Human rights group, Jamaicans for Justice, is reportedly calling upon the newly elected PNP government to set up a Commission of Enquiry into the May 2010 Tivoli Gardens security forces massacre of at least 73 people. Some residents dispute this official figure and claim that as many as 200 people may have been killed.
While it is alarming that after nearly two years the state has given no indication of an interest to investigate what happened it is also true that the call for a Commission of Enquiry, which is being supported by the Public Defender, is fraught with the danger of becoming a convenient way for the state to bring closure to its crimes without achieving justice for the people who suffered and who lost their lives.
A commission of enquiry may seem like the logical thing to do but because of the sordid role played by Jamaicans For Justice, first in supporting an unnecessary State of Emergency which lead to the massacre, and its inaction since the massacre, along with the inexcusable refusal of the Public Defender to investigate those who had command responsibility for the crimes committed, the motive behind this call for a Commission of Enquiry has to be questioned.
Appealing to the PNP for a commission of enquiry is tantamount to appealing from Caesar unto Caesar. As the opposition party at the time the PNP supported the state of emergency.
The PNP would have known that Bruce Golding's decision to set the security forces loose on Tivoli was an opportunistic move designed to recover lost political ground after nine months of refusing to agree to Coke's extradition. The PNP would have and should have known that a security forces invasion of Tivoli would have resulted in the deaths of innocent civilians as has happened on past occasions.
Consequently, the PNP raised no issue about the allegations of extrajudicial killings and the massive violations of human rights involved with mass detentions.
In fact the PNP subsequently praised the Tivoli operations by claiming that it resulted in the dismantlement of the Shower Posse leading to a drop in the murder rate. This was a most foolish and opportunistic position because it was unarmed civilians who were killed, including women, and there is no proof that the killing these people had anything to do with a drop in the murder rate.
Apart from possibly going through the motions the PNP has nothing politically to gain from a Commission of Enquiry since it supported the Bruce Golding's method of bringing conclusion the matter.
The sordid role played by the Public Defender
Immediately after the massacre the Public Defender wrote a letter to Prime Minister Bruce Golding requesting a commission of enquiry and to this date Bruce Golding has not responded to his letter. The Public Defender made no fuss about this.
The possibility of the Public Defender participating in the Manat and Phelps Commission of Enquiry was publicly raised but the Public Defender said that he was conducting forensic tests which would not have been finished until September and so would have nothing to contribute to the Enquiry. To be fair the Enquiry was deliberately not set up to consider the Tivoli Massacre.
Many months have passed since September 2011 and to date the Public Defender has made no public statement about the results of his forensic gathering enterprise.
The Public Defender is also aware that no amount of forensic gathering can reconstruct the crime scene of a military invasion and his preoccupation with this forensic gathering enterprise seems totally misplaced. Even Jamaicans For Justice concur on this.
As part of a short-lived "Tivoli Committee" which I helped to organize a letter was sent to the Public Defender asking him to investigate the "command responsibility" of the prime minister, the police commissioner and the head of the JDF", among others, for their role in the crimes committed. The term used by the International Criminal Court would be "Crimes Against Humanity."
The Public Defender while acknowledging that he does have the power of a judge, similar to that possessed by the Contractor General, and could conduct an enquiry similar to the types conducted by the Contractor General into corruption matters, dismissed out of hand the possibility of him taking such a course of action. No explanation was given.
All that he could contemplate was a Commission of Enquiry. Needless to say that he flatly refused to meet with the Tivoli Committee to consider the arguments as to why a Public Defender investigation would be the best course of action, especially since it did not conflict with a commission of enquiry. By his cowardice and incompetence, the Public Defender has ensured continuation of the circle of impunity for state crimes against the people.
What should be done:
1. The Public Defender should publish the statements of Tivoli Residents regarding what happened. No names are necessary.
2. He should publish the results of his forensic investigations.
3. Since the Public Defender has declined to investigate those who had command responsibility for the crimes in Tivoli, a special prosecutor with the powers of a judge is needed to do this. The prime targets are former prime minister Bruce Golding; police commissioner Owen Ellington; and the former head of the Jamaica Defence Force Major Saunders.
4. There needs to be public discussion as to whether these gentlemen have criminal charges to answer.
5. This special prosecutor enquiry in no way conflicts with any decision to set up a Commission of Enquiry and any relevant information which may arise from such an enquiry
6. The Public Defender should be forced by the public to resign for his betrayal of the cause of justice.
5. Finally, since there can be no confidence in the ability of the local judicial system to prosecute those who had command responsibility for the actions of the security forces, the International Criminal Court should be approached to provide guidance so that all information gathered can be used for possible prosecution purposes.
To talk about celebrating fifty years of state independence when the said Jamaican state has allegations of crimes against humanity hanging over its head is nothing but a cruel joke.
Lloyd D'Aguilar
Campaign for Social and Economic Justice
Sunday, February 19, 2012
Thursday, December 8, 2011
PM Holness’ rebuke of Dwight Nelson’s and Colonel Rocky Meade's lies raises more questions than it has provided answers.
Some questions:
1. At what point did the Department of Homeland Security (DHS) become aware of the intentions of the Jamaican security forces [Operation Garden Parish] which would have prompted them to offer a surveillance plane? [Holness said categorically that plane was offered and the offer accepted by the Jamaican government]
2. Were the DHS and the DEA involved in planning the operation?
3. What role did former prime minister and minister of defence Bruce Golding play in the granting of permission for this surveillance plane to be brought into the operation?
4. Why did Mr Golding give a categorical denial in parliament?
5. Why was National Security Minister Dwight Nelson, who is also a member of the Defence Board, not told about the granting of permission for the DHS plane to be brought into the operation, certainly by the Prime Minister with whom he seemed to have had very close relations?
6. How was it possible for him not to have known about it?
7. Why would Colonel Rocky Meade have made a similar denial when he was well aware of the facts?
8. What was the ‘sensitive nature’ of the operation according to Prime Minister Andrew Holness?
9. Can Dwight Nelson and Rocky Meade be trusted as honest employees of the state having been found to be lacking in credibility and caught telling lies? Should they be allowed to continue in their present positions?
10. Will Prime Minister Andrew Holness ensure that the surveillance tapes be made public so that a determination can be made as to whether the security forces were in fact engaged in a firefight as they claim? [The DHS has said according to Mat Schwartz in his New Yorker article that the tapes were viewed at a "tactical operations center"]
Lloyd D'Aguilar
1. At what point did the Department of Homeland Security (DHS) become aware of the intentions of the Jamaican security forces [Operation Garden Parish] which would have prompted them to offer a surveillance plane? [Holness said categorically that plane was offered and the offer accepted by the Jamaican government]
2. Were the DHS and the DEA involved in planning the operation?
3. What role did former prime minister and minister of defence Bruce Golding play in the granting of permission for this surveillance plane to be brought into the operation?
4. Why did Mr Golding give a categorical denial in parliament?
5. Why was National Security Minister Dwight Nelson, who is also a member of the Defence Board, not told about the granting of permission for the DHS plane to be brought into the operation, certainly by the Prime Minister with whom he seemed to have had very close relations?
6. How was it possible for him not to have known about it?
7. Why would Colonel Rocky Meade have made a similar denial when he was well aware of the facts?
8. What was the ‘sensitive nature’ of the operation according to Prime Minister Andrew Holness?
9. Can Dwight Nelson and Rocky Meade be trusted as honest employees of the state having been found to be lacking in credibility and caught telling lies? Should they be allowed to continue in their present positions?
10. Will Prime Minister Andrew Holness ensure that the surveillance tapes be made public so that a determination can be made as to whether the security forces were in fact engaged in a firefight as they claim? [The DHS has said according to Mat Schwartz in his New Yorker article that the tapes were viewed at a "tactical operations center"]
Lloyd D'Aguilar
Saturday, November 19, 2011
Case for a forensic audit of Jamaic's public debt
Professor James Petras (Binghamton University) opined during our discussion (Sunday November 6, 2011) on my newly launched internet programme “Looking Back Looking Forward” (www.lookingbacklookingforward.com) (every Sunday at 12 noon) that maybe about 70% of the Jamaican debt is illegitimate.
I have never tried to quantify it myself. It would require a forensic audit which I have been advocating to determine what portion is really illegitimate. But even without an audit, those with just a passing knowledge of how corrupt Jamaica is (Transparency International lists Jamaica as one of the most corrupt countries in the world) would not regard Petras’ estimation as outrageous.
The following is by no means an exhaustive list of questionable projects and dealings which need investigation, but there is a pattern which suggests recklessness and lack of accountability for the spending of public funds. If only a fraction is corrupt it is considerable in a poor country.
Corruption represents a method of transferring wealth from the poor to the rich or a form of primitive capital accumulation to use Marx’s definition. The level of debt (nearly two trillion Jamaican dollars) can be indexed to corruption: every man woman and child is said to be mathematically responsible for about US$7000 of the debt– a tall order for the 1.2 million people who are living below the poverty line, thirteen per cent who are unemployed, and thousands more who are underemployed.
For obvious reasons we start with the meltdown of the financial sector in 1997 when the PNP government chose to bail out the financial sector and the consequences thereof.
(1) According to economist Dennis Morrison “the cost of the government bail-out through FINSAC [Financial Sector Adjustment Company] was estimated at some 40 per cent * of GDP which was one of the most burdensome at the time.” (Gleaner April 5, 2009). Morrison continues: “In fact, Jamaica's debt ratio, which had fallen to just over 70 per cent of GDP prior to the advent of FINSAC, having come down from as high as 150 per cent in the 1980s, went back up to over 130 per cent in the late 1990s, and has not gone below 100 per cent since then.” (Gleaner April 5 2009).
*(Richard Downer (chartered accountant among other things) claims that his research indicated a figure of 66% of GDP. He also made the interesting point that “No bank that acted like a commercial bank failed.” (Examining Bank Failure in Developing Countries Lessons from Jamaica... Forward by Richard L. Downer CD FCA by Jennifer A Daley (SES publication)).
(2) There is currently a Commission of Enquiry into FINSAC’s operation (the entity that handled the bailout) but there is no accompanying forensic audit to determine who got how much money and the conditions involved etc. and hence the enquiry is a grand waste of time and public funds in terms of not being able to address the question of illegitimacy and fraud. [This is the point that PJ Patterson misses when he continues to defend the bailout... who got the bailed out? for how much? and why?]
Even without the forensic audit there is enough information coming out of the enquiry to suggest that there was a massive misuse of public funds to cover so-called toxic assets for some entities. [Finance Minister Audley Shaw is not interested in a forensic audit it seems because it would expose persons on both sides of the political divide, not just PNP persons as he knows very well]. Some very fortunate debtors got massive write offs while others lost their shirts. At least two bankers fled to the United States to avoid fraud charges. The bailout resulted in massive borrowing and the poor are still paying for the more than 50% increase in debt.
(3) Incidentally, National Commercial Bank (NCB), which received a bailout, and was then sold to Jamaican billionaire Michael Lee Chin for a song (J$6 billion), is now reporting profits of over J$13 billion! The government feels no obligation to consider increased taxes. (“NCB’s profits up to $13 billion.” Sunday Observer, November 06, 2011 http://www.jamaicaobserver.com/business/NCB-s-profits-up-to--13-billion#ixzz1dkAUHZgn)
/[ “Patrick Hylton, group managing director of National Commercial Bank Jamaica, denied any connection between the sale of the bank to Jamaican-Canadian investor Michael Lee-Chin's AIC Limited, and his position as NCB's current boss, at Wednesday's sitting of the FINSAC enquiry.” Asked by attorney-at-law for several FINSAC creditors who were victims of the 1990s meltdown, Anthony Levy, whether it would be correct to say that the NCB was "given away", Hylton said he "totally disagreed." Asked what price the bank was sold for, Hylton said that AIC paid about US$120 million for the 75 per cent of the shares held by FINSAC, valued at some US$175 million over a 6-8-year period.}http://www.gleaner ja.com/gleaner/20110708/business/business4.html]
(4) Highway 2000. This was a case of technocrats pushing a classic, world-wide method of corruption onto the political directorate (or maybe it was vice versa?) with fantastic claims about economic development which would result. (I would call these technocrats a special breed – unelected but having very powerful connections with the corporate, political and media elite). As to be expected, the tourism moguls welcomed the project as an enhancement (and a great subsidy) of their tourism product. (The late journalist John Maxwell called it the ‘highway to nowhere’). The promised ‘development’ never materialized and the highway has cost the public at least one billion US dollars and still counting. This would have been a classic example of irresponsible lending given that government guarantees were involved. There was no cost benefit analysis from the perspective of the poor and the working class and who possess no veto power over such projects.
(5) The Office of the Contractor General (OCG) has investigated aspects of how the original contract was awarded but makes it plain that it does not the mandate to make deeper investigations. One is required which goes beyond the mere legality of the contract award process. (December 2007. Office of the Contractor General Report on the Investigation Conducted into the Highway 2000 Concession and Administration Agreement Ministry of Transport, Housing Water and Works. “The Investigation has concluded that the initial complaint raised a series of questions, some of which are outside the mandate of the OCG. The questions, which include consequences of a liquidation of Trans Jamaica Highway to the taxpayers of Jamaica, and the justification for Bouygues to have a monopoly concession, have not been addressed in their entirety in this report.” Etc.)
(6) Palisadoes Highway Project: In a time of economic crisis the government borrows US$65 million dollars from the China Exim Bank to undertake an unnecessary road building project. Not counting the environmental cost, it is rather ominous that China Harbour Engineering Company (CHEC), which was elected to carry out the project had been accused of bribing officials in foreign countries in order to get contracts. (See below). Could a similar situation have happened in Jamaica?
““US cable accuses CHEC of being involved in bribery
Posted on Tue, 08/30/2011 - 09:37 in Business (Insidethegames): Hambantota, which is bidding for the 2018 Commonwealth Games, has found itself at the centre of the latest WikiLeaks controversy after it was revealed that the United States Government believed the Chinese were bribing Sri Lankan officials to win contracts linked to the redevelopment of the city. China has been the driving force behind a major infrastructural development phase with an international airport, international port, and railway line being built in Hambantota, which was devastated in 2004 by the tsunami. Phase One of the new Hambantota Port was constructed by the China Harbour Engineering Company (CHEC) at a cost of $360 million.
"It is likely that corruption and political patronage are significant factors playing into the focus on Hambantota," said the cable sent from the US Embassy in Sri Lankan capital Colombo published on WikiLeaks. "Often when Chinese companies win contracts, their success is due in part on their widespread distribution of graft to senior Sri Lankan Government officials. While it is currently unknown to what extent President Mahinda Rajapaksa is involved in Hambantota development, it seems logical that his hand is also out when commercial enterprises, especially the Chinese, jockey for contracts and projects."
The OCG is investigating the process whereby the contract was awarded to CHEC. [See findings below by the Auditor General which contradicts the government’s claim that CHEC was mandated to generally get road contracts as a part of US$400 million loan agreement.]
Clifton Yap has written that even if the money was “cheap” there is no way of knowing if the cost of the project was value for money without putting it out to tender. Furthermore says Yap “As with the People’s National Party (PNP) administration, their [JLP] projects are generally ill-conceived, decided on unilaterally, poorly planned, and developed without public consultations or stakeholder input.” .” Clifton Yap "That US$65m Palisadoes Road"Published: Tuesday | April 27, 2011 http://jamaicagleaner.com/gleaner/20100427/letters/letters1.html
(8) As for the need to spend US$65 million it has been suggested by more rational people that all that was required to solve the Palisadoes “problem” (the road leading from Kingston’s Norman Manley Airport) was for the purchase of a few front end loaders to remove sand from the road whenever there is a storm.
Jamaica Development Infrastructure Programme (JDIP)
(9) Currently there is a big controversy surrounding JDIP which involves US$400 million borrowed from China to repair roads. Not only is the Contractor General investigating alleged irregularities but the Auditor General has released a report raising questions about accountability in the use of the money. For example, J$100 million earmarked for road repairs was used to refurbish the corporate offices of the National Works Agency (NWA), the government company responsible for road repairs and other building projects).
As is the practice with other lending nations where money is lent on the condition that it is re-spent as much as possible in the lender country, the repair contract was given to CHEC, without any bidding. The AG’s report is replete with accusations of lack of monitoring. The most shocking aspect of the JDIP programme is the J$800 million cost for building one kilometre of road in the finance minister’s constituency. The auditor general is raising questions about how costs were determined. The Auditor General also reports that the Chinese embassy advises that there was no stipulation as to which Chinese construction company should be used for the road projects. A big delegation of JLP government politicians visited China in 2009 and one can only speculate as to went on during that visit “Auditor general concerned about Christiana Road irregularities.”Published: Tuesday November 15, 2011 | 5:49 pm. http://jamaica-gleaner.com/latest/article.php?id=33245
(10) To better understand the politics and the potential for corruption in big “development” projects such as highways, dams, laying of oil pipe lines etc. I would recommend “Confessions of an Economic Hit Man” by John Perkins. The Confessions relate deliberate attempts to hype claims about development benefits as part of the pubic sell campaign and which usually works in poor countries crying out for development. As John Perkins also claims, development projects are sometimes used as a foreign policy tool to deliberately bankrupt some countries. Perkins worked for an engineering company which was apparently a front for the CIA and not all employees were aware of this. [ The LNG gas project being considered in Jamaica is already riddled with allegations of corruption even though the project has yet to get off the ground]
(11) Air Jamaica was originally a state enterprise and then privatized with government as a minority partner. According to former prime minister, Bruce Golding, “Since its inception in 1969, Air Jamaica has accumulated losses of over US$1.4 billion or J$126 billion. In the last 3 years alone, it has incurred losses of US$337 million or J$31 billion.” (February 11, 2010. Statement to Parliament by Hon. Bruce Golding, Prime Minister on the Privatization of Air Jamaica)
Though essentially a private company, the government nevertheless stood guaranty for all the loans and losses of the Airline because of its minority involvement. In other words, lenders would have no need to care whether the company was insolvent or not since government had guaranteed to pay back the loans. [The constitution guarantees that sovereign debt has first claim on the consolidated fund.] The principal owner of Air Jamaica, Gordon Butch Stewart and his Sandals company have benefitted tremendously even if Air Jamaica lost money. The public debt kept growing in tandem with Air Jamaica losses.
Should there be a special tax on the profitable tourism companies lavishly subsidized from public funds? Should all the loans borrowed be investigated to see who really benefited? The answer is a resounding: yes.
[“Despite the downturn in the economy, Sandals Resorts International experienced one of the best years on record in 2010. Interview with Butch Stewart” http://www.leadersmag.com/issues/2011.1_Jan/Hospitality%27s%20Global%20Impact/LEADERS-Gordon-Butch-Stewart-Sandals-Resorts-International.html
“Air Jamaica: end of an era 'The little piece of Jamaica that cries' Friday, July 08, 2011” “The story of Air Jamaica's contribution to the economy, on one hand, could be told in soaring figures. At its peak, the airline carried 69 per cent of all persons travelling to Jamaica and 52 per cent of tourists visiting the island. On the other hand, the figures by themselves could not tell the entire story. The airline lost approximately US$674 million during AJAG's 10 years of operation, representing an annual average loss of US$67 million”
Read more: http://www.jamaicaobserver.com/news/Air-Jamaica--end-of-an-era_9161512#ixzz1dkfR1VR0
Read more: http://www.jamaicaobserver.com/news/Air-Jamaica--end-of-an-era_9161512#ixzz1dkeofBBt
(12) Sugar Company of Jamaica (SCJ): Many stories over the years indicated poor management; corrupt financial decisions; no involvement or consultation with the workers in the decision making process, and no sooner had the SCJ become “bankrupt” it was re-privatized at great expense to the taxpayer and sold for a song.
St Aubyn Hill (another special type of technocrat), was paid nearly 2 million dollars a month for his efforts to get the company sold. It took him quite a while to find a buyer and whether the reasons for the length of time were legitimate or not, he would have been handsomely rewarded for his efforts. The question still remains: can the country afford it?
[Interestingly, while it was publicly known how much Aubyn Hill received for divesting the SCJ, it is not known how much Gerald Lalor and others received for their role in divesting Air Jamaica].
There has been no public accounting as to how the SCJ assets were assessed, so no one knows if the sale price was a fair one or not. It should be also be noted that it was sold to a Chinese company, Complant, and represents an increasing penetration of Chinese capital into the Jamaica economy.
[“Aubyn Hill quits sugar company Published: Wednesday | October 26, 2011
“The former banker was contracted by SCJ Holdings as CEO in January 2010 after serving as consultant from August 2008. The revelation of his monthly J$1.9 million salary made headlines, forcing the Government to defend his pay. http://jamaica-gleaner.com/gleaner/20111026/business/business1.html]
(13) Example of corruption allegations at the SCJ: A letter to the OCG from a concerned citizen:: “You will observe that these middle men paid US$161,860.00 for the four units and sold them to Sugar Company of Jamaica (SCJ) for JA$31,0M or US$456,000.00 making US$294,140.00 profit =182%. This level of profiteering is consistent with the tractors and cane carts you bought recently. Is this not of concern to you. It is to me.” . [Office of the Contractor General: Special Report of investigation conducted into the allegations of improper procurement practices at the Sugar Company of Jamaica. Ministry of Agriculture and Fisheries. March 2011].
A forensic audit is required since the Contractor General is only able to scratch the surface of the corruption which exists. This applies as a general rule to all investigations undertaken by the OCG.
(14) JUTC losses blamed on corrupt management; lack of worker involvement or consultation in the decision-making process. Bus fares recently increased imposing greater hardship on the poor and working class. Previous manager Douglas Chambers alleged to have corruptly given himself a contract and made a handsome profit. (Chambers was shot dead at the JUTC plant under suspicious circumstances).
(15) Cost of world cup cricket. The Government spent over US$100 million (J$7 billion) to host world cup cricket in 2007. There are outstanding issues involving expenditures; lack of accountability as usual. Given the lack of media interest the debt is quietly assumed by the government and passed on to the taxpayer.
Sandals Whitehouse
(16) Government invests the lion share of approximately US$120 million to build Sandals Whitehouse and sells it to Gordon Butch Stewart for US$40m which is far less than the construction cost and its real market value. This does not include the literal give away to Stewart of the land on which the hotel is built: sold for J$ 6milion!
The Report of the Office of the Contractor General (OCG) is necessary reading to fully understand how from the very beginning the deal worked in Gorstew's favour even while making complaints about design. [OCG Media Release: January 19, 2011 "Office of Contractor General Writes to Prime Minister to Recommend Halt of Sale of Sandals Whitehouse Hotel to Gorstew Limited." Available on OCG website.]
Taxpayers are still paying for this government largesse to one of our most subsidized billionaires. Socialism for the rich and capitalism for the poor.
(17) Virgin Airlines/American Airlines: high-handed and irregular involvement by the minister of finance (PNP) in the case of Virgin Airlines (investigated by the OCG) and the minister of tourism (JLP) in the case of American Airlines (also investigated by the OCG). Both Airlines profit handsomely from concessions made to them. Taxpayers pick up the tab while nothing comes of the alleged irregularities. The DPP seems totally disinterested.
(18) Cuban light bulb scandal; J$276 million fraud and money laundering are the charges against PNP MP Kern Spencer – the cost to taxpayers to distribute light bulbs given to the Jamaican people free of cost by the Cuban government.. Investigated by the OCG. Spencer is before the courts but with a very deep pocket he has hired the best lawyers to defend him and who seem to be worth every penny they are paid
.(19) UK bridge building company Mabey and Johnson confessed that “several million US dollars” were paid to JLP MP Joseph Hibbert as a bribe for getting a bridge building contract. Investigated by the OCG, but the DPP seems disinterested.
(20) Bunting sweetheart deal. The finance minister sells government receivables to DBG, a finance company with known PNP connections, which in turns sells these receivables to state entities and makes millions of dollars of profit! Says Bunting according to the Observer: “the transaction was not subject to competition” because “it was DB&G which conceptualised the potential transaction to bailout the Government which was facing a ‘significant challenge’ in meeting its fiscal target at the time, therefore it would have been unfair for the then administration to put DB&G’s idea to tender.” How patriotic !!! [Bunting denies 'sweetheart deal' Says Contractor General's report does not support defamatory allegations Read more: http://www.jamaicaobserver.com/business/Bunting-denies--sweetheart-deal--
(21) Trafigura: $31 million paid to the PNP by Dutch Company Trafigura Beheer apparently to cover its electoral expenses. The Contractor General discovers among other things that though initially there was a contractual agreement with Trafigura Beheer to deliver Nigerian crude oil to Jamaica, at the time the money was paid to the PNP’s Colin Campbell (the apparent go-between), the parties were operating without a contract – no bidding having taken place as is required by law. Soon after the “donation” was made public a new company was found to transport the oil at a better price. (OCG Special Report of Investigation Conducted into the Oil Lifting Contracts between the Petroleum Corporation of Jamaica (PCJ) and the Trafigura Beheer. Ministry of Energy and Mining (MEM) Formerly Ministry of Industry, Technology, Energy and Commerce (MITEC) August 2010.)
And as for the previous contracts in 2001 and 2002, the Contractor General reports that they were not in keeping with required government procedure:
“…. the PCJ did not deem the contract award to be one of a “procurement contract” as no contract value was involved, that is, there were no amounts to be paid by the PCJ to the contractor. Instead, the PCJ received an agreed amount, from the contractor, for each barrel of oil that was lifted.
“In this regard, the OCG found that the contract awards did not receive the prior endorsement of the National Contracts Commission (NCC) nor was there any evidence to indicate that Cabinet approval was granted for the award of the oil-lifting contracts.
“The OCG also found that the PCJ did not have a Procurement Committee in place prior to 2006, which is, in and of itself, another breach of the GOJ Procurement rules.” (OCG Report August 2010).
The record is replete with thousands of examples of what appears to be corrupt practices engaged in by both political parties and these have helped to balloon the debt to 120% of GDP.
The editors of the Observer , recognizing that there is a limit to how much more the poor and the working class can be taxed to pay for the debt, are calling for imposition of a “Robin Hood Tax” i.e. increasing taxes on the banks. We couldn’t agree more, but we advocate a further step: increase taxes on the rich generally including the successful hotel brands such as Sandals.
(“ Jamaica should support the Robin Hood Tax Sunday, November 06, 2011 http://www.jamaicaobserver.com/editorial/Jamaica-should-support-the-Robin-Hood-Tax2011-11-06T03-20-52#ixzz1dkx5h35V”[ The Observer is fiercely defensive of its owner Gordon Butch Stewart.]
The aim of a forensic audit is to make people more aware of how corruption blights their social existence. If only 50% of the debt is corrupt, and based on the above it may well be 70%, it lends a moral force to the argument as to why the debt cannot be repaid on the backs of the workers and the poor. It is a tool for negotiating debt repudiation. It points to the need for people control over the decision making process.. The present system can hardly be said to be democratic.
Lloyd D'Aguilar
Campaign for Social and Economic Justice
I have never tried to quantify it myself. It would require a forensic audit which I have been advocating to determine what portion is really illegitimate. But even without an audit, those with just a passing knowledge of how corrupt Jamaica is (Transparency International lists Jamaica as one of the most corrupt countries in the world) would not regard Petras’ estimation as outrageous.
The following is by no means an exhaustive list of questionable projects and dealings which need investigation, but there is a pattern which suggests recklessness and lack of accountability for the spending of public funds. If only a fraction is corrupt it is considerable in a poor country.
Corruption represents a method of transferring wealth from the poor to the rich or a form of primitive capital accumulation to use Marx’s definition. The level of debt (nearly two trillion Jamaican dollars) can be indexed to corruption: every man woman and child is said to be mathematically responsible for about US$7000 of the debt– a tall order for the 1.2 million people who are living below the poverty line, thirteen per cent who are unemployed, and thousands more who are underemployed.
For obvious reasons we start with the meltdown of the financial sector in 1997 when the PNP government chose to bail out the financial sector and the consequences thereof.
(1) According to economist Dennis Morrison “the cost of the government bail-out through FINSAC [Financial Sector Adjustment Company] was estimated at some 40 per cent * of GDP which was one of the most burdensome at the time.” (Gleaner April 5, 2009). Morrison continues: “In fact, Jamaica's debt ratio, which had fallen to just over 70 per cent of GDP prior to the advent of FINSAC, having come down from as high as 150 per cent in the 1980s, went back up to over 130 per cent in the late 1990s, and has not gone below 100 per cent since then.” (Gleaner April 5 2009).
*(Richard Downer (chartered accountant among other things) claims that his research indicated a figure of 66% of GDP. He also made the interesting point that “No bank that acted like a commercial bank failed.” (Examining Bank Failure in Developing Countries Lessons from Jamaica... Forward by Richard L. Downer CD FCA by Jennifer A Daley (SES publication)).
(2) There is currently a Commission of Enquiry into FINSAC’s operation (the entity that handled the bailout) but there is no accompanying forensic audit to determine who got how much money and the conditions involved etc. and hence the enquiry is a grand waste of time and public funds in terms of not being able to address the question of illegitimacy and fraud. [This is the point that PJ Patterson misses when he continues to defend the bailout... who got the bailed out? for how much? and why?]
Even without the forensic audit there is enough information coming out of the enquiry to suggest that there was a massive misuse of public funds to cover so-called toxic assets for some entities. [Finance Minister Audley Shaw is not interested in a forensic audit it seems because it would expose persons on both sides of the political divide, not just PNP persons as he knows very well]. Some very fortunate debtors got massive write offs while others lost their shirts. At least two bankers fled to the United States to avoid fraud charges. The bailout resulted in massive borrowing and the poor are still paying for the more than 50% increase in debt.
(3) Incidentally, National Commercial Bank (NCB), which received a bailout, and was then sold to Jamaican billionaire Michael Lee Chin for a song (J$6 billion), is now reporting profits of over J$13 billion! The government feels no obligation to consider increased taxes. (“NCB’s profits up to $13 billion.” Sunday Observer, November 06, 2011 http://www.jamaicaobserver.com/business/NCB-s-profits-up-to--13-billion#ixzz1dkAUHZgn)
/[ “Patrick Hylton, group managing director of National Commercial Bank Jamaica, denied any connection between the sale of the bank to Jamaican-Canadian investor Michael Lee-Chin's AIC Limited, and his position as NCB's current boss, at Wednesday's sitting of the FINSAC enquiry.” Asked by attorney-at-law for several FINSAC creditors who were victims of the 1990s meltdown, Anthony Levy, whether it would be correct to say that the NCB was "given away", Hylton said he "totally disagreed." Asked what price the bank was sold for, Hylton said that AIC paid about US$120 million for the 75 per cent of the shares held by FINSAC, valued at some US$175 million over a 6-8-year period.}http://www.gleaner ja.com/gleaner/20110708/business/business4.html]
(4) Highway 2000. This was a case of technocrats pushing a classic, world-wide method of corruption onto the political directorate (or maybe it was vice versa?) with fantastic claims about economic development which would result. (I would call these technocrats a special breed – unelected but having very powerful connections with the corporate, political and media elite). As to be expected, the tourism moguls welcomed the project as an enhancement (and a great subsidy) of their tourism product. (The late journalist John Maxwell called it the ‘highway to nowhere’). The promised ‘development’ never materialized and the highway has cost the public at least one billion US dollars and still counting. This would have been a classic example of irresponsible lending given that government guarantees were involved. There was no cost benefit analysis from the perspective of the poor and the working class and who possess no veto power over such projects.
(5) The Office of the Contractor General (OCG) has investigated aspects of how the original contract was awarded but makes it plain that it does not the mandate to make deeper investigations. One is required which goes beyond the mere legality of the contract award process. (December 2007. Office of the Contractor General Report on the Investigation Conducted into the Highway 2000 Concession and Administration Agreement Ministry of Transport, Housing Water and Works. “The Investigation has concluded that the initial complaint raised a series of questions, some of which are outside the mandate of the OCG. The questions, which include consequences of a liquidation of Trans Jamaica Highway to the taxpayers of Jamaica, and the justification for Bouygues to have a monopoly concession, have not been addressed in their entirety in this report.” Etc.)
(6) Palisadoes Highway Project: In a time of economic crisis the government borrows US$65 million dollars from the China Exim Bank to undertake an unnecessary road building project. Not counting the environmental cost, it is rather ominous that China Harbour Engineering Company (CHEC), which was elected to carry out the project had been accused of bribing officials in foreign countries in order to get contracts. (See below). Could a similar situation have happened in Jamaica?
““US cable accuses CHEC of being involved in bribery
Posted on Tue, 08/30/2011 - 09:37 in Business (Insidethegames): Hambantota, which is bidding for the 2018 Commonwealth Games, has found itself at the centre of the latest WikiLeaks controversy after it was revealed that the United States Government believed the Chinese were bribing Sri Lankan officials to win contracts linked to the redevelopment of the city. China has been the driving force behind a major infrastructural development phase with an international airport, international port, and railway line being built in Hambantota, which was devastated in 2004 by the tsunami. Phase One of the new Hambantota Port was constructed by the China Harbour Engineering Company (CHEC) at a cost of $360 million.
"It is likely that corruption and political patronage are significant factors playing into the focus on Hambantota," said the cable sent from the US Embassy in Sri Lankan capital Colombo published on WikiLeaks. "Often when Chinese companies win contracts, their success is due in part on their widespread distribution of graft to senior Sri Lankan Government officials. While it is currently unknown to what extent President Mahinda Rajapaksa is involved in Hambantota development, it seems logical that his hand is also out when commercial enterprises, especially the Chinese, jockey for contracts and projects."
The OCG is investigating the process whereby the contract was awarded to CHEC. [See findings below by the Auditor General which contradicts the government’s claim that CHEC was mandated to generally get road contracts as a part of US$400 million loan agreement.]
Clifton Yap has written that even if the money was “cheap” there is no way of knowing if the cost of the project was value for money without putting it out to tender. Furthermore says Yap “As with the People’s National Party (PNP) administration, their [JLP] projects are generally ill-conceived, decided on unilaterally, poorly planned, and developed without public consultations or stakeholder input.” .” Clifton Yap "That US$65m Palisadoes Road"Published: Tuesday | April 27, 2011 http://jamaicagleaner.com/gleaner/20100427/letters/letters1.html
(8) As for the need to spend US$65 million it has been suggested by more rational people that all that was required to solve the Palisadoes “problem” (the road leading from Kingston’s Norman Manley Airport) was for the purchase of a few front end loaders to remove sand from the road whenever there is a storm.
Jamaica Development Infrastructure Programme (JDIP)
(9) Currently there is a big controversy surrounding JDIP which involves US$400 million borrowed from China to repair roads. Not only is the Contractor General investigating alleged irregularities but the Auditor General has released a report raising questions about accountability in the use of the money. For example, J$100 million earmarked for road repairs was used to refurbish the corporate offices of the National Works Agency (NWA), the government company responsible for road repairs and other building projects).
As is the practice with other lending nations where money is lent on the condition that it is re-spent as much as possible in the lender country, the repair contract was given to CHEC, without any bidding. The AG’s report is replete with accusations of lack of monitoring. The most shocking aspect of the JDIP programme is the J$800 million cost for building one kilometre of road in the finance minister’s constituency. The auditor general is raising questions about how costs were determined. The Auditor General also reports that the Chinese embassy advises that there was no stipulation as to which Chinese construction company should be used for the road projects. A big delegation of JLP government politicians visited China in 2009 and one can only speculate as to went on during that visit “Auditor general concerned about Christiana Road irregularities.”Published: Tuesday November 15, 2011 | 5:49 pm. http://jamaica-gleaner.com/latest/article.php?id=33245
(10) To better understand the politics and the potential for corruption in big “development” projects such as highways, dams, laying of oil pipe lines etc. I would recommend “Confessions of an Economic Hit Man” by John Perkins. The Confessions relate deliberate attempts to hype claims about development benefits as part of the pubic sell campaign and which usually works in poor countries crying out for development. As John Perkins also claims, development projects are sometimes used as a foreign policy tool to deliberately bankrupt some countries. Perkins worked for an engineering company which was apparently a front for the CIA and not all employees were aware of this. [ The LNG gas project being considered in Jamaica is already riddled with allegations of corruption even though the project has yet to get off the ground]
(11) Air Jamaica was originally a state enterprise and then privatized with government as a minority partner. According to former prime minister, Bruce Golding, “Since its inception in 1969, Air Jamaica has accumulated losses of over US$1.4 billion or J$126 billion. In the last 3 years alone, it has incurred losses of US$337 million or J$31 billion.” (February 11, 2010. Statement to Parliament by Hon. Bruce Golding, Prime Minister on the Privatization of Air Jamaica)
Though essentially a private company, the government nevertheless stood guaranty for all the loans and losses of the Airline because of its minority involvement. In other words, lenders would have no need to care whether the company was insolvent or not since government had guaranteed to pay back the loans. [The constitution guarantees that sovereign debt has first claim on the consolidated fund.] The principal owner of Air Jamaica, Gordon Butch Stewart and his Sandals company have benefitted tremendously even if Air Jamaica lost money. The public debt kept growing in tandem with Air Jamaica losses.
Should there be a special tax on the profitable tourism companies lavishly subsidized from public funds? Should all the loans borrowed be investigated to see who really benefited? The answer is a resounding: yes.
[“Despite the downturn in the economy, Sandals Resorts International experienced one of the best years on record in 2010. Interview with Butch Stewart” http://www.leadersmag.com/issues/2011.1_Jan/Hospitality%27s%20Global%20Impact/LEADERS-Gordon-Butch-Stewart-Sandals-Resorts-International.html
“Air Jamaica: end of an era 'The little piece of Jamaica that cries' Friday, July 08, 2011” “The story of Air Jamaica's contribution to the economy, on one hand, could be told in soaring figures. At its peak, the airline carried 69 per cent of all persons travelling to Jamaica and 52 per cent of tourists visiting the island. On the other hand, the figures by themselves could not tell the entire story. The airline lost approximately US$674 million during AJAG's 10 years of operation, representing an annual average loss of US$67 million”
Read more: http://www.jamaicaobserver.com/news/Air-Jamaica--end-of-an-era_9161512#ixzz1dkfR1VR0
Read more: http://www.jamaicaobserver.com/news/Air-Jamaica--end-of-an-era_9161512#ixzz1dkeofBBt
(12) Sugar Company of Jamaica (SCJ): Many stories over the years indicated poor management; corrupt financial decisions; no involvement or consultation with the workers in the decision making process, and no sooner had the SCJ become “bankrupt” it was re-privatized at great expense to the taxpayer and sold for a song.
St Aubyn Hill (another special type of technocrat), was paid nearly 2 million dollars a month for his efforts to get the company sold. It took him quite a while to find a buyer and whether the reasons for the length of time were legitimate or not, he would have been handsomely rewarded for his efforts. The question still remains: can the country afford it?
[Interestingly, while it was publicly known how much Aubyn Hill received for divesting the SCJ, it is not known how much Gerald Lalor and others received for their role in divesting Air Jamaica].
There has been no public accounting as to how the SCJ assets were assessed, so no one knows if the sale price was a fair one or not. It should be also be noted that it was sold to a Chinese company, Complant, and represents an increasing penetration of Chinese capital into the Jamaica economy.
[“Aubyn Hill quits sugar company Published: Wednesday | October 26, 2011
“The former banker was contracted by SCJ Holdings as CEO in January 2010 after serving as consultant from August 2008. The revelation of his monthly J$1.9 million salary made headlines, forcing the Government to defend his pay. http://jamaica-gleaner.com/gleaner/20111026/business/business1.html]
(13) Example of corruption allegations at the SCJ: A letter to the OCG from a concerned citizen:: “You will observe that these middle men paid US$161,860.00 for the four units and sold them to Sugar Company of Jamaica (SCJ) for JA$31,0M or US$456,000.00 making US$294,140.00 profit =182%. This level of profiteering is consistent with the tractors and cane carts you bought recently. Is this not of concern to you. It is to me.” . [Office of the Contractor General: Special Report of investigation conducted into the allegations of improper procurement practices at the Sugar Company of Jamaica. Ministry of Agriculture and Fisheries. March 2011].
A forensic audit is required since the Contractor General is only able to scratch the surface of the corruption which exists. This applies as a general rule to all investigations undertaken by the OCG.
(14) JUTC losses blamed on corrupt management; lack of worker involvement or consultation in the decision-making process. Bus fares recently increased imposing greater hardship on the poor and working class. Previous manager Douglas Chambers alleged to have corruptly given himself a contract and made a handsome profit. (Chambers was shot dead at the JUTC plant under suspicious circumstances).
(15) Cost of world cup cricket. The Government spent over US$100 million (J$7 billion) to host world cup cricket in 2007. There are outstanding issues involving expenditures; lack of accountability as usual. Given the lack of media interest the debt is quietly assumed by the government and passed on to the taxpayer.
Sandals Whitehouse
(16) Government invests the lion share of approximately US$120 million to build Sandals Whitehouse and sells it to Gordon Butch Stewart for US$40m which is far less than the construction cost and its real market value. This does not include the literal give away to Stewart of the land on which the hotel is built: sold for J$ 6milion!
The Report of the Office of the Contractor General (OCG) is necessary reading to fully understand how from the very beginning the deal worked in Gorstew's favour even while making complaints about design. [OCG Media Release: January 19, 2011 "Office of Contractor General Writes to Prime Minister to Recommend Halt of Sale of Sandals Whitehouse Hotel to Gorstew Limited." Available on OCG website.]
Taxpayers are still paying for this government largesse to one of our most subsidized billionaires. Socialism for the rich and capitalism for the poor.
(17) Virgin Airlines/American Airlines: high-handed and irregular involvement by the minister of finance (PNP) in the case of Virgin Airlines (investigated by the OCG) and the minister of tourism (JLP) in the case of American Airlines (also investigated by the OCG). Both Airlines profit handsomely from concessions made to them. Taxpayers pick up the tab while nothing comes of the alleged irregularities. The DPP seems totally disinterested.
(18) Cuban light bulb scandal; J$276 million fraud and money laundering are the charges against PNP MP Kern Spencer – the cost to taxpayers to distribute light bulbs given to the Jamaican people free of cost by the Cuban government.. Investigated by the OCG. Spencer is before the courts but with a very deep pocket he has hired the best lawyers to defend him and who seem to be worth every penny they are paid
.(19) UK bridge building company Mabey and Johnson confessed that “several million US dollars” were paid to JLP MP Joseph Hibbert as a bribe for getting a bridge building contract. Investigated by the OCG, but the DPP seems disinterested.
(20) Bunting sweetheart deal. The finance minister sells government receivables to DBG, a finance company with known PNP connections, which in turns sells these receivables to state entities and makes millions of dollars of profit! Says Bunting according to the Observer: “the transaction was not subject to competition” because “it was DB&G which conceptualised the potential transaction to bailout the Government which was facing a ‘significant challenge’ in meeting its fiscal target at the time, therefore it would have been unfair for the then administration to put DB&G’s idea to tender.” How patriotic !!! [Bunting denies 'sweetheart deal' Says Contractor General's report does not support defamatory allegations Read more: http://www.jamaicaobserver.com/business/Bunting-denies--sweetheart-deal--
(21) Trafigura: $31 million paid to the PNP by Dutch Company Trafigura Beheer apparently to cover its electoral expenses. The Contractor General discovers among other things that though initially there was a contractual agreement with Trafigura Beheer to deliver Nigerian crude oil to Jamaica, at the time the money was paid to the PNP’s Colin Campbell (the apparent go-between), the parties were operating without a contract – no bidding having taken place as is required by law. Soon after the “donation” was made public a new company was found to transport the oil at a better price. (OCG Special Report of Investigation Conducted into the Oil Lifting Contracts between the Petroleum Corporation of Jamaica (PCJ) and the Trafigura Beheer. Ministry of Energy and Mining (MEM) Formerly Ministry of Industry, Technology, Energy and Commerce (MITEC) August 2010.)
And as for the previous contracts in 2001 and 2002, the Contractor General reports that they were not in keeping with required government procedure:
“…. the PCJ did not deem the contract award to be one of a “procurement contract” as no contract value was involved, that is, there were no amounts to be paid by the PCJ to the contractor. Instead, the PCJ received an agreed amount, from the contractor, for each barrel of oil that was lifted.
“In this regard, the OCG found that the contract awards did not receive the prior endorsement of the National Contracts Commission (NCC) nor was there any evidence to indicate that Cabinet approval was granted for the award of the oil-lifting contracts.
“The OCG also found that the PCJ did not have a Procurement Committee in place prior to 2006, which is, in and of itself, another breach of the GOJ Procurement rules.” (OCG Report August 2010).
The record is replete with thousands of examples of what appears to be corrupt practices engaged in by both political parties and these have helped to balloon the debt to 120% of GDP.
The editors of the Observer , recognizing that there is a limit to how much more the poor and the working class can be taxed to pay for the debt, are calling for imposition of a “Robin Hood Tax” i.e. increasing taxes on the banks. We couldn’t agree more, but we advocate a further step: increase taxes on the rich generally including the successful hotel brands such as Sandals.
(“ Jamaica should support the Robin Hood Tax Sunday, November 06, 2011 http://www.jamaicaobserver.com/editorial/Jamaica-should-support-the-Robin-Hood-Tax2011-11-06T03-20-52#ixzz1dkx5h35V”[ The Observer is fiercely defensive of its owner Gordon Butch Stewart.]
The aim of a forensic audit is to make people more aware of how corruption blights their social existence. If only 50% of the debt is corrupt, and based on the above it may well be 70%, it lends a moral force to the argument as to why the debt cannot be repaid on the backs of the workers and the poor. It is a tool for negotiating debt repudiation. It points to the need for people control over the decision making process.. The present system can hardly be said to be democratic.
Lloyd D'Aguilar
Campaign for Social and Economic Justice
Monday, November 14, 2011
Bruce Golding's foolish statement -- once again
Dear Editor,
It is distressing to hear Mr. Bruce Golding once again saying that what happened in Tivoli could not have been avoided. That is ABSOLUTELY not true. First of all, if Golding had not tried to prevent the extradition of Coke, he could have been taken into custody without a shot being fired long before the mayhem broke loose.
Secondly, there was no need for the wanton extrajudicial killings by the security forces. Golding either spoke to the residents as to what happened or he did not. If he has not spoken to them, then shame on him, he should have resigned as representative for the area long before resigning as prime minister. If he did speak to them, then there is no way he can continue to make that self-serving statement.
The real purpose of the statement, however, is to absolve himself of responsibility for the bloodshed and the destruction of property and the abuse of civil liberties. Golding signed off on a state of emergency for which there was no need; he had ministerial responsibility for the army – and the residents would have given him accounts of the army’s criminal behaviour. As prime minister, MP for the area, and head of the Defence Board, he shared command responsibility for the conduct of the security forces. Was he aware of extrajudicial killings taking place? Did any of his constituents ever call him to tell him what was going on? Did he try to put a stop to it? Did he demand and accept reports from the heads of the security forces in terms of how the operation was carried out? Or was it that he just didn’t care?
These are crucial questions Mr Golding needs to answer and until they are answered satisfactorily it is my view that he has to be investigated for having participated in crimes against humanity. Such a charge and concept might be foreign to the Jamaican judicial system but it has been defined by the International Criminal Court.
Maybe Mr. Golding should do some research before he makes another such foolish statement.
Lloyd D’Aguilar
Campaign for Social and Economic Justice
It is distressing to hear Mr. Bruce Golding once again saying that what happened in Tivoli could not have been avoided. That is ABSOLUTELY not true. First of all, if Golding had not tried to prevent the extradition of Coke, he could have been taken into custody without a shot being fired long before the mayhem broke loose.
Secondly, there was no need for the wanton extrajudicial killings by the security forces. Golding either spoke to the residents as to what happened or he did not. If he has not spoken to them, then shame on him, he should have resigned as representative for the area long before resigning as prime minister. If he did speak to them, then there is no way he can continue to make that self-serving statement.
The real purpose of the statement, however, is to absolve himself of responsibility for the bloodshed and the destruction of property and the abuse of civil liberties. Golding signed off on a state of emergency for which there was no need; he had ministerial responsibility for the army – and the residents would have given him accounts of the army’s criminal behaviour. As prime minister, MP for the area, and head of the Defence Board, he shared command responsibility for the conduct of the security forces. Was he aware of extrajudicial killings taking place? Did any of his constituents ever call him to tell him what was going on? Did he try to put a stop to it? Did he demand and accept reports from the heads of the security forces in terms of how the operation was carried out? Or was it that he just didn’t care?
These are crucial questions Mr Golding needs to answer and until they are answered satisfactorily it is my view that he has to be investigated for having participated in crimes against humanity. Such a charge and concept might be foreign to the Jamaican judicial system but it has been defined by the International Criminal Court.
Maybe Mr. Golding should do some research before he makes another such foolish statement.
Lloyd D’Aguilar
Campaign for Social and Economic Justice
Sunday, November 13, 2011
Friday, November 4, 2011
Why the British PM can wield a big 'homosexuality' stick: Responding to the Observer
It is true that British Prime Minister David Cameron is using Britain's historical leverage to get certain Commonwealth countries to change their homophobic laws and practices.
We may debate whether this is an ugly reminder of the ways in which the big powers rule over their former colonies, but we shouldn't lose sight of the merit in this case of the need to get rid of the buggery laws. In other words the method might be objectionable but the objective cannot be lightly dismissed.
And yes it is ironic that it was as colonial master that Britain instituted the law in question, and now that it has changed the law in its own country, it can’t get the former colonies to understand that this colonial law should be also changed because it is a violation of human rights. (The same could be said of capital punishment.)
With the irony duly noted, we must now move on to debate the real question of the human rights abuses suffered by gays as a result of homophobic laws and a homophobic culture which have festered for more than a century.
There can hardly be any debate that legislating against private sexual matters among consenting adults is wrong. The original law was so stupid it even made anal sex between male and female illegal. I am unaware of any case where a heterosexual couple was prosecuted for such a crime.
Being gay or homosexual is not just about having sex with someone of the same sex. Some gay persons may exhibit mannerisms which indicate sexual orientation and as a result classified as being gay. In such cases of presumed sexual orientation, such persons can be easily singled out for discrimination. So if same sex relations is considered illegal then the easily identified gay person becomes illegal even if not caught in the act of having sex. This constitutes a terrible type of persecution similar to being born black in a racist white society. One has no control over the color of one’s skin just as gays have no control over their sexual orientation.
To discriminate against anyone, gays in this case, on the basis of their biological make up and resultant sexual practice and which is of no harm to anyone else, is the height of the most perverse type of ignorance and cruelty. Any state which upholds this kind of discrimination is as guilty as the ignorant mob which attacks a gay person. And, as we all know, countless number of gays have been attacked and killed in Jamaica.
Bruce Golding, PJ Patterson, Edward Seaga and Portia Simpson Miller, former prime ministers, and now present prime minister Andrew Holness, have all in one way or another indicated their support for homophobia, and are as responsible for mob attacks on gays as the mobs themselves.
And this is where the former colonial power comes in for condemnation for this social disease left behind. With the surplus profits extracted from the colonies they were able to create a far more educated society, so that their better educated people were able to see through homophobic prejudice, and agree to ending it far earlier than in the former colonies which by contrast seem to be stuck in the dark middle ages.
So yes, though continuing to be head of an imperialist nation, David Cameron does come across as a far more enlightened despot than the narrow-minded quislings he rules over.
Nonetheless, there are progressive people in the neo-colonies who recognize homophobia as ignorance and a form of social violence, and as being connected to social and economic underdevelopment.
We have to commit ourselves to fighting homophobia as much as we struggle against all forms of economic and social injustice.
Lloyd D’Aguilar
Campaign for Social and Economic Justice
www.lookingbacklookingforward.com
NB: On Sunday at 12 noon please log in to the launch of “Looking Back Looking Forward” www.lookingbacklookingforward.com formerly on Newstalk 93FM Radio. Media owners in concert with the Broadcasting Commission have conspired to censor the programme. We dare the Broadcasting Commission to censor us on the internet!
Programme line up:
12:00… Lloyd’s Commentary
12:30… Prof. Neni Panourgia… Developments in Greece
1:00….. Prof. James Petras… Argentina and the lessons for debt repudiation in Jamaica
1:30…..Prof. David Rowe… Bruce Golding’s resignation and other matters of corruption among Jamaica’s corporate elite
2:00 Peter Tatchell and Maurice Tomlinson, British and Jamaican gay rights activists discuss David Cameron’s attempt to get the buggery laws in the Commonwealth changed.
We may debate whether this is an ugly reminder of the ways in which the big powers rule over their former colonies, but we shouldn't lose sight of the merit in this case of the need to get rid of the buggery laws. In other words the method might be objectionable but the objective cannot be lightly dismissed.
And yes it is ironic that it was as colonial master that Britain instituted the law in question, and now that it has changed the law in its own country, it can’t get the former colonies to understand that this colonial law should be also changed because it is a violation of human rights. (The same could be said of capital punishment.)
With the irony duly noted, we must now move on to debate the real question of the human rights abuses suffered by gays as a result of homophobic laws and a homophobic culture which have festered for more than a century.
There can hardly be any debate that legislating against private sexual matters among consenting adults is wrong. The original law was so stupid it even made anal sex between male and female illegal. I am unaware of any case where a heterosexual couple was prosecuted for such a crime.
Being gay or homosexual is not just about having sex with someone of the same sex. Some gay persons may exhibit mannerisms which indicate sexual orientation and as a result classified as being gay. In such cases of presumed sexual orientation, such persons can be easily singled out for discrimination. So if same sex relations is considered illegal then the easily identified gay person becomes illegal even if not caught in the act of having sex. This constitutes a terrible type of persecution similar to being born black in a racist white society. One has no control over the color of one’s skin just as gays have no control over their sexual orientation.
To discriminate against anyone, gays in this case, on the basis of their biological make up and resultant sexual practice and which is of no harm to anyone else, is the height of the most perverse type of ignorance and cruelty. Any state which upholds this kind of discrimination is as guilty as the ignorant mob which attacks a gay person. And, as we all know, countless number of gays have been attacked and killed in Jamaica.
Bruce Golding, PJ Patterson, Edward Seaga and Portia Simpson Miller, former prime ministers, and now present prime minister Andrew Holness, have all in one way or another indicated their support for homophobia, and are as responsible for mob attacks on gays as the mobs themselves.
And this is where the former colonial power comes in for condemnation for this social disease left behind. With the surplus profits extracted from the colonies they were able to create a far more educated society, so that their better educated people were able to see through homophobic prejudice, and agree to ending it far earlier than in the former colonies which by contrast seem to be stuck in the dark middle ages.
So yes, though continuing to be head of an imperialist nation, David Cameron does come across as a far more enlightened despot than the narrow-minded quislings he rules over.
Nonetheless, there are progressive people in the neo-colonies who recognize homophobia as ignorance and a form of social violence, and as being connected to social and economic underdevelopment.
We have to commit ourselves to fighting homophobia as much as we struggle against all forms of economic and social injustice.
Lloyd D’Aguilar
Campaign for Social and Economic Justice
www.lookingbacklookingforward.com
NB: On Sunday at 12 noon please log in to the launch of “Looking Back Looking Forward” www.lookingbacklookingforward.com formerly on Newstalk 93FM Radio. Media owners in concert with the Broadcasting Commission have conspired to censor the programme. We dare the Broadcasting Commission to censor us on the internet!
Programme line up:
12:00… Lloyd’s Commentary
12:30… Prof. Neni Panourgia… Developments in Greece
1:00….. Prof. James Petras… Argentina and the lessons for debt repudiation in Jamaica
1:30…..Prof. David Rowe… Bruce Golding’s resignation and other matters of corruption among Jamaica’s corporate elite
2:00 Peter Tatchell and Maurice Tomlinson, British and Jamaican gay rights activists discuss David Cameron’s attempt to get the buggery laws in the Commonwealth changed.
Saturday, October 29, 2011
Why debt repudiation is a common sense approach to Jamaica's economic crisis
1. Omar Davies, Bruce Golding and Audley Shaw have said on many occasions prior to the Debt Exchange (JDX) that Jamaica would never default on its debts. Omar Davies famously and proudly told UWI students that paying the debt will ALWAYS take priority over taking care of the country’s domestic needs.
2. In the talks prior to the signing of the 2009 IMF Agreement it was clear to the IMF and their technocrats that Jamaica’s debt level was not only unsustainable (the country was perilously close to a default) but required a radical reduction of the debt stock beyond the usual measures: suppression of government expenditure, etc. The IMF/UNDP suggested what became known as the Jamaica Debt Exchange (JDX) which resulted in a $40 billion write off of the local debt.
3. So beholden was the government to creditors that it was paradoxical for it to be the IMF/UNDP (who serve the interests of creditors) to encourage this debt write off instead of the government acting proactively and pragmatically on behalf of the most vulnerable. The government was dragged along kicking and screaming, even though they now proudly point to the JDX as one of their achievements.
4. A principle has therefore been established that normal means alone cannot be used to reduce an unsustainable debt level. European banks have been forced to write off 50% of the Greek debt because the Greek government was politically unable to impose more austerity measures on the population.
5. Despite the JDX, the debt stock is now at an even higher level. This is a result of the country’s high propensity to borrow which reflects deep ‘structural’ problems.
6. Objectively with 1.2 million or about 45% of the Jamaican population living below the poverty line and a 13% official unemployment rate it is clear that should the government impose more austerity it runs the risk of stirring up political resistance. It would literally be bleeding the poor dry.
WHAT TO DO? Taxing those who can afford it.
7. If precedent is to go by the Government will continue to refuse to impose radical new taxes on the wealthy. The Golding government, for example, using specious and self-serving arguments, refused to put a special tax on the super profits of the banks. Both BNS and NCB, not surprisingly (it is the trend all over the world) have been reporting record profits for several years now, and there is absolutely no temptation on the part of the government to increase taxes on those profits.
8. There was, however, a reluctant and minimal tax on earnings over five million dollars. But this was for one year only! It once again shows a clear class bias typical not only of this JLP government but the PNP as well. [By contrast former UK Prime Minister Gordon Brown increased the tax level to 50% in 2009 for those making over 150,000 pounds].
9. The ideology behind refusing to tax the wealthy is that they will engage in capital flight and capital strike. We must all sink or swim coddling the rich.
10. With political leaders wearing such ideological blinkers it usually requires a strong political push from below to get them to face reality. This government and certainly the opposition seem to feel confident that the chances of such a movement developing are not very likely.
11. In the absence of such political resistance, the government aided by the ideological class, the IMF and the media, will continue to argue that it has no option but to suppress demand levels even further i.e. cutting fiscal expenditure (especially hurtful where education and health are concerned) and to institute public sector layoffs (which are pending) combined with imposing more taxes, which according to tradition, as we said before would be to tax the poor and the working class even more.
The radical but pragmatic option: debt repudiation
12. The truth is that in addition to increasing taxes on the wealthy [the current IMF-backed plan to impose a regressive tax policy under the guise of tax reform must be exposed and resisted], the only other effective option is to repudiate the debt. Argentina is one country to have done so recently with significant debt reduction results. Other countries in history have done so including the United States during the civil war, Mexico, and Cuba.
What does repudiating the debt mean.
13. The Government declares to all creditors that there is an immediate moratorium on all debt payments, but a door is diplomatically left open for negotiations. The national debt is approximately J$2 trillion. About 500 billion, the equivalent of all taxes collected is paid over each year.
Categories of creditors/negotiating strategy
14. First, there must be a forensic audit of the debt to determine what portion corruptly went to politicians, bureaucrats and private sector accomplices. Lenders are sometimes complicit with these corrupt practices. Morally and politically the poor should not be required to pay back such debt since they received no benefit.
15. Currently one politician is before the courts, and another is awaiting a ruling from the DPP. Highway 2000 and the US$62 million Palisadoes Highway are two projects which smack of corruption and which are of dubious benefit to the poor.
16. The late 1990s Bank bailout and the resultant FINSAC debt on the surface is also dubious debt. There is currently a FINSAC Commission of Enquiry going on but without a forensic audit being required this is a grand waste of taxpayer’s money.
17. The unearthing of such corruption is a legal, moral and political negotiating tool with creditors.
18. To amplify the point -- because the Jamaican constitution guarantees that debt has a first lien on the consolidated fund --creditors are not obliged to be responsible in their lending practices which gives rise to the concept of irresponsible lending.
19. There was no obligation, for example, for any lender to Air Jamaica to concern itself with whether the airline was bankrupt and able pay back its loans because all of Air Jamaica’s loans were guaranteed by the government. This would be a prime example of irresponsible lending.
The paradox of local creditors
20. Some local creditors are in fact government institutions which have invested in government bonds. This poses very little political problem for central government in cancelling this debt. The state must take responsibility for social welfare including pensions.
21. The Banking oligopoly owns a significant portion of the debt as well. The fact that they have enjoyed such super profits in the past years strengthens case for debt cancellation.
22. Generally speaking the government has the option to offer long term bonds with radical value reduction if it feels the need for a less acrimonious approach.
23. Should capital strike and capital flight be the response then government would obviously be forced to nationalize the banks, or any sector that engages in capital strike, and to take measures to prevent capital flight.
Negotiating with foreign creditors
24. Without precise data as to who are the foreign creditors, and the appropriate negotiating strategy, it is clear that government would generally demand a significant write off of the debt.
25. Argentina was able to get a 75% sovereign debt write off in some cases.
26. Creditors would rather get something on the dollar than nothing at all. This is something that those who predict doom and gloom fail to appreciate.
27. Externally it would be advisable to seek to form a debtor’s club with other heavily indebted Caribbean countries.
28. All of this requires a commitment to protect the 45% of the population living below the poverty line; to prevent further deterioration in our health care system; to invest in education at all levels; and to prevent the total breakdown of the country’s infrastructure which is inevitable should the present path of fiscal contraction be continued.
29. That is the pragmatic nature of debt repudiation.
30. It is a commitment to protect the poor and the working class generally, the class that is the producer of wealth, but expropriated by the few.
31. Finally we need to refute the ideologists who keep talking about growing our way out of the crisis.
32. According to the World Bank "Jamaica was one of the world's slowest-growing economies in the last four decades. In the 2000s, Jamaica's average real GDP growth ranked 180th out of 196 countries. Jamaica's ranking in terms of average real GDP growth continuously deteriorated during 1960-2008. Jamaica also lost ground against countries in Latin America and the Caribbean. Its ranking in the 2000s was 29th out of 34 countries." Furthermore, says the World Bank “There is no silver bullet for all of Jamaica’s problems, or any single, unique binding commitment whose removal would solve them.”
33. In other words, those with mono causal explanations, such as it’s because of crime, or it’s because of bureaucratic red tape, or it’s because of the need for tax reform why the economy isn’t growing, are really promoting a self-serving agenda, designed to distract from the root concern.
34. And as for those who promote economic growth as the magic answer, they need to be reminded that there can be economic growth with little or no improvement in the standard of living of the poor and the working class generally.
35. If the economy can’t ‘grow’ for whatever reason then the cake has to be divided up more fairly. We cannot allow for the alarming rates of poverty to continue increasing and for the country’s infrastructure to disintegrate further.
The political system has to change from a two-party dictatorship to a people’s democracy.
Lloyd D’Aguilar
Campaign for Social and Economic Justice
2. In the talks prior to the signing of the 2009 IMF Agreement it was clear to the IMF and their technocrats that Jamaica’s debt level was not only unsustainable (the country was perilously close to a default) but required a radical reduction of the debt stock beyond the usual measures: suppression of government expenditure, etc. The IMF/UNDP suggested what became known as the Jamaica Debt Exchange (JDX) which resulted in a $40 billion write off of the local debt.
3. So beholden was the government to creditors that it was paradoxical for it to be the IMF/UNDP (who serve the interests of creditors) to encourage this debt write off instead of the government acting proactively and pragmatically on behalf of the most vulnerable. The government was dragged along kicking and screaming, even though they now proudly point to the JDX as one of their achievements.
4. A principle has therefore been established that normal means alone cannot be used to reduce an unsustainable debt level. European banks have been forced to write off 50% of the Greek debt because the Greek government was politically unable to impose more austerity measures on the population.
5. Despite the JDX, the debt stock is now at an even higher level. This is a result of the country’s high propensity to borrow which reflects deep ‘structural’ problems.
6. Objectively with 1.2 million or about 45% of the Jamaican population living below the poverty line and a 13% official unemployment rate it is clear that should the government impose more austerity it runs the risk of stirring up political resistance. It would literally be bleeding the poor dry.
WHAT TO DO? Taxing those who can afford it.
7. If precedent is to go by the Government will continue to refuse to impose radical new taxes on the wealthy. The Golding government, for example, using specious and self-serving arguments, refused to put a special tax on the super profits of the banks. Both BNS and NCB, not surprisingly (it is the trend all over the world) have been reporting record profits for several years now, and there is absolutely no temptation on the part of the government to increase taxes on those profits.
8. There was, however, a reluctant and minimal tax on earnings over five million dollars. But this was for one year only! It once again shows a clear class bias typical not only of this JLP government but the PNP as well. [By contrast former UK Prime Minister Gordon Brown increased the tax level to 50% in 2009 for those making over 150,000 pounds].
9. The ideology behind refusing to tax the wealthy is that they will engage in capital flight and capital strike. We must all sink or swim coddling the rich.
10. With political leaders wearing such ideological blinkers it usually requires a strong political push from below to get them to face reality. This government and certainly the opposition seem to feel confident that the chances of such a movement developing are not very likely.
11. In the absence of such political resistance, the government aided by the ideological class, the IMF and the media, will continue to argue that it has no option but to suppress demand levels even further i.e. cutting fiscal expenditure (especially hurtful where education and health are concerned) and to institute public sector layoffs (which are pending) combined with imposing more taxes, which according to tradition, as we said before would be to tax the poor and the working class even more.
The radical but pragmatic option: debt repudiation
12. The truth is that in addition to increasing taxes on the wealthy [the current IMF-backed plan to impose a regressive tax policy under the guise of tax reform must be exposed and resisted], the only other effective option is to repudiate the debt. Argentina is one country to have done so recently with significant debt reduction results. Other countries in history have done so including the United States during the civil war, Mexico, and Cuba.
What does repudiating the debt mean.
13. The Government declares to all creditors that there is an immediate moratorium on all debt payments, but a door is diplomatically left open for negotiations. The national debt is approximately J$2 trillion. About 500 billion, the equivalent of all taxes collected is paid over each year.
Categories of creditors/negotiating strategy
14. First, there must be a forensic audit of the debt to determine what portion corruptly went to politicians, bureaucrats and private sector accomplices. Lenders are sometimes complicit with these corrupt practices. Morally and politically the poor should not be required to pay back such debt since they received no benefit.
15. Currently one politician is before the courts, and another is awaiting a ruling from the DPP. Highway 2000 and the US$62 million Palisadoes Highway are two projects which smack of corruption and which are of dubious benefit to the poor.
16. The late 1990s Bank bailout and the resultant FINSAC debt on the surface is also dubious debt. There is currently a FINSAC Commission of Enquiry going on but without a forensic audit being required this is a grand waste of taxpayer’s money.
17. The unearthing of such corruption is a legal, moral and political negotiating tool with creditors.
18. To amplify the point -- because the Jamaican constitution guarantees that debt has a first lien on the consolidated fund --creditors are not obliged to be responsible in their lending practices which gives rise to the concept of irresponsible lending.
19. There was no obligation, for example, for any lender to Air Jamaica to concern itself with whether the airline was bankrupt and able pay back its loans because all of Air Jamaica’s loans were guaranteed by the government. This would be a prime example of irresponsible lending.
The paradox of local creditors
20. Some local creditors are in fact government institutions which have invested in government bonds. This poses very little political problem for central government in cancelling this debt. The state must take responsibility for social welfare including pensions.
21. The Banking oligopoly owns a significant portion of the debt as well. The fact that they have enjoyed such super profits in the past years strengthens case for debt cancellation.
22. Generally speaking the government has the option to offer long term bonds with radical value reduction if it feels the need for a less acrimonious approach.
23. Should capital strike and capital flight be the response then government would obviously be forced to nationalize the banks, or any sector that engages in capital strike, and to take measures to prevent capital flight.
Negotiating with foreign creditors
24. Without precise data as to who are the foreign creditors, and the appropriate negotiating strategy, it is clear that government would generally demand a significant write off of the debt.
25. Argentina was able to get a 75% sovereign debt write off in some cases.
26. Creditors would rather get something on the dollar than nothing at all. This is something that those who predict doom and gloom fail to appreciate.
27. Externally it would be advisable to seek to form a debtor’s club with other heavily indebted Caribbean countries.
28. All of this requires a commitment to protect the 45% of the population living below the poverty line; to prevent further deterioration in our health care system; to invest in education at all levels; and to prevent the total breakdown of the country’s infrastructure which is inevitable should the present path of fiscal contraction be continued.
29. That is the pragmatic nature of debt repudiation.
30. It is a commitment to protect the poor and the working class generally, the class that is the producer of wealth, but expropriated by the few.
31. Finally we need to refute the ideologists who keep talking about growing our way out of the crisis.
32. According to the World Bank "Jamaica was one of the world's slowest-growing economies in the last four decades. In the 2000s, Jamaica's average real GDP growth ranked 180th out of 196 countries. Jamaica's ranking in terms of average real GDP growth continuously deteriorated during 1960-2008. Jamaica also lost ground against countries in Latin America and the Caribbean. Its ranking in the 2000s was 29th out of 34 countries." Furthermore, says the World Bank “There is no silver bullet for all of Jamaica’s problems, or any single, unique binding commitment whose removal would solve them.”
33. In other words, those with mono causal explanations, such as it’s because of crime, or it’s because of bureaucratic red tape, or it’s because of the need for tax reform why the economy isn’t growing, are really promoting a self-serving agenda, designed to distract from the root concern.
34. And as for those who promote economic growth as the magic answer, they need to be reminded that there can be economic growth with little or no improvement in the standard of living of the poor and the working class generally.
35. If the economy can’t ‘grow’ for whatever reason then the cake has to be divided up more fairly. We cannot allow for the alarming rates of poverty to continue increasing and for the country’s infrastructure to disintegrate further.
The political system has to change from a two-party dictatorship to a people’s democracy.
Lloyd D’Aguilar
Campaign for Social and Economic Justice
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