Tag Archives: Barbados offshore investments

US State Department: Barbados politicians ask for bribes and business equity in exchange for favours

US State Department Barbados

The US State Department just published its annual Investment Climate Statement for Barbados. There is some wishful thinking in the report, but also some solid reasons why Bim is a good place for offshore investment. As far as the politicians asking foreign businesses for bribes or shares… That’s news?

You can read the whole thing yourself, but here’s our take on a few interesting spots in the report – the good, the bad and the ugly…

Barbados – The Good

Openness To Foreign Investment

The Government of Barbados, through Invest Barbados, strongly encourages foreign direct investment in Barbados.

The government offers special incentive packages for foreign investments in the hotel industry, manufacturing, and offshore business services.

Foreign nationals receive the same legal protections as local citizens. The police and court systems are unbiased in commercial matters, and the government operates in an essentially transparent manner.

The Bad

On December 20, 2012, Moody’s downgraded Barbados’s rating to one notch below investment grade. Moody’s also gave Barbados a negative outlook, meaning that a further downgrade is more likely than an upgrade. With this downgrade, Moody’s rating is in sync with Standard & Poor’s, which downgraded Barbados in July. Fitch Ratings does not rate Barbados. Moody’s cited two main reasons for this downgrade: poor economic growth prospects and government deficit/debt levels. These are generally the same two reasons Standard & Poor’s cited in July.

The regulatory system can be slow at times, and some companies have complained that the Ministry of Finance does not give adequate justification for rejecting a license.

According to the U.N. World Investment Report, Barbados Foreign Direct Investment (FDI) peaked at $464 million in 2008. This was followed by a decrease to $247 million in 2009. In 2010 and 2011 FDI totaled $290 million and $334 million respectively.

The Real Ugly Stuff

Corruption is not a major problem in Barbados, but some U.S. companies have reported unfair treatment by Barbados’ Customs and Excise Department.

Other U.S. companies have reported efforts by political actors to trade political support for payment or partial project ownership.

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Filed under Barbados, Corruption, Economy

Barbados Corporation implicated in US$200 million Ponzi scheme. How will our government deal with David Krywenky?

Kingz Capital Management Corp. Barbados – Hundreds of Millions vanish

According to the Star Tribune of Minneapolis USA, Kingz Capital Management Corp. is a registered commodities trading adviser and commodities pool operator in Barbados. A simple Google search reveals numerous articles talking about Kingz involvement in several “gone wrong” investment schemes that took in hundreds of millions of dollars – that apparently vanished.

At Barbados Free Press our questions are: 1/ What is Barbados going to do about it? 2/ What laws does Barbados have at its disposal to prevent or to deal after the fact with occurrences like this?

Here are a few stories of the many online…

Trevor Cook’s ally won’t be trading for 3 years

By Dan Browning, Star Tribune, Minneapolis

Jan. 28–A Canadian-based commodities trader affiliated with embattled Minneapolis money manager Trevor Cook has agreed to give up his trading rights for three years in response to a complaint that accused him of letting Cook — who is not a registered trader — take control of an offshore currency investment pool.

The trader, David Krywenky of Toronto, has run Kingz Capital Management Corp., a registered commodities trading adviser and commodities pool operator in Barbados, for two years. The National Futures Association (NFA), a self-regulatory body that oversees the futures markets, filed a complaint against Krywenky and Kingz Capital in September accusing them of failing to uphold ethical standards, cheating customers, and failure to supervise business activities properly…

… continue reading the full story at American Chronicle’s article Trevor Cook’s ally won’t be trading for 3 years

Click image for Patrick Pretty's take on this story

$300 million Oxford trail leads into Canada

By DAN BROWNING, Star Tribune
November 4, 2009

Investors looking to recover their money from a suspect currency investment program have a new, $300 million trail to follow into Canada.

Regulators are quietly pursuing a complaint against a Toronto commodities firm and one of its executives, alleging they helped Minneapolis money manager Trevor Cook facilitate the currency trading program.

The $300 million that passed through the Toronto firm — KINGZ Capital Management Corp. — is the largest chunk of money found so far in the still-unfolding case, which drew investors from across the United States and several other countries. They have been unable to withdraw their money from what many were told was a Swiss-based currency trader since at least early July.

continue reading this story at the Star Tribune.com article $300 million Oxford trail leads into Canada

Further Reading

PatrickPretty.com – KA-BOOM! Offshore Firm To Which AdViewGlobal Claimed Wire Tie Booted From National Futures Association After Investigators Discover Ponzi Figure Trevor Cook Was Managing Its Investor Pool

Thanks to BFP readers A & R for tipping us to the story!

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Filed under Barbados, Business & Banking, Consumer Issues, Crime & Law, Offshore Investments

Barbados Auditor General: Owen Arthur – Mia Mottley Government stole land and profits from the people of Barbados

UPDATED: February 15, 2011

We’re reminding everyone of this story for a reason: The Arch Cot Inquest resumes on February 17, 2011 and BFP is about to publish an article showing how government corruption in land dealings contributed to the deaths of five members of the Codrington family.

Nothing changed with the election of the DLP Government in 2008. The piggies are still feeding at the trough – just a new group of piggies, that’s all.

Original Story published October 15, 2009…

“On two occasions, lands for which the infrastructural development was funded by the Corporation were placed under the control of private developers for allocation to potential buyers. There was no clear benefit for the Corporation from this course of action. With applications in excess of 24,000, there was no benefit in allowing private developers to allocate land, without any stipulations about whom the land should be sold to.”

… from the report of Auditor General Special Audit of the National Housing Corporation (available at the Auditor General’s website here)

(Sure, no benefit to the corporation – but many benefits to friends of the BLP government!)

How crooked BLP politicians and their friends ended up with public land for cheap!

How the Thompson DLP Government will protect the guilty! Continue reading

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Filed under Barbados, Corruption, Crime & Law, Ethics, Offshore Investments, Political Corruption, Politics, Politics & Corruption, Real Estate