++++++++++++++++++++++

    “What we need to discuss is how a man who started ,apparently selling a low end motta car, can end up selling a portion of his business for more than four times the amount of money, that his entire country is going through all types of hoops to borrow from a well known international loan shark , known as the IMF.”

    Mr. Skinner

    Could you please inform BU why should that be a topic for discussion?

    Or are you suggesting Simpson should have “donated” what he realized from the sale of 75% of SOL’s shares to government to pay off the national debt?

    Liked by 1 person

  • Is this a ship departing harbor just before the tide of devaluation runs in. If he’ s smarter than I am he would ask for his tax billl in $ BDS and would delay paying taxes till after devaluation

    Liked by 1 person

  • “Parkland is public, SOL is private. Hence where the announcement came from. SOL has to inform NOBODY publicly.”

    private companies announce their buy outs and sell outs all the time, it is kinda tacky for a company to keep it secret when they rely on the public to survive….it is called decorum.

    Liked by 1 person

  • Barbadians never cease to amaze me. They complain excessively about the “rich white people,” but continue to support their businesses.

    Simpson is now the topic of the discussion, while at least 75% of vehicles on the road came from Simpson Motors (Suzuki, Mitsubishi, Subaru, Chevrolet, Isuzu, Mercedes, Rover, John Deere, JCB..……).

    The preferred choice of vehicle for government departments seems to be the Suzuki Grand Vitara………especially law enforcement agencies. Police, for example, have a very high turn-over rate for vehicles……… check how many Grand Vitaras government bought for the police over the past 15 years.

    We would come out talking shiite….and when the time comes to make a stand, we would proudly declare we “could go to Simpson Motors and bring a Swift on lease arrangement terms and pay $699 per month.”

    And it’s these types of arrangements that are enriching these people and having us remain poor in the process, for the want of a new vehicle. For example, you could go to Simpson Motors and lease a vehicle….no deposit, pay $700 per month……… and after 5 years you have to make a balloon payment, for which, in most cases you have to seek further finance. OR……you could trade in that vehicle and continue lease arrangements for a newer vehicle.

    Simpson wins in both instances. (1) Financing is usually provided by Simpson Finance. If the vehicle is “traded in,” it goes on the used car lot and is often sold under similar lease arrangements………so a $65,000 vehicle gains a profit of at least 1.5 times what it is worth. (2) If SF finances the balloon payment, or lease a new vehicle…….you are indebted to Simpson for another 3 or 4 years and 5 or 6 years respectively.

    Liked by 1 person

  • Sometimes companies get too big to control and either have to be broken up into smaller entities or sold off, selling off a company which is spread over a a continent or two, from the chain of Caribbean islands to the Americas… was the better move.

    Like

  • Yeah,,,he got a used car scam going and those vehicles Vitara et al are third rate vehicles…short shelf life, but it has worked for him, cause he knows Bajans love to take good money and purchase crap.

    The best example is that Ram woman, her stores are filthy fire hazards, always has been, but bajans would flood those fire traps and buy up as much garbage as she can sell..

    there should be classes on training young bajans how to spend their money wisely and get value for their dollar…instead of buying the short term lasting Suzuki vehicles with no resale value….spend a little more and invest in a Toyota…which with care will give you 20 years of your money back in use….or trade it in after 5 years and upgrade, if you are allowed and if you can afford to.

    If ya cannot afford a car with longevity and resale value…you do not need a car…ask Simple, cars in Bim are overpriced unnecessarily.

    That also goes for these gas brains PMs and ministers who believe they aint nobody unless they are driving a Mercedes at taxpayers expense that will shackle out on the potholed roads in 3 years…as Fruendel complained then went and promptly spent another 350,000 of taxpayers money on the same damn Mercedes brand…when a 4 wheel drive road runner or something strong in the SUV range or something similar would have been the intelligent choice and a hell of a lot cheaper….but these clowns are looking at status symbols instead of being practical…and frugal with taxpayer’s money.

    Like

  • Vincent…as I saw this comment I remembered that yes SOL at one time was domiciled St. Lucia…probably still is, but the comment is an eye open and raises several other questions..as I said…Jeff and his team must be commended…with the way they used their integrity to handle the issue of the oil terminal decision that foolish Fruendel was trying to force on them..

    And don’t mind foolish airhead, tight weave Mariposa…lol

    GREENGIANT
    @Jennifer and Noel Jones: If you understand investment and the bulk fuel business well, then you will know that this Parkland deal is an option to the purchase of the BNTCL. Had Sol gotten it’s hands on the BNTCL there would have been no need to sell 75% of their shares to Parkland. If you all conduct due diligence on Parkland you will see the true value of the 9.9% share Sol has acquire in Parkland while maintaining the 25% stake in the SOL operation.

    This is a strategic investment for the SOL group, now to my understanding the group is domiciled in St. Lucia. If that’s the case we have to examine what benefits are there for Barbados. I’m still researching the fullness of this sale arrangement and how it will affect Barbados’ economy.”

    Liked by 1 person

  • And Parkland CAN afford to pay handsomely for the oil terminal….after 2 years has passed and the agreement they have with SOL to get it on the cheap…has expired…

    Like

  • lol…..murdahhhhh!!!!

    …the implications are hilarious when one thinks about it, particularly if you understand business and investment.

    Like

  • The sale of SOL should be signal for Barbados to find a way to invest in SOLar energy.

    So I will ramble on a bit and see if I can get the well educated BU maguffees to comment.

    Barbados Light & Power sold to Emera CANADA

    SOL sold to Parkland Fuel CANADA

    CAHILL ENERGY CANADA

    Del Mastro solar CANADA

    CIBC FirstCaribbean CANADA

    SCOTIA BANK CANADA

    ROYAL BANK CANADA

    Oh Canada! A great place to retire.

    Barbados. A great place to vacation and to send back remittances.

    Liked by 1 person

  • So wait
    How is the sale of Sol figures into an option to sell BNTCL
    Isnt BNTCl a govt entity and as sole proprietor cannot be leased or sold without govt permission

    Like

  • As soon as Barbados legalises marijuana the first investments in the Marijuana industry will come from CANADA.

    Like

  • @ Hal
    It will be a great idea to have some reflections on that period. I am not here to judge anybody’s commitment to the struggle but I suspect, that we are all apparently hiding out in ideological places far removed from the Black Star.
    The Barbados LabourParty Democratic LabourParty, has successfully marginalized the left in one form or another.

    Like

  • @Hants October 11, 2018 2:10 PM “Oh Canada! A great place to retire.”

    I’ve tried both.

    Still prefer Barbados, especially as some Canadian pension is rolling in. Lolll!!!

    I worked for it. I worked for it.

    I’ll ask you again on January 11, 2019 if Canada is still is great place for elderly retirees.

    Especially for some of those elderly bajans who are going there for the first time and can’t begin to imagine what -40 C feels like.

    Happy fall.

    Happier winter.

    Lol.

    Like

  • @William,

    The Bajan political elite can be an irritant, but that must not stop progressive forces from organising. The anniversary is a time to reflect on Black Star/PPM, its leading players, especially Leroy Harewood, how it was received by Dipper Barrow, its relationship with other progressive forces in the Caribbean and the way forward.
    It will also be an opportunity for alternative views on how Barbados should develop, including challenging the bourgeois economics that have become normalised in Barbados. Show people there is another way, apart from the shouting with masks on.
    Such a gathering would not change the blurred minds of the decision-makers and their followers, but it will provide much needed support for the few radicals still about.

    Like

  • @ Artax
    I am suggesting that we note the irony of the two stories. However, you seem to have your fingers on the pulse and from what you posted, after you posed the question to me , seems to indicate, that you have the answer (s).
    We are in the same church and perhaps in the same pew.

    Like

  • @ Hal
    I would be more than wiling to lend a hand to such an effort. When I hear progressive people actually comparing speeches by the enforcers of the duopoly to Fidel Castro, I know it’s time to stay in my lane.
    I have witnessed some strange occurrences in the last couple of months. But like I said , it’s not for me to question anybody’s commitment to the struggle.

    Like

  • “Especially for some of those elderly bajans who are going there for the first time and can’t begin to imagine what -40 C feels like.”

    Anyone who cannot take a -40C is a wuss….lo….l I have taken a -47C without freaking power, the weight of the ice brought down the power lines for 3 whole days..

    but to be fair…living in the US in ice prepares one for that brutal cold that Canada has to offer..

    Like

  • @Vincent

    Agree with your view on QE for Barbados. How does in fit our landscape given our inability to generate and sustain forex flows?

    Like

  • Mariposa, you just wake up? Was your party the DLP not selling BNTCL to Sol. Do you think the sale of a large part of the SOL group was engineered last week?

    Liked by 1 person

  • “Isnt BNTCl a govt entity and as sole proprietor cannot be leased or sold without govt permission”

    Wasn’t foolish Fruendel about to sell the oil terminal for a song to SOL…without knowing Simpson was planning to sell the whole damn company INCLUDING..and particularly THE OIL TERMINAL to Parkland..

    why are yall so clueless…stay in ya lane if the conversation is floating above ya head.

    We can now clearly see why the Fruendolittle government was an expected failure..yall only know how to mess with each other…the ministers only knew how to rip off the people and extend their crooked hands for bribes…

    …yall are useless when it comes to anyone else..no wonder yall ended as zeros..

    Liked by 1 person

  • It is refreshing to see Jeremy taking on Clyde. There seem to be a reluctance by the ‘academic’ class to challenge government’s policies in a coherent way. Are they intimidated by the team of financial advisors? To answer Vincent’s concern, there is a lot that the public needs to become aware to appreciate first where the country is really perched and if the policy prescription being enunciated by government is ‘fit for purpose ‘.

    Liked by 1 person

  • @ Vincent

    Agree with your view on QE for Barbados. How does in fit our landscape given our inability to generate and sustain forex flows?(Quote)

    What does this mean?

    Like

  • @ Simple Simon,

    When it is -40 C stay home. Retirees do not have to go to work.

    Too besides some of us have cars with good heaters, heated seats and proper winter tires.

    However, if I had a few hundred thousand dollars in cash I could consider living in Barbados.

    At my age emergency medical care can be very expensive.

    Liked by 1 person

  • @ Theophillus

    Your substantive profession is coming through when you said and i quote “…Is this a ship departing harbor just before the tide of devaluation runs in…”

    Few see that connection and fewer are seeing how CIBC has posted FCIB for sale cause all of us are on the Mugabe wagon to nowhere AND LIKING IT!!

    Like

  • @William Skinner October 11, 2018 9:57 AM “The fundamental point here is that this family ,is literally guaranteeing, that not another single generation ,will ever be in poverty.”

    Sadly there are never any guarantees when it comes to families.Even though it is not possible to drink out foop out, or drink out a large fortune.

    It is real, real easy to gamble out a large fortune.

    Like

  • @Sargeant October 11, 2018 11:25 AM “Some of us will speculate as to the reason, I am all for Estate planning as most of these singular individuals who establish these conglomerates realise that it is difficult for the second generation to maintain the same level of success and selling avoids the kind of infighting that happens a la Sobara (Ontario).”

    Everybody is in the economics class when they should be in the sociology class.

    Back in the late 60’s or early 70’s didn’t one family marriage break down, or was broken down, and did not one brother marry the woman who had been his brother’s wife.

    Does this long ago act have the possibility of complicate family life, and perhaps to over complicate estate planning?

    As WARU stated so elegantly yesterday, at the end of the road there is only a hole in the ground. I am old. Kyffin is much, much older. I know that people on this blog, especially the MEN on this blog like to regard 70+ as middle aged.

    70+ is NOT middle aged. The life expectancy of a Bajan male is 75.6.

    Kyffin. like most of us on this blog is in the departure lounge.

    Me too.

    Like

  • Poor black people are not the only ones who cause or who endure complicated family lives.

    Ask the Stonach’s:

    https://www.cbc.ca/news/business/frank-belinda-stronach-lawsuit-1.4858150
    Frank Stronach sues daughter Belinda for allegedly mismanaging family fortune

    An Ontario business magnate is suing his daughter, two grandchildren and others for allegedly mismanaging the family’s assets and trust funds. Frank Stronach, the man who started the auto-parts business Magna International, and his wife Elfriede have launched the lawsuit in Ontario Superior Court and say they have done so as a last resort. Stronach says in a statement that the couple has made “considerable efforts” over the last two years to resolve the matter. Thoroughbred Daily News reports the couple have accused Belinda Stronach, the chairman and president of The Stronach Group that runs horse racetracks around the world, of conspiring by “unlawful actions” against the best interests of other members of the Stronach family.

    Like

  • Grandma and grandma suing the grandkids

    Wuhloss!!!

    Wha’ I tell wunna.

    Like

  • but to be fair…living in the US in ice prepares one for that brutal cold that Canada has to offer..

    Brutal cold for significantly longer than normal periods might be a thing the Earth’s colder regions will be adjusting to in the near future as the grand solar minimum arrives in full. On the other hand, we who live closer to the equator in more salubrious climes will have to do without the accustomed cheap food imports from what would be now less fruitful Northern bread baskets and farm fields. Property owners might be delighted that at least house prices would likely go up as more returning nationals and rich foreigners show up at Grantly Adams International hoping to find their own “place in the sun”, and not just for one or two weeks at a time.

    “The Mini Ice Age is already upon us according to astrophysicist Piers Corbyn of Weatheraction.com. The speculation so far is that the Mini Ice age will somehow mitigate Global Warming for 33 years.”

    Liked by 1 person

  • “Back in the late 60’s or early 70’s didn’t one family marriage break down, or was broken down, and did not one brother marry the woman who had been his brother’s wife.”

    In the 70s when the little gas station started at the bottom of Hindsbury road..especially if I recall correctly ..there were children from both unions involved..who would be old ass people themselves now, at least 40s and 50s…but close knit as any……********* family would be given the circumstances.

    Don’t mind those foolish old men bout 70 plus being middle aged, middle age starts at 35….by the time ya hit 70 plus any number can play..

    Like

  • The other side of Barry Sherman
    Barry and Honey Sherman were beloved philanthropists. But he lived amid feuding family members, endless lawsuits and claims of corporate espionage. What really happened before their tragic deaths.
    https://www.macleans.ca/news/canada/barry-honey-sherman-murders/

    For this canadian billionaire family things ended kinda messily.

    Hung by the necks until dead, dead, dead. By the heated pool in their own mansion.

    And months later the police have not yet arrested a fella

    Like

  • Vincent Codrington

    @ Simple Simon at 4 :16 PM

    With reference to your second paragraph in the above cited submission, do you have any scientific proof of your assertion?
    I agree with your third paragraph. Do you see signs of this happening too ? Please do not respond. The question is rhetorical.

    Like

  • Vincent…it’s well known in certain circles, it is not a fantasy, it is reality…these things happen sometimes in life, sometimes to the best or worse of us, it is what it is..none of us are immune.

    Like

  • Simple girl…we been around real long…lol

    Like

  • Vincent Codrington

    @ David Bu at 3 : 38 PM

    There is never an inability to generate foreign exchange at a sustainable rate. History would testify to our ability to make the needed adjustments in our productive structure. This is where the emphasis in any recovery plan should be. Good management of the economy would have identified the reduced flow of foreign exchange from existing economic sectors and new industries introduced to take their places.
    But we continue to flog mature and declining sectors. A re- invented Industrial Development Corporation would have been tasked with this role.
    I am happy to note that you discerned the fact that the availability of foreign exchange flows puts the cap on excessive”helicopter money” generating growth in an open economy. In the close economy it leads to inflation.

    Like

  • @Vincent

    In theory of course but we are here now and to generate adequate forex flows from new industries as suggested is wedged at the incubation stage. What’s the plan for here and now?

    Like

  • Vincent Codrington

    @ David BU

    What are these new industries that you have wedged at the incubation stage? If they are wedged they are not fit for purpose. They belong to the category of industries referred to above. I hope they remain wedged.

    Like

  • Vincent Codrington

    @ Hants

    Are you suggesting that Barbados becomes a province in the Dominion of Canada? What happens to the Tri-state of Trinibago? Have you abandoned that idea?

    Like

  • WARU October 11, 2018 3:40 PM /”…Wasn’t foolish Fruendel about to sell the oil terminal for a song to SOL…”

    How much did the NIS accept for its Cable & Wireless shares?
    Who was the Director of NIS at the time?
    Who was the Chairman of NIS at the time?

    Like

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