Two Man White Oak Making 27 Million from Restructuring Deal

The following article was posted to the Financial Times and will be of interest to the BU family. Discuss for 10 marks.

 

-David, blogmaster

 

 


Barbados creditors fume at ‘absurd’ $27m advisory fees

 

“London-based boutique, White Oak, in line for payout for work on $7bn restructuring

“White Oak’s engagement letter was signed five days after Mia Mottley was sworn in as prime minister last year…”

May 9, 2019 8:30 pm by Colby Smith in New York

A little-known UK advisory firm stands to make about $27m from the restructuring of Barbados’s $7bn of debts — close to what Lazard earned seven years ago when it advised Greece on defaulted debt nearly 40 times bigger.

White Oak Advisory is a small firm with just two partners located opposite Claridge’s hotel in London’s Mayfair. The size of the fee it will receive from its work on the default has outraged the Caribbean island’s creditors.

“The fee is absurd given the size of the debt,” said Sean Newman, an Atlanta-based portfolio manager at Invesco and a member of the external committee of creditors. “I’ve never seen anything like this in my 20 years in the business.”

White Oak was founded a decade ago by Sebastian Espinosa, a former Houlihan Lokey banker, and David Nagoski, an ex-US Treasury Department official. It will earn about $27m from the bankrupt country, according to FT calculations. That is almost double what Ukraine paid for advice on its $18bn restructuring in 2015, according to people familiar with the deals.

The Bajan government hit back at the creditor criticism. “We believe it is excellent value for money given that through their efforts we have saved over $1bn of interest and principal. We would hire [White Oak] again.”

White Oak’s engagement letter indicates that the Bajan government agreed to pay the firm just over $21m for the successful restructuring of its roughly $5bn of domestic debts, excluding arrears. The letter was signed five days after Mia Mottley was sworn in as prime minister on May 25 last year, and two days before the government announced it was defaulting on its debts.

By any metric or rationale, the fee is outsized and unwarranted.

Sean Newman, Invesco
Negotiations with external creditors are ongoing. Once complete, the government is set to pay White Oak about $4m for restructuring approximately $910m of debt owed to foreign investors. The firm is also receiving an $85,000 monthly retainer.

It is likely to take at least another 12 months to finalise the deal, according to another person involved in the negotiations. The additional $2m in monthly fees brings the total payout from Barbados to roughly $27m.

“It is a disproportionate fee for a small country,” said one financial adviser.

“Barbados is not Greece, which had a massive debt stock, multiple debt instruments and huge political tensions,” the financial adviser said. “Double-digit fees are for very large transactions that are super complicated with a large number of instruments and a large number of different creditors.”

White Oak’s partners said the fee was justified because “placing this debt on a sustainable footing has required an unusually complex operation”. Its rates are “among the lowest charged in any Caribbean restructuring, again in relative terms”.

Barbados’s debts came to roughly 160 per cent of gross domestic product at the beginning of the restructuring in June last year, among the highest in the world.

Mr Espinosa and Mr Nagoski point out that their business in the country goes beyond the public restructuring and that they are not charging a fee for additional work. The pair say they are advising Barbados on several commercial contracts, as well as the restructuring of a number of state-owned enterprises and the country’s regional airline, of which the government is the largest shareholder.

However, few Caribbean debt restructurings have paid out fees in the tens of millions to financial advisers in recent years. Citigroup earned roughly $3m restructuring Jamaica’s $9bn of defaulted debts in 2013, and in Belize advisers were paid single-digit millions for the restructuring of more than $525m of debt in 2017, according to people familiar with both deals.

https://www.ft.com/content/164613a4-7234-11e9-bbfb-5c68069fbd15”

 

 

367 comments

  • WARU, Crazy & Unstable, Hogging the Blog

    Well…i guess s it is in the people’s best interest to organize their own groups to monitor corrupt governments…right.?…there is now social media and limitless platforms to expose corruption…despite both governments colluding with their bribers to get social media out of Barbados…they couldn’t then and definitely can’t now..

    So use the available platforms to expose them each and every day…that is the people’s only defense..

    Like

  • Apologies. The date of the letter is 30 May 2018. Therefore, it was all BLP.

    Like

  • Correction: To the White Oak Letter of Engagement.

    Please note that the date of the White Oak Letter is 30 May 2018 – after the General Election of 24 May 2018. Therefore, the evidence for the claim that it was negotiated with the DLP Administration is absent. – Apologies.

    Like

  • Piece the Legend

    Why you jes doan hush you lied self?

    I the space of 5 minutes you change you story about 5 times!!

    Yet you want to be Prime Minister and oversee nationally binding documents for Barbados?

    Whu even heah pun BU you show that you ent even got as much sense as that “rented donkey” dat my friend and Salemite Theophillus Gazerts has taken much pleasure in beating

    Heheheheh

    Stick to what you are good at my man, which is giving incorrect structural advice on diverted water courses

    #iGrenvilleAmAnAutocrat&aLiar

    Like

  • Let me see if I understand this.
    Barbados is a premium country that is Bankrupt, therefore we will pay 5 times the normal price.
    Sound logic?
    I think not.
    Carry on smartly.

    Liked by 1 person

  • That is ok Grenville, to err is human they like to say.

    Like

  • SirSimpleSimonPresidentForLife

    When I am reincarnated, I am coming back as a white man.

    Liked by 1 person

  • SirSimpleSimonPresidentForLife

    @The Bajan government hit back at the creditor criticism. “We believe it is excellent value for money given that through their efforts we have saved over $1bn of interest and principal. We would hire [White Oak] again.”

    Fair enough.

    But what if White Oaks had been paid $675,000?

    Would not we Bajans have saved 1 billion 26 million, 325 thousand?

    An extra 26 million or so is a fair amount of change I think.

    And before we forget, governments don’t pay back debts.

    Taxpayers pay back debts.

    And to tell the truth, the taxes which i have to pay, and which i will have to pay until I die, giving me goadies.

    Like

  • SirSimpleSimonPresidentForLife

    @WARU, Crazy & Unstable, Hogging the Blog May 10, 2019 3:15 AM “the emptying out of every bank account that holds the savings of Bajans”

    What savings you talking ’bout?

    People who pay as much taxes as we do, don’y have savings.

    If i knocked down a nut sellers tray in town tomorrow…I would have trouble reimbursing her.

    Most Bajans, the same.

    Like

  • SirSimpleSimonPresidentForLife

    @”Mr Espinosa and Mr Nagoski point out that their business in the country goes beyond the public restructuring and that they are not charging a fee for additional work.”

    Do hard headed business men really “not charge a fee for additional work?” Really? Really?

    I believe in Santa Claus, and the Easter Bunny.

    They bring me presents every year.

    Like

  • Piece the Legend

    And just to think!!

    Mugabe Amin Mottley speed on bajan pensioners bonds and wanted to mek a 72 year old black bajan man wait 15 years to get he money but paying two white menses $27million US?

    Liked by 1 person

  • SirSimpleSimonPresidentForLife

    @Artax May 10, 2019 7:38 AM “this is Nobel Prize material.” Could you please explain?”

    If not Nobel, at least Pulitzer.

    Like

  • SirSimpleSimonPresidentForLife

    @David May 11, 2019 10:07 AM “…some are suggesting that it was intended to fleece the treasury is conjecture.”

    There is no Treasury. There is no treasure either.

    Some seem to believe that the Treasury is some building at the top of brooad Stree is The Treasury, is full of Treasury.

    There is only poor over burdened taxpayers, paying 17.5% VAT in order to afford the luxury of toilet paper.

    It is poor over burdened taxpayers paying $38.75 a month for infrequent garbage collection.

    It is poor over burdened tax payers paying $7.75 per month for non existent or non functional sewage treatment plants.

    there is no Treasury.

    There is only us.

    Like

  • SirSimpleSimonPresidentForLife

    @ Hal Austin May 10, 2019 7:40 AM “…who introduced the government to the idea of defaulting? Who brought in White Oaks as advisers? Was White Oaks known to that person before the deal with Barbados? Did that person get an introductory fee? Is that person now an adviser/consultant to the government? Has that person ever work for White Oaks in any capacity? These are serious questions.”

    You may also have asked another serious question, is that person, or persons unknown iup to date with their own tax payments with the Barbados Revenue Authority?

    Like

  • Nigeria says ex-president and his oil minister took bribes – court filing

    ABUJA, (Reuters) – The Nigerian government has accused former President Goodluck Jonathan and his then oil minister of accepting bribes and breaking the country’s laws to broker a $1.3 billion oil deal eight years ago, a London court filing shows.

    The deal, in which Anglo-Dutch company Royal Dutch Shell and Italian peer Eni jointly acquired the rights to the OPL 245 offshore oilfield, has spawned legal cases spanning several countries.

    In papers advancing a London commercial court suit against Shell and Eni, lawyers for the Nigerian government said Jonathan and former oil minister Diezani Alison-Madueke conspired to “receive bribes and make a secret profit”, keeping the government from getting what it was owed from the deal.

    “Bribes were paid,” the filing, reviewed by Reuters, states. It says “the receipt of those bribes and the participation in the scheme of said officials was in breach of their fiduciary duties and Nigerian criminal law.”

    A spokesman for Jonathan declined to comment and said the former president was in South Africa as part of an election monitoring team. A London-based lawyer for Madueke did not immediately respond to a request for comment.

    Nigerian attorney general Abubakar Malami did not immediately respond to a request for comment.

    The 2011 deal is also the subject of a corruption trial in Milan in which two middlemen have been convicted and former and current Shell and Eni officials are also on trial.

    An Eni spokesman said the Italian firm was assessing whether UK courts had jurisdiction on a case of “such duplication” to the Milan proceedings and repeated its view on “the correctness and compliance of every aspect of the transaction.”

    Shell did not immediately comment, but has repeatedly denied any wrongdoing in relation to OPL 245.

    The London lawsuit relates to payments that Shell and Eni made to acquire the licence.

    The companies transferred more than $1 billion to the Nigerian government, according to the filing. Milan prosecutors have argued in their case that the bulk of that money was sent on to Malabu Oil and Gas, which was controlled by another former oil minister, Dan Etete.

    Eni and Shell retain the rights to develop the field, which has yet to enter production but is one of the biggest untapped oil resources in Africa, with reserves estimated at 9 billion barrels.

    In the London court filing, the Nigerian government said it only received a $209 million signature bonus in relation to the deal, and that it estimates the value of the oilfield to have been “at least $3.5 billion”. It said it would seek to calculate damages on that basis.

    The Nigerian government has also filed a London case against U.S. bank JPMorgan for its role in transferring over $800 million of government funds to Etete, who has been convicted of money laundering. JPMorgan has denied any wrongdoing.

    Dutch prosecutors are also preparing criminal charges against Shell. [https://reut.rs/2FxBFOR ]

    Despite the international cases, only Nigerian officials can rescind the rights to the block. Oil minister Emmanuel Ibe Kachikwu has said the case should not hinder development of the field. His office did not immediately reply to a further request for comment. [https://reut.rs/2HcyAnu]

    Nigeria’s Economic and Financial Crimes Commission is pursuing a criminal case against other former officials in relation to OPL 245.

    President Muhammadu Buhari was re-elected in February, campaigning on the same anti-corruption message that helped him defeat Jonathan in 2015. But opinions within the cabinet differ over how to handle OPL 245.

    Some have cited what they view as a lack of evidence, while others point to concerns that taking away the rights could hinder the field’s development in a nation where oil accounts for around 90 percent of foreign exchange earnings.

    https://www.stabroeknews.com/2019/news/world/05/11/nigeria-says-ex-president-and-his-oil-minister-took-bribes-court-filing/

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    “If not Nobel, at least Pulitzer”

    definitely Pultizer…but Artax loves and lives to jump out at my everything. his only real contribution to BU., so who am i to deny him..lol

    “SirSimpleSimonPresidentForLife May 11, 2019 9:39 PM

    When I am reincarnated, I am coming back as a white man.”

    bad idea…if the script flips ya might end up on the shitty receiving end of the sctick AGAIN……careful what ya wish for..that white privilege shite that dumb black governments still practice on their own people to enrich others…might be only continuing for another few decades and then real changes will take place…new era…completely different from this era…ya don’t want to come back and find that the white man no longer has any pretensive privilege and ya stuck.

    Like

  • NorthernObserver

    ignore above. I missed there was another page of comments

    Like

  • NorthernObserver

    What is interesting, in the letter dated May 30th, at which time in White Oak’s view (they wrote the letter) it hadn’t been decided if the default would be both external and domestic or just domestic. Yet it was the next day, June 1 2018, that a selective default on foreign debt was announced. It would appear the GoB did not counter, any of the fees proposed by White Oak?

    Like

  • Sunshine Sunny Shine

    Teewhite

    —————-If information is being published, I would still like to see a breakdown of the actual debt. How many loans are within the debt portfolio? Who took out each loan and when? How much was borrowed and at what interest rate? What was the money used for? How much has been repaid on each loan and how much is still outstanding on each loan? If the government is taking the very bread out of people’s mouths to pay this debt, the least they can do is let people understand exactly why they are losing their jobs.,,,,,,,,,,,,,,,,,,,,,,,,

    You would need a Freedom Of Information Act to get such information. Interests of both political parties cannot be properly served if the public is privy to their style of conducting the people’s affairs. There is just no profit in telling the truth or disclosing facts. Take note that corruption likes controversy and controversy always follow these two political parties whenever the people decides to allow them to take root. Yet none of them is corrupt and none of them have done no wrongs. Its all made up stories to distract or create pressure. Take note that in the face of public outcry Rogue Works Mottley will not be distracted from the task ahead even though the details surrounding the White Oaks agreement remains iffy. This is the same Rogue that hit the ground running, speaking to the public as she exposed the dirty deeds of the stinking crooked DLP with flair and feisty words. All of a sudden, she has slowed down, decide to go the route of Trump by introducing a male version of Sarah Sanders and this Sarah Sanders in the form of Roy Morris is another one of her loyal friends who got her back. He is also another friend that is in the big money so if Mottley shites, he will say it is not shit but a fertilising process intended to improve the greens. Mottley efforts so far seem to be one where she is not contented with the few firsts she has achieved. She wants to create an additional history by having the biggest of everything even if at the end of it all she has created the greatest controversies this party has ever had to face. The biggest seems to be her new mantra. Make it big, Pay it big-GO BIG.

    Like

  • People can make excuses for crooks and feel good about it , take your pain and shut up!

    Like

  • “If not Nobel, at least Pulitzer.”

    SimpleSimonPresidentForLife

    Pulitzer is what WARU meant to write. That’s why I asked her to explain.

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    Art the Archiver…if you go back on BU you will see i already posted on the Pulitzer some years ago…also posted on Nobel prize back then, but had made an error..can’t remember about what..

    but ya can get the Blogmaster to help ya with the Pulitzer post if it is more than 5 years old..

    President Simple…please read my point about wanting to switch to white privilege in ya next life…i thought the blowback would take decades…but it is already here…i have been warning racists about this for the last 5 years….now they are seeing…earlier than i thought…an innocent boy paying for the sins of his demented racist ancestors..who designed and created racism and apartheid that got him hung. The innocent should not be paying for this…it is the practicing racists who should pay..

    “A boy of nine who was found hanged is believed to have killed himself after he was ‘bullied for being white’ by an Asian gang at school.

    Aaron Dugmore – thought to be one of the youngest children in the UK to commit suicide – was discovered in his bedroom after being tormented for months, his parents said.

    They said Aaron was threatened with a plastic knife by one Asian pupil, who warned him: ‘Next time it will be a real one.’

    He was also allegedly told by another pupil that ‘all the white people should be dead’ and he was forced to hide from the bullies in the playground at lunchtime…”

    Like

  • I repeat, if wunna engage in more robust research wunna won’t capitulate so often. But wunna does read to respond not yo understand. From the Dems signing the agreement to the Cabinet not being in place–all wrong info. Now one grasping at “land banking”. Anyone knows what Jamaica paid yet? Y’all carry on.🤐

    Like

  • @enuff

    Notwithstanding what you have stated regarding the inaccuracies posted the government of necessity must clarify the issues of concern even if some are wedded to ignorance. Why employ Roy Morris?

    Have you viewed Jeremy Stephen video who helps to shape public opinion?

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    president Enuff…ya can moan and groan as ya like…if president Mia had legislated FOIA and transparency as soon as she was elected…it has been nearly a whole year…instead of hiding information and playing slick…no one would have to speculate and make you cry..

    so until she does…c’est la vie.

    the sooner she does …the better…ya should tell her that instead of on here making yaselves look more yardfowlish..

    Like

  • David
    This Jeremy Stephen?
    “While the economist admitted that the $27 million dollars to be paid for the services of White Oak was not exorbitant in the grand scheme of things, it certainly appeared to be a terrible overpriced arrangement.”

    People have a right to question the fee, but I am not jumping on a bandwagon being carried on wheels of fantasy, hysteria and unsubstantiated arguments. I am reminded of the boy who cried wolf. Please source the fees paid by the other Caribbean islands, noting that the FT article quotes a White Oak spokesperson as saying “Its rates are among the lowest charged in any Caribbean restructuring, again in relative terms”. I assume the rates being referred to here is % of the debt? Belize, according to the FT, paid single digits for $525M versus $7B in Bdos.

    Like

  • @enuff

    You are one of the more intelligent commenters on here. It is a no brainer that in an environment where austerity measures are being imposed The Rhetoric of Austerity will be at play. It has to be managed, carefully.

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    Population of Jamaica = 2.89 million (2017)

    Area of Jamaica = 4,244 mi²

    Population of Barbados = BARELY 290,000

    Area of Barbados = 166 sq mi

    WHY do u foolishly continue to compare BREADFRUITS to a grape..

    Ya mudpst have missed too many days at school and was never in the line when commonsense was being shared out.

    Like

  • Is the US dollar the de facto legal tender n Barbados? When people write 27 million without the currency qualifier, I am led to believe it was Barbadian dollars and we all know it is in US currency.

    Perhaps it is the Dale Marshall effect, or another distracting exercise……

    Like

  • “definitely Pultizer…but Artax loves and lives to jump out at my everything. his only real contribution to BU., so who am i to deny him..lol..”

    My friend, that simple article DOES NOT qualify for a Pulitzer prize.

    Nah…. I don’t “jump out at (your) everything,”……… only when you present UNTHRUTHS and try to MISLEAD the forum. Anything else you post is a repetition of previous contributions.

    And what EXACTLY are your “real contributions” to BU other than copy and pasting articles and people’s opinions from different social media sites and posting them to BU…… while behaving as though the information originated with you?

    You have never, ever posted any contribution to BU of which you were the original author. All your comments on issues posted to this forum for “discussion” are based on other people’s opinions taken from sites such as Facebook, Naked Departure or the comments section of the online newspapers.

    A few months ago, you came to BU “arguing” with the same Simple Simon that Rolerick Hinds was the duly elected representative for St. Thomas, which, according to you, was based on a billboard that was erected near his constituency office.

    When Simple Simon and Enuff told you this wasn’t true…….. you shifted the “argument” to say that people living in the constituency told you Hinds was their representative and you’re going by what they said. Simple Simon, who also lives in the constituency, doubted anyone could have told you that. Rather than admit you made a mistake, you went into your USUAL “insult mode.”

    Then you came with another silly argument that the FBI can make an arbitrary decision to come into Barbados and investigate any crime they choose to.

    You are also a “SELF CONFESSED” liar, who admitted to “making up things just to make things interesting.”

    This is evidenced by the fact that you came to BU with a blatant lie, “saying” you posted information in 4 different languages, to prove I trolled you “all over social media.” And what is so ridiculous about that is you don’t know who I am and what languages I speak other than English.

    What about the fraudulent e-mail you sent to Hal Austin?

    Like

  • “Art the Archiver…if you go back on BU you will see i already posted on the Pulitzer some years ago…also posted on Nobel prize back then, but had made an error..can’t remember about what..but ya can get the Blogmaster to help ya with the Pulitzer post if it is more than 5 years old..”

    WHY WOULD I WANT TO DO THAT?????

    Like

  • Beneath all this White Oaks scandal are smoke and mirrors which should have been flushed out by local media
    Shame on local media now trying to score brownie points off the back and hard work of the international press uncovering of the White Oaks debacle
    Where was local media voice involved at the many sounding bells coming from concerned citizens who said White Oaks agreement stinks the whole place up

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    Don’t know why yall want to have it both ways..

    Yall DON’T waant to ADDRESS THE CORRUPTION…and THEFT of BILLIONS OF TAX DOLLARS AND PENSION MONEY…

    Yall DONT WANT TO…bring back all the offshore accounts with the people’s stolen money and properties…that each and everyone of you KNOWS EXIST…..TRON said so….and that WE KNOW DON’T CONTAIN AIR….

    Yall DON’T WANT TO LOCK UP DBLP THIEVES THAT ALL OF YOU KNOW ARE INVOLVED…

    Yall DONT WANT TO dismantle the structures and institutions of racism you left in place to pad ya own pockets by collecting bribes…

    YA DO NOT WANT TO DO RIGHT BY THE MAJORITY WHO ELECTED YOU AND PAY YA SALARIES….

    but ya WANT TO HAVE IT BOTH WAYS…

    OH REALLY..???

    goodluck.

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    “WHY WOULD I WANT TO DO THAT?????”

    Why not?

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    “What about the fraudulent e-mail you sent to Hal Austin?”

    Show BU the PROOF…where i sent “a fraudulent email to Hal Austin” …ask Hal Austin to also post the proof..since I contacted FT and alerted them to the information….ON THEIR SERVERS…

    while ya at it…show me the PROOF of who told Jackie that BLP setup DEA IN THE 90s..since YOU KNOW IT WAS NOT ME….

    don’t know why ya grumbling about foreign languages…anyone can speak multiple foreign languages as long as they PRACTICE THOSE LANGUANGES DAILY…having a deep memory also tends to help..

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    So in accusing me…ya are showing us that YOU KNOW WHO told Jackie that BLP setup DEA in the 90s…and that YOU KNOW IT WAS NOT ME….

    ya playing a dangerous game..ah hope ya have played it before…

    ah told ya already…am not the one called ya “appallingly ignorant”..that was ya idiot leader president Enuff…ya need to confront her about that…lol

    Like

  • RE: “Show BU the PROOF…where i sent “a fraudulent email to Hal Austin” …ask Hal Austin to also post the proof..since I contacted FT and alerted them to the information….ON THEIR SERVERS…”

    I am NOT OBLIGATED to “show BU the PROOF.” That does not have anything to do with me. From what I read in one of his contributions on that issue, Austin already “showed BU the PROOF” that you’re a fraud. But, that’s something for you and him to sort out.

    RE: “while ya at it…show me the PROOF of who told Jackie that BLP setup DEA IN THE 90s..since YOU KNOW IT WAS NOT ME….”

    There you go, LYING AGAIN.

    I have NEVER, EVER mentioned anything thing in any of my contributions to BU that suggests, definitely or otherwise, I know “who told Jackie that BLP setup DEA IN THE 90s,”……

    …….. nor did I ever mentioned I “know it was not you.”

    What you should do Is provide BU with the evidence to prove I actually wrote what you’re accusing me of.

    But knowing your M.O, you will come with something irrelevant to shift the focus off yourself. Why????

    Because you are a LIAR and a FRAUD.

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    yeah..yah…but ya can’t show proof for any of it…and do you know WHY ya can’t show proof…????

    think on it..

    If you have never played this game before….stay the hell out of it…and find something or someone else to play with..am not the one..

    of course ya are free to call me whatever…still does not change the fact that president Enuff called ya appallingly ignorant..

    Like

  • Piece the Legend

    There is a thing about Repudiation of Sovereign Debt which those familiar with corporate and country debt would know which is that “defaults” on due dates are not the same as you and me missing my mortgage payments.

    International creditors DO NOT WANT DEFAULTED INSTRUMENTS. But they would have waited IF A REASONABLE SCHEDILE WAS OFFERED, and Mugabe did not hire 30 ministers and White Hoax

    It is bad business. Sovereign Debt

    So, with all due respect to other Mugabe issues, this debt restructuring matter would have predated Mugabe by nuff months, possibly even a year.

    Feelers were put out for debt restructuring firms

    And the hand to mouth firm of White Hoax was identified because, EVRN THOUGH THEY GOT RESULTS, they were had to mouth and potentially bribe-able for $27 million

    Not to say that they were bribed but…

    Say that there were ongoing discussions to engage prior to May 24th 2018…

    Dem fellers ent no idiots…

    Dem reading de news and seeing Piece the Legend predictions of 30 to zero.

    (Dat designed to get them vex Pachamama and Mr William Skinner and My Dearest SSS and Colonel Buggy, I know I was not alone in this effort.

    But you all need to understand what “focusing ire” does.

    It’s a Tsun Tsu Classic to draw all the forces of the enemy to one point and then destroy them in the plains)

    So what White Hoak did when they saw that the DLP was going to lose they reached out to Mugabe and struck up a new deal with her getting the kickbacks perhaps?

    Remember dat de ole man got to write dis way or dere is a lawsuit

    So when Stinkliar saw that the same fellers dat he was bribing still being employed by the Mugsbe Regime whu he do???

    Release de documents to FT!!!

    Now both of dem now got secrets on each other BUT SO DO THE INTERPOL AUTHORITIES

    heheheheh

    Doan ask de ole man where I get dis speculation from

    Heheheheh

    A few more of wunna going get lock up for money laundering soon so…

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    Lol…wuhloss..

    What a Mother’s Day..

    Like

  • Are most bloggers going to moderation automatically, or regularly, or just me?

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    Join the club Ha, Ha, ya ain’t that special

    Like

  • In Mia we trust.

    Where others smell in blind hysteria corruption, I see a government doing everything to heal 10 years of blue economic terror.

    Like

  • China wants everything from Africa: its strategic location, its oil, its rare earth metals, and its fish, leaving African nations indebted to Beijing.
    In its long history, Africa has served the global ambitions of many foreigners. Foreigners have reached out to Africa as missionaries, financiers, and infrastructure builders. They have promised to place the continent on the globalization map and help its people grow out of poverty. But they ended up grabbing Africa’s riches, colonizing one nation after another, and letting their people steep in poverty.
    That may end up being the case again, with China’s recent infrastructure investment projects in the continent.
    On the surface, these projects seem to serve the quest of African nations to build a sound infrastructure. But on closer examination, they serve China’s ambitions to write the rules of the next stage of globalization.
    China wants to use Africa as a location to secure maritime roads (and the OBOR projects) that facilitate Chinese exports, as evidenced by Beijing’s large military presence in Djibouti.
    Then there are Africa’s resources, oil, rare earth metals, and fish.
    “As a South African, I’ve seen China’s activities on the continent up close,” says Ted Bauman, Senior Research Analyst at Banyan Hill Publishing. “It’s clear that China’s primary goal with foreign investment is geopolitical, not economic. The most consequential investments are undertaken by state owned companies, not by Chinese private capital. They tend to focus on infrastructure like highways, ports and dams, and on public networks like the electrical grid.”
    That’s something many African countries desperately need in their bid to develop their economies.
    The trouble is that “these investments help to bind countries to China politically, and through debt obligations,” explains Bauman. “It creates a form of leverage that China can use to force these countries to support Chinese ambitions globally. In some cases, such as the Angolan oil sector or Congolese rare earth mining, Chinese investment helps to lock-in supply relationships with essential commodities.”
    Meanwhile, Chinese boats are reaching to west Africa, sweeping the sea of any kind of fish that tries to swim through the spread nets.
    Xiaomeng Lu, China practice lead at Access Partnership, a global public policy consultancy for the tech sector, raises a more fundamental problem with Chinese investments. “China’s investments are being rolled out in a somewhat awkward, if not controversial fashion,” she observes. “For example, Huawei’s Smart City project in Colombo Port City, Sri Lanka, faces criticism for being overly ambitious and debt-laden.” Not to mention the Hambantota port, which has been placed in Chinese hands for the next century, as a result of Beijing’s debt trap.
    “Chinese President Xi aims to realize the “great rejuvenation of the Chinese nation” by projecting power overseas through the “Belt and Road” initiative, which covers both Southeast Asia and Africa,” adds Lu. “This political economy effort is paired with China’s growing military might in the South China Sea and the African continent, posing a growing challenge to the U.S. security umbrella worldwide.”
    Then there’s the high-risk tolerance of the Chinese business model, which is more conducive to the developing world, according to Lu. “Chinese companies’ high-risk tolerance, low profit margin business model fares well in the developing world,” explains Lu. “China’s commercial sector’s interest overlaps with its government’s initiative in these geographies. For example, Huawei operates on very thin profit margin and is the industry leader in many emerging markets where western competitors such as Nokia and Ericson failed to make profit.”
    “China’s behavior is essentially the same as that of the United States in the second half of the 20th century,” explains Bauman. “It’s using its rising economic power to build political “soft power.” And with the United States essentially rudderless when it comes to international relationships, the chances that China will succeed are very good indeed.”
    But on its own terms, rather than the terms of African nations.

    My recent book The Ten Golden Rules Of Leadership is published by AMACOM, and can be found here.

    Panos Mourdoukoutas (Quote)
    Contributor

    Like

  • Drinking water is a life giving good.Abrams!stop talking nonsense that it’s too cheap in Barbados.
    Now that the economy is on the road to stabilization and recovery.Mia! reduce the number of ministries to 8.
    Mia!Garbage collection is ridiculous!Time to send Prescod on permanent leave like Fredericks!He is a failure too.
    Duguid.Transit Barbados appears to be turning the corner.Congrats!
    Bostic.Explain the lotta sick leave Dexter making taxpayers pay for.He never heard the words”physician heal thyself”!!!This man really got his contract extended by the Stuart crowd of bunglers and misfits,18 months before it was due for review and determination??Why isn’t he joining Fredericks.Show some guts Boss man.

    Like

  • Dexter can be found on the golf course!

    Like

  • William Skinner

    If there was ever any doubt about why the duopoly can get away with corruption, this thread should clearly show the reason. For those who are impartial, they should realize that the country will continue to falter.
    It is now clear that blogs, like the traditional media, operate solely in the interest of the duopoly.
    As long as those calling for transparency cannot be transparent , the call for transparency, is nothing more than a convenience; a deception that is consistent with the
    behavior of the duopoly.
    This thread more than any other ever on BU, has unmasked those who pretended, that they really want proper governance and accountability.
    Who ever the cap fit. Let them wear it !

    Like

  • @ Mr. Skinner,

    Amen to that.

    Like

  • Piece the Legend

    @ Mr William Skinner

    You are faltering because of what you are seeing Mugabe do.

    I encourage you to take hope.

    God is not dead, nor does He Sleep and His last name is not Mottley

    You have to keep posting and agitating.

    The people are coming to Barbados Underground and they are talking in their homes and the shops and at the parties.

    Mugabe will be a one term government!!!

    But the good men must rise to the fore

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    When ya can’t see that YOURS and DLPs corruption COMBINED = YOUR OWN UNDOING…that says a lot.

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    The Judgement by Justice Ventose is most welcome…let’s see if Barbados hardheaded, corrupt leaders…understands its connotations….or will pretend they don’t and continue to violate the constitution re the Rastafarian community because they know these people are unable to fight back..

    “Meanwhile, the government of St Kitts and Nevis has been given a time frame as of Friday [May 3] by a High Court judge Justice Eddy Ventose to amend the drug laws in the twin-island federation after determining at least two provisions of the Drugs Act were unconstitutional concerning possession and cultivation.”

    “By Caribbean News Now contributor

    BASSETERRE, St Kitts – In the midst of a media blast by Alki David and Chase Ergen having formed an international-regional consortium to invest in Caribbean cannabis aimed at developing cannabis businesses in the Eastern Caribbean nations such as St Kitts and Nevis, Dominica and Antigua, the billionaires were briefly detained after their private aircraft landed at St Kitts’ Robert L Bradshaw International Airport with a consignment of products relative to their new venture.

    “The plane landed just after 6 am Tuesday,” a source said “and after several hours in custody, the men were released due to an intervention by former prime minister, Denzil Douglas.

    “The arrest stemmed from a misunderstanding about the shipment [products] and its legality. The products included hemp clone plants, hemp seeds and Swissx CBD oil products—all legal, non-THC plant medicines. Among the nine persons onboard the plane was actor Jonathan Rhys Meyers” the source said.

    The consortium previously said plans include “purchasing agricultural land and partnering with farmers to create a cooperative entity modelled after the ones in Switzerland” and that “the first planeload of hemp seed destined for 300 acres in St Kitts and Nevis and Dominica arrives this week.”

    The international-regional consortium’s next stop is Dominica, which has expressed a very progressive view of legalization of cannabis.

    “We have no doubt we will be able to double their GDP’s within a matter of years as the region takes its rightful place in a market that is literally changing people’s lives,” David said, building a major cannabis-based business across several Eastern Caribbean islands.

    Meanwhile, the government of St Kitts and Nevis has been given a time frame as of Friday [May 3] by a High Court judge Justice Eddy Ventose to amend the drug laws in the twin-island federation after determining at least two provisions of the Drugs Act were unconstitutional concerning possession and cultivation.”

    Like

  • William Skinner

    @ Piece

    Don’t worry. I just wanted to make it plain that their collective hypocrisy has now been exposed. They can no longer claim to have any interest other than protecting their duopoly.
    They will burn in the political hell. Ashes will be all that’s left in both George and Roebuck Streets.

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    Every minute of the last 7 years was worth it just to be there to witness the upcoming changes.

    it’s clear despite all the pretense and political hypocrisy, they still don’t know that they do not know….

    ….i guess when you spent decades keeping information from your own people…you too find yourself not knowing what ya should.

    Like

  • White Oak has given Barbados value for money

    From Prof Avinash Persaud, Prime Minister’s Office, Barbados

    I am disturbed at the level of considered imbalance in your report “Barbados creditors fume at ‘absurd’ $27m advisory fees for boutique firm” (May 10). You refer to White Oak Advisory as a little-known advisory firm but neglect to point out that of the 14 sovereign restructurings in the world since 2005, White Oak has advised on seven of them, Lazards four and Citi one. It was an obvious choice for Barbados.

    The timing of your report is interesting. In uncommon transparency, Barbados published the terms of the contract and announced the level and ratio of the fees in parliament in March this year. The Financial Times chose to publish its story in the week that the International Monetary Fund mission is in Barbados, seven weeks later. Onlookers will see this timing as another attempt by external creditors to use public opinion to influence negotiations. We are not blinking.

    In your report, an external creditor suggests the fees are absurdly high because they are at the same level as those paid to Greece’s advisers where the debt was 40 times larger. We weigh costs with benefits. Following the domestic part of the debt restructuring, Barbados’ debt has fallen from 175 per cent of gross domestic product including arrears, the third highest in the world, to 125 per cent of GDP and is on track for less than 100 per cent. Greece’s debt remains the second highest in the world.

    The Greek restructuring programme imploded the economy, causing severe social deprivation and a banking crisis. White Oak was part of the team that ensured the Barbados economy and financial system was stable. We increased welfare and pension payments and ringfenced public health and education in the most shared economic adjustment programme in history. We have had value for money. We would hire White Oak again.

    Prof Avinash Persaud
    Special Envoy to the Prime Minister of Barbados on Investment and Financial Services, Prime Minister’s Office, Barbados

    Like

  • NorthernObserver

    A fair and measured response by Persaud. The Contract and the side letter were both laid in Parliament. Which is possibly where the opponents in the FT article, got their info in the first place. I still contend the “success fee” for the domestic debt was high. Then again, I had nothing to compare it to? re value for money. The 7 of 14 was news to me, I was only aware of 4.

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  • WARU, Crazy & Unstable, Hogging the Blog

    “We would hire White Oak again.”

    This is the most horrifying part of Persaud of 4 Seasons SCAM letter to FT…why would they even need to hire WHITE HOAX AGAIN unless they TOO plan to leave the economy in a CORRUPT MESS AGAIN…which would require white hoax2.0

    some people are starting to think that white hoax is Persaud’s mess too.

    Like

  • Would preferably belive anything written in the Financial Times over any defensive letter written by Persaud Avinash
    A man would left his messy finger prints all over Four Seasons
    The fact being that the investigation done by the Financial Times gives a clear perspective on how this govt blot with lightning speed to go about the business of not having the intelluctual foresight of looking for a well placed saving package that is complete and well grounded in barbados interest
    This govt says that White Oaks saves barbados billions
    However the question of how much White Oaks charges barbados remains a relevant concern

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  • @ Mariposa,

    You are right. The letter from our ‘special envoy’ (I did not realise that he is now a diplomat) is a poor excuse for a justification. It is not worth serious debate. It is financial nonsense.

    Like

  • @NO

    Persaud takes some of the emotion from the debate. It is good to observe Barbados pushing against the establishment for a change.

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    They would NEVER “push back” against the establishment otherwise..unless their own asses are on the line..

    They NEVER “”pushed” back against the SAME establishment when THEY (both governments) VIOLATED and MISUSED the Constitution to VIOLATE THE RIGHTS OF and ABUSE the civil rights of the Rastafarian community re use and cultivation if marijuanabnow did they…that “push back” was not important enough now was it..

    So in my opinion…this “push back” don’t count either cause it STINKS OF a CYA (cover ya ass) push back.

    Like

  • Persaud’s letter is self-explanatory and is disinfectant to the toxicity of the likes of ASSTIN.
    The comment “We would hire White Oak again” is asinine and stupid.

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    Coming from a Dr. Ph.D envoy…wuhloss..Piece..

    Like

  • Barbados cannot push against the establishment reason/s why Mia Mottley bows to the stringent austerity policies of the IMF while holding cap in hand begging at the door steps of international financial institutions
    The Financial times exposed how economically bankrupt this govt is of having policies in place to protect the country
    But moved with haste to pour millions of dollars on a two man little know advisors who purports to have saved barbados millions while themselves easily raked millions out of the treasury
    Only time will tell what is the true story of how much White Oaks has saved Barbados
    Anything coming from the mouth of this govt should be taken with a grain of salt
    The word transparency seems to have been erased from the govt list of promises to fulfill

    Like

  • @ Mariposa,

    Spot on. White Oaks have not saved Barbadian taxpayers anything since the negotiations are still ongoing. The so-called savings are hypothetical. What is fact is that since May 30 they have been receiving Bds$170000 a month in fees, that is a lot of money (170000X11).
    Defaulting on domestic creditors was morally wrong, but there was no need for a foreign so-called financial adviser to do that.
    And there is no need why foreign creditors should negotiate a hair cut with the government of Barbados when the alternative is to sell the debt at a discount to vulture fund managers, which is what they will probably do; if the government then defaults the fund managers would pursue the debt through the New York courts..

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  • ” suggest the fees are high” . They ain t suggesting the fees are high they telling you they high! Don’t mind how you try to ramble around the issue, the fact is Jamaica had their debt restructured for 0.04 percent of the debt value and the same exercise costing us 0.45 percent of the debt value. Or as Roy Morris said 45 cents out of every 100 dollars, when Jamaica was 4 cents on each hundred when it was done by Citibank. Nobody aint suggesting the high, trust me it is a stated fact confirmed by your press Secretary on the CBC news. Then to come back with a lame duck excuse and say, oh they helping us with LIAT for free! Believe that and I got a talking cow by me for sale too then.

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    Well this is awkward…and it shows up the LIE in Dr. Ph.d Envoy’s letter to FT.

    This is not the only person complaining that their.. PENSION HAS BEEN CUT..

    https://scontent.fbgi3-1.fna.fbcdn.net/v/t1.0-9/60364160_2207126569601223_7306763337944006656_n.jpg?_nc_cat=103&_nc_ht=scontent.fbgi3-1.fna&oh=a023bd715757d5278a507b17e1307cb2&oe=5D75920C

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  • WARU, Crazy & Unstable, Hogging the Blog

    And president Mia knows it, someone said that even the whites are complaining their pensions are being cut, ah heard someone made sure Mia heard them complaining about those lowered pensions.

    Like

  • Wuhloss, one statement from the Prof and some folks falling over themselves to be accommodating.

    Nothing to see here folks just move along, “We would hire White Oaks again”, now who in their right minds would expect the Gov’t to say anything different?

    I just reached for another glass of koolaid, um too sweet.

    Like

  • ” of the 14 sovereign restructurings in the world since 2005, White Oak has advised on seven of them, Lazards four and Citi one. It was an obvious choice for Barbados.”

    So you make a decision based on quantity ? That is not an ” obvious choice ”

    You should at least do enough research to hire the best. Quantity does not always equate to quality. IMHO

    Like

  • @WARU,
    The man, to my knowledge, does not hold a Ph.D. In fact, I am almost sure he only has an undergrad. Professor my left foot.

    Like

  • So by his argument then AIG in the USA would of been the perfect choice as an insurer too as they handled more insurance up there than most between 2000 and 2006. That is of course until they collapsed and started the crash of 2008. I always heard a drowning man would catch at straws, but Sometimes it is better to just drown quietly.

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  • @ John A

    AIG had a company domiciled in Barbados in the years leading up to 2008, explicitly to be used for money laundering. CEO Greenberg told the US authorities that. It is there in evidence. At the time the insurance regulator in Barbados made a statement that Barbados had the best regulatory system in the world. I am sure he did not smile while saying that.
    When AIG crashed it had assets of US$600bn, but no cash flow.

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  • WARU, Crazy & Unstable, Hogging the Blog

    “Professor my left foot.”

    lol..what can i say, that is my friend president Mia’s Professor..

    President Simple…see what ah told ya about ya prinicipal friend..

    “Valdez Francis, the principal at Grantley Adams Memorial, who was at the centre of a student protest at the school last year, has been suspended.

    ..
    Minister of Education Santia Bradshaw confirmed recently that Francis was no longer at the Blackman’s, St Joseph school.

    “Mr Francis has been suspended and the ministry is carrying out an investigation following the findings of an inspection report. As I am sure you would appreciate, I wouldn’t want to say anything more at this stage which may prejudice those investigations,” she stated.”

    Like

  • Hal that is correct and up to 1 year before it crashed they were still offering insurance services even though they knew they had no cash flow. That is why to say you are going with a company because it handles more of a specific type of business than others, is an extremely dangerous argument to use. My point for raising AIG was to show how we should not pick a company to do our bidding based on how much business they handle in an area. Citicorp may not have handled as many debt reschedulings in terms of islands as white oak, but what I can tell you is that they proved to be one of the best deals Jamaica ever made having done it for 0.04 percent of their debt rescheduled.

    Had Citibank of tendered for the same job White Oak is doing have you an idea of what they would of charged? The answer is no for as far as we the public are aware no tenders were sought for this contract. That is why when I hear people say “it’s a good deal dem saving we money” it is irritating. Good deal compared with what? Saving we money compared to whom?

    Like

  • NorthernObserver

    @Blogmaster
    IMO it is less about the stance taken, than a position was made public. We can like it or lump it. Agree or disagree.
    With several negotiations ongoing, I refer to not only Debt instruments held externally, but the rabid state of accounts in many public/SOE’s, where the A/P ledger was a minefield, they either fire WO or fully support them?
    On Four Seasons…do ANY of us have any idea what actually happened there?
    The last we heard, the GoB formed a company Clearwater Bay to guarantee certain funds. This was laid before the people’s parliament. Since then? A legal document fell off a truck saying certain lands had been sold (Pharliciple) Two ministers, former MoF and MoTourism, said they would address the matter. And years later, ZILCH. All we know is there remains a decaying site, with several unfinished structures.

    On Persaud, I do not know the gentleman. This from Wikipedia, so take it with a grain of salt

    “Chairman of Intelligence Capital Ltd,[1] a company specializing in analyzing, managing and creating financial liquidity in investment projects and portfolios. He is also the non-Executive Chairman of the London-based Elara Capital, an investment bank. Persaud is a Senior Fellow with the Caribbean Policy Research Institute and Head of its Barbados office.

    He was previously managing director and Global Head of Research at State Street Bank, the world’s largest institutional investor, (1999–2003) and Global Head of Currency and Commodity Research at J.P. Morgan & Co.(1993–1999). He was ranked within the top 3 of currency analysts in major international investor surveys, (e.g. Institutional Investor and Global Finance) between 1992 and 1999. In December 2009, he was listed by a high level Panel set up by Prospect Magazine, second of 25 world brains who have been the best contributors in the public conversation on the financial crisis. (Prospect, December 2009)

    Persaud is Co-Chair of the OECD Emerging Market Network.[2] He was a Director of the Global Association of Risk Professionals (2002–2009) (GARP). In 2008 he was appointed member of a French Presidential Commission on the global credit crunch. He was the economic expert on the UK Government’s Advisory Panel on Public Sector Information, (2005–2009) (APPSI)In 2001 he was made a Distinguished Visitor of the Republic of Singapore. He was appointed a Visiting Scholar at the International Monetary Fund (IMF) (2001–2002) working on risk appetite measures[3] and at the European Central Bank (ECB) (2005) working on issues of liquidity and transparency in European financial markets.[4] He is frequently a guest speaker at G20 central banks and meetings of officials.[5]

    In December 2008, he was appointed a Member of the UN Commission of Experts on International Financial Reform.[6]

    In January 2009, he was appointed Chairman of the Second Warwick Commission,

    In October 2009, he was appointed an Expert Member of HMT’s Audit and Risk Committee.

    He held the Mercer Memorial Chair in Commerce at Gresham College (2002–2005) and was subsequently elected a Fellow of Gresham College (2005–2008) and Emeritus Professor of Gresham College (2007-). He is an elected member of the Council of the Royal Economic Society (2006–2010). He is a Governor and Member of the Council of the London School of Economics (2004–2008) and served on its Investments and Audit committees. He is a Visiting Fellow at the Centre for Financial Analysis and Policy,[7] at the Judge Institute, University of Cambridge and is a Member of the Scientific Committee of the International Centre for Money and Banking Reports on the World Economy (Geneva, Switzerland).” [Quote]

    Apart from a lack of ‘local experience’, it is hard to say he is ‘unqualified’. Performance is another matter.

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  • @John A

    You are right. But there is another lesson to draw from this: Bajans drift in to party politics no matter the subject. So, to have anything you say about awful deal will be seen as biased.
    Remember that AIG was also the underwriter for the vast number of SPVs that emerged following the spread of sub-prime loans. Some time ago some joker came on BU and proposed the launch of retail bonds to crowd-fund entrepreneurs. First, crowd-funding is high risk; when I asked who would underwrite the loans, he proposed an NGO. For Heavens sake.
    Obama had to bail out the biggest insurance company in the world; just imagine the Barbados government bailing out an NGO.

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    From the Daily Mail UK.

    “David, 50, and Chase Ergen, heir to a satellite fortune, are said to have transported an estimated 5,000 cannabis plants as part of their new business
    They had traveled with Irish actor Jonathan Rhys Meyers and his family
    But they were pulled aside by customs officials after landing and searched
    David’s family business owns the Coca-Cola Hellenic bottling plants
    St. Christopher and Nevis Police Force confirmed David had been charged
    David was released after paying bail of $30,000 and is due in court Tuesday
    Ergen was then arrested for drug possession days later after being found with ‘medicinal ketamine for bi polar’, David claims
    Cannabis Bill, 2019, is set to be passed in St Kitts and Nevis that will allow the use of cannabis for medicinal, religious and recreational purposes”

    This is the problem with these greedy pigs, let them into your country as billionaires, they believe they can do as they like, billionaires should not be allowed to invest in the marijuana trade in the Caribbean…don’t know what is wrong with these dumbass governments and PMs.

    and that is only when ya ain’t let in the ones who want to become billionaires off the backs of the majority population..because they are too close to corrupt government.

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  • Hal that’s true about people getting their toes crushed once their party appears to be criticised. I don’t get into the political thing and I am not ashamed to say I voted Thompson in and Stewart out. I think what happened here is government were a bit over zealous and wanted to hit the ground running and may not of entertained quotes for the work.
    If that’s the case just come out and say so. Don’t send the Professor out to tap dance around it. Just tell us “look we made a mistake here and will make sure it doesn’t happen again.” I have to say though it pleases me to see how bajans are now looking into everything, seeing that there is no opposition as such.

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  • @ John A

    You are right. I was pleased on May 25 to see the grossly incompetent Stuart and the vacuous Sinckler removed and had hoped that the Mottley government would be better. But it was the sudden and undebated default that caused me to be cautious.
    Since then I have been saying that BERT will fail, not because it s a desire of mine, but because its underlying paradigm was faulty. It still is. They are wrong, but no one is debating the key issues so the public is remaining in ignorance and the keyboard warriors come out.
    About committees and letters after your name, in the UK once you get over the initial barrier you can accumulate these like alphabet soups. Don’t be impressed. Delivery is what counts.

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  • @John A

    Persaud felt to list the number of restructures done by White Oak because a criticism was that it was a two man shop with little experience. Also the countries they have managed align nicely with Barbados as a peer group.

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  • Hal Amen to that and i would go further and say that the public must always be informed and kept abreast of every move. This White Oak thing is a big issue among the foreign creditors simply because they view it as being their money being used to pay the restructuring cost. I think they knew a debt restructure would come, especially when they saw the credit card interest rates the last government was willing to pay for a few dollars with the Credit Suisse loan. What I think caused the blow up in the FT article was that they found the fee being paid ridiculous as a percentage of the debt. These guys were expecting to see a rate being paid somewhere between 0.04 percent and 0.08 percent, as they know that is where it would normally fall. So when the saw a rate being paid of 0.45 percent or 45 cents on every hundred dollars they hit the roof! You got to remember these guys deal in money and fees every day for a living. Then the same white oak comes and says ” fellows by the way you all been waiting 12 months for money but you going have to wait at least another 12 months more now as well.” So 24 months without a red cent and the oak boys will draw $85000 USD a month for each of those 24 months and still get their $27 M USD fee in the end! Tell me the truth if you were a foreign creditor you wouldn’t see red too?

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  • SirSimpleSimonPresidentForLife

    @WARU, Crazy & Unstable, Hogging the Blog May 14, 2019 1:17 PM “medicinal ketamine for bi polar.”

    What???

    Like

  • 0.45 per cent is not 45 cents in every $100. It is $45 in every $100. I think you mean 0.045 per cent.

    Like

  • “Since 2016, Puerto Rico has been buffeted by a natural disaster and several overlapping, man-made catastrophes. Its government is bankrupt and owes $74 billion to bondholders: a staggering sum that amounts to 99 percent of the island’s gross national product, or $25,000 for each of its 3 million men, women, and children. It faces a vociferously hostile president, a stalemated and colonial relationship with Congress, entrenched local political dysfunction, and a bunch of angry creditors — most notably, a group of hedge funds that speculate in distressed debt and are fighting for every last penny they think they’re owed.”

    “Among the many mind-blowing figures in the fiscal plan, one stands out: the $1.5 billion earmarked over the next six years for costs related to the restructuring process itself — more than a billion of which will go to lawyers, bankers, and consultants, McKinsey included. (The firm billed the board more than $72 million through January, and its ongoing contracts total about $3.3 million a month.) The projected overall fees are more than five times what Detroit spent on its $20 billion bankruptcy, previously the largest local-government default in U.S. history, and higher even than the bill for Lehman Brothers, the $613 billion corporate liquidation that nearly destroyed the world economy.”

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  • David all that may be true but what he failed to tell us was this. Did you contact other companies like Citibank for a price from them too? Did you discuss with the foreign creditors prior to appointing white oak, as to what they would see as an acceptable alternative? Etc etc.

    My point is negotiation by mere definition of the word, requires discussion between the parties during the entire process. This clearly did not happen. Also if indeed you want to look at the cost to associated islands why then overlook Jamaica in the discussion? was it because Citibank did that and not white oak?

    Truth is David if white oak had charged marginally more than the going rate I don’t think the FT article would even be written. It’s just the factor was way too big to overlook, especially when you asking the same creditors to take a hair cut now too. I also think the whole donville issue is going to place a shadow over us for a while to come in discussions with the finacial markets in terms of transparency. Unfortunately this government will be under even greater scrutiny now too as a result of it. That my friend is the sad reality of the financial world, in that they have lonnnggg memories and are by nature therefore weary creatures to deal with.

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  • Sorry Hal yes my mistake I meant 45 cents out of every 100 dollars Making it 0.045 as compared to Jamaica who was 4.5 cents out of every hundred dollars or 0.0045 percent.

    The old eyes didn’t pick it up when I typed it thanks for pointing it out.

    Like

  • NorthernObserver

    @JohnA
    “Did you contact other companies like Citibank for a price from them too? Did you discuss with the foreign creditors prior to appointing white oak, as to what they would see as an acceptable alternative? Etc etc.”

    Do you appreciate the ramifications of time and ‘spreading the word’, for all those from whom you seek “prices” may well be acting/advising the affected parties? This niche of the world is very small. The creditors are not going to be acceptable to anything but 100%. They will balk at anything less. Time is of the essence. You pull the plug and go from there.

    Imagine you put out an RFP, saying the GoB is considering options, please submit your proposals. That will circulate like wildfire, and long before the GoB even gets the proposals, the market will be under siege. Fear is a terrible force, you eliminate fear by acting swiftly.

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  • Northern observer so you are saying that you move swiftly select the first name that come to mind regardless of cost. You seek no alternative quotes and you jump at the first price that crosses your desk. Really! Once the default was announced by our government it was public knowledge so don’t see how it could be seen as a closely guarded secret. There was therefore no problem with seeking quotes from others once the announcement to default was made.

    I can also tell you any bank or institution that leaked Information shared between them and a sovereign state would not stay in business long after that. The trust of privacy when it comes to Banker client information is paramount to any financial institution.

    Sorry can’t accept that excuse.

    Like

  • @John A

    NO answered. Time was of the essence? Some will say that the foreign component of the debt is small but the fact is Barbados had a foreign exchange problem to explain the urgency around the decision?

    Like

  • Walter Blackman

    Piece the Legend
    May 10, 2019 8:17 PM
    “@ the blogging of the blogger called JOHN A (as in the Johnnie with the Answers that has been sent from the Mugabe Regime to placate the fools)”

    John A
    May 11, 2019 1:33 PM
    “Piece……. You have Walter Blackmans comment on the NIS to balme for me coming here lol. It was so well written and factual. I was told of it by a friend on this blog and ended up sticking around…”

    John A,
    Given the independent, analytical manner in which you think and write, I am honoured to know that some comments I made ultimately provided the motivation for you to come and engage on BU.

    Your cool demeanour and style, as exhibited above, could not have escaped the notice of discerning BU readers and bloggers. The whole exchange just conjured up the image, in my mind, of a baby “innocently” driving a wooden stake through the heart of a vampire, and inwardly enjoying every minute of it.

    Carry on smartly, my friend.

    Like

  • NorthernObserver

    @JohnA
    it is not an excuse.
    With minimal research you will discover that at least one of the partners in WO, had been ‘knocking around’ Barbados for at least 3 years prior to May 2018. For all I know, so were their competitors. Once Sovereign credit ratings drop into the ‘junk’ territory, this attracts these types. They smell opportunity.
    My expectation is that several of these advisory types had made multiple calls on several of the senior public financial employees, plus a range of political types/advisors. It is called selling and getting a foot in the door. They are known to do this.
    We do not know other proposals were not received? Or that those on the ‘other side of the fence’ today, had not submitted? All we know is they selected WO. Whether it was sole sourced or not, we do not know?
    Further I am not talking about a Bank or similar institution, is WO a bank? Is Lazard a bank or “an advisory”? Kargman, Livingstone etc etc They go where their is money to be made. And if they smell on rat, they will go after cheese.
    I am of the personal opinion, the ‘success fee’ for local debt restructuring seems high. Maybe I am wrong? They are buying a package.

    Like

  • Northerobserver I agree with you on the fact that they are many unanswered questions ‘re competitive quotes etc and that is why I said before if all of the facts were shared with the public, these suspicions for lack of a better word, could all be put to rest. I think they are about 5 basic questions that if answered would put this matter to bed for good. The thing is all we are getting is persons trying to justify the fee. If they feel it can be justified then publish the scale of fees inclusive of all retension fees for us to see. It’s like you trying to sell me a company that you say does well but refusing to show me the audited financials.

    Like

  • Walter thanks it’s all your fault! Lol

    Like

  • Walter Blackman

    John A
    May 14, 2019 1:55 PM
    “So when the(y) saw a rate being paid of 0.45 percent or 45 cents on every hundred dollars they hit the roof.”

    Hal Austin
    May 14, 2019 2:02 PM
    “0.45 per cent is not 45 cents in every $100.”

    Hal,
    Yes, it is!
    John A is correct!

    Expressed as a decimal, it becomes 0.0045

    Like

  • NorthernObserver

    @JohnA
    What we have is creditors, who have not settled, trying to get the best deal they can. No problem, this is how they play. It is far preferable to dealing with Vultures.

    I agree some other info may satisfy our curiosity into the process. Yet, is this information they should be releasing? What is the benefit? So all the competitors know how they bid and how they formulated their proposal. Hopefully Bim isn’t going back here, and Sir Lloyd doesn’t have to ask…how we get back here again. Quite accurately, the public disclosure of this contract is “uncommon transparency”. Try getting a large country to divulge the terms of their latest purchase of fighter planes? A single ship contract, was the topic of a recently stayed proceeding in Canada. You think the Gov’t are laying the terms of that contract in Parliament? It contravenes “national security” and also if any of them meddled… LOL

    Like

  • David
    It would be interesting to know if ANY country that went into a DR ever issued an RFP. I would find it absolutely silly to publicly advertise your intent, as oppose to just announce that you have.🤣🤣

    Like

  • @enuff

    Was mulling the same thought. We need to be constructive in our critique. Barbados is in a deep debt hole. Al we ask is for the government to be as transparent as the NDAs allow.

    Like

  • Northern I would say we see it differently and leave it there. I don’t think sharing the details of a contract can be compared to a matter of national security such as buying fighter planes, but we both are entitle to our opinions. When you are asking us the citizens to support a contract we are entitled to ask questions and in so doing satisfy our selves that we got a good deal. Once the intention to default had been made public, I see no reason why transparency should not exist and in so doing make our requirements publicly available for tender. That way Citibank or other “boutique concerns” as the FT so delicately described WO, could then tender. I mean let’s be honest you can’t hide what you owe that is common knowledge, you also just publicly stated you intend to default so that too is no secret, so what’s the big secret after that? I can bet you the IMF will request details of the contract and what will you do then?

    Sorry I can’t agree with you on this but as I said we are all entitled to our views.

    Like

  • WARU, Crazy & Unstable, Hogging the Blog

    “medicinal ketamine for bi polar.”

    What???”

    me nah know, these airhead governments love to play around with the dangerous types.

    Like

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