#BTColumn – Radical misstep may be costly

The views and opinions expressed by the author(s) do not represent the official position of Barbados TODAY.

by Curtis Cave

The Government of Barbados recently entered into an agreement with a St. Lucian-based company named Radical Investments to procure one million doses of AstraZeneca vaccines in a bulk-purchasing arrangement among the Barbados, St Lucia, and Bahamas governments. Radical Investments which is owned by Barbadian businessman Mark Maloney then contracted with an alleged Good Vibrations Entertainment and paid approximately US$10.2 million to secure the said vaccines.

To date no vaccines were received by Radical Investments or the government of Barbados, St Lucia and Bahamas. Radical Investments is now suing Good Vibrations Entertainment, in a US court, over non-delivery of COVID vaccines paid for by at least one of three Caribbean Community (CARICOM) governments, to a company that was in no position to purchase or deliver the goods.

What is troubling is the saga relating to Good Vibrations Entertainment LLC. On the face of it, there is nothing to suggest that this entity based on its name is registered and qualified in the procurement of vaccines, or its transportation.
Secondly, there are allegations that the company was not incorporated until after the agreement, which illustrates the lack of due diligence within this exercise involving three Caribbean governments, of which two are, coincidentally, no longer in power.

Possibility of such activities being related to fraud, corruption and money laundering.

It appears that the true directorship and/or identity of those who own and control Good Vibrations Entertainment is uncertain and virtually unknown. This lack of true identity of a company in a transaction is traditionally a red flag for law enforcement authorities, and one which any competent Government or businessman should recognise especially given the millions invested.

It further appears that Good Vibrations Entertainment or Radical Investments have no credible reputation or experience in doing such business. Yet the Government of Barbados saw it fit to enter into such an arrangement with unqualified companies.
While it is prudent to conclude that Mr. Maloney was scammed and by extension the Mottley administration, one has to ask the question: What are the motives of the beneficiaries of the sums paid, as well as Radical Investments and the Government of Barbados, seeking to pay $20 USD more per vaccine than AstraZeneca’s quoted price of $3 per vaccine? Similarly, Barbados is currently literally begging persons to become vaccinated, with a supply of vaccines on the brink of expiration. Barbados has also been documented as having received various loans and grants to assist in the COVID-19 fight, with the COVAX facility and other countries donating vaccines, thus begging the question as to why this route was taken?

Barbados’ International Obligation
Barbados, as member of The Caribbean Financial Action Task Force (CFATF) which is an associate member of the Financial Action Task Force (FATF), is obligated to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.

In February 2021, FATF placed Barbados on a list of Jurisdictions under increased monitoring due to the deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. This list is often externally referred to as the “grey list”. This list also currently includes countries like the Cayman Islands, South Sudan, Pakistan, Syria and Yemen.

From ‘Grey List’ to ‘Black List’?
If the Government of Barbados does not get its act together, Barbados faces the possibility of being further downgraded by other international bodies on to blacklists, as it currently is on the EU’s blacklist as a high-risk money laundering jurisdiction.

This radical transaction may cause foreign investors to lose confidence in this government at a time where investors around the world are already uncertain of their next financial move.

The Government of Barbados needs to assure Barbadians, foreign investors and the international regulatory bodies that this arrangement with Mark Maloney was above board and the necessary due diligence was done.

To this end, the Mottley Administration has to disclose to Barbadians, foreign investors and the international regulatory bodies regain their confidence:
i. Details of the tendering process for selecting Radical to procure the 300,000.00 vaccines;
ii. Details of the measures taken by the Barbados Government in conducting their due diligence and background checks on both companies, as well as their clandestine cooperation with two other Caribbean governments;
iii. The terms and conditions of the Radical Investments Arrangement/Agreement;
iv. What was the consideration provided to Radical Investments by the Barbados government for this arrangement, including credit arrangements, guarantees or other credit and/or financial incentives and;
v. Whether the Barbados Government will now commence legal proceedings for damages against Radical Investments for their loss, including consideration of the losses paid by the taxpayers of Saint Lucia in this messy scheme.

The Democratic Labour Party (DLP) again sees this as an opportunity for this Government to practise the transparency which they preached in the last election to wow the hearts of Barbadians.

We implore this Mia Mottley administration to keep its promise, and to put Barbados first in its operations as opposed to its questionable tactics and public relations.

Curtis Cave is an attorney at law and the spokesperson on legal affairs for the Democratic Labour Party.