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.