Government’s defence of UK-based White Oak consultancy to restructure the country’s foreign debt, citing inadequate local expertise, was slammed today as “irrelevant” by the Opposition politicians.
The team of senators and party spokespersons who are to be formalized into a political party in two weeks, declared that Government’s lack of local alternatives, shed no light on the rationale behind the $54 million price tag for the two-man advisory team.
Speaking at a press conference at the Opposition wing of Parliament on Tuesday, spokesman Scott Weatherhead suggested that Government took a cavalier approach to a matter, which could have dire consequences later down the road.
“The sum should have been negotiated better…. [Government] did a poor job of negotiation. Maybe they didn’t negotiate at all, maybe there are reasons for not negotiating.”
He pointed out that White Oak’s bill was equivalent to ten per cent of the country’s loan from the International Monetary Fund.
The entrepreneur also accused Government of being less than transparent with the process.
Weatherhead told reporters: “Whether it could have been handled locally is irrelevant. Whether there was no experience locally to tender on the debt negotiation, may be so, but we never saw a tender.
“So perhaps the right way of doing things in the interest of transparency was to put the contract out to tender, receive some responses and then advertise that a suitable person was not found locally and that they were going to seek international expertise.
“They [Government] should have announced their choice and negotiate the best possible price for the job.”
The criticism stems from Chief Economic Counsellor, Ambassador Dr Clyde Mascoll’s dismissal as “ridiculous” the notion that a local economist or firm could have done the job. He also addressed White Oak’s failure thus far to negotiate a settlement for the approximately $3 billion in debt owed to external creditors.
“The notion that there is a Barbadian who is qualified and has been restructuring debt is not known to me and if there is one, then that person can step forward.”
Adding his voice to a chorus of Government officials defending the White Oak deal, he stressed that 80 per cent of the gigantic debt owed to local creditors was successfully restructured late last year but admitted that negotiations for restructuring the external debt could continue to be challenging.
“On the external side, those people don’t have that kind of affinity for the Government of Barbados. They are purely capitalists and they invested to get a greater return… so yes, there may be some fallout from not being able to negotiate the external debt as fast, but it is not even a year yet and normally it takes longer to do external negotiations,” he said.
But Weatherhead argued that Mascoll’s defense of the time that the negotiations were taking, raised more questions than it answered.
The Opposition spokesman, who ran on Solutions Barbados ticket in the May 24 General Elections, said: “I think that when you are talking about the kind of debt that Government is trying to negotiate, it is not a small sum and there are a lot of creditors.
“So, if a debt negotiator was tendering on that, they would have needed time to understand what is involved in that negotiation. A lot of due diligence should have been done before someone could say this is what we are going to charge.
“So, it’s either possible that process happened prior to election that this company knew that they were going to be appointed after the election last May or they had no idea what they were getting into and quoted a high amount. We can’t speculate at this time, but we can say that the process was not transparent.”
$54 million price tag for the two-man advisory team.
These two must be the best for real!
Not saying that the arrangement is the best but cannot say it is the worst either and neither can the opposition since like me they do not have to go sleep at night wondering if decisions made are the right ones or if decisions made would work out or if decisions made would attract criticism but am I not hearing that apart from the 10 million put into CLICO by Mr Thompson which from the Judicial Report inference can be drawn that it was used to line the pockets of Messrs Thompson and Parris and I cannot get the money on my endowment policies matured since 2012 and no one has been held accountable yet these people continue to live large and in charge when daily in the media poor people who can do no better are gleefully sent off to Dodds for stealing a piece of cheese or a bottle of rum or insignificant sums of money and in addition I heard of another 42 million having been pumped into CLICO all for nothing then I am forced to conclude that the 54 million is chicken feed and leave judgment to when the election bell rings which it will as sure as night followeth day
As Kellman said, 2 is greater than 1500
Last May 24th general elections was all about change. Was that a change of clothes, or a change of personnel within the government.My question is, was it Avinash Persaud who negotiated with the White Oats people, before the elections were held? The whole thing smells like a rat to me.
International auditors should be able to look at this and see who got they palms greased aka bribes,something about this and pretty much everything involving government and taxpayers money stinks.Not just the two person company call White Oak benefitting but some local folks, remember this is Barbados where they is no frigging transperency nor accountability about anything and it has been this way for many moons.
WHITE BOY RICH BOY PLS YOU NOW CARE …WHERE WERE YOU 5YRS AGO
“”White Oak vs Black Suffering: we have been assured by none other than the loquacious Avinash Persaud that he would most definitely waste our money on White Oak again if the occasion arises. Ort.
He went on to say that of the 15 international sovereign debt restructures that have happened for the millennium White Oak ‘has been involved in 7’. Did they provide the catering for the meetings or administrative support? Because I’ve seen White Oak’s Financial Reports for the last 10 years and they DO NOT REFLECT seven sets of multimillion dollar fees.
Therefore I has crestuns:
1. What were the 7 restructures that White Oak was involved in this century? Please list.
2. What was their level of involvement in these restructures? Please provide a detailed report.
3. What were the deliverables and how well did White Oak perform on the deliverables?
4. WHAT WERE WHITE OAK’S FEES in these restructures (I have possession of White Oak’s financial statements so be careful here).
5. What is the relationship between White Oak, the principals of White Oak, and Mr Persaud?
When bankrupt countries shell out $27 million dollars for a $5 million dollar job, a conscientious citizenry MUST ASK QUESTIONS.””
“”AN AG AND A PM CANNOT CONSTITUTE A CABINET UNDER THE LAWS OF BARBADOS
Our Constitution clearly states that the cabinet of Barbados SHALL consist of the PM and AT LEAST five other members.
FIVE DAYS AFTER ELECTIONS LAST YEAR THE MOCKLEY ADMINISTRATION GOT BARBADOS INTO A CONTRACT THAT REQUIRED CABINET APPROVAL BUT WE HAD NO CABINET.
By what mechanism was this achieved? How are we pretending that she is ‘cleaning up a mess’ when she is making an even bigger mess?
I don’t want to hear any lies about ‘savings to Barbados’; I want to know how they get de damn contract in the first place!!””
“”THE GREAT WHITE HOAX
FIVE DAYS. FIVE. In five days Mia Mottley after she was sworn in as PM. Before Parliament met. Before cabinet met. White Oak had a contract for TWENTY SEVEN MILLION DOLLARS. But wunna cahn get a bus.
How did the government manage to conduct a legal tendering process in FIVE DAYS to pay out a twenty seven million dollar contract; but in ONE YEAR cannot buy a SINGLE bus? Instead of buying buses they came in and reduced the current bus stock by over 60% and now trying to privatise the transport board by stealth.
WHO ARE THE TWO PEOPLE WHO WORK AT WHITE OAK? WHY DO THEY DESERVE TWENTY SEVEN MILLION DOLLARS WHILE TWO HUNDRED AND EIGHTY THOUSAND CITIZENS OF BARBADOS CANNOT GET A BUS?””
$544 miles two man. Team where you think that money is going then Again mascoll is a joke to his own people put another bajan down no confidence in any bajan for the job
Something is very wrong about this contract. This is a Gov that criticized the DLP for their lack of transparency and now they are doing the same, giving contracts to friends and family. Which category does White Oaks fall into.? And somebody should tell Clyde to hush he mout. He is making himself look like a man who is there just to please because that is the only way he will get his supper.
Don’t fret peoples,he is in a PARTY led by JOE BLOKE..nabody in elect he…anybody can be a SPOKESPERSON on ANYTHING…hear say ,they say is NOT ADMISSIBLE from ANYONE in the VISITORS gallery in the HOUSE.
In other words, ANY YARD FOWL or PALING COCK can talk FLANNEL and FUZZ…it counts for NOTHING…not worth wha PADDY shot at…it would STILL be BIZNESS as usual for PM MIA and her clan……wunna can continue to TALK and wish de WORST for your COUNTRY..but we STAYING THE COURSE….ACTION SPEAKS LOUDER THAN WORDS…
The economy is real Bad, Bad so we can’t pay Pensioners who put all they Retirement money in Government Bonds
We had to Raise Bus fares but not Minimum Wages
We had to Raise Water Bills
So we can Pay White Oaks 85,000 us$ per month
This is Good Governance
This is another Reason BLP should be a One Term Government
just a 2 man, and all that money, don’t we have university graduates that could of done the job, if not locally, regionally? then we have a problem, it means our education system is poor, we look foreign too much when we have all the resources among us.
Who were the mavericks who negotiated on the behalf of Barbados with the IMF and White Oaks when they formed no part of the elected Govt. or Cabinet of the day????
Nor were they appointed by the elected Govt. of Cabinet of the day to represent the Govt. and people of Barbados???
Who were the Civil Servants who provided these mavericks with confidential Govt. information for them to use???
What Laws of Barbados did they break by so doing???
Was TREASON one of the laws???
IAN CARRINGTON eventually signed the done deal on behalf of Barbados???
When did he know about this deal???
Transparency, transparency! This whole thing with white oaks makes no since. how could they receive a contract six days after elections unless it was promised or negotiated upon long before elections and all MAM and her cohorts had to do was sign. Something just aint right here. Mia you promise TRANSPARENCY and there is nothing transparent about this deal and others.
“”
by Ryan Walters
The White Oaks fiasco as reported in the Financial Times must be a source of grave concern for Barbados’ International Business and Financial Services Sector.
Barbados needs foreign direct investment now more than ever.
The deliberate default in external debt, augmented by the European’s Union blacklisting of Barbados as an uncooperative jurisdiction along with looming uncertainty in the domestic market are all contributing to increasing the risk of a slowing down in this important financial area.
International Business entities currently have no certainty within the investment arena in Barbados. The current administration’s refusal to pay external creditors and prolonged negotiations will in due course initiate the departure of companies while others will consider delaying their establishment here.
The reality is that these organizations use their Barbados structures to invest in other jurisdictions. Much of such investments have to be financed by some of the same creditors Barbados refuses to pay.
One can rest assured that the decision to default on monies owed will force said creditors to unfavorably consider financing requests from International Businesses that includes a Barbados domiciled entity.
Add these concerns to the recent revelation that this country paid way above market rates for White Oaks services and you have investors querying the types of arrangements the Government is prepared to enter into to get the job done.””
This contract is a breach of the constitution, and the opposition should table a motion of ‘no confidence’ in the Prime Minister and Attorney General.
Not saying the motion will see daylight, but the people of Barbados will see how many elected members who swore to represent them by doing what’s right and lawful will misrepresent their interest now by supporting a PM, and AG that breached the constitution.
This hole white oak dilemma really makes black educated people here is BIM look dismal. Is there something that lily white oak boys was taught that the same people in Little England was not taught. If so then u people really need to go the educational drawing board. It appears that this white oak is going to negatively impact on the debt management strategy itself.