“When a government loses its integrity, times are dangerous. When the populace accepts the loss, times are desperate.”……….Pam Brown in “The Value of Integrity” , ed. Helen Exley “If, for any reason whatsoever, moral standards are conspicuously and unprecedentedly breached in one area of society, such as the political, it will follow as the night the day that those standards will start collapsing all down the line – in sports, entertainment, education, the armed forces, business and government.” ………………….Margaret Halsey in “The Value of Integrity” , ed. Helen Exley Just when I was beginning to question whether we the people cared anything about matters such as integrity in public affairs, national image etc., the New National Party was dealt a stunning blow in the July 8th elections. The wind of change blew and swept it out of office. Throughout the nation, there was much rejoicing and celebration. It was as if a burden had been lifted. The people had spoken. Power to the people!! We the people who voted for change voted to arrest Grenada’s abysmal slide – political, economic, social and moral. We do not expect overnight miracles. WE KNOW THINGS ARE BAD. We are interested in knowing HOW BAD and WHEN we can expect decisive action to be taken in respect of “cleaning out and weeding out”. We do not support victimization. There are too many of we the people who experienced victimization under the NNP regime, simply because we dared to disagree and were therefore perceived as “not being green”. It was not about competence and the best interests of Grenada. It was about loyalty to Keith Mitchell and the interests of the New National Party while the county went “to hell in a hand-basket”. Last week, it would seem that the forces of the New National Party were rousing themselves from the stupor of that blow delivered on July 8th, Liberation Day.. The detention of former Legal Advisor to Cabinet, Hugh Wildman, seemed to have catapulted them into action and they came out with “guns blazing”. They held a press conference that was broadcasted live. At times, one had to wonder whether it was really Grenada the NNP opposition was talking about. Among the ridiculous and MISCHIEVOUS claims made by the members on the opposition side were: • Claims of victimization and hundreds losing their jobs • Failure of the new administration to deliver on promises such as public assistance and persons being taken off of the public assistance programme • Ridiculing claims of an empty Treasury and suggesting that the NDC administration is preparing to impose a structural adjustment programme and increase taxes • Grenada is under siege as during the days of the revolution 1. Claims of Victimisation/Loss of Jobs: Based on information from a variety of sources, we the people are reliably informed that no person(s) has (have) been axed from any position. Indeed this is seen by many well wishers and supporters of the wind of change as a failure to act. We the people know that there is a MASSIVE CLEAN-UP JOB to be undertaken. We are expecting “heads to roll” particularly in high places and we cannot understand what is taking this new administration so long. We believe that examples need to be made so that persons in public office, be they elected by the people, appointed to serve on statutory bodies or as public servants must understand their DUTY to serve the best interests of the country and to act at all times within their professional discretion.. We the people do not accept sorry excuses such as “Is not we, is the Minister!! We following instructions!!” . We the people recommend as compulsory reading, “Walking the Straight and Narrow” by former Director-General and Accountant-General, Mr. Richard Duncan, for all public servants and for our new decision – makers. Mr. Duncan has some recommendations, particularly for the Ministry of Finance. 2. Failure to Deliver on Promises: 2.1. Free School Books: What failure is the NNP opposition talking about? The new administration has spent LESS than 2 months in office. The free school books programme was one of the pillars of the NDC election platform and the new Minister of Education, Senator Franka Bernadine, has hit the ground running. In less than two months, the programme is up and running. IMPRESSIVE!! Some of we the people cannot help but note that Senator Bernadine comes from civil society and therefore is not carrying any partisan political baggage. Sen. Bernadine is also a WOMAN! Like any new programme, there will be teething problems which will be sorted out in due time but the programme has begun!! Sen. Bernadine has not only delivered on the implementation of the free school books programme, but also it appears that she is SHAKING UP the system. We the people finally have the hope that under the leadership of Sen. Bernadine, our system will CARE about WHAT IT DELIVERS to our children and that we will see a halt to the “UP AND OUT” INDIFFERENCE which has prevailed in our school system for years.. 2.2. National Reconstruction Levy: The NNP opposition has knocked the new administration failure to do away with the National Reconstruction Levy. What is their problem? We are sure that such action will be considered for the 2009 Budget! 2.3. Failure to deliver on the increase in Public Assistance for the aged to $400: It is PUBLIC KNOWLEDGE THAT THIS PROGRAMME FIRST HAS TO BE PURGED. It was a programme which was hijacked by the New National Party to facilitate political patronage. One is not sure where the genuine persons requiring government assistance stopped and where party hacks of various descriptions began. On a Sundays with George Grant programme, ex- Minister of Economic Development and a former Minister of Finance, Anthony Boatswain, called in to advise the new Minister of Finance to weed out the names of persons on the programme who should not be there and cautioned the new minister about raising the amount immediately. That was a former NNP Minister speaking!! We wonder why it appears that he did not heed his own advice!! 2.4. NNP Promises vs. NNP Delivery: During 13 years in office, what did the NNP administration promise and what did it actually deliver? These are some highlights of NNP’s performance: 1. Many of us remember “if is work you want is work you go get!” We still waiting. 2. Financial services were supposed to be one of the engines of growth of the economy. Instead, we got offshore banks scandal and the blacklisting of Grenada by the international Financial Action Task Force. Remember One Big FIB - First International Bank of Grenada headed by Van Brink - which DEFRAUDED thousands of pensioners of their hard earned money. We cannot forget that FIBG financed the 1999 glitzy election campaign of the NNP which resulted in their clean sweep and their 15-0 tenure of office, after which members of the NNP administration all seemed to think that Grenada was NNP’s personal rum shop. There are also documented allegations that former Director of Public Prosecutions and Legal Advisor to the Cabinet, Hugh Wildman, did not co-operate with FBI agents in their attempts to investigate the bank BEFORE its dramatic collapse. 3. Information Technology was supposed to be another engine of the economy. What did we the people get? Fly by night call centres while we the people are left holding debt of EC$2.5 million in respect of Call Centres Grenada Inc. in which family members of the present Leader of the Opposition and questionable Russian characters had interests. Former Leader of the Opposition, Mr. Michael Baptiste has talked himself hoarse on this matter. 4. Tourism – what has the New National Party accomplished? 1. The collapse of a number of small, locally-owned properties known as “The Garden Group” and a debt to be borne by we the people of some EC$24 million. Remember No Problem Apartments, Camerhogne, among others? 2. Huge debts to we the people as a result of government guarantees to fly night investors: Grenada Development Company - a debt of EC$29.7 million in respect a government guarantee for the Levera Golf Course and Hotel Development. Besides guaranteeing the loan, the Government of Dr. Keith Mitchell acquired 200 acres of private citizens’ land and passed it over to the “developers” who mashed up the property and drew down on the loan leaving Grenada holding the debt. This property has now passed to the control of the Levera Resort Development (with the Pearls airport thrown into the deal) spearheaded by one Paul Taylor, (a former brick layer “fronting for the Qatar Investment Authority” according to Rory Ross in Grenada after the storm, www.independent.co.uk). This transfer has been shrouded in SECRECY and we also know that the local people have not yet been paid. Intercontinental Grenada Ltd. – a debt of EC$20.25 million in respect of the Mt. Hartman Hotel Development. Again the government of Dr. Keith Mitchell guaranteed a loan for the “developers’, including one, Miller, who drew down on the loan and disappeared, leaving Grenada holding the debt. This property has now been passed to the control of one, Mike Pemberton and Cinnamon 88. And the NNP administration even went one step further. It amended our National Parks Act so that it could SELL the bird sanctuary lands of the critically endangered Grenada Dove to Cinnamon 88 for its REAL ESTATE business. 3. Zublin Cruise Ship Terminal – We the people are holding a debt of US$25m which the Grenada Ports Authority borrowed to pay Zublin to reclaim land. Then we turn around and gave the land to Zublin for a 99 year lease who then leases it to locals and others. Zublin promised to enhance the tourism product in St. George’s. Instead, the aesthetics and heritage aspects of that part of St. George’s have been destroyed and instead, Zublin has given us a book, “St. George’s- The prettiest little town in the West Indies” , even as they line up to reclaim more land up to Cherry Hill – to relocate the commercial port they have proposed. 4.. Port Louis Development – As if not satisfied with the burden that it had inflicted on the Grenadian people, we the people understood that the NNP administration had transferred control of the Islander and Ballast Ground property to Peter De Savary - after another set of fly by night investors, Poole Capital S.A.(then represented in Grenada by one, Bru Pearce) failed to deliver - along with rights to ERECT COTTAGES ON THE LAGOON SHORE and lease of the WATER RIGHTS of the Lagoon for 99 years. In other words, the Lagoon area no longer belongs to the people of Grenada!! See the squalour into which Mt. Pandy residents were relocated in Beausejour and La Sagesse to make way for Port Louis!! 5. Market Square project – This project is “world without end”. It has been ongoing WELL BEFORE THE 2003 ELECTIONS! We the people have lost track of how much money and how many contractors have gone through this project. 6. Dispossession of we the people - All over the country, we the people have been dispossessed of our property and traditional access as these new “pirates” ERECT GATES AND USE DOGS TO DEPRIVE WE THE PEOPLE OF ACCESS TO BEACHES. CALIVIGNY ISLAND is a prime example. Hog Island has been sold and we understand that a number of the Grenadine Islands have been sold. This is the TOURISM LEGACY of 13 years of the New National Party administration led by Dr. Keith Mitchell. 4. NNP ‘s Structural Adjustment/Home Grown Structural Reform: We noted the opposition NNP ridiculing claims of an empty Treasury and the suggestions of its spokesperson on Finance, Mr. Kennedy Roberts, that the NDC administration was setting up the country to impose a Structural Adjustment Programme and increase taxes. What is NOT WIDELY KNOWN nor appreciated is that the NNP administration has already taken us there!! The IMF now calls these structural adjustment programmes Poverty Reduction and Growth Strategies. In his Letter of Intent to the IMF, then Minister Boatswain called it a Home Grown Structural Reform Programme and presented it to we the people as an Economic Reform Programme in his 2006 Budget Speech. Among the objectives of that programme were restoring debt and fiscal balance, an acknowledgement that the country’s debt and fiscal situation was UNSUSTAINABLE – a situation that was made worse by the passage of Hurricanes Ivan in 2004 and Emily in 2005. Among the fiscal measures identified to restore fiscal stability and debt sustainability were:- the imposition of National Reconstruction Levy, the 45 percent increase in fuel prices all borne by we the people and a commitment to implement Value Added Tax by January 1st, 2008. Minister Boatswain described it as we the people paying our share. In respect of fiscal reforms, Grenada committed to the following by the end of June 2006: • Publishing information on all new concessions granted from January 1st, 2006 • Eliminate the granting of new tax holidays and the extension of tax holidays. While we the people have been paying our share, the fiscal reforms have not been implemented. Just recall the obscene fiscal incentive package afforded Peter De Savary in January 2007 in an agreement signed by NNP’s Anthony Boatswain himself!! WE THE PEOPLE SUBSIDIZING REAL ESTATE SPECULATORS!! 4.1 Pre-Ivan Debt Situation: We the people recall that the SIZE OF THE PUBLIC DEBT was one of the major issues of the 2003 election platform of the opposition parties. We recall the NNP’s response on the platform, where it is usual for “mouth to open and word jump out”: • Then ex-Minister of Finance, Anthony Boatswain scoffed at those he dismissed as POLITICAL JOKERS and grandly advised we the people that it was not the size of the debt that mattered but the ability to repay the debt. At that time, we the people knew that the coffers were already empty. • Then ex-Minister of Communication and Works, Gregory Bowen advised we the people that GAS AND OIL would repay the national debt many times over. (We the people waiting on the new Minister of Finance to tell us how much of the people’s money has been spent on legal fees for the defence of Gregory Bowen in respect of the legal mess into which he got Grenada and himself with his unwise deals with Jack Grynberg and with the Russian conmen.) What was the reality of our debt situation then? The press release of the IMF mission to Grenada in May 2004 is instructive. According to IMF Press Release No. 04/102 May 28, 2004:- “ With specific reference to fiscal adjustment, the government should adopt without delay an appropriately stronger fiscal position in order to, at least, stabilize the debt to GDP ratio in 2004, and establish clear targets for a significant reduction in the ratio over the medium-term. The Transcript of a Conference Call on Grenada's Economic Reform Program, May 3rd, 2006 - facilitated by the IMF- provides further illumination. According to then Permanent Secretary, Lennox Andrews, the Home Grown Structural Reform Programme which was announced in 2006 ACTUALLY BEGAN IN 2004 with the development of the Poverty Eradication Strategy. It was revised and updated to reflect the impact of Hurricanes Ivan and Emily. Andrews advised that Grenada had developed a “sharing the burden” approach in which donors, creditors, and the people of Grenada were asked to contribute together to the rebuilding process: • Donors were asked to provide budgetary support to the process; • Creditors were asked to support the government in its debt restructuring program; • The people of Grenada were asked to support through fiscal adjustment which would contribute to eliminating the large fiscal gaps associated with the extent of the damage to the economy - the imposition of National Reconstruction Levy, the 45 percent increase in fuel prices and Value Added Tax to be borne by we the people What has been the NNP’s performace in respect of ITS homegrown structural reform programme? We get some idea from the most recent Standard & Poors Report of May 21st, 2008: • Minimal and uneven progress in reducing the large size of the government debt because of LAX fiscal discipline • Weak strategic planning and political will to address Grenada’s pressing fiscal and structural issues • Disappointing fiscal performance in the last two years. There were central government deficits of 6.7% of GDP in 2006(targeted was 3.1%) and 7.5% of GDP in 2007(targeted was 2.7%). • Only 18% of budgeted grants was received in 2007 and there was not any reduced spending to compensate. • The report further noted Grenada’s fiscal performance was IMPAIRED by the following(which would also negatively affect 2008 fiscal outcome if not addressed): (i) Delayed reform of tax concessions (ii) Twice-postponed introduction of Value Added Tax (iii) Hard to contain spending pressures • The report projected a fiscal deficit of 6.2% of the GDP for 2008, reflecting continuous underperformance of grants and pre-election spending pressures. • Grenada’s fiscal performance was described as WORSE-THAN-EXPECTED. • Without resolute fiscal consolidation, the positive momentum brought about by the 2005 debt restructuring will be lost. • Disbursements under the IMF Poverty Reduction and Growth Facility have been on hold because of the lack of fiscal discipline. Therefore, the recent announcement of an “Empty Treasury” by the new Minster of Finance, Hon. Nazim Burke, does not surprise we the people. We knew that a long time ago. What we were not aware of was that disbursements from the IMF was not forthcoming. No wonder the NNP administration was selling out our national assets lock, stock and barrel, even after Parliament had been dissolved and they were not authorized to do so. Hon. Clarice Modeste has the nerve to tell we the people to BAND WE BELLY and Sen. Kennedy advising that NDC planning to impose structural adjustment!! The NNP has already committed Grenada to STRUCTURAL ADJUSTMENT. Having already imposed NRL and increased fuel prices, they were “breaksing” from the imposition of Value Added Tax, before elections were called. Remember, there was a very busy VAT Implementation Unit in the Ministry of Finance? As in 1990, the NDC administration has to do a MASSIVE CLEAN-UP job and the sacrifices will inevitably be borne by we the people. But this time, we the people DEMAND that person(s) be held responsible and accountable for this MISMANAGEMENT. Indeed, like Max Sterling, we want to hear JAIL DOORS BANGING!! We also give notice to the new occupants of the Ministerial Complex that, this time, we the people plan to MIND OUR BUSINESS. We will be keeping a close eye on all our representatives, be they in government or opposition. WE STANDING UP FOR GRENADA!! By Sandra C.A Ferguson Political/Social Commentator Inside Grenada News