US Court hits Grenada government airport revenues

A lesson for Barbados and Al Barrack?

Grenada owed money to a bank in Taiwan and didn’t pay – so the bank sued in the USA and now all US airline revenues that would have been paid to Grenada’s airport are being paid into an escrow account in the USA. As a result, the airport is in deep financial trouble and the Grenadian government looks pathetic on the world stage. If the situation isn’t rectified PDQ, the travel and tour sellers will soon start to wonder if their clients will get stuck in the middle someday. When that thought starts to form, the travel industry will start to recommend other destinations until confidence returns. It might be happening already because we discovered the story through ETN Travel News.

There is a lesson here somewhere about what can happen when governments decide to not pay lawful debts. Globalism is more than a word, you know. Increasingly, creditors are successful seizing assets in other countries when stonewalled by governments and courts in the Caribbean and elsewhere.

For the last day and a bit we featured Why Al Barrack will never win against the Barbados Government: The Fix is In! at the top of the blog – telling the story of how the Barbados won’t pay a man even when faced with an order from the Barbados court.

One of our readers, millertheanunnaki, commented…

“I am willing to bet that if Barrack were to sell the debt to an overseas factor through a “big” British or American firm of lawyers this matter would be settled within weeks. If not a judgment to seize Government’s properties in London or New York would certainly be enforced unlike what prevails locally.”

There are certain government assets that can’t be seized overseas (Embassies, airplanes etc.) but the idea of seizing airline fees is a shocker. Can you imagine what would happen if some court in New York or London ordered airlines to pay all Grantley Adams airport fees to the court over the Al Barrack debt? How about port fees for cruise ships too?

Wuhloss! That would put the mongoose in with the chickens! If that happened you can bet the government would settle with Al Barrack right away – and that just shows how bankrupt our government is: both financially and morally.

Statement from St. George’s Ministry of Tourism and Civil Aviation

ST. GEORGE’S, Grenada – The St. George’s Ministry of Tourism and Civil Aviation is working with other government departments, particularly the Attorney General’s Chambers and the Ministry of Finance, to arrive at a solution to the current financial difficulties being experienced by the Grenada Airports Authority (GAA).

This situation arose as result of the EXIM Bank of Taiwan obtaining judgment against the government of Grenada for outstanding loans in a suit filed in the United States. The Taiwanese have made a claim for all monies owing to the government of Grenada and its agencies to be paid against the loan. Consequently, a request was made to airlines operating on the Grenada route to pay monies owed to the Grenada Airports Authority to the Taiwanese.

An escrow account has been established, and carriers such as Virgin Airlines, British Airways, and Delta Airlines have begun to deposit monies owed to the Airports Authority into the said account. This has placed the Airports Authority in a very precarious financial position.

“Mr. Rodney George, Chairman of the Grenada Airports Authority, has alerted us in the government about the situation facing our airport. I am doing all that I can from a civil aviation point of view. The Ministry of Finance is doing its part from the debt-financing angle, and the Attorney General’s Chambers is working towards a legal solution,” said Minister of Tourism and Civil Aviation, Hon. Peter David, who is currently attending an OECS Civil Aviation and Tourism Ministers’ Meeting in St. Vincent.

The Ministry of Tourism and Civil Aviation will continue to work with other government departments to ensure this matter is resolved quickly and does not severely disrupt airport operations, which would directly impact the economy at a time when it can be least afforded.

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13 Comments

Filed under Aviation, Barbados, Barbados Tourism, Ethics, Grenada, Offshore Investments

13 responses to “US Court hits Grenada government airport revenues

  1. what will they think of next

    BFP show the whole picture. The Govt. reached out to stupid Barrack. A lump sum was offered to Barrack with yearly payments at specified times per year. Barrack totally rejected the offer. If he had accepted the offer he would have had almost all of his money by now both he and his bisiness partner GEORGE PAYNE the now King Maker in the Barbados Labour Party who has OWEN ARTHUR by the balls.

    .

  2. what will they think of next

    In my opinion the Govt. could do one or two things. Since Barrack is playing hard ball over a situation created by the Barbados Labour Party the current Govt. should leave it where it is until whenever the Barbados Labour Party returns to office and let them deal with it or give the building over to Barrack.

  3. 137

    I am sick and tired of Barrack get him off my televsion his face scares my grand kids deport him and be done with it

  4. what will they think of next

    No Public Tender Issued

    Barbados Free Press has just learned that no tenders were ever issued for the primary construction of the National Housing Corporation’s Warrens, St. Michael office complex that is at the centre of the largest arbitration award in Barbados history.

    The background to the arbitration award can be found in our earlier story, Arbitration Decision – Barbados Citizens Pay Extra $50 Million For Government Folly

    BFP’s source states that Barrack Construction Company Limited, the original (main) construction company in the problem-plagued new office complex, was awarded the contract “without a tender call” and “without having the contract reviewed thoroughly by government contract lawyers.”

    It was a “hastily thrown-together contract” that allowed Barrack to “easily win at arbitration” – according to our source.

    Why Were Government Lawyers Not Asked To Review Barrack’s Contract?

    Why indeed? Could it be that those issuing a major contract without public tender did not want to expose the process to outside scrutiny?

    And the end result is that the people of Barbados will have to pay another FIFTY MILLION DOLLARS in part because of defects in the contract!

    Did Prime Minister Arthur Approve This Deal… Or Not Know About It? He Can’t Have It Both Ways!

    Which is it, Prime Minister? Did you know and approve of the issuing of the contract without a tender, or is everything so out of control that a one-hundred-million dollar contract can be issued without your approval?

    Can’t have it both ways, Sir!

    Much More To Come…

    Barbados free press Sept. 2006
    http://barbadosfreepress.wordpress.com/2006/09/14/bfp-exclusive-another-barbados-scandal-no-tenders-issued-for-one-hundred-million-dollar-problem-plagued-office-building/

  5. what will they think of next

    For heavens sake BFP why is the current Govt. being vilified over this sad situation we find ourselves in because of Barbados Labour Party CORRUPTION?

  6. millertheanunnaki

    @ what will they think of next: February 11, 2012 at 2:32 pm

    What are your views on the Pierhead Marina re-design project?
    is the present administration faced with similar legal contentions by Lagan?
    or was everything above board and follow the rules of tendering for government’s work contracts?
    We await your next move

  7. St George's Dragon

    The real problem with the lack of payment to Barrack is that it affects how external investors perceive Barbados and in particular whether they would want to buy Government Bonds, lend money on projects, or do business here.
    It may well be true that Barrack’s appointment involved some kind of dodgy deal with people in the BLP but a foreign bank or business would not see that as a reason why an arbitration or court award should not be paid.
    Barbados is going through hard times economically and has been downgraded by the ratings agencies. The effect of that is to make borrowing more expensive for the Government. The last thing we need is a perception outside Barbados that the law is not applied here.
    Not paying Barrack sends a message that Government is less than committed to the rule of law.

  8. what will they think of next

    Why dont you ask your buddy Ow$n why he has not started his inquiry into the marina project after making a big song and dance about it miller?

  9. millertheanunnaki

    @ what will they think of next: February 12, 2012 at 2:47 pm
    Quite pertinent!
    “Your Ow$n” leaves a lot to be desired where his mouth does not match his actions.
    Even if he feels that he can win back the government he will do nothing about the marina fiasco because the boys behind the marina scam probably have a lot of ammunition to sink your Ow$n’s fishy boat in Carlisle bay.
    Is it fair then to say that those pols in both camps are all the same crooked lot that will soon be pushing up daisies or you do you still maintain that the DLP pols are “whiter than white”?

  10. ^ ^ ^

    Nine comments worth of discussion above
    none to do with GDA! -all about Barrack.

    Thread get hijack den?

  11. Newbie

    GO BARACK, POLITICIANS NEED A GOOD KICK IN THE N**S

  12. Pingback: BLP & DLP Governments’ stupid refusal to pay Al Barrack cost Bajans $35 million dollars | Barbados Free Press

  13. Can I just say what a relief to find someone who actually knows what they’re talking about on the internet. You definitely know how to bring an issue to light and make it important. More people need to read this and understand this side of the story. I can’t believe you’re not more popular because you definitely have the gift.

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