Moontown

Dorothy Lightbourne(right), attorney general.

Dr Morais Guy.

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THE EUROPEAN Union (EU) has forced Jamaica to employ an additional Supreme Court judge.

Justice Minister Dorothy Lightbourne said the country has had to follow the dictate of the powerful bloc of countries in order to benefit from grant funds they have provided.

“The conditions have to do with fighting corruption,” Lightbourne told Parliament last week during the sitting of the joint select committee.

Input legislation

She said the Jamaican government had been told to put in place legislation to fight corruption and to improve the justice system.

“They have said we should increase judges and we have brought on one judge,” Lightbourne said.

Central St Mary Member of Parliament Dr Morais Guy brought attention to a notation in the 2010/2011 Estimates of Expenditure which read: ‘One additional judge has already been hired to meet the European Union condition.”

“I would be happy if I am told that this is just a wrong choice of terminology because I cannot see how they are imposing conditions on the sovereign country of Jamaica,” Guy said.

Lightbourne then responded: “I am glad you are concerned that we are a sovereign country.”

She said the EU had given Jamaica money that will go toward improving its justice system and has set out some guidelines. However, there is no line item in the Budget which indicates the grant funds being given to Jamaica by the EU for justice improvement. (Jamaica Gleaner)

Christopher ‘Dudus’ Coke.

Isiah Parnell - Norman Grindley/Chief Photographer

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Barbara Ellington and Arthur Hall, Staff Reporters

Isiah Parnell, the United States chargé d’affaires to Jamaica, is expressing confidence that the ties that bind Kingston and Washington will remain strong despite the current impasse over the request for the extradition of west Kingston strongman Christopher ‘Dudus’ Coke.

In his first full-length interview since taking office in Jamaica seven months ago, Parnell stayed away from any direct comment on the extradition request and the imbroglio it has spawned.

But there was no getting away from a comment on the relationship between the two states, and Parnell agreed with Foreign Affairs Minister Dr Ken Baugh, who last week told Parliament’s Standing Finance Committee that the relationship between Jamaica and the US remains firm.

“As far as I am concerned, the overall relationship with us and the US remains the same,” Baugh had said.

That position was underscored by Parnell: “We have tried to encourage a big-picture approach to looking at US-Jamaica relations. We think that with such an approach, you will see a relationship that is strong, has a number of ongoing mutual programmes and, in the vast majority of issues with which we partner, there is a great deal of cooperation.”

He added: “In 100 per cent of the things we do, there is mutual respect about the ways in which we deal with each other in both the easy and the difficult issues.”

The difficult issues between the two states are headed by the Dudus affair with Washington arguing that the Jamaican Government has been provided with sufficient information to allow the justice minister, Dorothy Lightbourne, to sign the extradition request and allow the courts to decide if Coke is to be sent to the US to answer gun and drug charges.

Wiretap claim

However, Kingston has countered with claims that a wiretap - which is a key part of America’s case - was obtained in breach of the laws and would not be admissible in court.

Against that background, Prime Minister Bruce Golding’s administration has demanded that the US authorities provide better information before the extradition request can be considered.

Golding also announced last week that Lightbourne would be going to court to seek a declaration on her obligations before signing extradition orders.

That is unlikely to either settle the impasse or ease the tension between the traditionally close allies, but Parnell said he has high regard for the Jamaicans in the ministries of Justice and Foreign Affairs.

“The fact is that both here and in other countries, you sometimes encounter difficult issues,” said Parnell.

“As friends, we are working on ways to handle difficult issues in a way that both respects outstanding treaties that exist between our nations and a nation’s right and ability to discuss openly how you move forward when dealing with issues when there is sometimes some contention,” he added.

Parnell could provide no news on when the US would appoint a new ambassador to Jamaica.

That office has been vacant for more than a year since Ambassador Brenda LaGrange Johnson ended her tour of duty.

See Sunday’s Outlook Magazine for the full interview with the United States chargé d’affaires. (Jamaica Gleaner)

Passengers on two flights experienced a slight delay while other persons at the Norman Manley International Airport (NMIA) were evacuated after a fire scare yesterday afternoon.

“About 1:44, the fire alarm went off and the emergency team responded but, after a sweep of the area, we found there was no fire,” Mark Williams, vice-president of commercial and marketing opera-tions at the Airports Authority of Jamaica, told The Gleaner.

“A Caribbean Airlines flight, which was departing, was delayed for 24 minutes while an American Airlines flight had an 18-minute delay on arrival,” Williams added.

Minor incident

This is the second fire scare at the NMIA in recent months.

Last October, a minor incident occurred while labourers were working on the roof of the terminal building, resulting in smoke entering the ventilation system and travelling through the main terminal.

No one was injured in that incident but operations at the airport were stalled for more than two hours.

Yesterday, Minister of Transport and Works Mike Henry directed the Airports Authority of Jamaica to immediately begin an investiga-tion, from which a preliminary report is expected by today. (Jamaica Gleaner)

Bounty Killer, detained for assaulting mate.

Bounty, whose correct name is Rodney Pryce.

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Arthur Hall, Senior Staff Reporter

The troubles facing popular dancehall star Bounty Killer are mounting. Less than one week after the United States Embassy in St Andrew indicated that he was among five Jamaican entertainers to have their visas revoked, the 38-year-old has found himself in more trouble with the law.

Bounty, whose correct name is Rodney Pryce, was arrested at his East Avenue, Kingston 10, house yesterday morning and charged with assault occasioning bodily harm.

It is alleged that on March 25, Pryce’s female companion decided to end their three-year relationship. He reportedly refused, and attacked her.

A report was made to the police and, following investigations, a warrant was issued for his arrest.

Investigators say that when Pryce was being processed at the Constant Spring Police Station yesterday morning - in keeping with standard police operating procedure - he was allowed to make a telephone call.

According to the police, Pryce used that opportunity to call the complainant and threaten her life in the presence of the police.

He was subsequently refused station bail and booked to appear in the Corporate Area Resident Magistrate’s Court tomorrow.

This will not be Pryce’s first time appearing in court on accusations of abusing a woman.

In 2009, the entertainer faced the same Resident Magistrate’s Court to answer to charges of assault occasioning bodily harm on a woman who was said to be pregnant.

Severly beaten

At that time, it was alleged that Pryce was partying at a popular nightclub in New Kingston when he saw the complainant and said, “Wha yuh a do yah!” He then allegedly shoved her in the chest and punched her in the face and all over her body.

It was further alleged that his friends joined in the attack before the woman was rescued by patrons.

That charge was dropped after the complainant told the court she did not wish to proceed.

Pryce is also now before the Gun Court on a charge of unlawful wounding and illegal possession of a firearm following a September 2007 altercation with an off-duty policeman in New Kingston.

He is also facing a judge in the Traffic Court on several counts of reckless driving and other traffic violations, including refusing to submit to a breathalyser test.

The star, who has been close to the top of the local dancehall industry for more than two decades, has also faced drug charges as well as charges of using profanity onstage. (Jamaica Gleaner)

arthur.hall@gleanerjm.com

Bourse

Throughout the Caribbean region, the economic fundamentals have not shown any major signs of improvement in the first three months of the year. The Trinidad and Tobago economy remains sluggish against the backdrop of sustained weakness in credit demand. According to the Central Bank of Trinidad and Tobago (CBTT), demand for private sector credit declined by 4.1 per cent in the twelve months to January 2010 as loans to consumers and businesses have contracted. Simultaneously, banks have been maintaining elevated loan loss provisions as compared to their historical averages. Excess liquidity, averaging $1.6Bn during the first quarter, should continue to support low interest rates for most of the year. Given the continued weakness in the economic environment, corporate earnings have been negatively affected across the range of sectors, including Banking, Trading, Manufacturing and Conglomerates.

Indices Performance

Across the region, T&T and Jamaican equity markets have rebounded within the last quarter, while the Barbados market continued its decline from last year. Exhibit 1 summarises the performance of the major regional indices for the first three months of 2010.

For the three month period, the T&T Composite and All T&T Indices increased 6.85 per cent and 6.03 per cent respectively. The Jamaican benchmark, the JSE Market Index, dipped early in the year as uncertainty surrounded the Jamaican debt exchange programme and the IMF intervention. It has since rebounded over 15 per cent from its low in the beginning of February, to end the quarter up 3.1 per cent. The Jamaican currency has been stable over the quarter, at around J$89-90 to US$1. The Barbados Composite and Local Indices declined 3.2 per cent and 2.2 per cent respectively over the period.

T&T Equity Review

Trading volumes were significantly higher in the first quarter of 2010 as compared to the same period in 2009, with 25.4 million shares trading; this represented a 45.1 per cent increase. National Commercial Bank Jamaica Limited, National Enterprises Limited (NEL) and Jamaica Money Market Brokers Limited (JMMB) accounted for 19 per cent, 15 per cent and 14 per cent of the total volumes. In dollar terms, the value of traded shares declined 37.5 per cent to $238.8M for the quarter.

The T&T Composite Index rose 6.85 per cent in the quarter as the advances outpaced the declines. Of the 32 ordinary shares listed, 15 advanced, 6 declined and 11 remained flat over the period. The best and worst performing stocks on the local market for the quarter can be seen in Exhibits 2 and 3.

Of the 15 stocks that advanced, GraceKennedy Ltd took the lead, increasing by 50 per cent over the first quarter of 2010. NFM advanced 39.1 per cent, WITCO increased by 23.5 per cent, National Enterprises Ltd by 22.6 per cent and FirstCaribbean International Ltd by 19.9 per cent.

On the downside, Sagicor Financial Corporation (SFC) declined 14.0 per cent for the three month period. Jamaican cross-listed stocks, Supreme Ventures Ltd and JMMB fell 10.0 per cent and 9.4 per cent respectively, while local companies, Trinidad Cement Ltd and Guardian Holdings Ltd (GHL) slipped 8.8 per cent and 7.2 per cent respectively.

Barbados Equity Review

The Barbados economy has continued to suffer the effects of a slowdown in its tourism, manufacturing and trading sectors. The BSE Indices continued to underperform the T&T and Jamaica markets in the first quarter. Share price movement was limited with no stock increasing more than 10 per cent for the year. West India Biscuit Co gained 9.4 per cent, while Banks Holdings increased 5.0 per cent. Goddard Enterprises, Insurance Corporation of Barbados, and Cable & Wireless increased by 3.5 per cent, 3 per cent and 1.9 per cent respectively.

Jamaica Equity Review

The Jamaican equity market got off to a rough start in 2010 as there were some major economic issues to be resolved. However, once the IMF and the Jamaican Government settled on a Stand-by Arrangement and conditions such as the implementation of a debt exchange programme and financial reform, the market saw a steady upswing. The JSE All Jamaican Composite advanced 13.8 per cent and the Main Index rose 3.1 per cent for the quarter.

Trading activity in Jamaica for the first quarter of 2010 increased significantly over the previous year as the number of shares traded for the period increased by 230 per cent. However, this included a 1.3Bn trade in Supreme Ventures Ltd in January. Discounting this trade, the volume of shares traded for the period actually decreased by 18.74 per cent.

A number of stocks surpassed the JSE Main Index’s increase of 3.1 per cent increase for the quarter. Berger Paints lead the advances with a jump of 123.3 per cent, while GraceKennedy gained 64.2 per cent. Radio Jamaica and Mayberry Investments rose 56.7 per cent and 49.2 per cent respectively. Supreme Ventures advanced by 44 per cent.

Outlook & Recommendation

The run-up in the T&T equity market has occurred on a few stocks such as First Caribbean International Bank Ltd, Scotiabank Trinidad and Tobago Ltd, The West Indian Tobacco Company and NEL. Financial performance for companies across a range of sectors has continued to show weakness given the current economic downturn in the Caribbean region and as such the increase seems inconsistent. Going forward, the performance of the T&T Composite Index may be muted as the economic conditions are not expected to show any significant improvements this year. As more results are published, some correction may be seen in the market.

On the local market, there are still a few stocks offering good value based on fundamentals. SFC, GHL and BCB Holdings Limited (BCB) offer relatively cheap valuations. At a current price of $10.10, SFC is trading at a P/E of less than 6 times (forward P/E of 8 times) and market to book of 0.87. The stock has never traded below $10, and this price may offer some resistance in the current environment. At $13.10, GHL trades at a trailing P/E of 7.9 times on operational earnings and market to book of 1.1. BCB is highly undervalued on a fundamental basis with a trailing P/E of 3.3 times, lower than its Banking sector peers. The market to book of 0.5 is also attractive.

The 2010 financial year will be a challenging one for Barbados given that the country’s primary revenue generator is tourism, a highly cyclical sector. IMF estimates are for GDP growth to be negative 3.5 per cent in 2009, with zero per cent and three per cent growth in 2010 and 2011 respectively as the world economy recovers. As such, equity markets are expected to remain muted in the short-term. The market remains highly illiquid, but for the long-term investor there may be a few potentially attractive opportunities. Companies such as Almond Resorts, Banks Holdings, Goddard Enterprises, the Insurance Corporation of Barbados and Light & Power Holdings are some of the more attractive stocks at this time. This would have been reflected in the first quarter performance.

Bourse remains cautious on the Jamaican market as the impact of the Jamaica Debt Exchange programme on companies’ performance and investment portfolios is yet to be seen. This will be reflected the results for the quarter ended June 2010 and there may be some correction. Post-results and any correction in stock prices, some stocks may offer better value. After a significant decline in the equity market in 2009, some of these companies may be relatively attractive given the lower stock prices. We have been cautious on Jamaica and maintain a HOLD recommendation on this market, at least for the short-term. The current exchange rate levels of around J$89 to US$1 may not be sustained as the Bank of Jamaica has limited reserves to continue supporting this rate. (Trinidad Express)

Renuka Singh

All the recommendations in the Uff report need to be adopted and enforced, chairman of the Trinidad and Tobago Transparency Institute (TTTI) Victor Hart has advised.

However, although Hart said he was pleased with the findings of the Uff report, he said the Government should not be allowed to choose which recommendations to implement and which to ignore.

’The question remains: would the Government feel the need to implement all the recommendations?’ he asked, during a telephone interview at the weekend, after excerpts of the report were leaked to the media.

’They should not be allowed to pick the ones they like and ignore the ones they don’t. The public needs to maintain that same interest that they had in the commission of enquiry. Society must insist that all the recommendations must be implemented unless there is a good reason for not doing so.’

Hart said of the 91 recommendations outlined in the Uff report, he was pleased that the commissioners addressed the main areas that concerned him. The Uff report focused on the construction industry, the Urban Development Corporation of Trinidad and Tobago (UDeCOTT) and the Housing Development Corpo- ration (HDC) projects.

’I was glad to see they addressed the reform of the public sector procurement. There are a lot of things UDeCOTT and other State agencies did wrong in that area,’ he said.

He said he was also pleased with the evidence presented before the enquiry regarding the investigation of ’misbehaviour in public office’, and was looking forward to the implementation of the specific reforms in the construction sector.

He said of all the recommendations Prof John Uff suggested, he appreciated Number 49-which recommended that organisations ’avoid actual corruption by following established guidelines and recommended practices laid down by Transparency International and its affiliates’-the most.

Also contacted yesterday, Mickey Joseph, president of the Trinidad and Tobago Contractors Association (TTCA), said the recommendations were exactly what the construction industry and State enterprises needed. He said he could not speak for the TTCA, however, since they have not yet met to discuss the findings.

He said his personal view was that the report did not articulate anything that was not mentioned before. ’We in Trinidad and Tobago tend to think that recommendations coming from a ’vested interest’ group is not in the best interest of the country, but that is totally false,’ he said.

Joseph said the Uff recommendations ’put to lie’ the insinuations that the TTCA and the Joint Consultative Council (JCC) were seeking only their own interests when either group tried to institute change in the construction industry. ’The recommendations need to be implemented in a substantive way. The JCC does not believe in nine-day wonders, so we’re not likely to forget these findings,’ he said. (Trinidad Express)