Barbados Spending Cannot Continue – And GEMS Scandal Just Keeps On Going And Going And Going…

The alarm bells are ringing, but the vault has already been emptied. Barbados is living on borrowed money, borrowed time and a mortgaged future.

As we commented in our posts "Barbados Government Cash Flow Problem – Tip of the Iceberg?" and "Barbados Free Press Readers Comment On 'Is Barbados Bankrupt?' ", we can't go on spending far more than we bring in.

Dr. David Estwick recently made some dramatic statements to a DLP meeting… but we don't think the Doctor's statements were really so outrageous. Here are some samples from The Nation

"Barbados is bankrupt," he said, charging that the national debt had moved from $2 billion to $4 billion under the Barbados Labour Party Government and that the entire public sector debt had reached 100 per cent of the gross domestic product (GDP).

He said Government's finances were in such a bad state that "if the World Cup does not give an immediate return of revenue to Barbados, we (are) in serious trouble".

Estwick also charged Government was avoiding going to Parliament to seek approval for some large financing programmes, including that associated with the controversial "Gems of Barbados" project.

Calling it a flagrant breach of the financial administration audit act, Estwick said the "disrespect" shown by Government to Parliament was the type of behaviour that led to the creation of "banana republics".

"If I were a lawyer, I would take them to court," he said, declaring, "We have to find a way to take this Government to court."

Estiwck said Government had granted the Gems company, Hotels and Resorts Limited, a loan of $145 million without first having it cleared by Parliament. Some $29 million in interest had accrued on the loan "and not a cent paid".

1 Comment

Filed under Barbados, Offshore Investments, Politics & Corruption

One response to “Barbados Spending Cannot Continue – And GEMS Scandal Just Keeps On Going And Going And Going…

  1. Jerome Hinds

    Fellow readers,

    This how the ” Great Economist ” Owen Arthur has barbados ranked GLOBALLY…!

    Countries with the LARGEST Deficits as % of GDP.

    ******************* %
    1. Iraq ***************** – 96.9

    2. Mauritania ********** – 36 .2

    3. Azerbaijan ************ – 30 .4

    4. Bosnia **************** – 22 .5

    5. Lebanon *************** – 22 .0

    6. Equatorial Guinea ******* – 21 .9

    7. Nicaragua **************** – 17. 0

    8. Belize ******************* – 16.7

    9. Estonia ****************** – 12 .7

    10. Suriname *************** – 12 .4

    11. Latvia ******************* – 12 .3

    12. BARBADOS ************* – 12 .0

    Readers would find it INTERESTING to note that ZIMBABWE comes in at

    Number 23 with ************** – 8 . 3

    ******* All countries with NEGATIVE GDP % figures.

    Source of Information : The Economist : Pocket world in figures 2007.

    So the great Economist Owen Arthur has PUT Barbados ( the only top ranked English speaking country ) among the list of world nations….with the largest deficits as % of GDP….!

    That is the WORLD CLASS ranking Owen Arthur often tells Barbadians to ASPIRE too..!

    Can his FOOT SOLDIERS…..Royalrumble , Javon Griffth and ??……DENY this…?

    The link below provides the document from which the information posted above can be found on page 37.

    http://sg.auctions.yahoo.com/sg/i:Brand%20New%20Pocket%20world%20in%20figure%202007%20edition%20Economist:197534175