Would You Invest Where The Courts Do As They Please To Ensure An Outcome The Government Desires?
There is a situation going on in the small island state of Seychelles where the Supreme Court is so obviously manipulating a court case towards a favourable outcome for the government.
The government might win this specific court case, but Seychelles will lose in the long run. What international investors in their right minds would invest in that small island state after reading about the plight of the shareholders who are being raped by the government?
Barbados Can’t Hide The “Chicken Plucking” Anymore!
The internet has changed everything, and many smaller jurisdictions are finding that they can no longer hide their “chicken plucking”. The chickens are fighting back on the internet and spreading their stories worldwide in a matter of seconds.
You know “chicken plucking”… it happens all the time Barbados. A newly-arrived international investor is feted and shown Bim until they fall in love with the place. By the time they discover that the rule of law is whatever the ruling elites want it to be, they are so significantly invested that they lose millions.
Take the case of Matthew Kerins, developer of the aborted Caribbean Splash Water Park. Mr. Kerins came to Barbados and was treated like a king when the government insiders learned that he had millions to pour into the island’s tourism industry.
Kerins said in public that he paid 2 million dollars in “consulting fees” to various “consultants”, met with Prime Minister Owen Arthur and was generally told “we have a deal”. Except there was no deal, and no agreement. Kerins is out US$2 million and Owen Arthur and the gang laughed all the way to the bank.
Invest in Seychelles? Are you crazy?
Here are some excerpts from couple of stories about the Supreme Court of Seychelles doing exactly what their government wanted.
VICTORIA, Seychelles (eTN) – In the Supreme Court of Seychelles, on 23rd July 2008, Acting Chief Justice A. Ranjun Perera refused to “stay” the winding up process in the case of Ailee Development Corporation Limited, owner and operator of the Plantation Club Resort, to prevent the liquidators, Ernst & Young LLP of Mauritius, from being able to sell the assets of the hotel company before the Court of Appeal hearings have taken place. This is despite the fact that the date set for hearing the appeal of the company is set for August 7, only two weeks away…
Shareholders representing 91 percent of the company and all of the secured creditors do not want to see the liquidation go through as it is being conducted, as the shareholders fear the total loss of their hotel and the creditors fear that the tender process will be manipulated to defraud them of their proper dues.
Mark Davison, managing director of Ailee Development Corporation Limited, said: “We continue to be convinced that this process will be teamrollered through by those elements of government who have orchestrated it, to ensure that the Hotel is acquired by the government’s chosen party, without us having recourse to any defense or protection whatsoever.”
afrol News, 16 July – Seychelles Supreme Court has delivered a shock ruling granting for liquidation of Ailee Development Corporation Limited (ADC), the company owning Seychelles largest tourist resort, in favour of government which own minority shares of only 8 percent in the company.
Acting Chief Justice Ranjun Perera ruling which has set precedence in Seychelles justice system for minority shareholder call for liquidation, has shocked majority shareholders of the company, who have said that the court proceedings were bias…
UPDATED: Seychelles Blog Fire Broadside!
“We are all up in arms (metaphorically speaking) here in the Seychelles. Actually, the whole thing was orchestrated by one of the shareholders (not Mark, who is local) in conjunction with the government. The plan is to sell all the shares to this one shareholder, who is the foreign investor. This investor wanted to buy out the local, but he didn’t want to sell, hence the wheeler-dealing with the government.
It’s the foreign investors who are actually getting away with all kinds of shenanigans, so it is unlikely to stop them from investing. Many are even getting citizenship if they buy here, which is encouraging all sorts of unsavoury types to settle here and wash their dirty money with “investments”. The locals are the ones suffering, as prices are being pushed up and nobody can afford land or investments any more.
Interesting blog, btw. I didn’t know Barbados was also a banana republic like ours.”
… from Louise at Living In Seychelles Blog