IS A LANDATE PROBE REALLY A WASTE OF TIME?

The Trinidad Guardian in screaming headlines has reported wealthy contractor Emile Elias, the owner of NH International Company Limited (NHIC), as saying that any probe into Landate would be/is a waste of time and money. According to Mr. Elias, there have been lots of probes into that project and they have all come up with nothing except a huge cost to the taxpayer.

I can understand that Mr. Elias would like all questions on Landate to simply go away if not disappear altogether. The problem is that it just isn't that simple, nor is Mr. Elias all that correct. Indeed, Mr. Elias in the Guardian story (assuming always that he was quoted accurately) has indulged in telling only half the story ... and everybody knows that half-truths are often more dangerous than lies.

The whole truth is this: way back in 2004 there was a Commission of Enquiry (COE) into the construction of the Scarborough General Hospital headed by retired Justice Annestine Sealey. The "players" were NIPDEC which was the owner of the project, and NHIC which was the contractor. (Incidentally, NIPDEC was then headed by Calder Hart!) There were several complaints surrounding the project including the question of rather serious cost overruns. Another serious question was whether or not materials were being transported from the Scarborough General Hospital site to another site where NIPDEC was also the defacto contractor. This site was owned by Dr. Rowley's wife and was known as Landate

The allegation was that valuable construction materials were being transferred from a public works project to the private Landate project illegally.

NHIC at first participated in the COE but withdrew before one of its senior managers could be cross-examined on this question of illegally transferring materials. The evidence that came out of the COE (amongst other things) was:

(a) that the terms of the contract were that the materials became the property of the owner (NIPDEC) as soon as they arrived on site (my emphasis);
(b) that the engineer had no idea that the materials were being moved;
(c) that, in the words of the Quantity Surveyor for the project Mr. Cleveland Leonard (partner to local Transparency Jefe Victor Hart), this moving of materials was "a recipe for chaos"; and
(d) that there had been no real or proper accounting concerning what materials had been moved.

NHIC at first tried to say that the materials belonged to their corporate entity and that they could do with them whatever they liked. They argued that in any case, moving materials from site to site without the knowledge or consent of the engineer was standard practise in Trinidad & Tobago. Unfortunately for NHIC, the only witnesses who supported this thesis were from NHIC. In addition, the contract clearly disproved the allegation that the materials belonged to NHIC.
Well, the COE recommended that the police investigate the matter with a view to seeing whether or not NHIC had breached the provisions of the Larceny Act. In other words, had NHIC stolen the materials?
NHIC would be guilty of theft if it could be shown that the materials that were removed from the Scarborough General Hospital site to Landate had not been accounted for and if in fact NIPDEC had paid for them. Remember, the engineer had no idea that NHIC was removing the materials!

The matter has lain fallow now for 6 years. The DPP reported about a year ago that the police said that they couldn't investigate the matter because they did not have the file and they didn't have a copy of the COE's report! Good grief! Only in a Mickey Mouse country could such an excuse be made. But, it has held water up to now!

Mr. Elias also says that the matter should not be investigated because the Integrity Commission (IC) already did so and the High Court has ruled on the matter. Well, again, that is only half true. What happened was that the IC decided that Dr. Rowley had breached the provisions of the Integrity Act in regard to his declarations on Landate and had decided to prosecute him. Dr. Rowley applied to the High Court for judicial review of the decision to prosecute him saying that he had not been given a chance to explain himself. The High Court agreed and said the IC was wrong not first to give him a chance to be heard. And that was all! The substantive question on the issue has never been determined.

So, let's see what happens next. Will the new Director of Public Prosecutions deal with the matter or will he just let it slide ... again?! Or put another way, is the Landate probe really a waste of time? Stay tuned, my friends.

Opposition Unity … Unachievable Fact or Achievable Fiction?

There is a lot of talk going around about all the “work” that certain committees of both the UNC and the COP are doing to work towards a unity that will be real and lasting. Persons are calling for Mr. Dookeran to meet with Mrs. Persad-Bissessar quickly so that a united front can be presented for the looming Local Government elections which are due by September of this year (unless postponed again … but that is another story!).

Speaking for myself only, I am more than a little fed-up with the nonsense that is emanating especially from the COP camp on this subject of opposition unity. You see, I believe that if you ever want to understand a problem you should go back to basics. Now, if two (or more) political parties want to consider uniting the obvious questions are: what are our differences in terms of policies and philosophies? What are the policies and philosophies upon which we agree? On what issues are we prepared to compromise our values and beliefs in terms of the differences in our policies and philosophies and why would we want to compromise them?

Sort of obvious when you put it down like that, eh? But have you heard any COP or UNC leader talk about this? No! Why not? Answer: Because the truth is that there are no fundamental policies or philosophical differences between the UNC and the COP. None whatsoever! Or, if there are, they are so small that they could easily be resolved. No. The problem of achieving unity between the two political parties has nothing to do with ideology, but everything to do with jobs and positions. In other words, the ‘big’ boys realise that if they do have unity then a lot of them will have to give way and step down from the positions that they now enjoy. Mr. X will no longer be a deputy political leader, Mr. Y will no longer be a chairman, Mrs. Z will no longer … well, you get the point.

The problem is that there is a large segment of the population that is fundamentally opposed to the PNM and would like to see change. Some people feel more comfortable with the COP leaders being in charge and others with the UNC leadership holding the reins. The problem that the COP supporters have is that there aren’t enough of them in any one constituency to win a seat. The problem that the UNC has is that if they could get at least fifty percent of the COP supporters to vote for them (with the remaining COP supporters either staying home or voting for the COP) then the UNC would be assured of a victory at the polls. Unfortunately for the COP there are quite a few COP supporters who will vote for the PNM before they would vote for an enlarged UNC that absorbed the COP. Following on Kamla’s January trouncing of Mr. Panday in the UNC internal elections a fairly large segment of the COP support pealed off and “returned home” to the UNC. So, the COP has the problem of convincing their UNC counterparts that the remaining rump of their supporters will follow them “to the gates of hell” if necessary, and that these supporters are indeed numerous enough to make the difference between defeat or victory.

The UNC needs to approach the proffered chalice of potential unity with a great deal of caution. Frankly, if I was advising Kamla, I would tell her to run at least two different polls very quietly amongst the COP supporters to find out exactly how much COP support has indeed come over to the UNC, how much remains, how much will stay if some sort of accommodation is reached, what exactly are the issues that concern the COP supporters, and who in the COP is worth my while to keep and who should I discard. Why would I advise that at least two polls be run? Because when I get the results from the first poll I would immediately verify it with a second using a different team. If the results are the same, then I would know that I have a fairly accurate reading. If they are different then clearly somebody somewhere has made a mistake.


And why would I keep it quiet? Come on! You really don’t need me to answer that, do you?

LIFE IN THE TROPICS

You really can’t say that life in good old T&T is boring. In the last two weeks we have been inundated with all sorts of developments in or on the country’s political landscape.


First of all, two days before the judgement in the UDECOTT judicial review case the allegations burst on the scene with documents that if true show that Sherrine Hart, the wife of Calder Hart, is related to certain directors of Sunway Corporation and CH Development. The allegations are serious indeed. Then, before we get a chance to breath the judge hands down her ruling in the UDECOTT matter. She said in essence that while Uff and his fellow Commissioners were negligent and while they did exhibit bias, that was not enough to set aside the Enquiry report. UDECOTT has still to decide if it will appeal. Then, the very next day (Saturday), Calder Hart resigns and leaves the country. Chaos appears to ensue in the Government camp as Prime Minister Manning also leaves the country for England to attend a Commonwealth function.


In the meantime, there is also the story of a $30 million church being built by a small Christian sect in the heights of Guanapo. What makes this news is that the sect is headed up by the Prime Minister’s spiritual adviser/prophetess/ seer woman (whatever you want to call her). Also, the church is being built by Shanghai Corporation. The obvious question: where did this little church get the money to build such a huge church has remained unanswered and as a result ugly and unnecessary suspicions and rumours are circulating all over the place. In addition, it was reported on hearsay that the Prime Minister himself has been seen up there “several times”.
Mr. Manning, in what can only be described as an extraordinary performance in Parliament, lambasted his critics on the question of the church likening their criticisms to “religious persecution”. Had it not been for the Calder Hart revelations the following week no doubt this matter would have continued to dominate the news. As it is, it has not completely gone away.
Then, just when we think that we have heard it all, out comes the news hard on the heels of an announcement that the President was going to appoint a new Integrity Commission on Monday 15 March, which he did. On top of this, we learn that “a former Government Minister” is being investigated for breaching the Integrity Act. Still with me?

The allegation is that the former Minister failed to declare a very large Cayman Island bank account run by his wife in which there was over US$6 million. As rumours began circulating as to the identity of this former Minister, Dr. Keith Rowley came out almost immediately and said that the rumours were all pointing at him but that they were not true. He said he does not have any money at all outside of Trinidad & Tobago.
That might be true, but I don’t think that that was the exact allegation. I believe that the exact allegation was that it was the wife of the former Minister who has the alleged account. But let’s face it, I certainly do not know the identity of this former Minister and I certainly can’t say that it was Dr.Rowley who was being targeted. I did find his denials though a bit strange in that they were very specific in one way -- ‘I don’t have any accounts outside T&T" -- but vague on whether or not he was connected in any way with this alleged Cayman Island account. E.g., through his wife or some corporation ultimately controlled by her.
Again, let me be clear: I am not saying that this is so, just that I found it a little strange that Rowley was not specific in one regard while being very specific in the other. In any case, my guess is that we will soon find out who the alleged former Minister is when the charges come down. And I have been told by persons who should know that charges are coming. We’ll see! If it is Dr. Rowley who is charged, that will be a political earthquake equivalent to the Haiti and Chile quakes combined. Any other former Minister would only be passing headlines.

Then the Prime Minister goes on a walkabout in San Juan and tells the nation that there is basically a war going on between his Government and certain elements in the construction industry. In this war, he says, “some soldiers may fall”, but he made it clear that this will be a fight to the finish! Wow!

No right thinking person can be happy with what is going on. There is an old African saying: “When elephants fight the grass gets trampled”. Most of us are grass in this fight between the elephants that are on the stage right now. But grass has a way of catching fire when there is too much heat and the elephants themselves can end up being burned in the ensuing conflagration.


In 1990 then Prime Minister Robinson started mounting a series of political attacks on the then opposition PNM that made everyone very upset. The explosion finally came on 27 July. I don’t want to sound as if I am condoning corruption of any kind. Neither am I advocating or condoning revolution. I am not. But I do think that everybody should take a deep breath and step back a little. We need to turn down the heat.

Life in the Tropics does not have to be a constant carnival.

BASIC EDUCATION

A reader sent me the e mail below which I thought was so clear and so well written that I asked for (and received) his permission to publish it on this blog. Quite frankly, I agree with everything that he has said and really could not have put it better than he has done. My sincere thanks to him.


Over a period of years I have been bleating on in letters to the editor on this and several other similar subjects that should be part of the basic education of every Trini.
There should be a course on "home common sense" that should be obligatory in all schools.The idea is first to minimise possible risks to life and limb, then improve quality of life.
Here are some of the subjects that should be covered.

1. Disasters and emergencies (Hurricanes, earthquakes, tsunamis, etc)
2. Rules of the road and road sense. As pedestrian, rider, and driver.
3. Anger management and conflict resolution.
4. First aid for first responders.
5. General health and hygiene.
6. Risk recognition in everyday life. Fire, electrocution, drowning, falling, poisoning, stings and bites, and other "everyday" risks.

In the quality of life section should be;
1. Civil rights and responsibilities.
2. Basic manners, customs, and etiquette
3. An outline of services available to citizens, and how to access them.
4. Basic home economics, nutrition, and simple home maintenance.
5. Environmental awareness and basic agriculture.

A manual covering these subjects(and no doubt others that will be identified) should be easily available to every citizen, and should be a required textbook in all schools. It should be available in electronic form too.

A diploma in these subjects would be required for entry into any government employment, including the "10 days" type programs. The examinations should be arranged so that alternative assessment is available for those with various challenges, (including lliteracy!).

I hope I have not bored you, but it is my view that many of the "reluctant" students in our current education system would benefit at least in basic life skills from this or a similar curriculum, no matter what their academic inclinations.
What do you think?

Well, what do you think?

“PRIME MINISTER KAMLA SAID TODAY … “

Harold Wilson once said that a week was a long time in politics. He made this now famous comment when the opinion polls were showing that his Labour Party’s popularity was extremely low and there was a General Election due in a few months. What he meant, obviously, was that his party’s fortunes could (as the Americans would say) ‘turn around on a dime’ and that they could be back in business before you knew it! Unfortunately for Mr. Wilson even though it is true that political fortunes can change very quickly, they didn’t change quickly enough for him. He lost!
Now, even though there is still almost 2 ½ years to the next General Elections in Trinidad & Tobago, it seems that they are Kamla’s to lose. By that I mean that unless things change, the next Prime Minister of Trinidad & Tobago will be Kamla Persad Bissessar.
There are many reasons for this. The first reason that one could cite is that there is a mood engulfing most of the western world for change. Trinidad & Tobago is no exception to this desire to see things go in a different way. Then-Senator Barack Obama, who is probably the best example, tapped into this mood in the U.S. most successfully a little over a year ago. Here in good old T&T one gets a distinct feeling from “the ground” that there is a great deal of dissatisfaction with the Manning Regime. The Prime Minister has not helped himself either, and has only increased this desire for change with the way that he defended his Spiritual Adviser/Priest/(or whatever you want to call her) in Parliament. People are asking very serious questions, yet he chose to lash out at just about every other religion in Trinidad & Tobago in a way that was guaranteed to cause (and did in fact cause) great offence. Unsurprisingly, he is getting hit from just about every angle on this issue and his cry of ‘religious persecution’ is falling on stony ground. Nobody is buying it.
On top of that, Mr. Manning is the only “salesman” in his Party. Having systematically decimated all of his leading “salesmen” (Ken Valley, Keith Rowley, etc.) he now finds himself with nobody but himself to carry his message and “sell” his visions to the public. And his senior ministers simply can’t carry the fight. Mariano Browne, for example, presents himself as a most competent individual, and to his credit, there has not been a whisper of corruption attached to his name. But Mr. Browne, competent as he is, is not charismatic and his message is often lost in the dry and uninspiring way in which he talks in public.
Kamla, on the other hand, has presented herself as the agent for change to a country that is growing increasingly fed up with Mr. Manning’s rather autocratic style of leadership. While the Prime Minister continues to present himself as the leader of a Government that is there to rule the people, Kamla is presenting herself as a leader that leads almost from behind … in other words, as a consensus builder. Her style is so dramatically different from that of the old lion (Panday) as well as Mr. Manning’s that even her critics are being won over. And since she became the leader of the UNC she hasn’t made a misstep … yet!
That “yet” is important, for while I said that the next election is Kamla’s to lose, the truth is that there are many pitfalls still ahead of her. The first thing to recognise is that while she has now become the “owner” of the UNC “brand”, that Party is presently broken, broke and in a most disorganised state. The Party machinery hardly exists, and that which does exist is in an extreme state of disrepair. Also (and more importantly), the Party is flat broke. Its coffers are empty. Now, it is true that the indefatigable Jack Warner (of deep pockets fame) is standing by, but way back in 1995 the UNC was accused (with not little justification) of falling into being “owned” by a small handful of financiers. The Party/Kamla will need to avoid falling into that particular trap again. If the perception is allowed to grow that Jack Warner now “owns” Kamla and the UNC, that belief alone (whether it is true or not) could be enough to sink her.

She also has the continuing problem of Basdeo Panday who has refused to exit with any degree of grace. Panday is now setting up (or trying to set up) a classic “triangulation” by saying that he is going onto the back bench and will stay there until Mr. Warner accounts for some $30 million allegedly given to him (Warner) by an unnamed UNC financier. That this accusation against Mr. Warner is patently ridiculous is irrelevant. Mr. Panday knows that some people will believe it and as long as he keeps it up he effectively undermines Mrs. Persad Bissessar even though he ostensibly now says that he accepts her leadership. Watch for him trying to create more trouble along the way.
Then there are M.P.’s like Vassant Bharath whose efforts to be on all sides at the same time are embarrassing, to say the least. The UNC’s constitution gives the leader the right to veto the nomination of any person going up for a seat. What will Mrs. Persad Bissessar do when the time comes for nominations to be made? Will she allow persons like Mr. Bharath to go up in safe seats like St. Augustine knowing that they could bring her down a la Ramesh or will she replace them at the appropriate time?
Then again, Mr. Manning is aware that he is in mid term. He can open the financial sluice gates next year, create a lot of jobs and hope that the apparent prosperity will save him. Will that be enough? Difficult to say at this stage, but a short answer is probably not.
There is a feeling of “fedupness” in the society that needs to be addressed and dealt with. He needs to re-connect with the people and come down from the ivory tower that he is perceived to be in. (Remember, in politics perception is reality). If he doesn’t, then in a little less than 2 ½ years from now you will hear a newscast on the radio begin with the words “Prime Minister Kamla Persad Bissessar said today…”

TT Making Progress Against Money Launderers

As you may have noticed on Monday, my friends, the Trinidad Guardian erroneously reported Trinidad and Tobago as somehow part of a "blacklist" of terror-financing states. But did you happen to read this dire news in any of the other dailies? Or an internationally respected publication like the New York Times or London Times?
Of course not, because it isn’t true. A review of the facts reveals that Trinidad and Tobago is continuing to improve in our efforts to comply with global financing standards.
This one slipped through the editorial process, and the Guardian owes an explanation for the error. The misleading story ran with no by-line – an inconvenience for truth-seekers, but a hedge for hasty journalists and authors. In the story, the anonymous author builds the report around a recent report by the international Financial Action Task Force.
The Financial Action Task Force is a well-regarded body which reliably sets the global standard for identifying and stopping money launderers and terror financiers. As I’ve said all along, we must look to bodies such as this to measure our progress in TT.

Imagine my surprise when the Guardian turned this valuable report of the respected FATF upside-down.
Ignore the poor Guardian and read the report yourself.

The report only mentions Trinidad and Tobago with praise for recent progress and commitments to improve in the areas of Anti-Money Laundering and Combating the Financing of Terrorism:

"Trinidad and Tobago Trinidad and Tobago has demonstrated progress in improving its AML/CFT regime; however, the FATF has determined that certain strategic AML/CFT deficiencies remain. Trinidad and Tobago has made a high-level political commitment to work with the FATF and the CFATF to address these deficiencies, including by: (1) implementing adequate procedures to identify and freeze terrorist assets without delay (Special Recommendation III); (2) implementing adequate procedures for the confiscation of funds related to money laundering (Recommendation 3); (3) ensuring a fully operational and effectively functioning FIU, including supervisory powers (Recommendation 26)."

It is an unfortunate fact that small nations such as Trinidad and Tobago can easily be dragged into the dirty business of money laundering and terror financing. Thankfully in our case, the bad actors appear to be outside the government and we can marshal our forces against them. Whatever the faults of the Manning regime they at least appear to want to put a stop to dubious and dangerous financial behaviors. Trinidad has always been on the right side of history’s major conflicts and we should continue to remain on the right side of the global war on terrorism.

I’ve been saying for years that we must get serious about the issue of money laundering. This is not simply a problem of the rich trying to avoid taxes or otherwise shelter honest money. We must remain vigilant over our financial comings and goings as devious characters lurk amongst us, attempting to take advantage of our open, accepting and forgiving society.

In two earlier posts (Friday, 4th December and Friday 18th December, 2010) I wrote about the dangers of “State capture” and money laundering. There is no need to repeat here what I said then … just scroll down and you can read it. But the point is that this is another aspect of the dangers that a small society like ours faces. And we must also be wary of journalists and newspapers who do not report accurately. As to why the Guardian would want to turn a report on its head I cannot say. It is either sheer incompetence or somebody there has an agenda of some sort. Give me another reason?

In this space we will give credit where credit is due, and in this case Prime Minister Patrick Manning’s Government at least appears to be doing the right thing. Of course, a serious question remains as to whether or not there are persons lower down the “totem pole” who have an interest in making certain that no matter what the Government does (any Government whether Manning’s or somebody else’s) is frustrated. The society in general, and this matter in particular, is not helped by inaccurate reporting from a newspaper that boasts of its accuracy in reporting on serious matters.

IS THE COUNTRY IN “1986 MODE?”

Most Trinis will understand the question. For those readers of this blog who are not Trinidadians (and, yes, there are quite a few) what happened in 1986 was that the then PNM Government which had won every single election was severely routed in that year’s general election, losing 33 of the 36 seats in Parliament. (Indeed, there are some who say that they lost Patrick Manning’s seat as well making it a loss of 34 seats, but that it was then Prime Minister A.N.R Robinson who prevented a recount thus saving Manning’s bacon.)

It was pretty clear to most observers for at least two years before the 1986 elections that the mighty PNM was losing support at a hitherto unprecedented rate. By March 1986 it was clear that then Prime Minister George Chambers had run out of steam and that the PNM was going down whenever he decided to call an election. The unions were marching. People were complaining bitterly about everything under the sun. The newspapers were highly critical of the Government. For example, one of the issues then was the amount of vagrants that were on the streets; the Daily Express newspaper ran a “vagrant of the day” picture every day in a prominent position in the newspaper … and many of the Ministers were perceived either as arrogant or corrupt or both! During the election campaign in December of that year one of the less competent Ministers, Desmond Cartey, stood up on an election platform and proclaimed to the world that “all ah we t’ief!” What he meant was that the allegations of corruption were unfair as during the oil boom of the late seventies and the early eighties that there many, many citizens who had cheated in one way or the other, e.g. non-payment of taxes, evading customs duties, overcharging for goods and services, etc. But his most unfortunate turn of phrase was seized upon by opponents of the Government as an admission of guilt (which in a very real way, it was) and is still remembered today some twenty-four years later!

Fast forward to today: What do we have happening? The unions are acting up. The Public Service Association (PSA) has booted out its old executive which was blatantly pro-PNM and replaced it with an executive which (for the time being at least) is fiercely independent of all political parties and which is simply refusing to go along with the Government’s plan to revise the Board of Inland Revenue and Customs and Excise by merging them into one authority. The PSA is promising some “serious heat” after Carnival. The powerful Oilfield and Workers Trade Union (OWTU) is also most unhappy with what is going on in the State owned oil company, Petrotrin, where layoffs are being contemplated.

Mr. Manning’s present team of Ministers, with a few notable exceptions, have left a bit to be desired. In a recent debate in the House of Representatives concerning the most contentious property tax, one junior Minister offended just about everybody by declaring that people had been “living off the fat of the land” and it was high time that they started to pay their way. He later attempted to explain this foolish statement away and tried to put a spin on it by saying that he was misquoted. Of course, nobody bought it. This followed a most embarrassing gaffe by the Sports Minister Gary Hunt concerning the erection of a $2 million flag at the national stadium. Mr. Hunt at first attempted to say that the flag only cost about $18 thousand. When the total cost of the flag installation came out ($2 million), the country erupted in anger. Then, four months later, Mr. Hunt, in a prime time television appearance, inexplicably raised the whole issue again by proffering a rather half hearted apology for the mistake and promising that it would never happen again. What?

The Opposition led by the formidable Jack Warner, immediately demanded his resignation. In a First World or developed country, this would have happened a long time ago. But Prime Minister Manning has defended his Minister and suggested that the nation should now “move on”.
Then there are water woes. The Water and Sewage Authority (WASA) has declared that because of a drier than usual rainy season our dams are at critical levels and all the signs are that we will experience a drier than usual dry season. Accordingly, WASA has ordered that there be severe restrictions on the use of water (no washing cars, watering lawns, etc.). On Wednesday (10th February) the Daily Express published a full front page picture of the very green Prime Minister’s residence lawn being cheerfully watered with sprinklers. The gardeners were promptly blamed and fired! But then we are regaled with a story (again in the Express) that President Max Richards’ gardeners having been doing the same thing! Most Trinis are finding it difficult to accept that ultimate blame in these stories do not lie elsewhere.

But the point here is not about water or the lack of it or Ministerial incompetence (real or imagined) or about perceived corruption. What I am trying to say is that there is a lot of grumbling on the ground. On top of that, Kamla Persad-Bissessar is presenting herself quite successfully as a credible alternative to the Manning regime. This factor, more than anything else, is making people think very carefully about where they will put their “X” next time in the coming election which is a little more than two years away. Put another way, the coming election, for the moment at least, is Kamla’s to lose. There are too many similarities between what is happening now and what happened before the 1986 elections for any PNM supporter to feel sanguine about his Party’s chances of success at the coming polls. Not only to me, but to many people who I have been talking to, the country appears to be in “1986 mode”. Can this change? Oh yes! Will it? I don’t know. Based on present performance, the PNM has a lot of work to do.

BWIA AND THOSE ANNOYING HEATHROW SLOTS

There has been a lot of ‘toing and froing’ over the sale of BWIA’s Heathrow slots with critics saying that the slots were seriously undersold and BWIA management saying that the slots were sold at a fair price. The lead proponent of the ‘fair price’ argument is former BWIA Board member William Lucie Smith.

For those who came in late, a ‘slot’ can be defined as a particular landing and departure right at a particular time on a particular day at a particular airport. Put another way, one slot (or pair) can be defined as the right to land and depart at certain times on a particular day. BWIA had seven such slots at Heathrow Airport … one of the busiest airports in the world. Indeed, Heathrow has more flights that wish to land and take off than it can handle. In other words there is a scarcity of slots. To make it worse, prices are controlled so that raising the costs simply to use the airport won’t work … it’s not allowed. The fact that there is an excess demand for slots makes these a valuable asset for any airline that has one or more of them, especially if these slots are at prime times. And BWIA had seven such slots at prime take off and landing times!

These slots have not only a high strategic value for airlines but a high cash sale value as well. Early morning landing and take off slots are particularly valuable for the long haul flights … and again, that’s what BWIA had. Now, admittedly there is a grey area when it comes to determining the value of a slot. But take a look at the following tables and you will get some idea of how much a slot is worth:

Table 1 Airlines Shares of Slots Heathrow (Summer 2004 and change from 2001)

Airline and rank	Heathrow Slots – movements per week	Share	Change from 2001 (%)
BA (1)	3742	40.1	+11.0
British Midland (2)	1096	11.7	-12.7
Lufthansa (3)	416	4.5	+19.6
Aer Lingus (4)	290[1]	3.1	-9.4
Virgin Atlantic (5)	284	3.0	+31.5
SAS (6)	280	3.0	-6.7
AA (7)	222	2.4	-
Total	9332 (9308 in 2001)	100

Source: Competition Issues associated with the trading of airport slots. A paper prepared for DG TREN by the UK Office of Fair Trading and the Civil Aviation Authority, TSO, Norwich, 2005, p. 34. http://www.caa.co.uk/docs/589/oft832.pdf

Table 2. Some Transactions and Implicit Values in the Heathrow Slot Market

Purchase and year	Quantity	Price or Value	Comment
Quantas from Flybe (2004)	2 pairs	£20 million (€30 million)	Primetime take off and landing
Virgin Atlantic from Flybe (2004)	4 pairs	£20 million (€30 million)
British Airways from SN Brussels Airlines (2002)	7 pairs	£25-30 million (€37.5-45.0 million)	Only slots acquired by cash appear on balance sheet (my emphasis)
British Airways from Swiss International Airlines (2004)	8 pairs	£22.4 million (€33.6 million)
British Midland asset valuation (2005)	90 pairs	£425 million (€637.5 million)	The Observer claims a series of writedowns mean that bmi is now worth ‘£225m at most’, i.e. less than its slot portfolio.

Sources: Issues of Travel and Hospitality Industry Digest: 23 March, 2007, 11 June 2004, 06 August 2007, 11 June 2007, 31 January 2005. See: www.e-tid.com.

Now, it is generally agreed by all in the airline industry that the slots will only increase in value. Remember that BWIA sold its seven slots for a grand total of Pounds Sterling 5 million, which seems on the face of it and without any really good explanations to date, to be a sale at a serious undervalue. What happened?

Put another way, I certainly cannot say that there is or was “bobol” in the sale and purchase of the BWIA slots. I have absolutely no evidence to make that suggestion. What I can say (and am saying) is that on the face of it and without any proper explanations having been given to date, it is not unreasonable to believe that the sale was at a serious undervalue. The big question is WHY?

If you can really show that it was not at an undervalue, then do so in a clear and cogent manner. Don’t brush us off with platitudes and obfuscations. Failure to do so will result in very nasty and most unfortunate suspicions that cannot be good for the national psyche. I am not the only one who does not understand why this sale was made at this seemingly low price.

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^[1] This works out at 145 return (‘pair’) services per week, an average of approximately 20 per day.

IS TRINIDAD & TOBAGO APPROACHING ‘FAILED STATE’ STATUS?

Sometimes it gets difficult to see the forest for the trees. If I ask this question of anybody who supports the present Government I will get a resounding ‘no’ for an answer. But if I ask the same question of those who oppose the PNM I will not only get a shouted ‘yes’ but I will get an added “we are already a failed State!”

So what is the truth? Perhaps we could start with a number of questions? Has the Government made T&T a safer place to live in? Has the economy been well managed or have the various economic decisions made by the Government over the years led us into trouble? Are we doing something now which, given the state of the world’s economy we ought not to be doing? If so, what? Are we doing something now which, given the state of the world’s economy we ought not to be doing? If so, what? Was the bringing in of the infamous Property Tax justified? If so, why? Are the country’s health care facilities in the best order that they could be in given all that has gone before or not? What about our education system? Is it being improved in a way that we can see, or are our children slipping further and further behind an increasingly competitive world?

All too often we argue from our own personal perspective with emotion and without regard to the facts. And our arguments are often tinged with our own political perspectives and prejudices. So, here are a few facts to consider:

There is a most interesting World Bank report which you can access here.

Basically, the report says that we are not doing too badly at all but that there are areas that need improvement and reform. If you go to page 51 of the report you will find a handy chart showing where reforms have been enacted around the world. You will see there that T&T is not doing too badly at all. And then there is another interesting chart put out by The Heritage Foundation for their 2010 Index of Economic Freedoms. You can access it here.

In this study T&T has been ranked at 55 out of 179 countries. Incidentally, neighbouring Venezuela was ranked at 174!

Well, if truth be told, that ranking isn’t bad. We beat Jamaica (57). But little Barbados (40) beat us, as did the Bahamas (47). But we beat Italy (74). Take a look. The chart is most interesting.

What I guess that I am trying to say is that there are “positives” in our situation and things are certainly not necessarily as bad as some would have us believe. On the other hand, I personally believe that we could be doing a lot better than we are and there are many things that are wrong with the way that we are being ruled and need fixing and/or improving.

Put another way, I believe that most (if not all) of us genuinely want to see our little country go forward and really don’t care who are the actual persons in charge (whether they are PNM or UNC or COP or any other acronym that you can think of) so long as things are done properly and that corruption is dealt with firmly. We can and will put up with the posturing of politicians on all sides provided always that they ‘deliver the goods.’ What we don’t want is the endless bickering, name calling and incompetence that we are so often met with.

I know that I haven’t answered any of the questions that I asked earlier. That has been deliberate on my part. I am trying very hard to be as balanced as possible and it is so easy to criticise without offering solutions. And I am not here trying to change your mind or opinion on any thing. I am simply trying to make you think and to realise that life is not one or two dimensional, but we live in a 3D world. If I have done that then I have succeeded. But those questions do need answering!

What do you think?

THE INTEGRITY COMMISSION AND PROBLEMS THAT NOBODY HAS THOUGHT ABOUT (YET)!

There are a lot of people (including me) who have been very critical of President Max Richards (or as he seems to prefer being called since he became President, President George Maxwell Richards) for the non-appointment of Integrity Commissioners. Everybody knows the story of the last debacle and so there is little point in going over it. But more or less one year has passed and nothing has happened to lead us to believe that a new board is anywhere near being appointed. Why?

Well, what I have to say may or may not be one of the reasons why a new board hasn’t been appointed, but it certainly bears thinking about. You see, in a judgement handed down on 15th October, 2007 Madam Justice Judith Jones, in High Court Action 1735 of 2005 between The Integrity Commission as Plaintiff and The Attorney General as Defendant (along with several interested parties), handed down a decision which has some rather far reaching implications. Before I go further, I should say that the judgement is under appeal, and that appeal is due to be heard in March of this year.

The matter involved the interpretation of two questions. The first was whether or not judges and magistrates are subject to the Integrity Act and have to file returns. Justice Jones answered this question in the negative. It is the second question which, in my opinion, has far greater and more far reaching consequences. It was

What is the meaning of the expression “Members of the Boards of all Statutory
Bodies and State Enterprises including those bodies in which the State has
a controlling interest” (emphasis mine) in paragraph 9 of the Integrity in Public
Life Act as amended?

Most of the judgement is taken up with dealing with whether or not Judges and Magistrates are subject to the provisions of the Integrity legislation. The Judge took 221 paragraphs to explain why she thought that Judges and Magistrates could not be subject to the Act. At paragraph 222 (of some 251 paragraphs in the rather well reasoned judgement) she turned to deal with the second question. And this is where the trouble starts. Perhaps it would be best if I simply quoted the relevant paragraphs of her judgement (for the purposes of this post) so that you will better be able to understand the point I wish to make:

248. In my opinion therefore the words “ Members of the Boards of all Statutory Bodies
and State Enterprises including those bodies in which the State has a controlling interest”
as found in the Act must be taken to mean:
‘the members of the management or decision making body (emphasis mine) of:
(i) all organisations established by Statute;
(ii) all businesses or companies controlled by or on behalf of the State (emphasis mine).

249. Further for the purpose of determining control by or on behalf of the State a business or
company shall be taken to be controlled by the State if the State exercises control
directly or indirectly over its affairs; if the State is entitled to appoint a majority
of the directors of the Board of Directors or holds at least fifty per cent of the capital
of that body (emphasis mine).

Now, pay attention: Last year the State took control of the insurance behemoth CLICO and the huge conglomerate CL Financial. I can’t remember which of the two (CL Financial or CLICO) owns the shares in Republic Bank and also One Caribbean Media, the company that owns the Express newspaper, TV 6 and other media outlets in the Caribbean, but whichever one does is irrelevant. What is relevant is that CLICO/CL Financial owns a controlling interest in both Republic Bank and One Caribbean Media, which means that the State indirectly controls both! What this means is that unless this part of her judgement is overturned, all the directors and senior managers of both companies are going to have to file returns with the Integrity Commission.

But, if no Commissioners are appointed then the Integrity Commission will not be able to enforce the Act. Which means in effect, that although the law is there and these persons will still be bound by it (unless it is changed) then they will effectively be able to evade compliance with the law of the land. Perhaps there is a hope that the law will be changed? Maybe. Maybe not. Perhaps also this is a reason why the President has not acted because he has been told to “hold his horses” while this imbroglio is sorted out? Maybe the ‘powers that be’ are hoping that the Court of Appeal will disagree with the Judge? Or maybe all or none of these/

Whatever the reason, this is something that ought to be noticed by all. Ah! Life in the Tropics! It’s never dull, is it?

THOSE (PESKY) UNC ELECTIONS … THE AFTERMATH

Well, it’s all over and Kamla is now “Queen”, or is she? The latest coming out from the UNC camp is that she has only five M.P.’s (including herself) who are prepared to support her as Leader of the Opposition. The magic number is eight. The five M.P.’s are Kamla (of course), Jack Warner, Winston ‘Gypsy’ Peters, Nizam Baksh and Harry Partap. All the rest are sitting in Panday’s camp. Or at least that is what they are saying. But I have it on good authority that three of the M.P.’s are playing some sort of game in that they are what you might describe as “floating”. By that I mean that each of these three are prepared to “cross over” to Kamla’s side, but each one wants to be the last (and therefore the most important or critical) one to do so. As a result, these three chickens (for what else can you call them?) are sitting on their hands. So we shall see what we shall see. My bet is that when this bit of information seeps into the public domain there is going to be a lot of anger at all the recalcitrant M.P.’s and especially towards what I am calling the three chickens (and, yes, I do know who they are, but it is probably better for me not to call their names at this time).

Even staunch supporters of Basdeo Panday must be dismayed at this latest turn of events. All that this behaviour is going to achieve is that the Party and its supporters will have to face the continuing lack of trust from the general public who definitely do not want to vote a Party into government that does not appear to be behaving in a civilised manner or that does not respect the wishes of the overwhelming majority of its memembers. Panday and his chicken M.P.’s are condemning the UNC to permanent opposition … at least while Panday is alive. To try and argue that the M.P.’s are not bound to follow the vote of the membership is the most ridiculous and most dishonest argument that I have ever heard made in the history of politics in this country.

In the meantime, Patrick Manning and his PNM must be breathing a huge sigh of relief. After all, if there had been a smooth transition of the leadership to Kamla, especially after Sunday’s tsunami, she could well represent herself as the change that Trinidad & Tobago is urgently crying out for. And then Mr. Manning would have to make some difficult decisions including whether or not to go for an early general election. As it is, with the continuing strife in the UNC camp thanks in large part to a selfish old man who is no longer a force even in his own backyard (he was beaten by Kamla by somewhere in the ratio of 13 to 1), and the cowardice of certain M.P.’s who are clearly not thinking of anybody but themselves, the confusion continues. And you think that these jokers really should or could be trusted with government? If they don’t get their act together quickly then expect that the UNC will lose the next elections big time despite the heroic effort of Kamla Persad-Bissessar. The country deserves a real contest between two opposing political parties each of which ought to be capable of forming a government. But how can we trust these cowards to do the right thing for us then if they won’t do the right thing now? There will be no choice …. Again!!

THOSE (PESKY) UNC ELECTIONS

Well, in a very short time it will all be over … the UNC elections, I mean. It has certainly been a most interesting few weeks. Things began to get interesting when there were serious hints that Kamla Persad-Bissessar was thinking of throwing her hat into the leadership race. Then we had reports from persons who “definitely knew” that she was not going to contest the leadership, only to be proven wrong by the lady’s rather graceful announcement of her candidacy. And then, of course, there was the ubiquitous Ramesh who has tried valiantly to live down his past and the trust issue. Finally, we had the old lion king returning from his Christmas holiday in London only to find that he had a real fight on his hands.

My information is that up to about the end of last week (more or less) Bas was actually in front and would (legitimately) win this coming Sunday’s internal UNC election. However, about four or five days ago there appears to have been what can only be described as a “seismic shift” on the ground in favour of Kamla. What exactly has caused this shift I have been unable to pinpoint, but there are certain “straws” that a seasoned political observer can look at that indicate that Panday is facing a serious tsunami on Sunday. One of these is the late defection of Harry Partap, the Member of Parliament for Nariva. Partap declared for Kamla on public radio on Thursday morning. I had heard earlier that Partap was one of five UNC MP’s that had quietly said that they would support Kamla for Leader of the Opposition if she won. (Jack Warner and Winston “Gypsy” Peters are amongst the five. I know who the other two are, but as I was given those names in confidence you will forgive me for not sharing them with you.) There is obvious speculation as to why Partap would defect at this time. My own personal view is that he is “on the ground” and is reading the signs very well. Putting it shortly, he wants to survive the Kamla tsunami … and you can’t blame him for that!

Another sign is that Panday was virtually run out of Barrackpore last night (Thursday). He tried to play it down on the radio this morning, but my information from people who were there is that the very small crowd (less than a hundred) did not want to hear him and almost stoned him! Extraordinary, indeed! Incidentally, I know Panday very well. I thought that he sounded listless and depressed this morning … more going through the motions than anything else. Certainly, he got a hard time from the presenters … Ken Ali in particular, whose questions were very fair, but tough. (The interview was more along what you tend to get in the First World than we are accustomed to in the Third World. Hopefully, this heralds a new era in journalism in this country where journalists are more prepared to ask the hard questions of our leaders and would-be leaders.)

History has a way of repeating itself. The last big Indian leader to go down in flames was Bhadase Maharaj. The difference is that although it became clear that Capildeo was going to defeat him, nobody was telling Bhadase that they were not going to vote for him. This time Panday is being shown scant respect.

By the way, if I haven’t mentioned Ramesh it is because he is really nowhere to be found. He has restricted his campaigning basically to his constituency in Tabaquite and if truth be told has not been able to excite the UNC heartland in any meaningful way. He does have a few hardcore supporters, but nothing really that would put him in serious contention.

There is a lot of talk about possible cheating at the polls. Jack Warner has been shouting it from just about every rooftop! Even if Panday and his troops wanted to cheat, my information is that it is now going to be difficult if not impossible to do so. The tsunami is too large and there are too many people in place who will be watching. Of course, anything is possible, but it looks like we are going to be waking up on Monday to a new political paradigm … or ‘para-dig-m’ as one ex UNC Minister once pronounced it. If a Kamla victory does occur, then a lot will change … it will have to! But then that’s the subject of another post.

Note: Post from 22 January that did not get published due to a technical problem.

THE HALF EMPTY/FULL GLASS

There is nothing quite that clears the mind and lets you see things through fresh eyes as a short holiday abroad. I went to Venezuela for Christmas, and while I have nothing but praise for the hospitality and generosity of my wife's family and friends, the truth is that I couldn't help but notice how things had deteriorated in that beautiful country. The cost of living has gone through the roof, food is a lot more expensive and people are coping, but they are not happy. Crime in Caracas makes the crime we are complaining about here look like a tea party! They really have problems!

So, when I came back home I looked again at where we are, where we have come from, and where we seem to be going. Let me say from the outset that I agree with most (if not all) of the criticisms that are heard in the street, on the radio and are read about in the print media with what is wrong with our little country. But I always try to be fair (even if I don't always succeed) and because this blog is not about being in a popularity contest but about trying to discuss things that I think need discussing, I thought that perhaps it might be worthwhile to look at where we are from a slightly different angle. In other words, are things really as bleak as we like to make them out to be? Are we really in serious trouble as so many (including me) like to say? Or can we say to our selves that despite everything there is hope?

Certainly we are better off than our Latin neighbour just to the west of us. I don’t propose to go into any analysis of why Venezuela is experiencing the problems that it has, my point is simply that they really are in trouble. And I genuinely hope that they can get out of it. We are also much better off than our Caricom brothers and sisters to the north of us. All of those little islands are in trouble. Jamaica is facing economic problems that would make a grown Trini cry! Even well run Barbados has experienced a major downturn in its financial affairs! Why do we think that we are or ought to be immune? And, yes, I know what our Prime Minister and his minions have been saying in the past and are saying now. But, for the purposes of this particular post I deliberately do not want to “taint” it with criticisms (or praise) of any particular politician(s). I just want to look at our position right now as coldly and as truthfully as possible.

And if I were to be completely frank I would have to say that while acknowledging all the well known criticisms (or perhaps even in spite of them) the truth is that we are not as badly off as we sometimes like to say. Unemployment (whether helped by CEPEP or nor) is still relatively low. Our economy, while it has been battered is still fairly healthy. Our currency although it has depreciated slightly has not been devalued. (Incidentally, as I understand it a major reason for the present depreciation is that a lot of “big players” have moved their money out and converted it to US dollars! In other words, we are creating our own “crisis”.) Our Court system still enjoys the confidence of the vast majority of the citizenry and the Judiciary still feels that it is able to stand up to the Executive whenever it deems it necessary. And although our press has many (undeclared) biases it is still by and large free and able to criticize the government whenever it feels it necessary or desirable to do so.

You might think that all that I have listed is not important. But it is. You might also say, well all the more reason that we should be vigilant and make sure that we do not lose our rights and privileges … and I would agree with you absolutely.

There is an organisation called Freedom House. It was founded in 1941 with a mandate or objective (amongst other things) to report on the state of freedom in countries around the world.
It is a highly regarded and respected organisation around the world. If you go to its website you will find reports on something like 193 countries. Our little country scores a 2 on political rights and a 2 on civil liberties. The highest score a country can get is a 1. Our status is listed as “free”. The United States gets a 1 in political rights and a 1 in civil liberties and its status is also listed as “free”. The website says that countries whose ratings are between 1.0 and 2.5 are regarded as “free”. Countries whose ratings are listed as 3.0 to 5.0 are regarded as “partly free”, and countries with a rating of 5.0 to 7 are regarded as “not free”. A “2” rating in civil liberties and political rights means that these countries have a slightly weaker system because of “such factors as some political corruption, limits on the functioning of political parties and opposition groups, and foreign or military influence on politics”.

Brazil, one of Latin America’s strongest emerging countries has identical ratings to ours. Neighbouring Venezuela gets a “4” on both political rights and civil liberties and a “partly free” rating. Zimbabwe gets a “7” and a “6” and a not free rating. Jamaica is like us. Barbados is the only Caribbean nation to get a”1” in both political rights and civil liberties!

Put another way, we aren’t doing so badly. Put another way again, perhaps we should recognise that our glass is really half full as opposed to half empty. What do you think?

Haiti

What a shocking and sad turn of events for our Caribbean neighbors in Haiti this week. I am certain that I speak for all the people of Trinidad and Tobago when I say that we are deeply saddened by the loss of life, the injuries and the devastation. The people of Haiti and the brave rescue workers are in our prayers as we mourn this tragedy.

In however small or large a way, we must do what we can to support the rescue and recovery efforts of our Caribbean brothers and sisters. The swift efforts and noble commitments of aid from the world and from Trinidad and Tobago this week are commendable. It is our responsibility to monitor the progress of relief in Haiti and provide as much assistance as possible as their needs become more apparent.

Now, the long-suffering people of Haiti are in the midst of the crisis – in the midst of the darkest chaos of destruction. With the world community and the Caribbean family in particular, we extend our hand to the Haitian people. We must help them climb out of the depths and into a brighter day.

For now, do what you can to support the Caribbean Red Cross and ask your friends and family to do the same:

http://www.caribbeanredcross.org/news/2010/haiti_appeal.htm

THE MULTI BILLION DOLLAR DRUG TRADE - or, we don’t have a money laundering problem in T&T)

A report in The Observer newspaper in England from last Sunday says that the head of the United Nations’ Office on Drugs and Crime, Mr. Antonio Maria Costa, is claiming that he has seen evidence that “the only liquid investment capital” available to some banks that were on the brink of collapse last year when the worldwide economic crisis began was drug money. He said that the result was that the majority of the $352bn of drug profits was absorbed into the system and was thus effectively laundered. He is quoted in the report as saying that “…the money from drugs was the only liquid investment capital in the second half of 2008, liquidity was the main problem and hence liquid capital became an important factor.” He goes on to say that there is evidence that inter bank loans were funded by money from the drugs trade and there are signs that this is how some banks were rescued.

The article is well worth reading. For one thing it certainly highlights how enormously powerful the drug cartels have now become. If most of the $352bn in drug profits are now effectively laundered and that money is now in the world’s legitimate financial system, you don’t have to be a rocket scientist to realise that this makes the men running these cartels even more powerful … and more dangerous. The line from the old song that said something about money making the world go around is very, very true!

Well, this article got me to thinking: what is happening down here in our own little neck of the woods concerning drug profits and money laundering? A few years ago somebody in Customs and Excise told me that the annual profits from the Trinidad drug trade were almost as big as this country’s annual budget! Is this true? I have no way of knowing or even of finding out without probably getting myself killed. But the question is a very serious one. And what is also extremely worrying is that nobody is talking about it! It is as if the problem simply does not exist!

Put another way, one wag recently pontificated to me that we have neither a serious drug problem (as concerns big drug money) nor do we have any money laundering in good old T&T! When I looked at him with incredulous surprise he laughed at me and said, “When last did you ever hear of a major drug lord being arrested and charged? When last did you hear of a banker being charged … let alone convicted … with money laundering? And the very definition of money laundering requires that it be done through a bank! I rest my case.”

He had a point. But I don’t believe that there is no money laundering in T&T. I don’t believe that enormous amounts of drug profits are not being accumulated. I don’t believe that we have no really big drug lords in this country. Do you? If you have the same beliefs as I do in this matter, then I have two last questions for you: why isn’t the media highlighting this? Don’t you think that this is an issue that ought to be on the media’s ‘front burner’?