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Four Seasons Project: Public Servants Must Serve Taxpayers NOT Politicians

The Four Seasons Project – Story of Failure continues to be an example of how the public continues is short changed by public officials elected and recruited to serve us. The inability of taxpayers to solicit answers to legitimate questions regarding the quality of decisions made by successive governments is an embarrassment to the type…

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The Four Seasons Project – Story of Failure continues to be an example of how the public continues is short changed by public officials elected and recruited to serve us. The inability of taxpayers to solicit answers to legitimate questions regarding the quality of decisions made by successive governments is an embarrassment to the type of democracy we should be aspire. This has to be a significant contributing factor to the social dysfunction we have been reminded by the Trojan Riddims video affair – see How De Yutes Get So?. Officialdom expresses righteous indignation at a group of artistes for violating public morals of the country, however, successive governments and public servants have been unable to defend malfeasance, financial indiscipline highlighted in years of Auditor General (AG) reports. It is surprising local calypsonians hasvenever penned a title ‘politicians laughing at we’. The Paradise 88, Four Seasons, Clearwater Bay issue suggest there is opportunity for another title, ‘public servants also laughing at we’.

Some took umbrage to the call by BU that some public servants should be fired for unresolved issues highlighted in years of AG reporting- see 2020 Auditor General Report – Time to Fire Senior Public Servants. Yesterday AG Leigh Trotman was quoted in the press calling for tougher legislation to force public servants to comply with requests for information to complete audits. A decade of AG reports and not one person handed over to the justice system for processing. Not a single public servant sacked. As we prepare to convert to a Republic meant to solidify people power, it begs the question – why are senior public servants betraying the trust of the PEOPLE?

The Four Seasons matter is a classic case of the cloak of secrecy zealously guarded by politicians AND public servants. How on earth can a government incorporate Clearwater Bay Limited, appoint directors who are public servants with a fiduciary responsibility to citizens of Barbados, yet, feel comfortable guarding the interest of politicians and the money class? These public servants must be held accountable.

  • Junita Thorington-Powlett
  • Nancy L Headley
  • Sonia Carol-Ann Foster

 

Although the AG is constrained to audit public sector business, it should not be forgotten the other signature on public agreements is often times a private sector player. The company Clearwater Bay Ltd had oversight over the transaction which led to the following comment by the AG:-

The treatment of the investment in Clearwater Bay needs to be further explained. The investment in this government-owned company was recorded at a value of $124 million investment in prior years. It represented an investment by Clearwater in the Four Seasons Hotel project. The value of this investment remained unchanged on the books of government for several years even though the property on which the investment was based was significantly impaired.

Leigh Trotman, Auditor General

The part of the AG’s comment (highlighted) taxpayers should be concerned about is that public servants who sat on the Board of Clearwater Bay as directors have been complicit in the ‘cover-up’. Many, if not all of the directors are considered respectable citizens of Barbados and competent public servants. The meetings of Clearwater are recorded in board books and should be available to the public. Unfortunately the public does not have the avenue of Freedom of Information legislation to activate an important check and balance in our system of government, this should not be necessary if the public servants serving as directors of Clearwater protected the public’s interest they are ethically required to do.

It is never too late to right a wrong Directors.

William Decoursey Layne

Adrian Maurice King

Louis St. Elmo Wooddroff

Margaret E Sivers

Sonia Carol-Ann Foster

Junita Thorington-Powlett

Nancy L Headley

 

Enter Clearwater to see Clearwater directors listed in the ICIJ – Offshore Leaks Database.

Related Documents:

  1. Paradise 88 and Clearwater Sold to PHARLICIPLE INC
  2. Request for Offers to Purchase and Develop ‘Paradise Property’

 

174 responses to “Four Seasons Project: Public Servants Must Serve Taxpayers NOT Politicians”

  1. 555dubstreet Avatar
    555dubstreet

    William
    FYI
    “dont hate the playa hate the game”
    is a phrase or idiom from an Ice-T song
    your specifying not hating is a bit anal

  2. 555dubstreet Avatar
    555dubstreet

    Re: Politicians

    Don’t hate the hustlers
    hate the hustle

  3. NorthernObserver Avatar
    NorthernObserver

    @Dub 6.34
    Are you aware the GoB incorporated a company, and these persons ( who happened to be public employees) were appointed Directors of that Corporation.
    The target is their role as Directors, not as employees of the GoB or any role they had as a public employee.
    The GoB went before Parliament and enacted a Bill, which laid out in some detail the 5 (or maybe it was 6, I forget where Cinnamon 88 fit) other entities it was guaranteeing “loans” and the amounts and reasons were laid out via the various Tranches of loan monies.
    The stated reason for this, was to permit the FS project to restart.
    The AudG makes reference to the ‘hotel owner(s)’, but since no hotel was actually built, I am unsure to whom he refers.

  4. William Skinner Avatar
    William Skinner

    @David, @ Artax
    Should have actually read : I hope they burn in the political hell and not “ you” burn in the political hell.
    Since the posts was sent @ you both. Apologies.

  5. NorthernObserver Avatar
    NorthernObserver

    @WS
    You have to ignore the noise, and focus on $124M that is “missing” especially in light of the island’s debt situation.
    The docile nature of Barbadians is a strength, but potentially a weakness when others run brazenly over them. They tend not to know how to react?

  6. WURA-War-on-U Avatar
    WURA-War-on-U

    That’s the opportunity they use to steal billions of dollars and leave the most vulnerable without water and in poverty..”They tend not to know how to react?;.tthey were indoctrinated with OUTRIGHT LIES for 54 years..

    that docility will cost Black lives on the island with these dirty no good lying ministers/politicians and their minority crook friends riding roughshod over the people..

    the people have to STOP listening to these liars, frauds and THIEVES in the parliament.

  7. 555dubstreet Avatar
    555dubstreet

    NorthernObserver
    Nope I wasn’t aware that it was a Company, which means the title and subject of this thread had not made the distinction either.
    Presumably the Government wanted their interest to be made as a Private Company, now it is failing it is purely business not political.

  8. 555dubstreet Avatar
    555dubstreet

    Sounds like Four Seasons was a Government bailout, same with LIAT, could these be the reasons Government is now bankrupt.
    Maybe Independence means Barbados can have a sovereign currency and print money like USA and UK do.

  9. David Avatar
    David

    Timely accounting essential
    The history of the Public Service of this country in accounting for and producing the relevant documentation touching on public expenditure is once again a current and critical debate, but the time for talking must end.
    Some critics speak of corruption and their views are not misplaced. Others speak of bringing in the police and other investigators and things of that sort. There are many views about what can and should be done.
    And there are many reports of successive Auditors General speaking to the question of more staff to assist with the tasks constitutionally assigned to that office.
    With respect to all that has been said, perhaps we may offer a few suggestions in the hope that the public interest will be protected. The most contentious point emerging from the Auditor General reports over the years is the fact of late submissions to his office of the financial statements of the enterprises to be audited.
    Perennial
    There is also the non-production or non-timely production of documentation required by the Auditor General’s department. These complaints are perennial. They are to be found in the reports year in, year out. It seems to us that apart from identifying formally the accounting officer of the various enterprises, a person has to be identified within each enterprise who will have to ensure the timely production of the financial statements.
    If need be, formal legislation should be enacted to ensure that such an identified person understands that he has a legal duty to submit the reports in a timely manner and that penalties enforceable at law will be applied in any instance where the statements are not filed on time.
    There should also be an officer similarly identified who will be responsible for registering and archiving all documentation relating to public expenditure over a specified amount. Equally tough sanctions will be applied to any defalcation of duty by this officer.
    The relevant new penalties should not exclude loss of employment as the ultimate sanction. We must not underestimate the importance of proper records. Corruption, if it exists, or bad or negligent management inimical of the public interest, can be concealed if documentation is absent or does not exist or is not produced to the Auditor General’s office.
    Proper paper trail
    For all we know, widespread corruption may not exist. That is not the point. What is important is a proper paper trail on why, how and where the public funds have been spent or how the public interest has been otherwise safeguarded when funds are due to be collected.
    It is incredible, to put it mildly, that dishonoured cheques in the millions are in the hands of ministries. What efforts were made to get in these monies? Have the issuers been informed that their cheques were returned?
    Assigning an officer by name and job description as having the specific authority, for example, to deal with dishonoured cheques could solve that problem.
    We can no longer tolerate slack or non-existent accountability for the performance of specific duties designed to protect the public interest.
    Let us get real. Politicians are constitutionally responsible. It is the officers whose actual day-to-day job it is to perform on whom we must now also specifically focus our attention. Financial statements must be on time and proper records must be kept. The public interest demands it.

    Source: Nation News Editorial

  10. David Avatar
    David

    Dems’ questionable $124m judgement

    The political silly season has started in earnest.
    The Reverend Guy Hewitt has launched a bid to oust Verla De Peiza from the presidency of the Democratic Labour Party (DLP). The party is now split since Mr Hewitt, it seems, has the support of some Dems.
    Some political commentators have studiously looked at this action, which seems to me, if it succeeds, to be akin to trying to change horses in mid-ocean. All I can say is walking on water is not given to human beings.
    I had intended to focus exclusively on the lack of politics in the Four Seasons project, but the description by senior DLP member, former Senator Reggie Hunte, comparing Mr Hewitt’s entry to that of a calypsonian arriving “on the stage by helicopter” underlines the large crack in DLP unity. It is a description that will stick!
    I soon expect to hear references to “helicopter Hewitt” because internecine party politics can be a cruel business, especially when annual conferences start.
    But let me illustrate how the silly season has really started. I turn to the Four Seasons project. If ever there was a project which is in this country’s national interest to get started and completed, it is the Four Seasons project.
    Now, this project was started under the Dems. The project fell victim to the 2007/2008 financial crisis after it started and after international investors had put down their money on residences to be built as an integral part of the project.
    The DLP tried unsuccessfully to restart the project. That was an honourable thing to do since they were seeking to do so in the national interest. They failed.
    Eventually, they decided to commit the people of Barbados to guaranteeing a $124 million loan from the AnsaMcAl Merchant
    Banking Group to the project and passed the relevant legislation in Parliament in early 2010.
    The guarantee given by the Government converted what was essentially a private sector investment to what then became in a real commercial sense a private sector/public sector project.
    Giving that the guarantee might be called if the project was not restarted meant that the Government of Barbados had skin in the game . . . and during the debate the BLP drew attention to this real risk.
    However, the DLP Government had backed a $124 million liability and made itself liable. But it got a 20 per cent stake in the project.
    Hence, speaking strictly, from the perspective of company law, and the duties of auditors, it is clear to me that the Auditor General would wish to see all the documentation relating to the guarantee transaction agreed by the Dems to verify the critical aspects of the transaction.
    As a matter of constitutional law, it would also be his duty. So to ask who was the Four Seasons lawyer and who was in charge of the project is to change the core of the essential debate.
    The issue is that $124 million has been paid out on the guarantee agreed to and signed on to by the DLP when they were in office, and with prominent Dems trying to inject political slings directed at the current Prime Minister in this matter is to obfuscate the issue.
    To speak on this issue as though $124 million of public money has been missing is what DLP supporters are trying to do; and is a disservice to both political parties if the issue is fully understood . . . . But, as I said, it is the silly season and anything gets thrown under the bus including the truth, the public interest and sometimes one’s own party.
    The gravamen of the issue is the judgement exercised on signing the guarantee and, now, the production of the relevant documentation for the Auditor General. The adjacent issue is how well was the Government’s guarantee supported by legal techniques in case the public money had to be paid out.
    That is the Auditor General’s concern, but it is also a question for the DLP!

    Ezra Alleyne is an attorney and former Deputy Speaker of the House of Assembly.

  11. WURA-War-on-U Avatar
    WURA-War-on-U

    Like they didn’t tief enuff in that fraud project, they plan to TIEF MORE..

    IF THEY TELL YOU TO WALK….sprint like Bolt, they are all LIARS..

  12. . NorthernObserver Avatar
    . NorthernObserver

    @Dub
    I cannot refute your conclusion it was a bailout. Much points in this direction.
    Yet it would “appear” based on the numbers, that either they were significant additional guarantees, or certain inflows were not credited to the company.
    The 5 tranches mentioned and their various sub-tranches were to total US$60M which bears a striking similarity to BDD$124M. That would mean EVERY loan was defaulted on, and all operational allowances were spent in full.
    Without the accounts it is all guesswork

  13. WURA-War-on-U Avatar
    WURA-War-on-U

    The Auditor General should have TOTAL POWER.

    https://barbadostoday.bb/2021/06/12/transport-board-under-auditor-generals-microscope/

    “The issues raised include management practices, overspending, a missing bus, over-invoicing, fleet shortage, purchases of reconditioned transmissions, lack of management meetings, a major reduction in ridership and difficulty in paying suppliers, among others.

    Zeroing in on the issue of fleet shortage at a time when substantial sums were being spent to constantly fix faulty buses, the auditor general called on Forde to give an assessment about why that was the case and what action management had taken during her tenure to rectify the situation.

    Forde simply responded that it was due to “inadequate funds” from the Ministry of Finance.”

  14. WURA-War-on-U Avatar
    WURA-War-on-U

    So who is the insurance company for Transport Board again, when last did CGI Insurance pay out, made attempts to settle or brought the cases to closure in the last 15 plus YEARS……or are most of the cases still LOCKED OFF IN THE SUPREME COURT…thanks to delinquent lawyers and judges…

    people are sick and tired of all of you sucking on BLACK LIVES…it’s time for everyone world wide to know exactly who you are…

  15. fortyacresandamule Avatar
    fortyacresandamule

    When we as a people are this docile as a sheep, those in power will see this as a weakness and abuse our gentle disposition. It was said we were the best slaves of the lot.

  16. groslyn Avatar
    groslyn

    Further to my point, do note that I spoke to the reality of the public service. This is from observation since I’ve never been a servant. What I know of it is that those who are critical of the public service usually leave because few can take on a bureaucracy & win. Those who are forced to stay usually become belligerent or worse. In my time working as a quasi, I’ve had people being sent outside of the process for employment or accommodation, have been warned about taking food out of people’s mouth because I referenced the Financial & Audits Act, etc. I’ve been in the trenches working to make changes so know what it takes to win battles as well as the reality that fighting against the tide gets you exhausted or sometimes lose you your job.
    Those in the system just laugh at the blogs suggestions & comments knowing full well the AuG will not ever get the information required. I also suggested a fix for changing the public service. Oh by the by I was also an auditor.

  17. David Avatar
    David

    The following is an extract from a 2007 dissertation by a South African on the AG service there. This comment is directed at those who are of the blinded view public servants should be exempted from being held accountable.

    In relation to late submission of financial statements, heavy penalties should be set on departments which submit late. Officials who are responsible for such misconduct should be reported directly to the Accounting Officers and face disciplinary measures. This should also be acknowledged on their appraisals at the end of the year. Encouraging personal responsibility on government officials will therefore be an effective measure to ensuring accountability.

    https://core.ac.uk/download/pdf/49241517.pdf

  18. David Avatar
    David

    @Northern Observer

    Have you heard David Ellis explaining why the $125 millions from his understanding from what Ryan Straughn stated last week was removed from the books? In a nutshell it would have been unreasonable to ask the investor to assume the debt.

  19. Miller Avatar
    Miller

    @ David June 14, 2021 10:38 AM

    (Quote):
    In a nutshell it would have been unreasonable to ask the investor to assume the debt. (Unquote).
    ++++++++++++++++++++++++++++++++++

    LOL!!

    Is it being suggested in the MoF’s quarters that the AG has been “unreasonable” also in asking for a rational explanation for this ‘unusual’ write-off of a non-performing asset?

    Of course asking an investor to assume the “debt” would have made the ‘sale’ of the property less attractive.

    But the questions still remain:

    Which investor is/was this?

    Who are the current owner(s) of the Four Seasons site and what plans are on the table to put the long idle property to productive use to generate employment and earn forex for the country in order to repay the massive foreign (restructured) loans including the growing IMF millstone around the Bajan taxpayers’ necks?

  20. angela cox Avatar
    angela cox

    DavidJune 14, 2021 10:38 AM

    @Northern Observer

    Have you heard David Ellis explaining why the $125 millions from his understanding from what Ryan Straughn stated last week was removed from the books? In a nutshell it would have been unreasonable to ask the investor to assume the debt.

    Xxxxxxxxxx

    You got to be the biggest dummy to belive that tripe
    What investor
    Is Ryan saying that the building has been sold
    Why didn’t Ellis asked him for the name of the Investor and how much was paid for the property
    Look at that David can’t belive u would repeat that tripe

  21. angela cox Avatar
    angela cox

    This govt said that bajans are fools and everyday some one steps out to prove this govt right

  22. Barbados Underground | Gold Club Properties Real Estate

    […] […]

  23. NorthernObserver Avatar
    NorthernObserver

    @David
    I did not listen to the referenced exchange.
    However, if you go back to Act of guarantee, and the intended uses of the various Tranches, they were paying off existing debts. The Act/Bill does not reference what consideration ( security) the GoB received for their financial exposure. One might expect if the intent was to re-start the project, some stipulation between funds flow and measurable actions would have been presented? The reported gatekeeper was one ‘Consolidated Finance’. What I fail to appreciate is exactly why the GoB saw the need to make all and sundry “whole”. The taxpayers took a huge hit. Why was it their fault?

  24. David Avatar
    David

    What about governments stake in the company, was it 20%?

    Facebook is listing that Maxine McClean is scheduled to discuss the matter on The Marcia Weekes Show at 1AST. Search Facebook or YouTube. The blogmaster will not have the time to view/

  25. NorthernObserver Avatar
    NorthernObserver

    What is “the company”?
    It is lovely a former unelected Minister of External affairs sees fit to talk, but like you, I will have to listen to the recorded version.

  26. David Avatar
    David

    #Interesting

  27. NorthernObserver Avatar
    NorthernObserver

    Lost.
    The GoB owned 💯% of Clearwater Bay Limited.
    They were at least 6 other companies related to the FS development. Several had the “88” moniker. Some like Eastern Resorts were UK incorporated, Cinnamon 88 was a BVI entity.
    Hence without name I am left guessing “the company” refers to the entity which actually owned something of value (land?).

  28. David Avatar
    David

    @NO

    Government when Persaud was in the chair negotiated a golden share? What is the status of governments interest in the transaction now that the 125 million was taken off the books.

  29. NorthernObserver Avatar
    NorthernObserver

    I would say…ask Persaud?
    I recall something about this share, but as Billy P sang….nothing from nothing leaves nothing. Maths even JohnK can agree with?

  30. David Avatar
    David

    Forward to about 24 minutes into the video:

    https://youtu.be/7O2Vy0ccLSM

  31. David Avatar
    David

    The Seasons saga
    MY FRIEND EZRA put up a valiant argument on page 25A in the SUNDAY SUN on June 13, 2021 and did not even have to mention the $40 million in cash paid or the expected 84.5 per cent of share earnings that the Government now is expecting from the new owners in the eventual sale of the Four Seasons property.
    I had written an article shortly after the eventuality entitled Deal Or No Deal (DAILY NATION of November 4, 2019). I believe that the previous Government under pressure invested $125 million of our money in the project by way of guarantee and eventually had to pay that amount to Ansa McAl Merchant Banking Group when the project went belly up.
    That investment may have been made in order to save face as many international investors and big names had already participated.
    Real cost
    My article sought to imply that the real cost to the eventual buyer was just the $40 million paid in cash for the prestige property and that the 84.5 per cent of expected earnings for preferential shares promised to Government was in fact meaningless in the light of possible accounting processes and the real myriad of problems facing the new owners for an expected opening in the near future.
    In fact, it was a real bargain for the buyers and the Government did not have a good deal. There was no clarification of how the 84.5 per cent entitlement of preferential shareholding before ordinary share entitlement was related.
    My friend Ezra says that the Government got a 20 per cent stake in the property but from my limited point of view the 84.5 per cent of earning in preferential share “before the owners participated in profit”, amounts to what Paddy shot at, and Paddy was a marksman.
    So the question remains. Who got a good deal?
    Up to this point there has been little activity to warrant the expenditure of $40 million, so it
    is not clearly evident who got a better deal.
    However, each passing day without activity increases the time that the investment can claim depreciation and further reduces the possibility of dividends accruing to warrant payment for ordinary or preferential shares. However, my friend would claim that the Government extricated itself from an embarrassing investment.
    The interest of the Auditor General would be an opinion on the potential value of the investment now as it concerns the Government and the taxpayers. That is, what Paddy got for his marksmanship.
    The statement that the Government got a 20 stake in the project is not very clear. In my assessment, I might have overlooked the fine print although it is not clearly stated the relationship between the entitlement of 84.5 per cent participation in dividends and the eventual buyer.
    I quote from my article. “However, for whatever reason, recovery of part of the $120 million (should have been $125 million) already spent on the property by the Government in the amount of $40 million cash is something. What was amazing is the ability to participate in the 84.5 per cent of preference shares before the owners recover a cent of profit. On the surface this is fantastic negotiating by our team that should be very familiar with the property. However, I would always remember the course to which Barclays Bank sent me in the 1960s. I was taught how to present a balance sheet. I will never forget. Don’t we see the confusion of claims for taxes from international organisations by governments where international business is conducted in many countries? Don’t we see the plethora of tax experts engaged by these international Fortune 500 companies. to save their company from paying taxes?”
    Perhaps my friend would like to reassess his exultation in the light of my commentary.
    Negotiating experts
    We are left to wonder who were the negotiating
    experts in a project to which Ansa McAl Merchant Banking Group would previously advance $125 million and the project only was able to fetch $40 million – a project for which my friend Butch (God rest him in his grave) would have given his right hand to control.
    But why does my friend include in his article, “Who was the Four Seasons lawyer and who was in charge of the project?” when the real core argument seems to be the impending sally from up north. I do not believe that such a reference is complementary to his argument.
    Harry Russell is a banker. Email quijote70@gmail.com

    Source: Nation News

  32. David Avatar
    David

    Give Auditor General more teeth

    No responsibility of government is more fundamental than the responsibility of maintaining the highest standard of ethical behaviour for those who conduct the public business.
    – John F. Kennedy
    INADEQUATE POLITICAL ACCOUNTABILITY measures are often reflected in large numerical losses, estimated at about US2.6 trillion per annum globally. However, given our general assessment of the Auditor General’s report, Integrity Group Barbados (IGB) proposes that the real cost of mismanagement of public funds and accounting inaccuracies are more far-reaching.
    Indeed, the implications of public malpractices can reduce every taxpayer’s prospect for economic prosperity, every time it occurs. More importantly, financial mismanagement of state resources can translate to qualitative underdevelopment trends, that are characteristic of many Caribbean states. Suffice to say that the promotion of political accountability, buttressed by formidable transparency mechanisms, is every civic minded citizen’s business.
    The implementation deficit
    The following are noteworthy of the Auditor General’s report:
    • irregular tendencies in Government expenditure and the prevalence of administrative deficiencies within public institutions.
    • engrained limitations in the managerial operations of state resources.
    • the absence of comprehensive criteria of determining appropriate beneficiaries of state welfare assistance, utilising cost-effective financial inputs to generate productive outputs, and
    • inadequate monitoring and evaluating of state-funded programmes that are necessary for providing assurance that financial decisions were legitimate and practical.
    Consequently, the report has offered recommendations to reinforce financial discipline, and related policy instruction on efficient procedures to remedy accounting lapses.
    However, consecutive Auditor General reports note that, to a large extent, corrective measures to rectify the infractions remain disappointingly unchanged. In the last report, the Auditor General aptly stated: “I am not aware that my requests are being addressed and this is unfortunate as it negatively impacts on the effectiveness of the Office in the recruitment and selection of staff and in the use of resources approved by Parliament in bringing to the forefront any issues pertaining to waste, abuse, and breaches
    of laws and regulations to ensure that there is greater transparency and accountability in the affairs of Government.”
    These sentiments are germane to the financial improprieties disclosed in previous auditing reports of public offices under successive administrations.
    Such patterns are indicative of the almost perpetual state of financial blunders, pointing to chronic recurrence of inaccurate accounting records. They also necessitate enforcing improvements to institutional operations, and changes to workplace cultures within the public sector. Thus, the execution of audits and the submission of related recommendations do not guarantee strict compliance, and are insufficient conditions for the effectiveness of the Office of the Auditor General (OAG) in safeguarding political accountability.
    What explains the disparity between the provision of clearly defined and straightforward communicated financial and budgetary advice and the implementation deficit? The volatile politicoeconomic climate in which our parliamentary system operates is too complex to offer a single answer without the risk of over-simplification. Nevertheless, the inability of the Auditor General to administer enforcement can be offered as an explanation.
    The limited scope of the Auditor General
    The Auditor General is handicapped by the absence of legislation and the inability to enforce existing legislation as it relates to ensuring that public officials and bureaucrats comply with best practices. Exacting appropriate remedial action where evidence of malfeasance abounds is legally permitted in accordance with the Public Service Act and Financial Administration and Audit Act. However, the absence of enforcement capabilities of the Auditor General does not facilitate sanctions in the form of suspension, much less dismissals as stipulated in these acts.
    In 2020, the Auditor General petitioned the Government to allow the OAG to penalise acts of delinquency. He has also been championing legislation that would allow for punitive measures against public servants for violations, particularly in relation to the non-submission of critical documents. He noted that these pieces of legislation must be adequate in nature, by outlining specific corresponding disciplinary enforcements to prevent ambiguity. However, in Barbados, despite the legal provisions, there have been no cases of prosecution emanating from the reporting of financial maladministration. This lack of action has undermined public sector effectiveness.
    The limitations indicate that although the Auditor General is responsible for making referrals based on investigative inquires, the imposition of penalties falls outside of the scope of his mandate. In comparison, in jurisdictions such as South Africa, the Public Audit Amendment Act (2018) not only empowers the Auditor General to press criminal charge, but to reclaim state losses derived from debt or mismanagement. The act empowers “the Auditor General to take appropriate remedial action” and to “issue a certificate of debt where an accounting officer or accounting authority failed to recover losses from a responsible person and to instruct the relevant executive authority to collect the debt”.
    Similarly, the Office of the Auditor General in New Zealand possesses the ability to interrupt payments from state accounts that are intended for unlawful or unapproved purposes. It is authorised by parliament to require statutory entities to provide documents, explanations, and evidence for questionable transactions. The Auditor General is also permitted to examine personal banking statements at his discretion. Perhaps, there is utility in considering these provisions.
    It is imperative that the Government of Barbados demonstrates willingness in responding to the requests by the Auditor General to exercise enforcement powers, especially in instances where deliberate acts of mismanagement have occurred. IGB supports and looks forward to the implementation of these reasonable and appropriate recommendations from the Auditor General.

    This article was submitted by Integrity Group of Barbados.

    Source: Nation

  33. David Avatar
    David

    FOUR SEASONS BACK ON MARKET
    The beleaguered Four Seasons Hotel property is now owned by Government, and the Mia Amor Mottley administration is looking for an investor or buyer to get the financially plagued project off the ground.
    Minister in the Ministry of Finance Ryan Straughn revealed this yesterday when he was a guest caller on Starcom Network’s Down To Brass Tacks radio call-in programme.
    He was attempting to clear the air on what was new with the project.
    “We have been trying to get the project revived, which we had been doing throughout 2019, and we were close to a solution in early 2020. We were anticipating to get the matter on track, but of course COVID-19 hit and circumstances changed with respect to the prospective investment,” he said.
    Straughn said unfortunately there was no positive movement he could now report to the country regarding the property’s redevelopment, given that the pandemic had been a factor.
    Private sector project
    “The Government owns the land, and we have been working to find a solution that will find a private entity executing the project as opposed to Government. It really is a private sector project. The Government only got involved with respect to the establishment of Clearwater Bay. We now have an asset that we did not have before because it was a private matter.”
    The minister confirmed that Clearwater Bay, the company set up by Government to deliver the guarantee of a $120 million loan by ANSA Merchant Bank to original owners of the St Michael beachfront property, Paradise Beach Limited, was the current owner of the asset. “When the Government honoured the guarantee, then the land became owned by Clearwater Bay,” he said.
    Straughn said all business relating to the project took place in the full glare of the public, and nothing had been done untoward when it was facilitated eight years ago.
    “Our job over the last three years, as best we can, [was to] see how we can get the taxpayers out of what clearly have been some errors on this and a number of other matters.”
    Drag on public finances
    He also cited the CLICO matter as an example of where Government had extended itself way beyond what underlying assets were, and that had created a drag on public finances.
    Back in June, Straughn confirmed that Government had written off the $124 million it invested in Four Seasons but denied it was done because Mottley was one of the attorneys for Clearwater Bay.
    In October 2019, while delivering the feature address at the Barbados Labour Party’s annual general conference, Mottley revealed that Barbados had started negotiations with a United States-based entity that would finally see a large hotel built on the Four Seasons site.
    At that time, she also indicated it would be one of the several tourism projects expected to kick-start the economy.
    (BA/MB)

    Source: Nation

  34. NorthernObserver Avatar
    NorthernObserver

    Bullshit. “took place in full glare of the public”. He means the glare was so bright 😎 you couldn’t see anything. Where are the annual financial reports for Clearwater Bay Limited?

  35. David Avatar
    David

    @NO

    Straughn is saying the former government granted the loan the ANSA and when is was called they had no choice but to generate the book entry. It is all one big smokescreen with Mia and Avi the principals.

  36. NorthernObserver Avatar
    NorthernObserver

    Again Bullshit. Let’s see which tranches were defaulted and exactly the amount. And what value the “books” placed on the asset(s).
    All neatly hidden, because we can never see what those entities who received the “loans” did with that money, other than defaulting on repayment. Everybody got bailed out except the local taxpayer.

  37. David Avatar
    David

    Up to now minister Straughn has been unable to say what is the value of the asset that replaced the guarantee.

  38. Hants Avatar
    Hants

    If I was malicious I would be asking hummuch de lawyers an cunsultants get pay fuh wukking de 4 seasonings dish called Parodice.

    Buh doan mine me. De BU maguffes got all de answers.

  39. angela cox Avatar
    angela cox

    Ok I get it
    As stated by Straughn the loan was made within an agreement between the two parties and guarantee by past govt to the bank
    Govt fulfilled the obligation since the principle party did not pay the loan
    However it would be of interest if govt has pursued legal avenues to recoup the 124million from the first party
    Or if govt made a decision not to do so
    In my humble opinion if taxpayers monies are used to pay off private business debt
    Govt owes the taxpayer a right of seeking legal avenues in effort to have the funds returned to their rightful owners
    Not understanding how govt might have paid off the debt and reach a point where the story ends without seeking a legal resolution on behalf of the taxpayers
    With all that is being explained the taxpayers were being dusadvantage

  40. NorthernObserver Avatar
    NorthernObserver

    Unable or unwilling?
    Was the CBL write off, the first of several lol.

  41. angela cox Avatar
    angela cox

    Powerful Earthquake Causes Damage in Haiti
    Jan Wesner Childs

    A large earthquake has shaken Haiti, causing damage to buildings.

    The quake struck Saturday morning about 7.5 miles northeast of Saint-Louis du Sud, which is about 100 miles southwest of the capital Port-au-Prince. The U.S. Geological Survey gave it a preliminary rating of 7.2 magnitude.

    There is a potential for major damage and multiple fatalities, according the

    https://weather.com/news/news/2021-08-14-haiti-earthquake-damage-injuries

  42. angela cox Avatar
    angela cox

    Can govt explained what is govt objective in managing taxpayers money when things go awry
    Can govt explain there quickness and readiness to pay off vast amounts of private investors money without seeking legal recourse
    Another question ?
    Can the average working stiff owe govt money and refuse to pay and govt gives a free pass to them
    So why is govt so hastened to give private investors free passes over and over again when these investors screw the taxpayers

  43. Artax Avatar
    Artax

    ‘Here beginneth the disadvantaged taxpayer his tale.’

    From the time “past govt” used ‘taxpayers’ money’ to create Clearwater Company to invest $124M in Four Season and, according to the Auditor General, the investment remained unchanged for several years in government’s financial records, even though the property on which the investment was based was significantly impaired,”………….

    ……….. and, when “past govt” guaranteed the loan from ANSA Merchant Bank and had to repay due to default.

  44. Artax Avatar
    Artax

    angela cox August 14, 2021 10:23 AM

    Can govt explained what is govt objective in managing taxpayers money when things go awry
    Can govt explain there quickness and readiness to pay off vast amounts of private investors money without seeking legal recourse
    Another question ?
    Can the average working stiff owe govt money and refuse to pay and govt gives a free pass to them
    So why is govt so hastened to give private investors free passes over and over again when these investors screw the taxpayers.
    +++++++++++++++++++++++++++

    Very good questions.

    Perhaps you should ask Fruendel and Chris to answer them as well.

  45. TLSN Avatar
    TLSN

    I now understand the phrase: “two bald men arguing over a comb.”

  46. angela cox Avatar
    angela cox

    ArtaxAugust 14, 2021 10:40 AM

    angela cox August 14, 2021 10:23 AM

    Can govt explained what is govt objective in managing taxpayers money when things go awry
    Can govt explain there quickness and readiness to pay off vast amounts of private investors money without seeking legal recourse
    Another question ?
    Can the average working stiff owe govt money and refuse to pay and govt gives a free pass to them
    So why is govt so hastened to give private investors free passes over and over again when these investors screw the taxpayers.
    +++++++++++++++++++++++++++
    Xxxxxcccccccccv
    Very good questions. CORRECT

    Perhaps you should ask Fruendel and Chris to answer them as well

    Here goes the tell tale of the Blame game
    At this point who is managing the economy should be asked

  47. David Avatar
    David

    Here is a good look at how polarizing partisan politics can be and will not help to move us forward.

  48. Donna Avatar
    Donna

    Okay, then! That is exactly what I was searching for, the cost of the asset we have received in exchange for clearing the liability.

    In addition to the two hard ears kittens, a months old puppy has decided to invade my property and settle there, mission accomplished with two shakes of a dog’s tail. He simply will not leave and so now he is ours.

    So… I thought the disruption was interfering with the brain function again.

    I cannot decide whether or not I am happy to discover that did not miss the crucial revelation of market value of the asset we have acquired in the exchange for the 124 million dollars.

    Do these people think we are numbskulls, or what??????!!!!!!

    Did they expect to settle the controversy with a gaping hole in the middle???

    Give us the HOLE story, man!

  49. Hants Avatar
    Hants

    @ Artax ,
    Here beginneth more fees for lawyers, consultants, realestate agents.

    4 seanonings. the gift that keeps on giving.

  50. NorthernObserver Avatar
    NorthernObserver

    @ac
    Tell muh, causin I en got it yet. Who are are the ‘two parties’, principal party and first party you refer to?
    Imagine the GoB could lend out over $100 million of de peeples munny, and get stiff for all of it? Who valued the asset prior to the guarantee to ensure its value covered the guaranteed amount of loans.

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