“This is not about saving the Four Seasons project: it’s about using NIS pension funds to protect private investors who are already in. Who are these private investors?”
Newspaper reports say the Government of Barbados is about to take your pension money from the National Insurance Scheme (NIS) and
loan it give it to the developers of the collapsed Four Seasons project. (Nation report here)
The $60 million dollar “investment” is necessary because no further private money wants to “invest” in the project.
Why don’t private investors want a piece of a project that Finance Minister Sinckler says will yield “massive returns”?
The answer is simple: Private money wants nothing more to do with the project because they believe it is not a viable investment.
Private investors examined the risks, possible profits, projected revenues, tourism projections, project management, and the likelihood of success or failure and determined that only fools would continue to “invest” in the collapsed Four Seasons boondoggle.
“To whom the benefit?”
When Finance Minister Sinckler makes the official announcement later this week, he will talk about the construction jobs and future employment prospects of a re-started Four Seasons project. He will talk about the fact that Barbados government money is already into the project and that we risk that “investment” if we don’t put in more. “In for a penny, in for hundreds of millions” is apparently the motto of the Sinckler government.
(I’d say “Stuart government”, but there’s no proof that Stuart has been running the government up to now, and as for next week, who knows?)
The one thing that Mr. Sinckler will NOT talk about is conflicts of interest. He will not name the investors who are at risk, and who will benefit from the gift of public money. He and his fellow MPs will not declare if they or their close family members have anything to do with the project: as investors, suppliers, contractors, creditors or in any way will benefit from the bailout using your pension funds.
A few questions for Prime Minister Chris Sinckler…
- Name all the investors that our tax money will rescue! How many politicians or close family members are already invested in Four Seasons, Mr. Sinckler? Who are we bailing out?
- Do any current or previous members of government or their family members have a stake in this project? I want full disclosure before one more dollar of public money is placed at risk.
- How much of the project does Barbados own now?
- How much more money to completion? Can the project ever be profitable considering the costs?
- What percentage of units have to sell at what price and during what time period to meet the interest payments? What occupancy rate at what room price for how many years for the hotel to function, perform reasonable maintenance and pay off the loans?
I doubt our government ‘experts’ know the answer to those questions any more than I do.
Not one more dollar of public money. Not one dollar of our pension money.
Previous BFP posts on Four Seasons…
Oct 14, 2011 – Peter Boos warns about NIS “investing” in Four Seasons
Sept 28, 2011 – Four Seasons Barbados wants your pension money