Political-Business Collusion, Outrageous 

Concessions and Perpetual Ripoff

By Kwame Nkosi Romeo

The sooner people let go of mediocrity and lousy leadership, the quicker they promote good leaders to advance their growth and development. 

Bombshell

Antigua and Barbuda, two preceding general elections, June 12, 2014, and the snap election on March 21, 2018, that Antigua Labor Party (ALP) won, enslaved people's economic empowerment and fundamental human rights. Similarly, newly elected prime minister Gaston Browne's government tyrannized these natural rights.

Moreover, on June 13, 2014, Browne and ALP election campaign financier Yida Zhang, Chairman of YIDA Investment Group (YIG), following a covert plan, immediately collaborated. Zhang signed a non-binding Memorandum Of Understanding (MOU) predicated on Browne's dictatorial obsession and the breach of the Corporate Governance code of ethics. Seven years later, Yida's long-awaited US$740m plus the injection of US$200 m a year for ten years faded with the empty promises and 15 other spurious investments.

Admittedly, Browne's scheming plan set in motion future shadier transgressions, beginning with Antigua and Barbuda Special Economic Zones (ABSEZs) and ceding special regulatory regimes and a range of fiscal incentives in perpetuity to YIDA. Principally, fiscal incentives range from five to ten years, as specified in 80% of SEZ laws:

"Almost 80 per cent of the SEZ laws provide for

fiscal incentives, such as tax holidays for a defined

period (often 5 to 10 years) or the application of a reduced tax rate."  

(World Investment Report 2019 -Special Economic Zones page 166)

In other jurisdictions such as India, "Companies who set up production units in the SEZs do not have to pay taxes for an initial period of five years." 

As stated in the United Nations Conference on Trade and Development (UNCTAD) 2019, there are 5,383 worldwide SEZs, and the region is as follows: Asia leads the world with 4046 or 75.16%; China represents 47.24% of the world total. Latin America and the Caribbean 486 SZEs or 9.03%. The Dominican Republic leads Latin America and the Caribbean with 73 SZEs, or 1.36% of the world's total. SEZs are used by more than 129 economies worldwide, including more than 67.44% of developing countries and nearly all transition economies.

Looking at the UNCTAD data listings of Antigua and Barbuda, there are two economic zones: Free Trade Processing Zone (FTPZ ) and Special Economic Zone (SEZ); the latter is the only one operating. This SEZ functions as a make-believe logistic hub and consents to abusive tax schemes through the ABSEZ location at Crabbes Peninsula, St. Peters, Antigua.

Undoubtedly, Browne's misuse of Corporate Governance social procedure approved others undermining social accountability. This high-functioning deceit influenced YIDA and Peace, Love, and Happiness (PLH) to continue the environmental degradation of wetlands indiscriminately. That harms individuals' quality of life and safety and is indifferent to the Charter on Environment Rights and commitments to individuals, groups, and Organizations. In particular, PLH's environmental devastation of Ramsar designated Wetlands of International Importance on Barbuda: one of 15 critical Ramsar sites in CARICOM.

Where was Ambassador Ronald Michael Sanders's rage concerning the devastating consequence of ALP environmental degradation that affects climate change and the threat to human life?

 

Customarily, Sanders's concern about climate change is insincere, just like the failure to take issue with the PLH devastation of the Ramsar sítě on Barbuda and YIDA destruction of mangroves in the North-East Management Area (NEMA) Antigua. Essentially, Sanders ignores the twin-island state biodiversity loss, daily living poverty, and foulest governance. Notably, for four decades, a sand mining operation exploited the Barbuda ecosystem, and it enriched ALP politicians as the revolving door of profiteering and environmental devastation continues: 

According to a local newspaper report, in four months in 1993, the companies (SANDCO and Antigua Aggregates) mined 114,000 tons of sand, which sold for ECB15.4 million." -Green Crime, Green Redemption - The Environment and Ecotourism Chapter 5 page 109.

Like YIDA, another disadvantage that sparked public anger and debate was the ALP government's present-day agreement with the Western Imperial Special Economic Zone (WISEZ). This arrangement eternally imperils sustainable livelihoods, damaging the fragile ecosystem of 200 acres of wetland constituting the 549 acres SEZ.

WISEZ approval, similar in wording to YIDA, goes against Sustainable Development Goal 14: "Conserve and sustainably use the ocean, seas, and marine resources for sustainable development." 

Yet, prime minister Gaston Browne coalesced with these specific foreign enterprises contrary to Principle 10 of the Rio Declaration: 

"Environmental issues are best handled with participation of all concerned citizens at the relevant level. At the national level, each individual shall have appropriate access to information concerning the environment that is held by public authorities.." (Report of the United Nations Conference on Environment and Development Rio de Janeiro 3-14 June 1992)

Without transparency, business activities at ABSEZ 19 zones are open to the privileged few. Of the 19 SEZs, number 13 belongs to Antigua and Barbuda Trading, Logistics, and Wholesale Center (ABTLWC). YIDA ABSEZ operates all 19 SEZs.

For example, a sole consignee between 2017 and 2020 imported twenty-six (26) 40' or 52 twenty-foot equivalent units (TEU). These containers got approved entry for ABSEZ ABTLWC under the guise of YIDA.

Secondly is a connected investment to the same consignee for building material consisting of wooden panels under HS code 4407:1220 involving two shipments from different suppliers. One of the containers consisted of 1839 pieces weighing 23775 kg. 

Shipments were processed on October 9 and 23, 2017, following the same passage as the above shipment. This company jointly operates with YIDA in many undertakings. Apart from that, YIDA does many transactions under fictitious business names, but still, that does not conceal the owners' identity. The public must demand the government publicize the list of all companies operating in the SEZs.

Why was it necessary to set up SEZs that brought no benefit to the nation?

Specifically, the SEZ operates as an exclusive duty-free zone benefiting wealthy businesspeople. The collusive arrangement instantly helped the rich get wealthier. At the same time, the government imposed these unwanted tax responsibilities upon the twin-island nation's poorest people, already weighed down with substantial economic losses.

Additionally, US businesses feeling tricked by the twin-island nation SEZ "national treatment" can consult the United States Trade Representative (USTR) since imported goods covertly enter the domestic market to sell or use without paying obligatory taxes. This discrimination is contrary to the World Trade Organization (WTO) regulations. Failing to reach a voluntary resolution for noncompliance can be sanctioned according to Section 301 of the US Trade Act of 1974.

Most recently, USTR Katherine Tai expounding on these unfair tactics made use of China as a business-related example and publicized a stern warning: 

".. we must defend to the hilt our economic interests, and that means taking all steps necessary to protect ourselves against the waves of damage inflicted over the years through unfair competition."  

-US will use all steps necessary to defend its economic interests against China, top trade official says - Monday, October 4, 2021.

Again, the YIDA arrangement neither conforms with the general global practices of Economic Zones such as Special Economic Zones (SEZs) nor Free Trade & Processing Zone (FTPZ). Most importantly, the Antigua and Barbuda Free Trade & Processing Zone Act, 1994 specified customs officers as the sole regulatory regime in charge of all goods entering the Economic Zone as defined in 19(1) and 19 (2) (a): 

19 (1) customs post in a Free Trade and Processing Zone and assigned to such a base and 19 (2) (a), call attention to documenting the name of the importer and exporter, description of goods, declared value, and country of origin. 

But instead, the FTPZ was primarily for online gambling, nothing else, since it never benefited the economy; the politicians and bookies were the only winners of that pickpocketing venture. Antigua and Barbuda dominated 25 of the 60 or 41.67% offshore sportsbooks in operation throughout the Caribbean and Central America. (On Antigua, It's Sun, Sand and 1-800 Betting by Brett Pulley - January 31, 1998.)

Can anyone recall Antigua and Barbuda challenging the US's unfair trading practices relating to gambling in March 2003?

The twin-island nation won and is now practicing the very same illegal trading strategies against local people is utterly wrong. But this embezzling procedure prospers even more with the spinoff to Special Economic Zones (SEZ) not conforming to global rules. 

Next is the discussion of the WISEZ undertaking that began with the UPP candidate from St. George and NewsCo managing director Algernon' Serpent' Watts and others on the popular NewsCo Snakepit show.

What makes WISEZ any different?

WISEZ agreement is yet another ALP government shameful concessions giveaway of SEZs to select monopoly interests by stifling any competitive threat to their involvement in the 549 acres undertaking. That monopoly now functions under the pretense of SEZs, with new investors plundering the treasury. No different, as the cesspool of corruption empties the public coffers, leaving the nation impoverished but politicians remarkably wealthy.

Let's ask prime minister Gaston Browne, the self-appointed representative of all capitalists in the vulgar vernacular language, WTF you did with the funds?

Where is the benefit in all of this government investor arrangement?

The community remains imprisoned by a dictatorial government, odious concessions, and rapacious wealth craze. The people must send a message to abolish all evil deals and those profiteering from our resources! 

When anyone raises their voices about local businesses' unfair treatment, minority critics label that as fanning the flames of racism and denouncing people's concerns. Their modus operandi is to assassinate those who do not adhere to the evil autocracy and the Apartheid oppression doctrine. The following may be Extrajudicial killing.

Whose interest does prime minister Gaston Browne serve?

Today the economy and people's sustainable living are under threat, and it's time for a change.

Justice is absent!