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!

Why is it so Hard? Are we Incompotent?

September 17 - 23 marks Constitution Week in the United States. The purpose of Constitution Week is to focus on the purpose of the Founding Fathers of America, and the purpose they undertook in establishing a nation and promoting Liberty for All.

Now, we need not argue about the "birth defects" of the Nation. Yet, we should think about the applications for the Virgin Islands and for us as Virgin Islanders.

As President Bush said:

In the summer of 1787, delegates convened in Philadelphia to create "a more perfect Union" and craft the document that is the foundation of our country.

During Constitution Week, we ought to renew (or find) a commitment to the principles of Liberty. Without a Constitution, what is the foundation of the Virgin Islands? And while we argue about who is and who is not a "Native Virgin Islander," we are faced with the question: Does the Virgin Islands really exist? Are any of us Virgin Islanders?

Today, the true Native Virgin Islander no longer exists. All of us are transplants: some by choice, most in chains. And, while we argue our Country - our land - remains unfounded.

Before the US Constitution, the settlers were no more than subjects of the Crown. It was not until drafting the Declaration of Independence that they began the process of becoming American. And, not until drafting the US Constitution did they solidify their standing as Americans.

We have not declared a status. We have not drafted a founding document. So, who are we - really? We have only accepted a status given to us by our modern-day Crown, and capitulated to their prescribed framework for our existence. Can we be anything more than subjects?

Graphically, the "unique idea" of the Constitution is explained thus:

CREATOR

People

Government

But, what is our model in the Virgin Islands? With the Organic Act as the source of our existence, and a US Congressional declaration as to our "unincorporated" status, our model is effectively thus:

CREATOR

Government

People

Is there not something wrong with this?

Yet, here we are: convention #5 and nothing to show for it besides disunity.

Why is it so hard? Am I the only one who thinks this process should not be so complicated? For the remainder of Constitution Week, I hope to hear from you...

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

The Struggle for Self-Government

Every man, and every body of men on earth, possesses the right of self-government." --Thomas Jefferson

And, what - pray tell - is self-government? Here's a definition from Merriam-Webster's Dictionary for you to chew on:

government under the control and direction of the inhabitants of a political unit rather than by an outside authority ; broadly : control of one's own affairs

In the Virgin Islands - despite the appearance of a local government - as an unincorporated territory, we are governed by an outside authority in Washington, D.C.

an unincorporated territory is an area under U.S. jurisdiction, to which Congress has determined that only select parts of the U.S. Constitution apply. Unincorporated territories are essentially colonies, under the supremacy clause, receiving only whatever powers are offered by the U.S. Congress.

Did you know that we are not fully protected by the Constitution? As "essentially" a colony, the Virgin Islands clearly lacks self-government. And, without self-go vernment we lack Liberty! Without full constitutional protections, the responsibility lies with us to order our own affairs.

Right now, I'm reading Democracy in America by Alexis de Tocqueville. And, tonight I read something of great importance to our present situation:

Plymouth, Providence, New Haven, Connecticut, and Rhode Island were founded without the help, and almost without the knowledge, of the mother country. The new settlers did not derive their powers from the head of the empire, although they did not deny its supremacy; they constituted themselves into a society, and it was not till thirty or forty years afterwards...that their existence was legally recognized by a royal charter.

Why do we continue to wait for the assistance of a government that has no intention of seeing our incorporation into the mother country? We do not derive our powers from the federal government. But, as Thomas Jefferson said:

Of critical importance is this:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. --That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.

Our rights are not given to us by the federal government, but by God. And, we do not derive our power from the federal government but from the consent of the governed. Have you given the federal government your consent to be governed? Have you given the Virgin Islands Government your consent? Have you even thought about it? Is it not tyranny to be governed without your consent?

Yet, who is speaking for our right to self-government? Has the Governor argued for it? Or better, has our "representative" argued for it?

Here's the example of former Alaska Delegate to Congress (before statehood) Anthony J. Dimond:

In Alaska we have often complained of the long-range government from Washington, which in many respects is the only kind of government possible under our territorial status. We have talked disparagingly about "bureaus" and "bureaucrats" and have denounced the ineptitude of both. Therefore, I suggest that the people of Alaska should, and do, ardently desire statehood unless economic or other considerations still prevent the accomplishment of that ambition. We all know that we can do a better job in taking care of our own affairs than can be done by some secretary of a department, or chief of an agency, or head of a bureau, whose o ffice is in Washington, D.C., and who necessarily is lacking intimate, first-hand knowledge of a country so far away from Washington as Alaska.

Could not the same be said for us? Should not the same be said? Are we not plagued by unaccountable third-party fiduciaries, and receiverships? (Please read those articles.) Yet, as I search the website of the Subcommittee on Insular Affairs (Chaired by Delegate Christensen), I find no definitive stance on the prom otion of self-government. So who will stand for a government by our consent?
With no one standing for us, it is clear that the statement is true: "whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government..."

Is it not time for us to institute new Government, at last with the consent of the governed?

Answer the call: 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!

Does the Virgin Islands Flag Call for Revolution?!

I just posted my voki to the left.

And, as I look at my avatar standing in front of the Virgin Islands flag I couldn't help but remember the meaning - symbolism - of the flag.

In the VI flag, we find a copy of the United States Seal.

If you read from Wikipedia, you will find the following:

The main figure on the obverse (or front) of the seal is the coat of arms of the United States, a bald eagle with its wings outstretched (or "displayed," in heraldic terms). From the eagle's perspective, it holds a bundle of 13 arrows in its left talon, (referring to the 13 original states), and an olive branch, in its right talon, together symbolizing that the United States of America has "a strong desire for peace, but will always be ready for war."

If you look at the Virgin Islands Flag, you will find three (3) arrows in the left talon. Obviously, that refers to the 3 islands (St. Thomas, St. John and St. Croix).
And, here's how some have described the symbolism of the eagle:

The eagle represents freedom. Living as he does on the tops of lofty mountains, amid the solitary grandeur of Nature, he has unlimited freedom, whether with strong pinions he sweeps into the valleys below, or upward into the boundless spaces beyond...

Thus the eagle, full of the boundless spirit of freedom, living above the valleys, strong and powerful in his might, has become the national emblem of a country that offers freedom in word and thought and an opportunity for a full and free expansion into the boundless space of the future.

So, what does this mean for us as Virgin Islanders?

Well, one assessment is that the Virgin Islands is to have "a strong desire for peace, but will always be ready for war." And, what war is that? Well, the eagle tells us - "an opportunity for a full and free expansion into the boundless space of the future." Are you ready?

Have we reached the finish line? Do we - as Virgin Islanders - have the freedom to fully expand into the future? Or, are there things that limit us? What do you think?

I'm looking for a Virgin Islanders who are passionate for the Virgin Islands! Are you one of them? If so, subscribe to this blog! Leave us your thoughts!

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