Editorial – April 24, 2015 :
They would never have found those investors, not on their own and towards the end from May last year, the support was not going to be forthcoming. But with the events certainly from 2012 going wrong before it started, it is difficult for Montserrat to comprehend how and why no one will be held accountable for the dire straits of the economy more needy that it has ever been.
There are those people in and out of Montserrat who maintain the view that the UK government (HMG) has no good intentions for Montserrat, and in recent times they even blame the eventual events regarding the MDC squarely on their shoulders.
There is the article published in an recent issue “World Bank wants Caribbean to adapt to ‘new normal’ amid economic slowdown”, which although may not include little Overseas Territory Montserrat in its survey, Montserrat economists, commentators and observers agree that the situation is certainly true of Montserrat.
The article says, in its latest report, the Washington based financial institution says average Gross Domestic Product (GDP) growth in the region is expected to reach only 0.8 percent this year, and may remain at low rates in the future, “unless ambitious pro-growth structural reforms are adopted.”
There is another article captioned, “…remittances growth will slow down in 2015”. That article may well inform this statement from the previous article which says, “The bank’s semi-annual report states that a boost in savings, which would need to be a key ingredient in a pro-growth agenda, would also help rebuild monetary and fiscal policy maneuvering space.“
The article concludes: “The report states that the strong growth of the 2000s is not likely to revisit the region, unless vigorous pro-growth reforms are adopted.”
The failure of Montserrat to attract the investment necessary and as required in the May 1, 2012, we’ve shown is most likely the main contributing factor to the halt of the Little Bay/Carrs Bay development in the “ambitious SGP (Strategic Growth Plan) shut down.
In the MDC Annual Review of July 2014, which DFID’s local rep Martin Dawson says is unofficial and should not be published, says, “There has been no Foreign Direct Investment (FDI) attracted to date and public sector commitment to the Carr’s Bay port could not be obtained. The DFID Minister’s offer of funding a less ambitious Little Bay breakwater was not accepted by the Government of Montserrat…” There is that word ‘ambitious’ appearing in different reports and correspondence for over two years since May 2012.
That was the first failure of the eventual CEO Ivan Browne. The lone reviewer reported, the darling comments no doubt influenced by the former DFID rep: “MDC is hampered in its efforts to attract private sector investment due to the lack of an Economic Citizenship Programme (with resultant loss of potential investment estimated by MDC at $US 62.5 million).”
Both ‘former’ CEO Browne and former Chairman Ryan both since the recent Task Force review report, which has shown them in very poor light as running the MDC as their personal enterprise, produced a document which was not shared with this TMR or MNIAlive, boasting their achievements, no doubt in an attempt to continue their campaign of no ‘financial irregularities’ during their tenure with the MDC.
Their FDI attempt through an Economic Citizenship Programme, which certainly lacked wisdom after GoM’s continual refusal of DFID’s repeated offer of technical assistance. While this is an endemic attitude, the assistance offered included help to woo investors. The Task Force explained – “MDC supported GoM (who vested in themselves authority for the Trade Investment Program (TIP) by drafting a concept paper to request of HMG that Montserrat be permitted to introduce citizenship by investment. This request was refused…the CEO stated that he and another senior employee, whilst in the UK visited an MP Andrew Rosindale to further press their case…he was prepared to lobby for Montserrat being used as a pilot for such a scheme. This attempt was similarly refused.”
This was no doubt after their unsuccessful attempt before they sought permission so to do.
The irony of this is that, the Reviewer in that report, again seemingly very influenced by the local DFID rep at the time used the Ivan Browne and Chairman Ryan’s complaint that they were not allowed to offer Economic Citizenship to get investors.
But the reviewer, a lady although recording that complaint or reason, did write: “The attraction of foreign direct investment (FDI) requires professional research, marketing, promotional, enquiry servicing, and negotiating skills. It also requires extensive due diligence and specific expertise in areas such as public private partnerships to manage the contingent risks and liabilities.”
The issue however was that DFID had required and Montserrat agreed to get investors to access HMG funds. This was obviously partly due to the ‘ambitious strategy’, expressed at the signing of that May 1, 2012 MOU which evolved after much back and forth. The Premier R T Meade was reminded over and over of the private investment before they DFID, would commit , until they finally gave up in effect stalling the plan and forcing them to go back to their suggestion of October 2012. At that time they asked Montserrat to look for alternatives to the master plan.
The MDC with Meade, Ryan and Browne might as well have closed operations having failed to comply with most of the company’s rules, mandates and bylaws, rather than messing up further trying to get TDP3 money to cover their poor financial management practices, misappropriated budgets by misguidedly, wrongfully and inappropriately consuming the Tourist the Board.
This new government will have to show that its willingness to be different. Whatever the feelings of DFID new or old UK government, public servants will mostly be the same, they know the facts; they will not make the decision, this government will have to. Be sure they have already taken care of their own, they will facilitate.
