EYEWITNESS: Profligacy…


…and oil curse

Even though he warned against it, your Eyewitness just knew this Government would ensure the oil find becomes a curse rather than a blessing. And that’s because they’re obviously driven by inner demons to start spending oil money even before they get it in their hands. And how can they do that?

Well, the ink had barely dried on Exxon’s press release announcing the oil find — COINCIDENTALLY, just as the new PNC-led coalition government was ensconced!! — when Trotman announced he’d be asking the company for payments against “future revenue streams”!! Talk about counting your barrels before they’re shipped!!

We pointed out that this was such a ridiculous suggestion it just betrayed Trotman’s ignorance about the oil business!

How can Exxon pay up front for oil when it just can’t know where oil prices will be in 2010 in such a volatile market?? With shale oil coming into its own in this decade and renewables about to take centre stage in the next, all we can figure is oil prices ain’t gonna be flyin’ high no mo’!! Exxon probably took Trotman behind the woodshed and gave him a good whupping to drive some “oil sense” into his head (and the “non-sense out!), ‘cause we haven’t heard anything about “future revenues” since!

The other thing we warned these “last of the big time Third World spenders” was not to BORROW before the oil comes in. In fact, they should plunk the funds into a Sovereign Wealth Fund (SWF), from which they can make strategic investments — like into infrastructure — for Guyana’s development. We quoted the example of Ghana, where they got into big-time trouble when they took the “borrow and spend route” – before their oil came in. Trotman DID start talking about a SWF, but, your Eyewitness knew that, like a junkie, he couldn’t just drop his wastrel ways.

So – lo and behold! — we now hear Guyana’s just signed off against a loan facility of US$44M against oil revenues from the OPEC Fund for International Development (OFID). And — surprise! Surprise! — they tell us “the details can’t be released”!! But we don’t need to have further details, do we?? Yuh na need torchlight fuh see wha’ clear in broad daylight!

This Government just wants to continue the spending spree that began with their mammoth salary hikes; continued with the Independence Extravaganza, when $1.3BILLION were spent on just one park; and segued into EMERGENCY billion-dollar phama contracts to overseas companies!!

What’s driving the present push is 2020, with elections looming; and they’re scared witless that their daily scandals have cooked their goose.

How do you get an addict to go cold turkey?

…and modern business

With everyone convinced the good times are about to roll with the coming of oil, we’re being overrun with slick-talking carpetbaggers who’re willing to “educate” us natives on how to run a “modern economy”. One lesson will certainly be on “bankruptcy”.

Your Eyewitness is sure some of us were more than a tad puzzled when we read Jerry Gouveia saying “not to worry” about Dynamic Airlines “filing for bankruptcy”. To us, going “bankrupt” is that shameful circumstance when you can’t pay your creditors; they take you to court, and you and your family are thrown into the streets after the bank seizes your property. Oh, the shame! The shame!! Some are driven to committing suicide.

So why are we “not to worry” about Dynamic’s bankruptcy? Well, dear reader, welcome to “Modern Business 101”!! No Dickensian poorhouses here! The US has a “Bankruptcy Code” – with several Chapters. Under Chapter 11 – which Dynamic filed – creditors HAVE to work out a settlement with the bankrupt business, which then reorganises and continues doing business!!

Ain’t that lovely??!

…and power-grabbing

So, what’s the scoop behind Roopnaraine’s resignation and withdrawal of same?? Your Eyewitness was told the successor proposed by the WPA was unpalatable. And it wasn’t just the optics.

Proposing one’s daughter is nepotism, isn’t it?


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