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Who is LIAT Majority Shareholder_ Antigua or Barbados

Submitted as a comment to Adrian Loveridge Column – Keep Working it blog by Artax.

It seems as though talks between the governments of Barbados and Antigua & Barbuda relative to the sale Barbados’ shares in LIAT have recommenced.

https://barbadostoday.bb/2019/12/13/antiguan-pm-reports-movement-in-liat-share-talks/

After all the “back and forth,” … and the government of Antigua securing a US$15.8M loan from the Venezuela ALBA Bank to invest in LIAT we haven’t heard anything from Tourism Minister Kerry Symmonds as it relates to this issue or what is government’s short-term or long-term position on the airline.

I’m wondering why, as the majority shareholder, the government of Barbados is allowing Antigua’s PM Gaston Browne to take the lead on issues relating to the restructuring and recapitalization of LIAT?

And, so far, Chairman of the shareholder governments, SVG’s PM Ralph Gonsalves, has remained extremely silent on these developments…… and we haven’t heard anything from the other shareholders as well.

Mia Mottley should realize she or any member of her administration does not own the 49.4 shareholdings in LIAT … they are owned by the Barbadian tax payers. As such, she is obligated to inform Barbadians about any new developments relating to the airline.

112 responses to “Who is LIAT Majority Shareholder_ Antigua or Barbados”

  1. Sargeant Avatar
    Sargeant

    All the news about LIAT is being conveyed by the Antiguan Gov’t including the latest re the purchase of the Barbados Gov’t shares. I guess we will have to wait until the PM speaks so the Gov’t that promised transparency can decide what news to share with Bajans.

    We gathering

  2. David Avatar
    David

    @Sargeant

    Be patient, the PM will back soon!

  3. Sargeant Avatar
    Sargeant

    @David

    I wasn’t sure of the travel schedule, guess the “many hands make light work” was a fiction, its Xmas could we weave those words into a Seasonal story about Santa and the silent elves who are idle in the workshop awaiting Santa’s return.

  4. David Avatar
    David

    @Sargeant

    You are the one who patented ‘navel gazing’ in this space.

    Hope to see you at the gatherin, it has the diaspora lit up!

  5. Sargeant Avatar
    Sargeant

    @David

    My WhatsApp has been inundated with updates but I am a Ch Ch man and October is too late for me, look for me before Winter is over but January would have been ideal as that is reserved for St. Lucy and I could go to River Bay and sing

    “Yes we will gather at the river,the beautiful beautiful river……”

  6. Vincent Codrington Avatar
    Vincent Codrington

    If GoB is in a negotiation,can it be said to be negotiating in good faith if it gives a ball by ball commentary on the proceedings? Is that how business is transacted these days? Is this the New Normal?
    When one makes an offer ,clearly one does not want to be a large shareholder or any shareholder.

  7. Sargeant Avatar
    Sargeant

    @VC
    Any notion of keeping your cards close to your chest has been lost when the other party is spilling the beans to the Press….
    BTW the shares are not publicly held (in a manner of speaking) so informing the public will not affect the price.

  8. Mariposa Avatar
    Mariposa

    Don’t hold uh breath by the time uh hear the deal would be signed
    That is how dictators operate
    Transparency what
    Transparency my foot
    Bones were hauled out of this country and by the time the people got a whiff of the news the bones had travelled thousand of miles and traded for nurses
    Gimme a break
    Wunna wanted change now deal wid it and stop complaining

  9. Vincent Codrington Avatar
    Vincent Codrington

    @ Sargeant

    Negotiations were never meant to be a public affair. Publicity disrupts the process and leads to shouting matches that can be counterproductive. Others may lead. Barbados does not have to follow. We have a reputation to uphold.

  10. Sargeant Avatar
    Sargeant

    @VC
    How do you know that the parties are negotiating? We have one side announcing that it has reached agreement with the other and the other side “mum” in response. Not even a “no comment” nor “we’ll have an announcement when the time is ripe”.

    “Reputation”? Yeah all those countries going around whispering “Barbados can be trusted to keep secrets, even when the secret is out”.

  11. Sargeant Avatar
    Sargeant

    “when the time is ripe” Freudian slip for “when the time is right”

    and I’m not even into the Xmas sauce

  12. Miller Avatar
    Miller

    @ Sargeant December 14, 2019 8:36 PM

    Carpe diem!

    For, ‘right or ripe’, TIME waits for no one.

  13. David Avatar
    David

    One would think in the interest of a good Caricom member a matter like this would be negotiated business like.

  14. john2 Avatar
    john2

    In that case MAM wouldn’t be the first bajan dictator. if you go back just a few years we had the Cahill contract, the innotech contract that no one heard about until the change of government.

  15. Mariposa Avatar
    Mariposa

    John2 u talking poop
    The two u mentioned was discussed in Parliament
    So far Mia has signed several agreements right up their in Kenya without Parliamentary debate and if u be honest cast yuh mind back to May when the default was heard after the ink was dried
    Yuh got to be kidding Mia is making Cahill look like Sunday School class when compared to the numerous agreements Mia has signed without an iotta of transparency
    You dont think that is bold faced dictatorship right up in the people face that need to be called out

  16. Wily Coyote Avatar
    Wily Coyote

    @David

    “Be patient, the PM will back soon!”

    What, chief media rep, Magabe, out of the country and non of the 30 “odd” highly paid ministers not qualified or otherwised to comment. Sounding more and more like a DICTATORSHIP.

  17. john2 Avatar
    john2

    The AG was the lead negotiator
    I would expect him to be the one to share the details

  18. john2 Avatar
    john2

    Mari

    Do you understand the difference between an agreement and a contract?

    Was the two contracts under the DLP debated in parliament before the signings? Bring the proof

  19. Mariposa Avatar
    Mariposa

    John2 you can search Parliament Archives as far back as march 2014 and you would find Parliamentary debate on Cahill
    Now go find me Parlimentary debate on the removal of slave bones
    Also on the default
    Also on the sale of land at Coverly to Maloney
    Also her ridiculous utterance on giving money to squatters for relocation

  20. John A Avatar
    John A

    Well before I hear if i do that is, what we are being paid for our shares I would like the following information.

    What was the total loss LIAT made based on their last audited financials?

    Secondly how much money did we have to pump into LIAT over the last 5 years as a shareholder?

    Finally will a sale of our shares remove us from all liability, or are we still bent on being a small shareholder and a big debt holder at the same time ?

    I really not interested in all the window dressing and talk just give me the above information so as a shareholder I can see what I really am “investing ” in.

  21. John A Avatar
    John A

    Wait I forget a question!

    In the last ten years has Barbados as a shareholder in LIAT ever received a dollar in dividends from their investment?

    If the answer to that is no well what the hell wunna want to keep a single share in Liat for then? If Mr Browne want them and willing to pay let he have ALL not some!

  22. Vincent Codrington Avatar
    Vincent Codrington

    @ John A at 9:25 AM

    I agree with you 100%. That is the kind of data that we need to form a useful comment. We need to quantify our inputs into LIAT. And our benefits . Then we can see the wisdom of withdrawing our ownership thereof. We price according to losses or benefits. It is not who shouts the loudest.

  23. John A Avatar
    John A

    @ Vincent

    If You want the public support on an issue then give them the data and stop treating them like children.

    Maybe they feel if the data is shared then there will be no support for even remaining a minority shareholder, who knows. All I can say is that as a tax paying shareholder I getting tired being treated like an 11 year old child.

    Remember when you were young and you asked your parents why and they would say because I say so! Lol

  24. bimjim Avatar
    bimjim

    From a former LIAT employee (left in 1996) who “know ah whaah goaaan”…

    — What was the total loss LIAT made based on their last audited financials?

    Nobody really knows. LIAT has NOT PUBLISHED audited annual accounts for over 40 years. And even today’s shareholder PMs are not ashamed of that fact. Some years ago someone I know went and asked for a copy of the latest accounts — and was told in no uncertain terms they were none of his business.

    — Secondly how much money did we have to pump into LIAT over the last 5 years as a shareholder?

    Nobody really knows. As in question 1, LIAT calls out for cash, and the shareholders buckle. The last few years it has been a six-monthly beg-and/or-threaten for cash for LIAT which they would not have needed if LIAT was not run – from top to bottom – by po9litical appointees who have NO CLUE how an airline should be run. On top of that, LIAT is now run by a CEO whose career is hotel book-keeper and has ZERO airline or aviation qualifications or experience. She only has the job because of her “good friend” Board Chairman Jean Holder.

    — Finally will a sale of our shares remove us from all liability, or are we still bent on being a small shareholder and a big debt holder at the same time?

    Of course not. As long as the status quo remains, Marxist Comrade Fat Boy Gonsalves will waddle around the eastern Caribbean alternately begging and threatening the PMs of other LIAT destinations for more money, mo0re money. The fact that there are other ways of making LIAT economic is irrelevant to a Marxist when he can dig deep into the pockets of taxpayers.

    — I really not interested in all the window dressing and talk just give me the above information so as a shareholder I can see what I really am “investing ” in.

    There you go. Can’t get any plainer than that.

    Back in April last year Queen Mia, the current elected dictator, wiped Parliament clean of DLP promising transparency. Now ion the case of LIAT alone she has called THREE meetings of the old guard of losers who were running LIAT to ask them what to do, what to do? And the only response they can give her – because they simply do not know anything else (or better) is to keep on keeping down the same road.

    To date not she nor any of her Ministers have enlightened the people of Barbados (as above, the actual owners of the LIAT shares) what happened at those meetings, what decisions were made (or not made) or anything else.

    In June last year Queen Mia, the current elected dictator, received a 20-page document outlining the problems with aviation, both in Barbados and the eastern Caribbean (including LIAT), and without even an acknowledgement appears to have ignored it in its entirety.

    Which brings me to the Barbados CAA and ICAO/IASA Category One (evaluated and awarded by the US FAA). A decade ago the Minister for aviation told me that legislation for a CAA and to enable a Category One rating was en route to Parliament. Being a thoroughly corrupt administration, that was not true and nothing ever happened.

    In the closing days of that administration – despite being flat broke – they pumped a million dollars into a new CAA building at Charnocks – at least a mile from the airport. How they thought the CAD/CAA Inspectors would be able to do their jobs from that far away baffles me, because they are the most effective when they are on location. But political decisions, as we know, tend not to bear any relation whatsoever to reality or to practicality, and the beat goes on.

    Most recently, Queen Mia, the current elected dictator, offered Antigua most of “her” shares in LIAT. AT the meeting for negotiations, the “ask” was revealed as $40 million (nobody is revealing what currency), and when the Antigua contingent declared that was too rich for them and buckled in for negotiations the Barbados team walked out.

    The result of that arrogance was that “flat broke” Barbados lost an opportunity to put an extra US$15.8 (BDS$31.6) million into the Treasury, and faced Antigua putting their stake directly into the airline. Now they are all smiles again, but a smile is a frown upside down, and for two-faced politicians those can switch back and forth as if that were normal behaviour.

    My personal hope is that PM Browne of Antigua&Barbuda will convert LIAT into a commercial enterprise by ridding it of all the political appointees – starting with that ridiculous Board Chairman Jean Holder and scooping out all the way down to the equally ridiculous CEO Reifer-Jones – and replacing them all with regionals who have at least a sparkle of a clue about aviation, a modicum of common sense, along with a globally experienced CEO who is a turn-around artist.

    Yes, LIAT would contract initially, but once on the road to commercial viability and profitability there is no limit to what LIAT can do. If staff were laid off initially, would they not be first in line when the inevitable expension comes?

  25. Mariposa Avatar
    Mariposa

    John if u were following the back and forth and what was said in the media from Browne utterances
    Most of what he said was barbados was offering a deal that was unconscionable with regards to a offering price inclusive of barbados debt in Liat

  26. David Avatar
    David

    @John A, Vincent

    Successive politicians have put abroad the view that LIAT was funded as a regional good in the context of supporting regional integration. What financials what!?!

  27. John A Avatar
    John A

    @Mariposa

    Yes I saw the political lip service, but as I said I put little faith in what politicians say. My concern as a shareholder is that you are asking me to hold on to an asset based on what, sentiment?

    Bimjim says they have not filed financials for 40 years, if this is correct then all of the prime ministers should be flogged by the tax payers from each island. I however am only interested in OUR investment or lack there of and it’s effect on the back of the tax payer.

    If the MOF wants us to remain a shareholder in LIAT then bring the financial data that Vincent and I are asking for. If you can’t do that then sell the blasted thing. I mean where in the world would investors hold onto a entity that loses money yearly, has never paid a dividend to the shareholder and calls for cash injections every few months with no audited financials to support their request?

    If you ask me the prime ministers who represent us the shareholders, were they see as CEOs representing our interest in any other investment would of get fired long time!

  28. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU at 10 :19 AM

    Agreeing on the price for Barbados’ shares in LIAT is a financial transaction. Do you want the taxpayers of this country to salvage nothing? It is our money that went into LIAT. You are undervaluing the State’s assets. The message will soon be spread abroad that Bajans are soft. Ask Piece for the alternative term for “soft”. It is Sunday and I profess and call myself a Christian.

  29. john2 Avatar
    john2

    Mariposa

    Do you understand the difference between parliament and cabinet

  30. John A Avatar
    John A

    @ David.

    I don’t give a rats ass what politicians have said. If you are asking the tax payers to subsidise an entity, then you better be able to quantify the benefits to me in terms of cost and return. If you have no audited financials to support your request then what exactly am I supporting? What exactly are my shares worth and based on what have you arrived at the valuation?

    Sell the dam shares and be done with it. BARBADOS will never suffer from airlift from LIAT as we are one of their highest revenue routes regardless of who owns it.

  31. John A Avatar
    John A

    Just make sure if you take Mr Browne offer wunna put in a clause in the sale agreement that states “Barbados will be free on acceptance of this offer from all past and future liability.”

    That clause will be worth more to wunna than the $15M USD that Antigua offering in the long run trust me.

  32. David Avatar
    David

    @Vincent and John A

    When Barbados increase holding by snapping up LIAT debt all those years ago did we ask for financials? As a public- including the political opposition and NGO players- did we ask for financials? Successive governments have operated with LIATs full in the knowledge they have signed blank cheques. Thankfully this thinking has been curbed by the perilous financial state if Barbados affairs. Antigua will learn in time.

  33. John A Avatar
    John A

    @David

    You remember when Butch say the fastest way for a billionaire to become a millionaire is to buy an airline?

  34. Mariposa Avatar
    Mariposa

    John investors does not rely on political sentiment to make an offer unless in rare occasions govt finances are offered as a substitute to off weigh potential debt that the investor might have to incurred from the seller
    It is not as simple take it or leave it either
    From all that is known and said in and out of Parliament the weight of Liat financially is burdensome
    Now any potential buyer wanting to take such debt off a shareholder first would ask what or if their any benefits in buying the shares and if the problem goes back to a long range of debt
    The buyer offer would make a bigger play and also can change or lower the seller price in what they are asking

  35. Hal Austin Avatar
    Hal Austin

    @ BimJim

    If LIAT has not published annual audited figures for 40 years, is that the result of incompetence or corruption or both?

  36. John A Avatar
    John A

    All that is true but without up to date financials you are basically making a “good will” offer. In other words neither the buyer or seller can quantify their share value based on data.

    When you dealing in good will offers on non quantifiable share value it boil down to 2 things. How bad does the buyer want it vs how bad the owner wants to offload it.

    This is well and good when 2 private owners playing with their own money. But when 1 playing with my tax dollars, I have a right to know how the sales price of my shares were arrived at. This is another typical case of a lack of financial responsibility by our divine leaders over the years.

  37. John A Avatar
    John A

    What we are seeing here is that all of the governments of the Caribbean over decades have been willing to write cheques to an entity basically supported on nothing more than its request.

    No wonder all we had to call on the IMF at sometime, when you run you business like this what you expect!

  38. Artax Avatar
    Artax

    John2

    Did we really need a parliamentary debate on removing “slave bones” and relocating them to Ghana?

    Did we have a parliamentary debate when the former DLP administration leased the land at Coverly to Maloney for 99 years?

    John A

    Is there anything wrong with asking this BLP administration to give us more information relative to its short-term or long-term plans for LIAT?

    So far, all information pertaining to LIAT comes from Antigua & Barbuda’s PM Gaston Browne, who also keeps Antiguans informed of his decisions or any new developments as it relates to the airline.

    We had Antigua making an offer to purchasing some of Barbados’ shareholders in LIAT, which was first announced by Browne, with Mottley making a statement on the issue a few days after. All we were told from our end was that a negotiation team, headed by Dale Marshall, was formed and was to travel to Antigua to commence negotiation talks. The negotiations subsequently “broke down,” which we learnt from Browne, with him saying he was no longer interested in purchasing the shares and opted to borrow US$15.8M from the Venezuela ALBA Band to invest in LIAT.

    Mottley and Marshall have since remained silent on these issues.

    The plans for restructuring and recapitalizing LIAT, lay-offs and salary cuts were announced by Browne, who now has taken the lead in making policy decisions…….pending those decisions are approved by the other shareholders……. while demanding the other shareholder governments to bring the total anticipated contributions to the airline, to an estimated US$35M.

    The chairman of the shareholder governments, SVG PM Gonsalves, has also been silent on these matters.

    Now we are hearing about new LIAT negotiations, which, again, was announced by Browne.

    Ironically, all plans to restructure LIAT and make it profitable were resisted by successive PMs of A&B.

    LIAT has been experiencing financial difficulties for years and incurs losses on an annual basis. Yet, the shareholder governments keep “pumping” money into it.

    However, John A, I agree with you that Barbados should sell ALL its shareholdings in LIAT…… to Browne or whoever is interested in purchasing them.

  39. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU at 10 :44 AM

    Are we not under a New Dispensation of Transparency and Accountability ? We are simply asking for information that underpins the decision?

    David it is time to grow up. Do you really think that it is the perceived financial position that we are supposed to be in that caused the present situation with LIAT? It is sheer incompetence and politics in play. Show me the data. That is all John A and I are asking for.

  40. David Avatar
    David

    @Vincent

    What new dispensation do you mean?

  41. john2 Avatar
    john2

    I agree we should sell the shares in Liat but is there another measuring stick beside p/l for goverments to consider?
    The business man is only concerned about P/L the economist/Gov is concerned about the amount of economic activity generated / money turned over by the passengers.

  42. Vincent Codrington Avatar
    Vincent Codrington

    @ David Bu at 11:19 AM

    Are you saying,there is nothing new under the Barbados Sun? Not even on Sunday? WOW !!

  43. John A Avatar
    John A

    @Artax

    I say that not because I am anti LIAT. If we were shareholders in any entity where our investment was unquantifiable and we were flying blind without financial data, I would say the same thing especially after years of losses.

    You can’t use the overtaxed Bajan as an ATM when you have failed to operate the said entity as a business. If the Caribbean leaders can sit around a table and throw money in LIATS pot without knowing it’s financial status, then that should be a major concern to all of us in the region.

    While $15M USD may not be a great offer what will holding on to LIAT cost Bajans say over the next 5 years? Who is to say in the absence of financials it may not come to $15M USD or more.

    The way this matter has been dealt with is an embarrassment for all of us.

  44. Vincent Codrington Avatar
    Vincent Codrington

    @ john 2 at 11:20 AM

    Your additional lists are Financials .

  45. John A Avatar
    John A

    Oh and before some politician come and mention an operating profit say for a quarter let me stop them right there. That is like a store looking at its Christmas eve sales and trying to use that as a reference for their annual sales based on their best days performance for a bank loan!

    What we want is audited financials which will include depreciation on fixed assets, finance charges and all other operating expenses over an audited year along with their confirmed and booked true revenue.

    In other words in Bajan terms ” we want to see everything that wunna would need for a bank loan.” After all you coming to me for another one ain’t yuh?

  46. David Avatar
    David

    @Vincent

    Can you name a political party that has not run on a platform of change and transparency?

  47. David Avatar
    David

    @John A

    Could be the shareholders are using the financial consideration used by the CDB to loan millions to purchase the new planes. Were financials submitted to support that loan request Dr. Smith?

    Just saying.

  48. Bajan in NY Avatar
    Bajan in NY

    @Mariposa December 15, 2019 9:21 AM
    Also on the sale of land at Coverly to Maloney

    who sold the land at Coverly to Maloney, wasn’t it minister Michael Lashley?

  49. John A Avatar
    John A

    @ David.

    Based on lack of financials and everything else I doubt LIAT as a stand alone entity could borrow money. I would think when they need a ” donation” for whatever reason, the shareholders would have to anti up based on their own individual means. How ever you look at it one can only conclude it is a piss poor example of financial management.

  50. Mariposa Avatar
    Mariposa

    Bajan Ny

    in Coverley land deal – Barbados Today
    Jan 16, 2019 · While Coverley developer Mark Maloney is set to earn millions from the relocation of Ross University School of Medicine students, Government was also a big winner. Prime Minister Mia Mottley yesterday revealed that government has sold its lands at Coverley to Maloney for $13.5 million, three times the worth

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