Posted by: nastylittletruths | August 11, 2010

Businesses Under Pressure

The headline of last Sunday’s Guardian was an understatement if you happen to be in the construction industry. While I thought that I may be one of the first casualties of this ‘guava season’ because of our size, it looks like some of the bigger players are also reeling from non-payments. This change in government has definitely seen a tight fist in the Ministry of Finance (I was right as usual boys!) but the lack of communication is driving me up a wall.

We had some flappers in the previous administration for sure – Karen and Mariano could have talked up a small storm between them – even though they never said anything substantive, but all we keep hearing from Winston is, “wait on the budget”. Sorry old boy, but I have a problem with the only businesses making real profit these days are the banks. They sit like the fat parasites that they are – with barely any risk except for the fat loans they give to their friends and families – and suck dry the companies who wait interminably to be paid by government for work done.

I’ve been involved for a very long time, in various capacities, with the construction industry and I firmly believe that at the end of every contract the bank makes the most money. You start off with a $100m contract with all your cash flows in place: mobilisation fees in, wages and salaries out, materials on credit, materials on cash, etc., etc., but you have to assume you will get paid. Now if valuations are done monthly and it takes two months to get paid from the client (and in this case, government and governmental bodies) financing makes it possible to run the contract efficiently, but when the money stops coming in… pressure!

Right now government owes me about $4m directly and another $4m indirectly, that is, people who owe me that are themselves owed by government. By the end of this month my gates could be closed and me and my colleagues are home… But do you think anyone cares? Hell no. Tight-fisted Dookeran believes that all the jobs given out prior to them coming into office have ‘racket’ so it’s an excuse not to pay. (Uh, take a look at my numbers… If I was involved in racket it would have been tens of millions!) The outside observers believe that the government is putting their house in order before spending and I say hogwash. These debts are going to break some businesses and one of them will be for the one I work…

The Guardian’s editorial only today are asking the questions that we’ve been asking for months. The citizens of this country, if they listen to some commentators and the Opposition PNM, are being told to forget the past and move on, but they should remember the lesson about those who forget their history. .. The PNM carried us to the brink of disaster based on what we do know. If all is made public I believe it will be more of a situation where we were carried over and now fighting for a toe hold on the steep slope down. Frightening…

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: