If Anchor prove it can get US$5B in 30 days, the GOJ should employ them as Financial Advisers

If any Jamaican who listeedn keenly to Dr Omar Davis, Dr Peter Phillips and Anthony Hylton and couple that with basic knowledge of the financial market,  would know that it is IMPOSSIBLE for AFG to prove that they can underwrite/undertake this project in 30 days.

US$5B on investments is NOT chicken feed, this is big bucks and is equivalent to the entire budget of Jamaica for the 2015/2016 financial year.

The PNP cabinet (yes d ole a dem), now wants us to believe that in 29 days ( one day already has passed), AFG should be in a position to prove as finances that they can underwrite this MASSIVE project.

Well if anyone reading this can believe it, then they need to get their heads examined.

It really therefore bring into question the capacity of the PNP cabinet to ferret out NONSENSE when it presented even by another cabinet minister and to act in a manner that suggest to the world that we know what is it we are doing.

This is yet another failure of the Portia Simpson Miller lead administration to mislead the Jamaican people, but the sad part about this is Jamaicans will make them pay for this nonsense.

Folks, I will tell you now, that at the end of 30 days, nothing will happen and the much touted $5B investment will die a natural death and Hylton will remain as Commerce Minister

In fact, I would want to suggest that one of the partners will issue a public statement suggesting that given the growing controversy surrounding the project, they have decided to walk away.

“Anchoring” with the wrong people, troubling developments. A commonsenseja expose

Investment and Commerce Minister, like his colleague Phillip Paulwell is searching for a signature project, one which will suggest he has not been a failing minister and its this desperation which has allowed the trained lawyer to make a major blunder, just like Paulwell.

Anthony Hylton told us that he had received a unsolicited proposal  from Anchor Financial Group and Krauck Engineering Systems to build out a logistics hub in Jamaica, which could see about US$5B worth on investment coming to Jamaica.  This would have been the single largest capital project in the history of Jamaica.

EWI had proposed a US$734M project, which at the time would have been the single largest ever capital project in Jamaica. EWI at the time and submitted its proposal, not to the government of Jamaica, but to the Minister of Energy Phillip Paulwell.

Note the striking similarity to the two, but it does not end their. Like Paulwell, Anthony has taken the proposal to cabinet and just like EWI as controversial at it was, cabinet approved whatever was submitted to it.

Anthony has given the group 30 days to prove they could under take the project, in EWI cases, they were given time to first make a deposit then to prove they could finance the project and we all know how that ended up.

Cabinet appeared not to have learned anything from the last debacle and having been let off the hook, less than a year later we find ourselves in the very same position and no doubt the country will let this errant government off the hook once again.

What really happened

( The analysis below is my personal views, this is based on circumstantial evidence both the minister and what is in the media space).

How did the Anchor/Krauck “deal” come about and what seems to be missing.

From reports coming out of Krauck Engineering Systems, they were approached by Anchor Financial Group and asked if they would have an interest in partnering with them to build out a Logistics Hub in Jamaica.

Krauck Engineering Systems, which appears to be a good Engineering Management Company agreed in principle to have discussions with Anchor on this proposal.

The question that immediately arise is how on earth could this have happened?

Folks, their is little or no “logic” to this kind of approach and here is why,( this is where I come down really hard on main stream media for failing to ask the right questions.)

WHO APPROACHED ANCHOR FINANCIAL GROUP.?

You may ask, why is this question relevant in the scheme of things.

The logical approach would be for a company who has experience in logistics hub design and who would have been hearing about what Jamaica is seeking to first take an interest in what we are doing.

They would have had to then met with a Jamaican representative ( possible government official) to get a good picture of what Jamaica is looking for in this logistics hub and having gotten that information, take a position that they would look to pursue this matter further.

The next step would be that Firm A ( lets call them that) would seek out two partners to help with the project

1. A financing company with demonstrated capability to garner the funds
2. A  project manager , to carry out the execution of the project per Firm A design.

Given the above ” logistic”  position , who is Firm A ?

It is simply not logical for a purely financier to approach a Engineering Management Company and then a Government and offer a proposal to invest up to US$5B into something, they were never approached on by a third party, that just does not make any sense at all.

It is logical for a company to have first been in dialogue with the GOJ, shown interest and then go and seek financing and a project management team.

Anthony Hylton however has made it clear than this was an UNSOLICITED PROPOSAL, which is completely defies logic or his is lying.

What about the proposal itself ?

I will posit that Anchor Financial Group NEVER gave Anthony Hylton any such proposal and I will venture to suggest that Mr Hylton’s  statements are not only inaccurate (for a trained lawyer) but are bordering on down right dishonesty.

There could NEVER have been any such proposal as that would have suggested that a lot ground work would have had to have already been done, which would  have included Mr Hylton himself. Any such proposal would have to have had as basic requirements for sensible discussion the following

1. Project intent
2. Project scope
3. Drawings showing design concepts
4. Some prior discussions with major shipping companies/lines on economic vialbility of this hub can it get the traffic to recover their investments and make a profit.
5. Costing estimate
6. Funding sources
7. Project Managers
8. Estimated timeline etc

If Anthony Hylton is to be believed ie if he is not lying then, he would have had to have not had any extensive sit down meeting with Anchor Financial Group or have anyone representing him in any extensive meetings with them( AFG).

If the above is not true, then Anthony Hylton may want to tell the public, how is it that Anchor Financial could have presented him with a proposal, if they have had no idea of what is it the government of Jamaica was seeking in terms of a functional logistics hub.

If that is not the case, then Mr Hylton is not as smart as his educational qualification would suggest and may want to walk away now, if he intends to practice as a lawyer, when he leaves representational politics .

Why should he when Paulwell who himself if a lawyer continues to screw up over and over again and still retains his position. 🙂

How about the “secret” MOU ?

I laughed when I heard, we now have a MOU to talk, ok so let’s talk

1. Who drafted this MOU ?
2. What is the intent of the MOU and why was it considered necessary ( remember, Anchor has already submitted a PROPOSAL and has even included a cost).
3. What is non-binding about the MOU, If Anchor approached us, then I want to assume the GOJ drafted this MOU to protect itself , right?
4. Do we really need a MOU to talk and if so why ?
5. I wonder how big the MOU document is, as it really was drafted very quickly, which to me suggest this was done by AFG and not he GOJ ( You can guess where this is going)
6. Where will these talks be taking  be taking place and who is funding it ie air fare , hotel, transportation etc, is that to be borne by the GOJ or the so called “investors”.
7. Given that I strongly believe the MOU was drafted by AFG and handed to Hylton and the fact that it is non binding, losses that will mostly accrue coming out of this so called discussions will be borne by the people of Jamaica

Enough reading for now….

More later

Bless

PNP will do anything to show unity, even at the expense of the country

The PNP is a political organization, which is so concerned about its own public image, that its members will coalesce around a matter to give the impression of unity, even if by doing so it is likely to bring significant cost to the country.

The “apparent ” signing of the MOU for the “up” $5B worth of “possible” investment in Jamaica’s logistic hub is one such case, as clearing the cabinet members all know , that what was presented by Hylton was a bunch of “Krauck”.

Why would a government take this risk, given the most recent events with EWI, which came in to a energy process under strikingly similar manner.

What is it about the PNP, which continues to allow the Prime Minister and her cabinet members care more about the image of the party, than about the island of Jamaica. Is it that the PNP knows that the articulate minority will make noise for a few days before going back to their computers and the inarticulate majority could not gives a rats ass about governance matters in this country.

Whatever it is the PNP seem to have a “Knack” for choosing the wrong people to drop “Anchor” with.