Could the Virgin Islands be Embarking on the Course to Financial Disaster?

Now, I'll admit I'm no economist.  So, if someone can talk me down on this it would be refreshing.  I've actually spent the past few days trying to decipher this...

In The Source on Monday, there was an article about the Virgin Islands Public Finance Authority (PFA) being authorized to float up to $341 Million in gross-receipts tax bonds.  Who knows exactly what gross-receipts tax bonds are?  If so, please chime in on this point.

A gross-receipts tax is "a tax on the total gross revenues of a company, regardless of their source."  The bond market is a financial market where traders "buy and sell debt securities."  Here's where things get interesting.

You'd have to be in a coma to not know about the nationwide housing crisis.  The housing crisis came about because of an assumption of continued increases in housing prices and a reliance on mortgage backed securities.  But, when housing prices stopped rising the economy came crashing down.

Now maybe this is naive, but I seem to see parallels.  As a mortgage backed security relies on an assumed increase in housing values, a gross-receipts tax bond relies on an increase (or at least stability) in gross-receipts taxes collected.  But, with the economy in such disarray should the Virgin Islands rely on an assumed gross-receipts tax value?

The PFA head (Mr. Julito Francis) did not disclose a specific project for the money but said their list includes "money for territory-wide education, waste management, transportation and recreation projects."  Ok, that sounds good.  But, am I crazy to ask: shouldn't those matters have been addressed in the original budget?  Could there really be a $341 Million shortfall in the budget?  And if there is - somehow - a shortfall, should that not be addressed by a supplemental budget?

For what purpose does the Virgin Islands need to float bonds?

It is tantamount to the Federal Reserve Bank arbitrary printing of money "out of thin air." 

By floating bonds, it seems as if the Virgin Islands PFA is
essentially injecting money into the Virgin Islands economy and giving it to the Virgin Islands Government with the
hopes that the businesses in the Territory will continue to perform (even in tough economic times) according to their projections.

This round of bonds is in addition to the $250 Million in bonds floated to pay for the Diageo deal.  These particular bonds aren't secured by general gross-receipts taxes, but rather assume claim to revenues from the rum that should begin flowing four years from now (2012).  It is also in addition to another $392 Million in gross-receipts tax bonds.

That's a whoping $983 Million in speculative bonds - speculative because if any of the future numbers miss, the Virgin Islands economy could take and the recession could be worse than that to be experienced on the National-level.

All of this money literally floating around, but the Constitutional Convention couldn't be allotted any real money to do its "work."  (Do Virgin Islanders Deserve a Constitution?)  All of this money being created but WAPA bills remain unpaid.  Does any of this make sense to any of you?

None of the articles I've seen on this issue have addressed the economics of this authorization.  So, we'll talk about it here.  There must be a reason why everyone else is not up in arms about this.  Can someone explain it to me?  I need your help making sense of this...

Answer the Call before it's too late: Virgin Islands for the Virgin Islanders...those at home and those abroad!

Virgin Islands, Economic Crisis

If Government Capital Must Be Invested...Make it for Infrastructure Development!

In these tight economic times, we're witnessing something tremendously ironic: those who have been against "hand-outs" for individuals facing hard times are demanding similar-type "hand-outs" for corporations. In the name of Economic Development or Economic Stimulus, corporations are lining up for money to either prop up their businesses or salvage them.

Personally, I am for tax-cuts for all (corporations and individuals). I prefer tax-cuts to appropriations or allotments. Let me keep my money. Do not take my money and feign benevolence by giving it back to me or to someone else.

But, in this time it has become expected that the government will intervene. And because our economy has been so deathly mismanaged, it seems necessary to seek government intervention. So the question remains: where should the government intervene?

Former Clinton Labor Secretary, Robert Reich called the government the "spender of last resort." He laid out his plan in an article on Talking Points Memo. And, if the government is going to spend, should our tax dollars be spent with those who may hoard that money? Or, would it be better to spend that money (the people's money) in ways that directly improve the quality of life for the people?

Now, I'm not advocating any permanent New Deal-style programs, but we know the Virgin Islands Legislature is itching to spend YOUR money. If they're going to give away your money in the name of economic development/stimulus, why not give it in a way that will directly benefit you?

We reported on the poor state of affairs at WAPA. And, we recently told you about the lackluster performance at VITELCO. Wouldn't it be nice to improve these services? Moreover, wouldn't everyone benefit from such an investment?

Of course, Virgin Islanders will benefit from reliable electricity and modern phone/broadband service. But, businesses will also business from reliable electricity and modern communications services. Moreover, more people might be inclined to start a business in the Virgin Islands if they can count on reliable utilities.

I spoke with Dr. Jeffrey Eisenach, Chriaman & Managing Partner at Empiris, LLC. He was mentioned in Saturday's posting on Vitelco's dilapidated infrastructure. His firm assisted in the study of Vitelco's infrastucture. Here's what he said to VI Watch:

The situation in the USVI is pretty unique in many ways, but perhaps most notably the sorry state of the telecom network there following years of neglect by the prior owners.

...The study upon which my estimates of economic benefits are based – by Connect Kentucky – indicates that the increase in broadband penetration that occurred there as a result of a variety of efforts was accomplished for very little in the way of incremental cost.

You remember that it was reported: a 14% increase in broadband capacity will provide the Virgin Islands with 1700 additional jobs. I did some research on cost to improve broadband capacity. And based on research from the National Exchange Carrier Association (the study refered to by Dr. Eisenach), for the 66K access lines in the Virgin Islands it would take (rough estimate) $72 Million to close that gap. That sum is about twice the amount requested for the fish farm. But, it would yield almost six times as many jobs as the fish farm. If the Virgin Islands Legislature only wanted to spend the $34 Million, they could commit to a 7% increase in broadband capacity and still bring about almost three times as many jobs as the fish farm.

Don't think I'm beating up on the fish farm! I'm not...

I'm just looking at the Virgin Islands Senators and other government officials who promoted the fish farm to Virgin Islanders as something in the best interests of the Territory as a whole. That is the crux of the problem: government leaders telling us that things are in our best interest because those things are in their personal interest.

(Remember returning Senator Adlah "Foncie" Donastorg served as a Consultant for Crucian Holdings, LLC. Again, that's not a slight at the integrity of the business - businesses do what's in their interests. And, having a former/returning Senator in your corner is definitely in Crucian Holdings' best interests. However, public officials are to serve the public interest. And, those who've left office should be required to obey ethical rules to protect against the "revolving door.")

Again, I would personally prefer keeping my money. But, there are limited need for taxes. Yet, those tax dollars should not be used forIf government capital must be invested, make it for infrastructure development! If we are going to spend taxpayer dollars, shouldn't those dollars be spent to directly impact the lives of taxpayers? What are your thoughts? If the government is going to spend your money, where should it go: to initiatives that may indirectly benefit you, or initiatives that would directly benefit you? Why?

Answer the Call: Virgin Islands for the Virgin Islanders...those at home and those abroad!

Dilapidated Infrastructure and Ignored Issues

I read in The Source about the "grim picture of Vitelco's infrastructure." According to the article, two-thirds of Vitelco's facilities throughout the Territory are in poor condition and one-third are in fair condition.

What?!

There are software packages so out of date that the manufacturer no longer supports them. The consultant who inspected the facilities also said things are so bad that Vitelco has "even failed to do routing maintenance like clearing bush from around telephone poles."

Here's a telling section of the article:

Another consultant, Jeffrey Eisenach of the Washington, D.C.-based Empiris LLC, later added that the inability to offer more advanced services like broadband to all its customers has a big economic impact. He said that only 36 percent of people in the Virgin Islands have broadband accessibility compared to 62 percent on the mainland.

"If you closed the gap by 14 percent, you'd get 1,700 new jobs," Eisenach.

So here we are arguing about $34 Million for fish farms, and our public utilities are horrible! WAPA cannot pay its bills. Its facilities are run down. And, now we know that the telephone facilities are also in disrepair. Why not use that $34 Million to improve the quality of telephone services?

As Jeffrey Eisenach said, a close in the gap of 14% would provide 1700 jobs. That's WAY more jobs than the 300 provided by the fish farm. I emailed Dr. Eisenach at Empiris LLC to determine how much it would cost to close the broadband gap by the projected 14%. We'll see if he responds.

We cannot allow them to continue milking us for the few resources that remain. We must assert ourselves in defense of our liberty. Join or Die...

Answer the Call: Virgin Islands for the Virgin Islanders...those at home and those abroad!

From Mecca To Obscurity & Obama vs. DeJongh

From sugar cane to sugar apple, you name it and it was grown in the Virgin Islands, which was considered for centuries the "agricultural mecca" of the Caribbean, according to local experts.

 - St. Thomas Source

This is something I've been thinking about for a very long time.  What about you?

For as long as I can remember, the Virgin Islands economy has been almost wholly dependent upon tourism.  It seems dangerous to be in this position.  And, this danger is only highlighted by the economic crisis, even higher airline tickets, changing passport regulations and overall decrease in travel.

But there are others who have a different memory.  Olasee Davis says:

In the 1960s, when I grew up on St. Thomas, there was no Pueblo or Plaza Extra," said Olasee Davis, local agriculture expert. "Everyone had things growing right in their backyards, and every weekend, the farmers on the island would bring their produce down to the market square. The market used to be everything to the people on St. Thomas, and it was a tradition for them to come down and buy fresh stuff from the farmers.

Seems to me that if we are to succeed in The Struggle for Self-Government, we must also have some semblance of self-sufficiency.  Not saying that we need agriculture at the levels to feed the entire territory.  But, surely our dairies should be able to keep cows!  Can any of you form your mouths to tell folks that we have two dairies with no cows?!

Yes, the Industrial Revolution in the North of America did cripple the Southern economy.  And, to this day, agriculture has still not proven to be the magic bullet to revitalize the South.  However, the America doesn't simply rely on the South. 

Our land-mass is exponentially less than that of mainland America.  What will the Industrial Revolution mean for the Virgin Islands?  And while efforts are being made to bring industry to the Virgin Islands, when faced with the failings of industry on the mainland we must ask two questions:

1. Are we too late?  Is this revolution at its end?
2. Is the VI ultimately best suited for Industrial Development?

The main incentive for businesses coming to the VI is the tax incentives.  Supposedly, obscene tax incentives to business and industry will benefit local Virgin Islanders and the Virgin Islands Economy.  And, as I think about it - it's incredible strange that this flies!  How does the economy benefit if the businesses are almost 100% tax-free?  Are the proponents of the VI EDA following Bush-McCain economics?

As our polls on VI Watch are showing, Virgin Islanders support Barrack Obama by an overwhelming majority.  And, Obama's tax policy is fundamentally opposed to this sort of "trickle-down economics."  And while the philosophy is that these policies enable businesses to provide more jobs, we've been faced with (at least at the National level) a spirit of greed and corruption, resulting in bailouts and economic crashes.  Here's what Obama would say:

So while Gov. DeJongh is committed to Obama, here is at least one point of divergence in policy.  I'm not saying that their policies cannot diverge.  Maybe they should.  Just keeping them honest.  But, what do you think?

Answer the Call: Virgin Islands for the Virgin Islanders...those at home and those abroad!

More on Schnieder Hospital Scandal

I thought you all would like to see this article.

It's good to see that this is continuing to move forward. We must clean out all of the corruption. These people take advantage of the lax nature of our system of government. All of this begs the question: when will we organize our government so that it serves the needs of and is accountable to the people?

Question: does anyone understand Francis Jackson's role in this? In this article, he's listed as one who signed off on the corporate resolution from the hospital's board that enabled these folk to set up an account at Scotia Bank. But, he's not - apparently - being charged with anything. I'm not saying he should be; I'm trying to clarify why he's not.

Side note: Francis Jackson is a delegate to the Constitutional Convention.

What do you think will happen with all of this? And, what will it take to prevent such rape and pillage in the future? Let me hear from you!

Answer the call: Virgin Islands for the Virgin Islanders...those at home and those abroad!

ACTION ALERT - Demand Answers from WAPA

A fellow Virgin Islander, Alice Henry took the time to create a petition to demand that WAPA give us a plan for efficiency. We can all agree, these prices are ridiculous.

So, let's Answer the Call: Virgin Islands for the Virgin Islanders...those at home and those abroad!

http://www.ipetitions.com/petition/noleac/signatures.html

Everyone who has family in the VI - please sign the petition to assist in getting the powers that be to do something about the high cost of energy on the islands.

Is the VI Government Keeping WAPA in the Dark Ages, and Your Utility Bills High?

The payment, coupled with the work of the Administration in securing a line of credit for WAPA, is a significant step towards not only easing the cash flow crunch at the public utility but solidifying WAPA’s operational stability which may result in a reduction of rates to V.I. consumers.

-Virgin Islands Governor John deJongh

In an article entitled, "V.I. Coughs Up $17.5M for Debts to WAPA" the Source details a plan to pay some of the money owed to the Virgin Islands Water and Power Authority (WAPA).

Now, I don't know how this is supposed to work. But, I would imagine that if you or I were behind in our bills our electricity would be cut. Apparently, the Virgin Islands Government has a different idea. They feel as though they could run up the bill and never pay...or allow payments to fall way behind.

(Funny though, we're discussing appropriation of $34 Million to open a private fish farm, but don't have the money to pay our bills. hmm.....)

And then, I read the comments by the Governor stating that paying the government's bill "may result in a reduction of rates to V.I. consumers." Uh, you think?

WAPA is already strapped for cash. With a $46 Million cash shortfall, it's hard to imagine that any repairs woujld be done to the antiquated facilities. WAPA's budget for FY2009 projects a net loss of $307,000! Under these circumstances, WAPA could be forced to raise rates even more.

To top it all off, Standard and Poor’s (S&P) has revised its outlook on WAPA to “negative” from “stable.” A negative rating will - of course - make it difficult for WAPA to receive any loans to meet its budget shortfalls. And, S&P has suggested that WAPA apply a fuel surcharge to compensate for rising fuel costs. This, as well, could force WAPA to raise its rates to you - the consumer.

All this, and the Government is not reliably paying its bills. All this, and the Government has no qualms passing along undue burden to Virgin Islanders?!

That burden is not simply felt in the pocket. It is also seen with the eyes...well, make that not seen. The Source reports:

The results have been evident over the past few weeks -- constant power outages and rolling blackouts continue on all three islands, as generating units continue to fail or have to get taken out for repairs.

We have been living with this for decades. If the wind blows to hard, the power goes out. If you sneeze on a Friday, the power goes out. If you watching your favorite show, the power goes out.

But, more money alone won't solve the problem. WAPA is also plagued by a problem of inefficiency. Again, we refer to The Source:

Projected revenues of $47.5 million are expected to fund $47.8 million worth of expenses...

As an organizational development consultant, I do strategic planning. And - as I would tell any Client, if ever your expenses are greater than your revenues there's a problem with the efficiency of provided services. Unlike other areas, there is only so much expansion to be done...there is an essentially fixed amount of customers who will need electricity. Unlike in the states, we cannot rely on "suburban sprawl." WAPA must work with the pool of customers it currently has. So, they must find a way to "do more with less," don't you think? If not, the only option is for Virgin Islanders to pay higher and higher rates. Is that what you want?

We must demand a plan!

Where else can you find a utility system so subpar? Yet while the people suffer from high priced, low quality service, the Government of the Virgin Islands shirks its responsibility to pay its bills. While the people can't enjoy a day of outtage free service, the Government of the Virgin islands has proposed no plan to rapidly enhance the efficiency and effectiveness of WAPA.

No one has determined to solve the problem. Don't you think that is a problem? I do.

But, this ain't about me: what do you think? Should there be a plan to increase the effectiveness and efficiency of WAPA's services? What should be in that plan?

Answer the Call: Virgin Islands for the Virgin Islanders...those at home and those abroad!

Holding Their Feet to the Fire

Other Peoples' Money. It is a hallmark of capitalism...find a way to accomplish a goal without using any of your own money - or at least, as little of it as possible.

That is not simply a principle for individual wealth, but it is also the formula for business success. The borrower always hopes to get the best deal. The lender always hope to get the best deal. For instance: home loans...borrowers thought they were getting the best deal by minimizing their monetary outlay through ARMs. Likewise, (predatory) lenders thought they were going to get the best deal through the influx of cash that would come in later years. My, how we were wrong!

There's much to be gleaned from the current economic crisis, and untold sums ($700 Billion and rising) it will cost the American Taxpayer to clean up a mess they didn't (really) create. Yet, we see in our own Virgin Islands preparations are being made that could put us on the same dastardly course.

As we've been discussing in previous posts (post 1, post 2, post 3), the Virgin Islands Legislature is considering a bill that would provide $34 Million of TAXPAYER funding to enable Crucian Holdings LLC to open their privately held fish farm on St. Croix. It became the duty of Virgin Islands Watch to investigate this issue and tell you what you need to know...tell you the things no other media source in the Virgin Islands will tell you.

Earlier today (Wednesday, 24th), I told you that Senator Jean-Baptiste's office would call me back. At that time, I highly doubted it: why would a Senator from the Virgin Islands call me - someone not living in the VI, especially on something so controversial? However, much to my surprise, I received a call from Senator Jean-Baptiste.

So, first - I want to applaud the Senator for stepping into the fire without fear. We spoke for about 40 minutes, and I peppered him with numerous questions on this bill. He answered all of my questions, even ignoring phone calls to continue our dialogue. By that action alone, I gather that he must mean well...for even I know: he didn't have to speak with me.

It seems an ideal time for the Virgin Islands to be looking at this issue. Here we have the Federal Government bailing out corporations by the hundreds of billions in taxpayer dollars. And, we're about to sing the same tune.

I framed the dialogue with Senator Jean-Baptiste with that as the back drop. Reminding him that Senator Barack Obama is against the bailout and that the Democratic Party has essentially called it a farce, I aske Senator Jean-Baptiste what he thought of the Federal bailouts. He called it the "metamorphosis of Corporate Welfare." He went on to say that it "sends the wrong message" for the government to be bailing out corporations. He called the policy "not something I support," and that it's "not the best option."

So - I asked, why is it proper for the Virgin Islands Government to be proping up corporations? And, the response was that those getting Federal bailouts "chose to do things the wrong way and are facing the consequences."

He went on to compare this situation to that of an individual applying for a home loan. Yet, when you or I apply for a home loan we will have to pass a test of credit worthiness. To his credit, Senator Jean-Baptiste said that his bill only authorizes the PFA to provide funding...it doesn't demand the provide the funding. Supposedly, the PFA will perform due dilligence to ensure CH's ability to pay. I asked Senator Jean-Baptiste if he would be willing to mandate that this process be open to the public - taking advantage of technology - and he was open to that. Nevertheless, we still must ask: what is their track record?

Crucian Holdings LLC had no website until after Virgin Islands Watch articles. They now have a web domain, but there is nothing on the site. However, through searching, I have found that Crucian Holdings LLC used the services of Fine Print Consulting Services, LLC to help their efforts. Fine Print Consulting is headed by Adlah "Foncie" Donastorg (former - and now returning - Senator). Does anyone else think this smells fishy?

But, that's a different story - may be more there...

Crucian Holdings LLC is headed by A. Bruce Weber and Peter Conforto. The duo appears to have numerous business holdings (here, here, & here - at least). These businesses seem somewhat successful.

So, I asked Senator Jean-Baptiste his rationale for this bill. He said that he looked at the world food situation, the capacity limits upon local fishermen, and the possible contamination of seafood imports from China. He said that those factors coupled with the need to "enhance agricultural projects" in the Virgin Islands made this seem like a good opportunity. As he said, he "is going to try to do something" to move the development of the Territory forward.

Yet, with all of these factors, it seems as if there would be numerous paths through which Crucian Holdings LLC (CH) could acquire the money they need. But, Senator Jean-Baptiste said that CH doesn't have the capital and so they are seeking a loan. Hunh?

It cannot be that they don't have the capital - I know that's what they said, but it must be (in the spirit of Other Peoples' Money) that they don't want to use their capital. Now, that is fine. But, if I understand loans correctly, the borrorwer is usually required to put up some collateral. What collateral are they putting up for this loan? Have we valued their business holdings? And, are their other holdings being used as collateral?

Again, according to Senator Jean-Baptiste, CH has stated that they will use a NOAA grant to repay the loan. My initial question to the Senator was, "if they can get a NOAA grant to repay the loan, why not get the grant instead of the loan?" Senator Jean-Baptiste replied that CH said that due to the Presidential & Congressional Elections, the process would take too long.

1) Why is that our problem?

2) Does the government stop functioning because of the elections?

I went to the NOAA Grants Management Division website. Here's what I found:

In fiscal year 2006 GMD processed 1,931 awards to support research and conservation initiatives coordinated by state and local governments, non-profits, and colleges and universities. GMD awarded funds totaling $1.036 billion to over 300 recipients. That's more than 25% of NOAA's annual budget committed to making progress in understanding the link between our global economy and our planet's environment.

So, 3) How does CH qualify for a NOAA grant? Aren't they a business? Are they conducting research and/or conservation initiatives? Are they a state or local government? Are they a non-profit, college or university?

Apparently, they lied to Senator Jean-Baptiste...unless one of them will contact us and tell us something different.

CH wants the farm as part of their "vertical integration" strategy. Such a strategy offers compelling benefits. Because of these benefits, they are ripe to harvest extraordinary profits. That being the case, why must we subsidize their endeavor? Most likely, if the $34 Million loan is approved, they will apply for EDC benefits. The profits they will accrue will effectively pimp the Virgin Islands.

Are you ready to be used?

What's worse: this vertical integration strategy includes CH taking the fish to market through a restaurant chain, "Crucian Cafe." If we are aware of the problem Ethiopia had with Starbucks (see here), we would understand the importance of this. How can CH profit from the use of the term "Crucian?" They will already be milking the Virgin Islands taxpayers, raping our land and resources, and benefitting from both their business model and our tax breaks for businesses. You mean to tell me we're supposed to give them free reign to profit off of our identity?!

Ridiculous!

All that said, I am grateful to Senator Norman Jean-Baptiste for his time and openness. I have invited him to visit the blog and leave his comments for further follow-up. He said that he is definitely willing to shelve this legislation should it become apparent that the people are against it, but he simply wanted to take a "brave and courageous stance" to do something.

To close our conversation, I asked if he would be willing to at least open the legislation up to require competitive bidding. He said that he is "amenable to this" and would not mind doing so...that it was something he "can embrace."

Look at your power! You have the ability to shape legislation!

So, it is left for us to decide. We must decide if there is any form of this legislation that we find acceptable.

For myself, I don't agree. If they want a loan they should get it from a bank. And, if the banks (who are in business to make money) refuse a loan, why should government do differently? Or, is the Virgin Islands Government about to get into the business of profiting from entrepreneurial ventures and thus, reduce your taxes?

I still say: NO DEAL!

What do you say?

Answer the call: Virgin Islands for the Virgin Islanders...those at home and those abroad!

It's Not Over! This Fish Farm Still Lives!

I just got off the phone with Senator Jean-Baptiste's office.

Apparently the article was a little misleading. First, I listed the wrong committee. The bill has been returned to the Committee on Economic Development & Agriculture. The Chair of that Committee is Senator James Webber III. His contact information is in the previous post on this topic. The sponsor of this bill is Senator Norman Jean-Baptiste. His number is 340.712.2305.

I was told (by Senator Webber's office) that there is a tentative date of October 15th, scheduled to redress this bill. For some reason, Senator Jn. Baptiste's office didn't know of this date until I told them!

Anyway, Senator Jn. Baptiste's office informed me that the bill is not dead. They said that the Senator will be working with his colleagues to address their concerns. His hope is to still pass this bill and use $34 Million of YOUR money to prop up a business that - at best estimates - will provide 300 jobs to the Virgin Islands. Honestly, if it's about the 300 jobs, it would be cheaper to take 300 people and give them $75 - $100 thousand each.

In my conversation with Sen. Jn. Baptiste's office, I said that it is ironic that at a time when the Federal Government is trying to "bail out" corporations with taxpayer funds, we in the Virgin Islands are trying to "prop up" a corporation with taxpayer funds! Isn't there something wrong with this?!

Not wanting to simply throw stones, I asked the lady in Sen. Jn. Baptiste's office how he justifies this expenditure. Lacking an answer, she - seemingly - stalled for time by saying that Senator Jn. Baptiste would call me back to explain. We'll see...

Let's force their hand!

All of you that still care about the Virgin Islands - DO THIS NOW!!!

Call Senator Norman Jean-Baptiste at 340.712.2305. Tell his office that you've been reading about this issue on Virgin Islands Watch and that you want him to answer my questions...because you are concerned!

Let us flood their office with phone calls until this bill dies!

This is our home, and only we can defend it!

Virgin Islands for the Virgin Islanders...those at home and those abroad!

You Did It! Congratulate Yourself...

It turns out that I'm not the only one who felt this crap was ridiculous! Thank God!!!

According to an Associated Press article, the Virgin Islands Legislature denied Crucian Holdings LLC's request for $34 Million dollars to start their fish farm on St. Croix. But, it ain't over!

We must remain vigilant! As the article says:

The Virgin Islands Senate voted 8-2 Thursday to send the loan request back to a committee. Senators questioned whether the fish farm could really pay back the loan in three years.

So, this mess is not over. And while Crucian Holdings LLC says they are "considering several options," I don't believe them...do you?

If it was absolutely over, would this issue be returning to committee? It seems as if this issue has returned to committee to answer the question as to "whether the fish farm could really pay back the loan in three years." So, it's safe to say that if Crucian Holdings LLC's lobbyist/attorney is able to prove that the loan will be repaid then the request may ultimately be granted.

But, you are Defenders of the Virgin Islands! And, you're not going to allow them to spend $34 Million dollars of your money to "prop up" this corporation...right?

Here's what we can do...

Get all of your friends to read this blog...in particular this posting, and the previous one on this issue. Through these two postings, everyone will have throrough information on this topic.

Then, call the Senate and let the Committee on Rules & the Judiciary know that you do not want them to approve this deal. Moreover, let them know that you demand they kill this bill. Remind them that this is an election year....

Here are the Senators on this Committee:

• Senator Carlton Dowe (Chair): 340.693.3507
• Senator James Webber III: 340.712.2222
• Senator Shawn-Michael Malone:340.693.3529
• Senator Ussie Richards (Senate President): 340.712.2320
• Senator Carmen Wesselhoft: 340.693.3546
• Senator Celestino White, Sr.: 340.693.3570
• Senator Alvin Williams: 340.693.3517

Call them and make your voices heard! Email your friends and convince them to make their voices heard! If we don't defend our homeland, no one will.

Virgin Islands for the Virgin Islanders...those at home and those abroad!

Am I the Only One Who Finds this stuff CRAZY?!

Question: Should the Virgin Islands Senators be sponsoring and the Legislature be passing bills to specifically (and solely) benefit a special interest? Did we not learn from the ordeal with Jeffery Prosser and Innovative Communications?

Here's a list of articles you should open in a browser and read through:

• http://www.onepaper.com/stthomasvi/?v=d&i=&s=News:Local&p=1212902277
• http://new.onepaper.com/stthomasvi/?v=d&i=&s=News:Local&p=1212901356
• http://www.virginislandsdailynews.com/index.pl/article_home?id=17627849
• http://www.virginislandsdailynews.com/index.pl/article_home?id=17628590

Ok, now let's talk this through.

First, I've heard of earmarks. But, the process in the Virgin Islands is "earmarks on steroids!"

From Wikipedia, we see how the Congressional Research Service defines earmarks:

Provisions associated with legislation (appropriations or general legislation) that specify certain congressional spending priorities or in revenue bills that apply to a very limited number of individuals or entities. Earmarks may appear in either the legislative text or report language (committee reports accompanying reported bills and joint explanatory statement accompanying a conference report).

This Wikipedia post goes on to say:

Earmarking differs from the broader appropriations process, defined in the Constitution, in which Congress grants a yearly lump sum of money to a Federal agency. These monies are allocated by the agency according to its legal authority and internal budgeting process. With an earmark, Congress has given itself the ability to direct a specified amount of money from an agency's budget to be spent on a particular project, without the Members of Congress having to identify themselves or the project.

Also, an earmark is not a bill. It is an attachment to a bill. Why are we passing $33.4 Million dollars in nonexistent funds specifically for a special interest?

And then, what is the point of the University of the Virgin Islands?

I thought communities had universities to educate the community and serve as scholars on community issues. But, here's what the Source quoted James Rakocy, professor of aquaculture at the UVI Agricultural Experiment Station as having to say:

With my 28 years in aquaculture, I have strong desire to see an aquaculture project on St. Croix. However, my 28 years in aquaculture leaves me to question the viability of this plan.

Professor Rakocy went on to describe other potential problems with this plan, even citing a string of large-scale operations that have gone bankrupt. Yet, the VI Legislature preferred to take the word of Addison Lawrence of Texas A&M University who "assured senators that this industry - based on the plan as well as the land and climate of St. Croix - would be successful."

Herein lies the problem: no standards, no RFPs, no guidelines, no studies., no accountability..only the whims of the Virgin Islands Legislature. What is the purpose of any other government agency (in this case - PFA)? Why not let the Legislature (with their track record of graft) decide it all?

With a proper appropriations process, funding would be allocated to the various agencies of the Virgin Islands Government. Those agencies would be responsible for allocating funds for various projects through (hopefully) appropriate and accountable policies and proceedures. And, despite its problems, at least an earmark must be sought during the budget and appropriation processes.

Sometimes, we will see industry bailouts. Or, as we see this morning - the bailout of AIG. Yet, knee-jerk reactions that place burdens on taxpayers, do not justify bonehead planning that places burdens on other taxpayers. That too is crazy, though...for the same reasons (see here). But, this situation isn't even a bailout. This is a gift!

So, here we are: outside of the budget & appropriations periods, legislating how money should be spent and with whom it should be spent. What chance do we have in the Virgin Islands when this is the standard? What should we do? Let me hear from you...

Answer the call: Virgin Islands for the Virgin Islanders...those at home and those abroad!