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  • Chastanet flip flops on LIAT. Now he doesn’t mind being a shareholder

Chastanet flip flops on LIAT. Now he doesn’t mind being a shareholder

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Last year, Antigua’s Prime Minister Gaston Browne made a clarion call to regional colleagues to invest in the ever cash-strapped airline LIAT.

The governments of Grenada and St. Kitts and Nevis both responded favourably, each committing to provide EC$1 million.

In an interview with the STAR on March 13, 2019, Prime Minister Allen Chastanet said his government would not consider investing in LIAT unless there were significant changes in the airline’s operation.

He referenced a Caribbean Development Bank study that suggested three options: restructure the entity; privatize; or shutdown.

If Saint Lucia were to buy shares, Chastanet said, the shares would need to be in an entity free to make whatever commercial decisions must be made.

“I don’t mind being a shareholder, going to my annual shareholder meeting, and if in fact the management are not doing a good job then you fire management. I don’t believe governments themselves should be involved in the day-to-day operations of the airline. That’s certainly not what appears to be in practice right now and so certainly Saint Lucia would not be interested in taking shares in LIAT as currently constructed,” Chastanet said.

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He added that LIAT’s board must comprise people “that understand how to run an airline business”.

On January 9, LIAT announced the appointment of a board of directors headed by former Barbados Prime Minister Owen Arthur, currently serving as a professor at the University of the West Indies.

LIAT highlighted that the new board brings over 100 years of combined aviation experience. Said LIAT in a statement:

“The new chairman has been tasked by the new board to undertake a special assignment to meet with regional prime ministers to discuss sustainability of the airline. This assignment will be supported by other directors and the management team of the airline.”

Last December, the company announced that Dr. Jean Holder — who served as its director and chairman for 16 years — had retired.

On Monday Prime Minister Allen Chastanet strongly supported the appointment of Arthur— whom he considers “very capable”.

But that didn’t mean a change of attitude on the part of Saint Lucia’s prime minister. At any rate, not until Arthur has made necessary changes. Chastanet seemed to be anticipating structural changes to LIAT.

“We have to be satisfied that the tough decisions that have to be made in LIAT are going to be made,” said Chastanet.

“There are a lot of adjustments and structural changes that have to take place and I think that it’s a good signal in having former prime minister Arthur there, because he is a no nonsense person and he has very good commercial sense as well. If there’s any person that could potentially break this deadlock, I think he’s that person. Saint Lucia is very hopeful that something can come of this new decision.”

In a bid to recapitalize the airline, Prime Minister Gaston Browne secured a US $15.8 million loan from Venezuelan bank, Banco del ALBA last November.

The Antigua government, which holds 34 percent shares in the airline, is also negotiating to purchase the majority of Barbados’ 49 percent share ownership.

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REQUEST FOR EXPRESSIONS OF INTEREST

(CONSULTING SERVICES – INDIVIDUAL SELECTION)

 

OECS MSME Guarantee Facility Project

Loan No.: IDA-62670, IDA-62660, IDA-62640, IBRD-88830, IDA-62650

Assignment Title: Senior Operating Officer (SOO)

Reference No. KN-ECPCGC-207852-CS-INDV

 

The Governments of Antigua and Barbuda, Commonwealth of Dominica, Grenada, St. Lucia and St. Vincent and the Grenadines have received financing in the amount of US$10 million equivalent from the World Bank towards the cost of establishing a partial credit guarantee scheme, and they intend to apply part of the proceeds to payments for goods, and consulting services to be procured under this project. 

The consultant will serve as the “Senior Operating Officer (SOO)” for the ECPCGC and should possess extensive knowledge of MSME lending with some direct experience lending to Micro, small and medium-sized businesses, knowledge of the internal control processes necessary for a lending operation and the ability to design and implement risk mitigation procedures. The ideal candidate should possess an Undergraduate Degree from a reputable college or university, preferably in Business, Accounting, Banking or related field, with a minimum of 5 years’ experience in lending, inclusive of MSME lending. The initial employment period will be for two years on a contractual basis. Renewal of the contract will be subject to a performance evaluation at the end of the contractual period. The assignment is expected to begin on September 30th, 2021.  The consultant will report directly to the Chief Executive Officer of the ECPCGC.

The detailed Terms of Reference (TOR) for the assignment can be viewed by following the attached link below. 

 

https://bit.ly/3iVannm

 

The Eastern Caribbean Partial Credit Guarantee Corporation (ECPCGC) now invites eligible “Consultants” to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have:

  • An Undergraduate Degree from a reputable college or university, preferably in Business, Finance, Banking or related field; and
  • Minimum of 5 years’ experience in MSME lending. Applicants should also have:
  • The ability to design and implement risk management procedures 
  • Extensive knowledge of MSME lending with some direct experience lending to small and medium-sized businesses
  • Extensive knowledge of MSME banking operations
  • Knowledge of the internal controls necessary for a lending operation and the ability to design and implement risk management procedures
  • Experience developing and presenting information in public, including responding to questions in real-time
  • Experience lending to MSMEs located in the ECCU
  • Knowledge of marketing and communicating with the MSME sector
  • Ability to draft procedures to be used in a lending operation
  • Familiarity with the mechanics of a loan guarantee program
  • Exceptional written, oral, interpersonal, and presentation skills, and
  • Proficiency in the use of Microsoft Office suite.

The attention of interested Individual Consultants is drawn to Section III, Paragraphs 3.14, 3.16, and 3.17 of the World Bank’s Procurement Regulations for IPF Borrowers July 2016, [revised November 2017] (“Procurement Regulations”), setting forth the World Bank’s policy on conflict of interest. A Consultant will be selected in accordance with the Approved Selection Method for Individual Consultants set out in the clause 7.34 of the World Bank Procurement Regulations for IPF Borrowers. 

 

Further information can be obtained at the address below during office hours 0800 to 1700 hours:

Eastern Caribbean Partial Credit Guarantee Corporation

Brid Rock, Basseterre,

St. Kitts.

Expressions of interest must be delivered in a written form by e-mail by August 11th, 2021, to [email protected]

 

For further information, please contact:

Carmen Gomez-Trigg                                                            Bernard Thomas

Chief Executive Officer                                                          Chief Financial Officer

Tel: 868-620-8144                                                                  Tel: 869-765-2385

Email: [email protected]                                          [email protected]