September 19, 2018 issue

Guyana Focus

Can the CSME get back on track?

The Caribbean Single Market and Economy (CSME) is now decades in the making but still appears to be no more than an idea on the drawing board. That’s because all Member States of the regional body are yet to implement their agreed commitments and obligations to make the CSME a success – indicative of the almost fruitless struggle for regional integration so far. But all does not appear to be lost. A new series of meetings of the region’s bureaucrats is aiming to put the CSME back on track by re-examining issues

that have been at the table since it was officially launched on January 1, 2006, with the intention of facilitating the pooling of the region’s financial, human and natural resources to promote regional development and build the economic capacity required to effectively counter increasing global competition. Incidentally, the idea for the CSME was born in 1989 but arrangements to proceed with its establishment were finalized in 1992 by the then Heads of CARICOM governments, 14 years prior to the official launch in 2006 – dogged by a bureaucratic process that is characteristic of Caribbean leaders.
But this process is even more problematic because the quest for a common market follows six decades of struggle for regional integration which dates back to the formation of the West Indies (WI) Federation in 1958. It was following the collapse of the WI Federation in 1962 that CARICOM, as we know it today, was born in 1973, becoming the impetus for the CSME.
The problems associated with achieving regional integration, and consequently the CSME are deeper than what appear at the surface. In an interview with the Jamaican Observer in 2008, the region’s longest serving leader, Ralph Gonsalves, Prime Minister of St. Vincent and the Grenadines sums them up appropriately. He squarely blamed the “politics of regional engagement in Jamaica, shackled by the ghosts of federal referendum; the politics of ethnicity in Trinidad and Tobago and Guyana; a mistaken sense of uniqueness and separation among large sections of the Barbados populace; the peculiar distinctiveness of Haiti and Suriname; and the cultivated aloofness from the regional enterprise by the Bahamas.”
Arguably, the diverse characteristics of the region – political, economic, social and geographic size – combined with the quest for internalized control of power, add to the woes facing the CSME.
The question that therefore remains unanswered is whether this time around, the region’s leaders are mature enough to recognize the benefits of regional integration. Or whether changing global dynamics would force them to see the error of their ways.
Incidentally, at the CARICOM heads of government conference held in Jamaica in July 2018, the need to accelerate the implementation of the CSME was reiterated and it was agreed to adopt the Protocol on Contingent Rights which will cover the rights of persons moving to another country under the free movement of skills regime, as well as the spouses and dependents of those who move to another country.
Then earlier this month, a Prime Ministerial Sub-Committee on CSME held in Barbados, highlighted the Region’s commitment to the creation of a single domestic space for transportation and communication, and to agreement on a regional Protocol on Government Procurement to facilitate easier regional bidding for government contracts.
This meeting was preceded by a Meeting of the CARICOM Council for Finance and Planning which, among other things, agreed to a timeframe to implement a number of elements of the Single Economy that would enhance the effective use and operation of the Single Market.
In principle, at a big picture level, the CSME would allow its combined membership, which has a population of more than six million to reduce the challenges faced by the region in the face of globalization which has spurred the creation of increasingly larger trading blocs around the world. It will facilitate the creation of pan-Caribbean companies and brands and minimize the structural deficiencies and limitations of size, particularly in relation to the smaller member countries.
Essentially, members of the CSME are expected to operate within a single economic space which will stimulate greater productivity and efficiency, higher levels of domestic and foreign investment, increased employment, and growth of intra and extra-regional trade.
If successful, the CSME would be built on five pillars – the free movement of capital; the free movement of goods, services and people; the establishment of a common trade and economic policy; harmonization of economic, monetary and fiscal policies; and a common currency.
At a theoretical level, regional integration will take place at two levels: the single market and the single economy. The single market component which is partially in place consists of freedom of movement of goods, services, capital, businesses and skilled labor.
However, the single economy component which is more challenging will involve harmonization of policies, laws, and regulations; enhanced monetary cooperation, and development of common external economic policies.
One of the major areas of past disagreement stems from the free movement of CARICOM nationals, especially skilled individuals, to live and work anywhere in the region, and be afforded benefits such as health care and education - similar to those of nationals of the countries to which they migrate.
In addition, concepts of a single Caribbean currency, common monetary policy and integrated judiciary remain a distant dream, which may never come to fruition. The truth is: the challenges of integrating a region with diverse social, economic and political characteristics will most likely persist, even as individual countries strive to leverage the benefits of the proposed union.
The CSME is expected to offer both political and economic benefits to the region as a whole, as well as to individual members. While each country will maintain its national sovereignty, the CSME – as a regional body – is expected to closely approximate a national economy, giving the region a single voice. However, this will be easier said than done as CARICOM countries have had a history of looking out for themselves.
Members are unlikely to give up some control of their legal, economic, monetary, and fiscal policies in order to become part of a single economy – a task that will be fraught with challenges.
As part of the single economy, the countries that are part of the CSME must conform to broad political, economic and legal criteria. They must adopt and implement uniform laws and have functioning market economies that are able to withstand competition.
Harmonization of economic, monetary and fiscal policies would be challenging as members will have to meet defined criteria with respect to budget deficits, debt inflation, trade, exchange rates and interest rates. This would prove difficult as the members have diverse economic characteristics and living standards, making convergence into the CSME difficult.
For now, the reality is: there does not seem to be a willingness among the various countries in the region to fully embrace the CSME, which if implemented, will transform the region into a unified economic bloc.
Moving the CSME forward will therefore require more than bureaucratic meetings. Rather, the political commitment to do so is imperative.
 
Questioned by SOCU on the 'Pradoville 2' properties former president Bharrat Jagdeo invokes immunity
Gov't Minister David Patterson to to be summoned in connection with the DHB $148M consultancy contract
GFormer President Bharrat Jagdeo
Georgetown – Declaring his readiness to defend himself in court should the Special Organised Crime Unit (SOCU) charge him, Opposition Leader and former President Bharrat Jagdeo on Monday invoked his presidential immunity from prosecution in declining to respond to questions from the investigators concerning the ‘Pradoville 2' properties.
“We intend to file a full defence at some point once it gets to the court. That’s where you will see all the issues that you have been asking me about. At this stage, like the other members of the Cabinet, we choose the right to be silent and in this case I chaired the Cabinet in an official capacity, so we invoked that…,” Jagdeo told reporters shortly after meeting with SOCU investigators.’
This was Jagdeo’s second encounter with SOCU on the housing scheme. In March last year, he and other former Cabinet members were questioned by SOCU. He visited SOCU after being arrested at his Church Street office.
Last week, Jagdeo was again summoned to SOCU’s Camp Street Headquarters to be questioned about a 2010 Cabinet meeting, where the allocations of parcels of land and other matters concerning the housing scheme were discussed. In addition to Jagdeo, eight other Cabinet members were questioned and it is unclear who else will be summoned in the coming days.
Last week Tuesday, Priya Manickchand who was the Human Services Minister in 2010 was questioned. The following day, former Transport Minister Robeson Benn, former Prime Minister Samuel Hinds, former Housing Minister Irfaan Ali, former Labour Minister Manzoor Nadir, former Minister of Amerindian Affairs Pauline Sukhai, former Local Government Minister Kellawan Lall and former Health Minister Dr. Bheri Ramsaran were all questioned. They were not told to return or what is likely to happen next.
Jagdeo, who spent less than half an hour with the officers, said that he was asked questions similar to the ones his fellow Cabinet members were asked. Based on what the others had said, they were asked about certain documents and whether they had asked for land, among other things.
The former president told reporters that nothing was said about the filing of charges but “knowing this government they would drag it a little bit and try to get charges laid sometime closer to the elections.”
He was not told when he would hear from SOCU again. “I guess it is gonna be another round of media and publicity,” he said.
Th Opposition Leader's attorney Anil Nandlall stated that Jagdeo invoked the immunity that the law guarantees him. “The questions related to when Jagdeo was the president and was Chairman of Cabinet and as such we invoked that Article that immunised him from questioning and…any legal process whatsoever.”
Article 182(1) of the Constitution says: “subject to the provisions of Article 180 the holder of the office of President shall not be personally answerable to any court for the performance of the functions of his or her office or for any act done in the performance of those functions and no proceedings, whether criminal or civil, shall be instituted against him or her in his or her personal capacity in respect thereof either during his or her term of office or thereafter.”
Nandlall also made reference to a civil case pertaining to these lands, which was filed by a group headed by former APNU Member of Parliament Desmond Trotman and which is at a standstill. He informed that this case against some of the allottees of ‘Pradoville 2’ lands is still in the system although Affidavits in Defence have been filed.
The group, in September, 2015, had moved to the High Court seeking, among other things, to have the sales of plots on two parcels of land known as ‘Pradoville 1’ and ‘Pradoville 2’ declared null and void as the sales were done surreptitiously at undervalued prices to former government ministers, officials and cronies of the PPP/C.
Infrastructure Minister David Patterson
A special investigation of the housing development, which was part of a larger probe of the financial operations of the Central Housing and Planning Authority (CH&PA), was conducted by accounting firm Ram & McRae.
The investigation revealed that the allocation of the land was a clandestine arrangement that was handled personally by Ali and it was concluded that a criminal case for misfeasance could be made against the PPP/C Cabinet members who benefitted.
It was found that lots in the 12.1187-acre scheme were allocated to six Cabinet members – then President Jagdeo, Cabinet Secretary Dr Roger Luncheon and ministers Manickchand, Dr Jennifer Westford, Robert Persaud and Clement Rohee – along with other persons with connections to the government, including Director of Public Prosecutions (DPP) Shalimar Ali-Hack and former army head Gary Best.
The probe found that the awardees grossly underpaid for the lots by a total of nearly $250 million, while the state-owned National Industrial and Commercial Investments Limited, National Communications Network, and Guyana Power and Light Inc were never reimbursed for millions spent to execute preparatory works.
The findings of the investigation were later referred to SOCU for a criminal probe to be launched.
The unit had completed its investigation and the file was sent for legal advice which was returned with a recommendation that some additional work be done. This was done and the file was resubmitted for advice. SOCU was then required to do some additional work after which the file was returned to the legal advisor. However a “small issue” arose and efforts are now being made to sort that out before charges are laid. According to a Stabroek News report, multiple persons will be charged.
Meanwhile, SOCU is forging ahead with the investigation into the $148M consultancy contract approved for a feasibility study for a new bridge across the Demerara River.
Head of SOCU, Sydney James, met Monday with Police Legal Advisor, Justice (Ret’d) Claudette Singh, to discuss aspects of the investigation. James was tightlipped about steps being taken, but Kaieteur News reported that there are plans to have Minister of Public Infrastructure, David Patterson, visit SOCU to meet with investigators.
Opposition Leader Bharrat Jagdeo confirmed this after his meeting with James and SOCU officials on Monday.
“I was told that he [Patterson] will be called here [at SOCU] for an interview and other members of the Cabinet will be invited to SOCU. We are very pleased about that; that the same standard is going to be used,” Jagdeo stated.
He indicated that the bridge contract is only the first of approximately five complaints, which the People’s Progressive Party (PPP) will make to SOCU, involving the Coalition Government’s Cabinet, participating in what is considered to be highly corrupt transactions. These constitute various criminal offences, the PPP said.
PPP Chief Whip Gail Teixeira had submitted a letter to SOCU requesting the investigation along with the findings from a probe conducted by the Public Procurement Commission (PPC) into the bridge contract, which was awarded in December 2016 to LievenseCSO Engineering Contracting BV, a Dutch company.
The PPC found that the procurement procedure used to select the company did not meet the requirement of any of the methods described in the Procurement Act.
The PPC in its investigation found that the Minister’s request to Cabinet was not forwarded through the National Procurement and Tender Administration Board (NPTAB).
Based on the PPC report, the submission by Patterson, directly to Cabinet, was in breach of the Procurement Act. The Ministry admitted that it received an unsolicited proposal from LievenseCSO.
Additionally, the PPC probe highlighted that the General Manager of the DHBC, Rawlston Adams, signed the agreement without the approval of the DHBC Board.
According to the PPC, Patterson, by way of a Memorandum dated November 18, 2016, made a request to Cabinet seeking consideration and approval to use funds from the Demerara Harbour Bridge Corporation (DHBC).
Specifically, Patterson requested funds from the company’s asphalt plant accounts to fund the feasibility study and commence a contractual arrangement with Dutch company, as of January 1, 2017.
In December 2016, General Manager of the DHBC, Rawlston Adams, signed the agreement with LievenseCSO Engineering Contracting BV to provide the required services.
The report stated that Adams informed the PPC that the Board of the DHBC was not a party to the decision to use the funds approved by the Cabinet. He further informed the PPC that he ‘had not signed the contract on behalf of the DHBC, but only because he was requested to do so by the Minister of Public Infrastructure’.
LievenseCSO had submitted a 57-page final report, in which it recommended that the proposed location of Houston-Versailles was the most ideal – with a three-lane structure and moveable parts to allow for ships to pass through.
It was the best model, at the least cost, the consultant recommended.
 
Recreational drug ecstasy being
used in schools
Georgetown – At the opening ceremony on Monday of the Customs Anti-Narcotics Unit's (CANU) annual staff training, Deputy Head Lesley Ramlall disclosed that investigations have led to the discovery of the recreational drug ecstasy in five schools. Ramlall stated that catching the suppliers is an uphill task which requires inter-agency collaboration.
“Yes…we have found ecstasy. Children came and admitted the use of it [and] the selling of it. We have gone to the other step of arresting persons who were selling this to the school children. Of course, the challenge [has] always been, ‘How do you get to the man at the top, the established dealer?’ Those are things we are working on to see how much we can get out of that,” he told reporters.
According to Ramlall, CANU launched investigations in five schools located in regions Three and Four after receiving reports of suspected use among students. While pointing out that those reports turned out be true, he said the videos of girls who had apparently consumed the recreational drug were “disturbing.”
“When you look at some of the videos… on the cell phones of our youths… especially our young girls, it is really really worrying for us in society,” he stressed.
He pointed out that the agency is working along with the Ministry of Education with respect to those investigations and he made it clear that no investigation will be done outside of an invitation from the ministry.
Ramlall stressed that ecstasy is not only being used by youths but also by the “affluent” persons in society. He explained that a lot of people are using it for their sexual enhancement and it is now trickling down into the school system.
He added that “more and more” synthetic drugs are coming into the country and the significant increase in use this year is noticeable.
Investigations have not unearthed the presence of marijuana, cocaine or heroin in those schools, he said.
With regard to heroin, a total of approximately two kilogrammes of the drug have been seized so far this year after being found in the possession of outgoing passengers at the Cheddi Jagan International Airport (CJIA).
Ramlall urged all to take note of the seizure of synthetic drugs, such as heroin, ecstasy and crystal methamphetamine, the presence of which is of major concern. These were among the drugs seized during this year and he called them part of a “new trend” which is a “very worrying one for Guyana.”
He stated too that from all indications ecstasy appears to be the common narcotic that is readily available at many nightclubs and at parties.
Public Security Minister Khemraj Ramjattan, in his address, pointed out that law enforcement agencies were “losing the battle” as drugs have found their way into schools and he used the opportunity to urge parents to help in steering their children away from ecstasy and other drugs.
On the issue of the challenges associated with investigating the presence of drugs in schools, Ramlall told reporters that there is a need for collaboration with other agencies so as to capture the person at the top.
“It will always be a challenge for CANU to pin a narcotics [charge] on them, because they are so established. You have so many lieutenants working under you,” he said, while identifying the Guyana Revenue Authority (GRA) as one agency that they can collaborate with.
“If GRA comes onboard, we may not be able to get you for a narcotics charge but we will get you for tax evasion, which is the only way we will be able to bring down this entire narcotics empire we’re seeing growing everyday… that is why we are asking and we are pleading with other agencies to come on board with us, support us in this drive,” Ramlall added.
 

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