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.”
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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.
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.
""
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.""
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.
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???
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.
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
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...
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.
$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