PDM Slams Divestment The Patriotic Democratic Movement (PDM) has come out against the planned divestment of the State Insurance Corporation (SIC). On Tuesday, it issued the following statement, complete with its own suggestions.

In a recent meeting held among the civic minded, patriotic members and supporters of the Patriotic Democratic Movement (P.D.M), a consensus was made to express publicly the organization’s disagreement with the government’s immediate intended plans to divestment the state owned asset of State Insurance Corporation (S.I.C) and any other state owned assets or entities of our beloved nation of Antigua and Barbuda in manner it has pushed forward. The P.D.M in turn wishes and would seek to offer the government some suggestive consultative advice on the subject topic at hand.

After careful study and review of the fact sheet which was released by the Divestment Unit from the Office of the Prime Minister, the P.D.M has found inconsistencies with the government’s intended reasons and manner for seeking to divest S.I.C in the interest of the nation. Founding spirit of the P.D.M Bishop Ewing Dorsett noted that while he publicly relayed his personal initial support for the divestment initiative, this was done on the basis of his unawareness of the government’s intended plan to relay as much as 75% share ownership to an one individual, local or foreign entity; as opposed to the small man with in Antigua and Barbuda.

The P.D.M wishes to highlight first and foremost in its opinion that in the current economic climate that Antigua and Barbuda has been enduring, that it would be in the best interest of the government and the taxpayers of Antigua and Barbuda to maintain any state owned, positive revenue stream sources, to be able to continue to support the fiscal responsibilities of the government’s day to day operations, something in which S.I.C currently provides.

As indicated in the recently released fact sheet of the S.I.C divestment plans, the government’s intentions to widen the ownership base as it stands of any state owned entity or assets; would result in realized profits once retained wholly by the nation of Antigua and Barbuda, to be reduced significantly to dividends amongst private interest shareholders. This in turn would lean towards the increasing trend of the government increasing taxes to maintain its day to day fiscal operations and services, which in turn continues to raise the cost of living amongst the already heavily burdened residents of Antigua and Barbuda.

The P.D.M offers the government the following suggestion; instead of divesting S.I.C or any state owned entity or assets, the government should consider looking towards investing to establishing a nationally owned wealth management company, which offers public stock options and stands autonomously as a limited liability entity suggestively in the name of a

“State Investment Corporation or Sovereign Investment Company”

A State Investment Corporation, as the name suggests, would in essence be able to retain and manage all state owned assets or statutory entities (e.g. S.I.C, APUA etc) under a single hired experienced financially savvy wealth management board, which can in turn offer publically shared stock options of the companies thrue the board at a reasonably attractive return interest rate, for sale to the general public and any foreign investors both regionally or internationally interested in investing in Antigua and Barbuda; while maintaining ownership to national assets or entities to the nation of Antigua and Barbuda.

Such an investment management company would actively provide the nation and residents of Antigua and Barbuda with the ability to actively partake in investing within our very own nation and that abroad in more thriving economies with in the region and across the globe.

As a result realized investment dividends of revenues from any foreign investments could be sent back to our nation of Antigua & Barbuda to not only maintain and provide an increased source of positive revenue to the government to support its operations and social services; but will give Antigua and Barbuda an opportunity to reduce the government’s dependency on the current high levels of direct and indirect taxes as the primary source of revenue for government operations as outlined in the 2010 budget of our nation.

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The P.D.M is also of the opinion that Antigua and Barbuda possesses all the necessary resources and personnel to move our nation forward by fostering the culture to invest in our own.

The P.D.M regularly meets weekly on Thursdays at 7:00pm and is currently seeking to establish an alternative political organization to foster greater and more efficient democratic governance in Antigua and Barbuda. Our meetings are opened to the public and all patriotic Antiguans and Barbudans are invited to come out and share their thoughts, ideas and concerns in building our beloved nation. Its Country before Self!!! Patriots interested in finding out about more about the organization or even joining can contact 785-5796 / 462-5702 (Bishop Ewing Dorsett) or email pdmantiguabarbuda@gmail.com

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Ah ha Ya---on Tenman
written by Rawlston Pompey, March 11, 2010

Generally Tenman is one of the Bloggers who had very often advanced reasoned thinking.

much to ponder
written by tenman, March 11, 2010

fnspr thanks for taking time to make that post. As posted before I initially liked the Bishop's idea but you pointed out quite a few kinks. I wish to see a model somewhat like the bishop articulated for future tourism projects. The idea is to initially have the government propose a project and have this body sell it to investors. In the beginning the government will have shares, will provide the necessary concessions but at a set point the government will sell at least majority interest. There presently is something called an investment authority but I believe it needs to be more proactive.

PDM - part 5
written by fnpsr, March 10, 2010

I don’t think you have the experience or the stamina to sustain losses in a down economy or bad decisions made by the directors of the company or a failure of the company. These are just some of the things to think about when you talk about offering public stock.

Alternatively, what I think the Bishop is trying to say is that you can have a private offering, whereby a group of sophisticated investors can get together, pool their resources and make the purchase. This has limitations, because sophisticated here means, essentially wealthy and not experienced. Additionally, the group would be very limited in number, so most of the little guys would be excluded.

PDM - part 4
written by fnpsr, March 10, 2010

Again, this statement does not make any sense. Any profits realized after meeting expenses would be distributed proportionally to the share-owners. If you had regional or global investors, any dividends distributed would be sent to them and not retained in Antigua. So I do not see how this would help to reduce the level of direct and indirect taxes the Bishop speaks of. The Bishops argument is speculative and shows a lack of understanding of the b*dgetary process.

What I think the bishop is trying to say is that the government should offer the SIC for sale and that a group of investors should come forward and purchase the SIC. I think that the Bishop is saying that this group of investors could form a company and offer shares of the company to the public. The problem I see, as stated herein, you do not have a mechanism to provide this service, whereby one can buy and sell shares of the company daily.

PDM - part 3
written by fnpsr, March 10, 2010

This sounds very much like a Ponzi scheme. Do you remember Allen Stanford? Well guess what? He was also offering reasonably attractive interest rates and we all know where he is today. Additionally, you do not have the mechanism is place to offer publicly traded stock. If you did have the mechanism in place to offer publicly traded stocks, the stock price and any returns could not be guaranteed. There are no guarantees in life.

The bishop indicated that “as a result realized investment dividends of revenues from any foreign investments could be sent back to our nation of Antigua & Barb*da to not only maintain and provide an increased source of positive revenue to the government to support its operations and social services; but will give Antigua and Barb*da an opportunity to reduce the government’s dependency on the current high levels of direct and indirect taxes as the primary source of revenue for government operations as outlined in the 2010 b*dget of our nation.”

PDM - part 2
written by fnpsr, March 10, 2010

The Bishop further states in part that a “A State Investment Corporation, as the name suggests, would in essence be able to retain and manage all state owned a*sets or statutory entities (e.g. S.I.C, APUA etc) under a single hired experienced financially savvy wealth management board.” This is utter nonsense. I think what the Bishop is suggesting is “holding company.” The companies would still be individually managed.

The Bishop also stated in part that the proposed company “could offer publicly shared stock options of the companies thru the board at a reasonably attractive return interest rate, for sale to the general public and any foreign investors both regionally or internationally interested in investing in Antigua and Barb*da; while maintaining ownership to national a*sets or entities to the nation of Antigua and Barb*da.”

PDM - part 1
written by fnpsr, March 10, 2010

First of all, let me say that I do have enough information to say whether or not the government should divest SIC. But I do know that the suggestions offered by the Bishop don’t make any sense.

The Bishop is suggesting “that the government should consider looking towards investing to establishing a nationally owned wealth management company, which offers public stock options and stands autonomously as a limited liability entity suggestively in the
name of a ‘State Investment Corporation or Sovereign Investment Company’” First of all the Bishop does not understand what a wealth management company does or what a limited liability entity is.

A wealth management company manages money and look for ways to increase the wealth of the investors, individuals or institutions, by making appropriate investments depending upon the needs and risk tolerance of the investors.

A limited liability company is a partnership, whereby the partners are only exposed to their investment in the partnership.

ah wha ya,
written by tenman, March 10, 2010

Thanks for the compliment. Let me emphasize I am for divestment as long as it is done the way the manifesto articulated. Sell shares to our locals. My stance is no different from Eddie Hunte or Mr. Dorsette in this. I wish to see our people in charge and not politicians. The present system allows politicians to live as if they are over lords. The funny thing is they are rewarded even when they do rubbish. How many private local companies do you know of where the the CEO has a driver, a body guard and at least one personal adviser? Practically every UPP parliamentarian lives like a little king yet most provide little value.

Re: They must be held acountable
written by ah wha ya, March 10, 2010

Tenman, I follow your posts and have for the most part been impressed. Except you are talking tongue in cheek, I must tell you just how disappointed I am with your support for a coke man mentality which seeks to sell off the silverware after they squandered millions in taxes and millions more of borrowed money.
Let us hold them accountable and not make any excuses for them

...
written by sell antigua, March 10, 2010

2 late dorsette u voted for them now they are not good 2 run the country ,good for you time 2 feel the pain

sell antigua for the lowest bidder
written by sell antigua, March 10, 2010

sell antigua please , do it now or u can give it away .good job prime minister .

suggestion
written by tenman, March 10, 2010

I think the alternative suggested by the PDM is a model we need to think seriously about using. It will enable us to start investing in our own. Like the PM was or is I am for Divestment once the shares are distributed in a manner to increase the ownership base (goes to the ma*ses). Do not agree that divestment will mean less moneys to the government. There is no guarantee that SIC will continue making profits under its presents structure. In fact for most of its years it has not made a profit. Government needs money now. They cannot continue just borrowing money, there is no more room for them to steal it, so its time for them to start selling a*sets.