So Many New Companies, So Few Answers About Where Our Money Went… And Where It Will Go

UPDATED: November 9, 2010

The next time we have an election, I’d like to ask each BLP candidate if they, or any of their family members or friends, have a direct or indirect interest in any of the following companies…

ABC Project Corporation

Barbados Correction Corporation

Whitepark Development Ltd.

Hey… we’re only asking!

Feel free to add your comments and expand the list.

Original article published on October 3, 2007…

Total Barbados Debt Owed Or Guaranteed Exceeds 90% Of GDP!!!

What would you call parents who borrow money that their children – not the parents – will have to repay when they reach adulthood? Especially if the money was borrowed for depreciating assets like a fancy new BMW car or even to host a fabulous cricket party the likes of which will never be seen again?

When you are the government, you have two major options: a/ spend only what revenues you have, or b/ spend more than you have while unloading the increasing debt onto future generations of citizens and politicians.

The current government of Barbados continues to borrow and spend, spend and borrow even though they have already taken our national debt and indebtedness into the stratosphere. Even worse, our leaders have been creatively hiding debts and delaying payments so much so that many of our debts will not even become known to citizens until the current crop of politicians are safely sipping champagne at their new Swiss retirement homes.

New Companies Spring Up In The Middle Of The Night

As Patrick Hoyos points out in his article The Barbados government’s total guaranteed debt doubles in just two years much of our country’s debts are mysteriously owed to companies that spring up in the middle of the night. Companies whose sole purpose is to be paid vast sums of tax dollars far into the future.

Just don’t ask how much your children will have to pay, or what the interest rate is, or what Barbados received for the money, or how much of the money is being kicked back to companies where politicians or their families have an interest.

That’s all secret.

New Corporations That Bajans Owe Money To

Did you ever hear of the “ABC Project Corporation” ?

Nope, me neither – until I read Patrick Hoyos’ article. That’s the name of the corporation that we owe money to for the highways and flyovers for the next 25 years. Do you wonder who owns that corporation or will be receiving payments from that corporation?

Yup… I wonder too.

But it is all secret.

Then there is the new prison at Dodds. Apparently, we are going to be paying our tax dollars to a company called Barbados Correction Corporation which is supposedly wholly owned by the corrupt oil company VECO. I say “supposedly wholly owned” because the whole deal is a secret.

Your Tax Dollars – The Politicians’ Secrets

Did you ever hear about Whitepark Development Ltd., the company that your children will owe money to for the new judicial centre for the next 25 years?

No, you can’t know the price, how much they will owe, what the interest is, who owns the company or which politicians are receiving payments from this company for “consulting”. Such payments to be made directly into the old Swiss bank accounts, of course.

None of your business how much or who is involved. Just be sure that you and your children pay up.

Its all a secret, you know!

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28 Comments

Filed under Barbados, Business, Political Corruption, Politics, Politics & Corruption

28 responses to “So Many New Companies, So Few Answers About Where Our Money Went… And Where It Will Go

  1. Adrian Loveridge

    Pat.. What an excellent article and well highlighted BFP.

    I personally had not heard of any of these three companies and I wonder just how many Barbadians or even Members of Parliament can recall?

    CAIPO details:

    Barbados Correction Corporation
    Registered # 26315
    2005 – 12 – 15

    ABC Projection Corporation
    Registered # 25957
    2005 – 10 -05

    Whitepark Development Ltd
    Registered # 21545
    2002 – 09 – 02

    Remember it is YOUR right to see all the documents contained in the files at the CAIPO for a modest fee of $5.

    You can see who are the directors, details of loans and debentures and anything else the has to be legally placed in the file.

    If anything is missing ask WHY?

    As all the companies are at least one year old, then we should expect to see audited accounts and presumably the Auditor General has these too?

    When was the Government going to tell us?

  2. paul sealy

    One word “coppashot”. and who needs to get one in the headback.

  3. Crusty

    They say a little knowledge is a dangerous thing, but I believe wide disclosure can be protective.

    In that spirit, I suggest that all who are interested should visit the Barbados Corporate Affairs and Intellectual Property Office website at http://www.caipo.gov.bb and select the search option.

    CAIPO then ensures they cover their own butt with disclaimers but you can still find all the information that AL has dug up. You might be prompted to make your own visit to their offices and pay the very nominal $5.00 search fee to examine the contents of their registers.

  4. paul sealy

    SO I GUESS EVERYONE WILL AGREE THAT THE RUMMIE WANTS 15 MORE YEARS NOT JUST TO COVER HIS AND HIS BUDDIES ARSES BUT TO CONTINUE THE OPPRESSION ON THE GOOD PASSIVE PEOPLE OF BARBADOS,HEARD SOMEONE ASK HOW LONG WILL THIS SH32TE GO ON,MY GUESS IS TOM THOUGHT HE WAS THE MAN TILL HE GOT A VISIT,I THINK SOME ONE NEEDS TO VISIT OWEN..AND SOON.

  5. reality check

    These hidden off balance sheet companies is just amother Enron for the citizens of Barbados.

    Like the auditors and regulators of Enron who appeared to be asleep at the switch, one can’t help but ask, why has Standard and Poor, The Economist, The World Bank, The IMF and Transparency International failed to reflect the obvious?

    In effect these organizations are like our Board of Directors and have consciously ignored the reality
    of our sub-prime 100% debt situation, By saying nothing, they are protecting the wrong people ie The Banks who made fees on the loans to Barbados ( Deutsche Bank et al. ) and the politicians who are helping themselves along the way without any accountability.

    The world banking bodies need their own Sarbanes-Oxley rules . Its time the citizens of third world countries were protected from the incompetent, immoral and unscrupulous.

  6. Troy

    Not related but this info needs to be out there.
    It is being eroneously reported that the funeral for the late Donavere Alberto Codrington my brother and the late Yashiro Iori Codrington, my nephew will take place at the Sons of God Spirtual Baptist Church in Ealing Grove. This is not correct. The cortege leaves Lyndhurst Funerl Home for the Chapel at Coral Ridge,, where Archbishop Granville Williams will officiate. Then a procession to the Cassia Lawns at Coral Ridge for interment in the family Plot.

    Please advise friends, family and relatives who may have read the wrong news in the paper accordingly

  7. John

    Adrian L.

    I understood that the Company’s act had changed back to require that shareholders, (legal, not beneficial) to be also registered at CAIPO.

    I think it was in 1982 that the 1910 act was replaced by a new act based on Canadian Law. If you look at old companies (pre new companies act) at CAIPO you will find a list of shareholders which was filed annually. This requirement ceased with the new companies act.

    As you can imagine, the hiatus between 1982? and about 2000 allowed all sorts of companies to be registered without a list of shareholders, and only directors shown.

    Many offshore companies have just a local lawyer as their director. Some lawyers are more popular than others.

    It is my understanding that the change in the act also allows the public to write the registered office/secretary of the company and ask for a list of its shareholders, (legal, not beneficial).

    In theory, the shareholders (legal, not beneficial) are also required to be disclosed by law.

    I was told back in the early 2000’s when I went asking for shareholders at CAIPO that they had run out of forms for companies to use and so companies had been unable to file a list of their shareholders.

    If you can’t find the shareholders as well at CAIPO, (I’ll bet you can’t), it may be because the forms are still to be printed!!

    You can then write the company asking for the list, ……….. Good Luck!!

    Depending on the company, you may be ignored, my experience.

    Any lawyers out there able to verify the change in the companies act and the requirement of companies to register shareholders?

    Would appreciate the being enlightened by a lawyer on exactly what is now required!!

  8. ABC

    ABC Project Corp is owned by BNB. BNB Lends money to ABC, ABC pays for the construction, Government repays ABC who in turn repays BNB. This is part of this BOLT thing as I understand.

  9. Adrian Loveridge

    ABC…

    If it is as you state, how does the taxpayer establish the rate of interest charged, repayment period, arrangement and any other fees?

    Is this lodged in Parliament?

  10. ABC

    All terms (interest, period, fees) set by agreement between Govt and ABC. BNB mekkin millions in fees.

    Not sure if it is lodged with plmt.

    reason no lease payments disclosed is because they don’t know. It depends on how much $$ paid out to project and when. Once all pmts are made then total outstanding is used to calc monthly (or whatever period it is) payment.

  11. Bush Tea

    So you are telling me that you all did not wonder why the Government became so entralled with BOLTS?
    This is the mother of all schemes.
    -No need to deal with parliament
    -No need to reflect the capital expenses in the (up front) national debt (so the IMF can buzz off..)
    -Extreme flexibility in assigning contracts (or MOUs) to co-operative ‘partners’.
    -No questions from the Opposition (they don’t seem to know what is going on either)
    – No need for ANY accountability for any aspect of the multi million dollar schemes.
    …talk about sugar sweet…

    Unfortunately, these blogs came along and messed the whole thing up -now wanna got people cussing up and down the place , can’t sleep at night.. don’t know when to call elections… wondering if they going have to spend some time in st Philip shortly…It is a serious situation..

    Here is my prediction…

    The big loser will be people like:
    BNB who have been the chief financier of these crooked deals. What if the next Government refuses to honour the loose arrangements and shady memoranda of understanding?
    (I wonder how good their portfolio looks without these sweetheart deals?)

    “day does only run til night catch it…” my mudda

  12. Eyes IS REALLY KLANG (ED)

    BFP: “Companies whose sole purpose is to be paid vast sums of tax dollars far into the future.”

    ++++

    If that’s so then why have you only mentioned companies which are DOING CONSTRUCTION WORK in Barbados?

    We can see the highway being built.

    We can see the prison being built.

    We can see the judicial centre being built.

    We can see where the money is being spent.

    For projects being built under BOLT contracts, it is the BUILDER who pays the upfront construction cost and then leases the property afterwards, so unless you are one of those companies with a BOLT contract you haven’t spend ANY money on anything.

    In real life, you see, you have to PAY for what you want. All those Bajan construction workers you see working hard in the heat or rain every day to develop this country also have to get PAID every week.

    **************************

    BFP Comments

    Hi eyes who is really KLANG

    You have it wrong. Another company does the construction work, but the one to be paid will always be a “clean” company that did not do the construction work. That is so when the thing falls apart, the company “financing” and being paid for the project is not the company that did the construction. Same bunch of theifs only a different paper company.

    That is why all these “new” companies come forward when it is collecting money time but never be heard of before.

    *********

    And KLANG… if you use more than one name again, you are banned.

  13. Klang

    Bush Tea,

    “The big loser will be people like:
    BNB who have been the chief financier of these crooked deals. What if the next Government refuses to honour the loose arrangements and shady memoranda of understanding?”

    ****

    Do you have any common sense at all?

    BNB is a BANK, not a government department.

    Get some education… it’s still FREE.

  14. Banks never lose.

    “The big loser will be people like:
    BNB who have been the chief financier of these crooked deals.”

    BNB is in effect BigTriniMoney.
    The Trinis know that time longer than twine.
    They can afford to let out the financial baller a bit, to let us get-ketch proper(set the hook)
    because in the long run EVERYthing here, hiways,etc.
    will belong to the BNB(which is in effect BigTriniMoney)

    and so the little satellite of T&T will be acquired, lock stock and barrel.

    Simple plot. no big ting.
    GO BNB! Reel dem in, when yuh ready,yes?

  15. Anonymous

    This is good information but I would like it tie down to Barbados Labour Party politicians. I know that their dirty hands are in there somewhere.

  16. Bush Tea

    .
    KLANG said…
    “Do you have any common sense at all?
    BNB is a BANK, not a government department.
    Get some education… it’s still FREE.”

    So you have a lot of ‘education’ KLANG??!
    ever heard of LOGIC?!?

    -Banks can’t be losers?
    -maybe I could sell you a highway too… or possibly the swing bridge??

  17. Wishing in Vain

    BFP sent you that email again have you seen it?

    ***********

    Thanks, WIV

    We’re trying to get a little more background before posting an article. Do you know the name of the company involved?

  18. Wishing in Vain

    I can find it but it may blow my cover in asking more on this.

  19. Wishing in Vain

    Just another example of how rife corruption is throughout this island.

  20. The Promise of the Darkness

    Ode to Barbados Free Press.

    They will come.

    They will come in the darkness of night.

    They will come.

    Black men in dark clothing, with guns and sirens blazing.

    They will come.

    They will smash your doors and seize your computers.

    They will come.

    They will drag you out of your house at 2:00 am.

    They will come.

    They will take you deep into the bowels of the station and beat you mercilessly.

    They will come.

    Cruel men. Cruel men. Cruel men.

    But in all things be thankful.

    But in all things be thankful.

    But in all things be thankful.

    For when WE come…

    We won’t touch you. We won’t beat you.

    We only come to watch.

    We only come to watch.

    We only come to watch.

    For when WE come…

    We will come silently.

    We will come to kill your children.

    BFP&E

  21. cynty

    Oh, get a life…………..

  22. John

    John

    …. let there be light.

  23. Bimsha Boy

    “Power corrupts; absolute power corrupts absolutely”
    This arose as a quotation by Lord Acton in a letter to Bishop Mandell Creighton in 1887:

    “Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men.”

    William Pitt the Younger, The Earl of Chatham and British Prime Minister from 1766 to 1778, is sometimes wrongly attributed as the source. He did say something similar though, in a speech to the UK House of Lords in 1770:

    “Unlimited power is apt to corrupt the minds of those who possess it”

    OOOOH!! how true.

  24. Banks never lose.

    Thanks for your offer of bridges, overpasses, flyovers and other infrastructure.
    Yes, we’ll take the lot, thanks!- very good of you, thank you.

    Between us(BNB/Trinidad) and The Brits(on the West Coast) we’re buying the whole island.

    DID YOU catch Mascoll on TV?
    Spinning it ..that…some nonsense about Bajans NOT buying up stuff outside of Barbados?
    When Bajans can’t even afford to buy Their Own BARBADOS,in order to stop bits of it falling into “foreign” hands?
    yet,somehow Mascoll expects them to buy elsewhere?
    Maybe I got it all wrong (I often do,sorry), but even normally-sharp-Wife’s mouth dropped open as we shared the laugh.

    The point is THIS.
    BAJANS are BROKE. They talk nationalistically, but they won’t put their money where the big Nationalistic talk is.

    Don’t like foreigners buying up the island?
    here’s the alternative: YOU BAJANS buy it up,instead,
    before the foreigners can!
    THAT is true Nationalism.

    ————-

    So,yes, send us your unwashed flyovers, your newly upgraded bridges(over which no cars shall pass,despite much traffic congestion)
    – we’ll buy them all…it’s cool…we have the money.
    We know your little Independence isn’t working
    (or you’d be able to finance all this stuff of yours,wouldn’t you?!)

    And remember that calypso of about 5-10 yrs. ago that stated very factually that
    Barbados belong TO TRINIDAD!
    (and to the UK).

  25. ??

    In light of comments on BFP perhaps some will agree with this post some will be amused and some will simply be angered.

    Seen the Advocate??

    BARBADOS is the least corrupt Caribbean country based on Transparency Internationals 2007 Corruption Perceptions Index (CPI), in which it was ranked 23rd, behind Chile and ahead of St. Lucia.

    BFP while I disagree with many of your comments and shudder at you constant moderation of my comments I disassociate myself from the crazy comments which have been appearing recently on BFP everyone should be entitled to an opinion and speak freely about their position without personal abuse, threats to life and limb etc.

    I really wonder what the posters are trying to prove… I also concur with the post recently which suggested that the posters may have nothing to do with BLP but may actually be an opposition (could be any one)ploy to create distrust.

    Also I have read Adrians post re companies, and commend his research skills… I guess the hotel business is quiet at the moment..

  26. Waterboy

    ?? . BARBADOS is the least corrupt Caribbean country based on Transparency Internationals 2007 Corruption Perceptions Index (CPI), in which it was ranked 23rd, behind Chile and ahead of St. Lucia.
    —————————————————————-

    That is like saying someone is the least stupid student in the class. Not exactly an endorsement or anything to be proud of.

    Being the best of a bad lot is nothing to shout about.

  27. 168

    You have to check which companies/ individuals are receiving ” consulting fees”. Some of these companies receiving consulting fees might be located overseas. It would have to be an international effort to permit us to look in on what is going on with the corruption.

    By the way, is it true that one of our prominent ministers bought a car from CLICO just after the last election?

  28. Barbados First

    While we are looking into these companies in terms of direct or indirect interest by Government ministers, can we have a investigation into the link between the Barbados Turf Club $19 million debt write off, certain campaign donations during the 2008 general elections and the award of contracts for operation of the cafeteria at the Queen Elizabeth Hospital. By the way what ever became of Harwood Housing, UDC and all the other forensic investigations that were being conducted after January 2010. We the hard working taxpayers of Barbados want to know… Honor the late PM Thompson, implement integrity in public life and campaign financing legislation!