Tag Archives: Barbados Business Climate

Barbados Government withholds hotel’s VAT refund for two years. Punishment for owner’s activism or Barbados lacks money to pay?

“As a frequent writer on tourism matters, I have become used to attracting a high level of attention in Government circles with all the negative consequences this has brought over the years, but this is another matter.”

Government’s revenge on a foreign investor and business owner?

Adrian Loveridge, small hotel owner

Adrian Loveridge, small hotel owner

On or before the 15th March 2013, we will be expected to pay over to Government the amount of $37,526.60 in Corporation taxes due for the last financial year. If we do not pay on time, then there will be an immediate fine of 5 per cent of the amount due, which equates to $1,876.33 plus interest accrued of 1 per cent per month or 18 per cent annually, which is 3 times the latest rate of Government borrowings to sustain a bloated public service and pay for dismally failed projects like GEMS (Hotels and Resorts Limited) and the chartering of Carnival Destiny for CWC2007.

As a small business that has operated on Barbados for twenty five years and that is fully paid up with all our statuatory obligations, it is a significant amount of money. Yet the same Government has owed us outstanding VAT refunds of nearly $30,000 for up to two years. Of course they have not paid us any late penalty charges or interest.

Before going public, I have written personally to the Ministers of the various Government bodies involved, but up until today, not received any form of response.

It appears they feel they have no obligation to businesses that are successful, sustainable (through there own efforts) and those who have demonstrated viability over decades of operation.

Yet week after week, it is almost impossible not to read or listen to endless rhetoric about the importance that small businesses will play in the recovery of our economy. Continue reading



Filed under Barbados, Barbados Tourism

Police, court, DPP abuse of witnesses and victims – one man’s horrific experience

“We have, so far, over a period of four and a half years, attended the Magistrates Court for the preliminary trial a total of 21 times. It is impossible to offer a guess as to when this case will exit the Magistrates Court to the High Court, and how many more years it will spend there.”

by Trevor Kent

Kent Construction Ltd.

Charles Leacock, Barbados Director of Public Prosecutions

In The Nation on Friday May 25 was an article DPP: Stop hiding white collar crime, in which Director of Public Prosecutions, Charles Leacock, reportedly lamented the low level of reporting by business of what is known as “white collar crime”. His take on this situation was that businesses, especially, it seems, commercial banks, have been afraid of bad publicity and thus prefer to cover up malfeasance within their operations. He urges that this practice must stop, saying, as reported in the newspaper, that “the low level of prosecutions and investigations [is] symptomatic of the fact that there is also a low level of reporting”.

I have to admit to being surprised by these reported comments, based on my Company’s experiences with reporting substantial white collar thefts by on of our employees, carried out systematically over almost seven years. After assisting with a very long, drawn out Police Fraud Squad investigation, we were informed by letter that the DPP had directed that only a fraction of the thefts for which we provide hard evidence should  be investigated, to save police time. How does that square with the stated fact of “a low level of investigations”?

Then, we have, so far, over a period of four and a half years, attended the Magistrates Court for the preliminary trial a total of 21 times. It is impossible to offer a guess as to when this case will exit the Magistrates Court to the High Court, and how many more years it will spend there.

I would thus submit that the reason companies elect not to report similar crimes is that they do not with to face the frustration of dealing with the slow Police investigation requiring numerous hand-written statements etc. followed by hundreds of hours of wasted employee time, sitting at a Magistrate’s court that often starts up to one and a half hours late, and then accomplishes very little before adjourning for the day.

The whole process then has to be repeated at the High Court, in front of Judge and Jury.

By the time a matter has gone through the Magistrates Court, and the High Court, many years will have elapsed, witnesses may have retired or died, and companies have lost many thousands of dollars in employee time, in addition to the original loss. Even if the accused is convicted, sentences are often little more than a slap on the wrist, as pleas of “first time offender” (although there may be numerous episodes relating to the same trial) are accepted by the courts. Companies thus decide, as in one case I am aware of where the owners simply sold the company and relocated overseas, to swallow the loss, leaving the perpetrator to continue stealing at another company, as often happens.

The legal trial system in Barbados is seriously time-flawed, if not broken, and in fact some of the laws are flawed also. In our case, the bank, after cashing over 300 “third-party” company cheques during the stated period, without once questioning the legitimacy of these transactions, either with the presenter or with the Company itself, was able to hide behind the Banking Act that apparently does not require ID and authorization from the payee to whom the cheque was signed in good faith by a Company director. Amazing really, when one considers that the local Post Office requires such confirmation before delivering mail to a person claiming to represent someone else. The bank has refused to engage with us at any level (despite firm written promises at the highest level) and our expert legal advice is that, whilst we are not without precedent in seeking redress through the courts, the process could well take six or seven years, and even longer on appeal… not to mention hundreds of thousands of dollars in legal fees. Continue reading


Filed under Barbados, Business, Crime & Law, Police