Haircut…

…for Bridge Investors?

The saga of the Berbice Bridge continues…all brought about, let us not forget because some politicians (the AFC to be precise) wanted to scrape up some votes from Berbice. This is a point that everyone conveniently overlooks nowadays. They look at the nominal charge on the Demerara Harbour Bridge…and exclaim – “Hey!! The folks in Berbice deserve a break!”

But the Demerara Bridge – even though it has twice the traffic of the Berbice Bridge at least – is tremendously subsidised to the tune of at least Gy$150M annually. Back in 2013, Moses Nagamootoo pleaded for this subsidy to be removed (implying that the tolls should be increased) and transferred to the Berbice Bridge. But as the elections rolled by in 2015, they all became mum on the Demerara Bridge and jumped on the Berbice Bridge toll reduction gambit.

But they never figured other citizens would see through their scheme. The folks in Essequibo pay more than double what the Berbicians pay…don’t they need a break, they’ve asked? And what about the people of the North West District? Do they not also bleed like other Guyanese? So when does it stop? The folks in Linden are being subsidised to the tune of Gy$3B annually on their electricity – even as the subsidy to PENSIONERS was removed. And not a dog barked!!

As the economy continues to implode, expect to hear some hounds howling. Things are getting brown and since this Government is hellbent on spending and not worrying where the money’ll come from, when that brown stuff hits the fan, it’ll get real messy. But what is terrifying is that the Government hasn’t stopped at just going on a spending binge to reward its “constituents – by unilaterally and impetuously handled the Berbice Toll reduction as a populist fait accompli, it has set into motion actions that will kill investment in this country for decades.

Word is that in attempting to sleep on the Procustean Bed laid by the Government (OK..OK…the fella Procrustes cut the legs of his guests to fit his bed!) the BBCI has evidently asked the investors in the Bridge – starting with the NIS – to take what is known in financial circles as a “haircut”. That is they’ve been asked to reduce the interest rate on their loans or bonds they negotiated back in 2007.

Now we know that haircuts are taken by investors when Governments go bankrupt like in Greece right now. But such decisions aren’t taken just to squeeze out a few more votes at elections.

Once a Government gets a reputation for using populist rhetoric to force financial haircuts, that country becomes an outcast in the financial community – domestic and foreign.

This Government’s playing with fire!

…for Ramaya?

One thing about this Ghoulsarran fella is he literally regurgitates – wholesale! – the “book” on whatever topic he covers in his Stabber pieces. And since his “books” invariably have to do with the staid and proper world of accountancy and its allied bureaucratic fields, hole you’re not titillated, at least you’re informed!! So this week he offered us all you (might’ve) wanted to know about REO’s – but were afraid to ask.

Now we really hope that the newly-appointed “quasi-political” REO of Reg 6 Ramaya – and his sponsor pm Nagamootoo – reads Ghoulsarran’s piece. This Eyewitness will just mention a sample from the reams of requirements REO’s – the “head of a budget agancy” – are supposed to comply with: Fiscal Management and Accountability (FMA) and Public Procurement Act and report to the Public Accounts Committee.

Last but not least, Ramaya will have to “implement appropriate processes and procedures to prevent the incidence of fraud, embezzlement or misappropriation of public moneys.”

What was that Haseef Yussuf said about millions spent on Baigan during the campaign?

How close will be the haircut for Ramaya?

…for Agri Bank

We hope – without much hope – the proposed Agri Bank won’t go the way of the first.

Just doling out money for the boys.