Tuesday, December 14, 2010

The Seychelles Column - By Christopher Gill

 PL Gives Us a Titanic- Fake Budget
As Vice President of Seychelles Mr. Danny Faure spilled over the Titanic Budget of Rs. 3.3 Billion, before the National Assembly, I could see the moans, groans and curiousness on the official PL opposition side.
SNP bench meandered about, not knowing what to make of the Budget. The Majority, remained silent, knowing the Leader of the Opposition will have no clue what is going on. They would allow his rebuttal and then just poke about on the points he raises over the suffering , pain, malaise of our people under PL, the same speech for 17 years. In the end, this Budget session will mean more failure for our people.
The Budget Is a Gigantic Fake
The Budget proposed by Faure is a “fake” in the sense that it is a projected Budget to hype the public on the eve of elections in early 2011.
The PL want to fake it until they make it to another mandate. As Ramkalawan diverted away from Budget issues and strategy and focused humanitarian suffering, the PL had taken him right into their trap. I will rebuttal the key essential scams that went over Ramkalawan’s head like a missile war head to a floating barge in a tub .
The Magic Illusion of GDP 6.2%
Faure revealed to us that Tourism Industry has registered a 10% Arrival growth on last years figures. This is a result of Alain St. Ange’s creative work with little or no money to bring Tourist to our shores.
The second budgetary revelation was that the “Receivables” in the Tourism Industry was down substantially. This means while “Arrivals” are up, the “Yield” is down as much as -12% this year,  -15% last year. Is PL registering non GOP workers for Khalifa as Visitors?
We are no longer earning the same per Arrival head. It also means foreign owned entities like Eden Island, and other hotels are keeping money overseas, similar to the days of the Black Market. This hurts the REAL GDP of Seychelles. It also means Seychelles has lost her branding as an upmarket destination. This is confirmed by the Five (5) star price rooms at euro 50.00 per night per person during the year. Ephelia Hotel did that, and even Lemuria dumped prices below euro 200.00 per couple B&B, as did Eden Island, contrary to what Heegar said on SBC.
Eden Island has gone as low as $50.00 per day per room. You can put Ten (10) people in a room at Eden, since they do not control it, as they do put Ten (10) people on a boat. You did not think of that PL, did you?
 Magic-man Faure and Hudini Michel, do not see this reality, it is invincible to them. Most recently, their government took a mad decision to license Eden Island as a hotel operation. In a collapsing world economy, it will have dire strait consequences for Seychelles Tourism Industry.
Eventually, we will see Tourists, but we will not see the money. It will make the Black Market years look like a sand pit for toddlers for Seychelles economy and finance. Prepare yourselves for the worse economic catastrophe ahead, borne out “100% pure as it gets” stupidity cultured by Communists.
Faure also revealed to us that Fishing Industry was -25% revenue last year, and it bounced back to 20% this year plus side , only after the sale of IOT to a Thai interest our main competitor to access EU markets. That takes Fishing to +5% compared to last year. Where does the 6.2% GDP come from?
It comes from Khalifa, and Faure has factored in the following to create the magic Illusion that has fooled SNP leadership and fool the People of Seychelles: 1. Two Generators 8 megawatts each(to guarantee supply of electricity to Khalifa’s Villas and Palace, not for the People of Mahe); 2. 60 Buses donated from PRC and 3, 30 buses donated from AUE ( Khalifa’s workers use the bus system) ; 3. Khalifa’s donation of $10 Million for scan centre and medical centre upgrade ( for his workers that will be in the Thousands as has been the case in the past two years);4. AUE’s donation for Coast Guard Base, which will be used for Khalifa’s security personnel as evidenced by the Mosque to be built on the base $50 Million; 5. Khalifa’s donation to finish the 169 houses at Ile Preservans opening Scheduled for December 21st, but no water no grids in place; even the 18% increase in block production is for Khalifa’s projects; hence this is where the 6.2% GDP comes from.
There are no miracle works done by the Communist Party of Seychelles, there is no magic, just a sell out to one man and his friends, on a grand, grand scale, never seen before. Mr. Faure refers to this as “FDI”. SNP encourages this calamity upon us by proposing that foreigners pay taxes on land they have come to own, somehow, most without Sanctions.
Fake 6.2% GDP, Fake FDI, that is the conclusion we all must draw from Faures magic tricks. Do not be fooled like SNP Leadership, if it is. ( I have my doubts)
Domestic Sector Debt
Magic –man Faure remained silent on the Government Domestic Sector Debt, which stands at Rs. 2.8 Billion, unpaid, interest ticking. By 2011 this figure will exceed Rs. 3 Billion.
This unpaid balance of loans in Seychelles Rupees is the fundamental reason why the free and independent commercial banks of Seychelles, cannot lower interest rates in the market much more. These banks must carry the bad debts of Government of Seychelles, SPPF -PL. All consumers and business suffer greatly for it.
Hence, why rates cannot go lower then 10% when most of the world is at 2%, Mauritius commercial rates at 5% or 6%.  Because of SPPF, Seychelles has lost it’s competitive edge for years to come. This will usher in a prolonged period of stagnation, if not addressed with forthright rescheduling. Left unattended to, it will push further devaluation of the Seychelles Rupee.
SNP did not see that missile of deception overhead that Magic –man Faure launched on them, or did they, and Mr. Ramkalawan just remained silent?
Which one is it, SNP?
External Debt Sector
This debt sector of Government portfolio has received the most publicity and coverage. Yet, Mr. Faure mis-stated the peak debt to be $782 Million, when in fact it was officially capped at $860 Million. A slip of the tongue worth almost $100Million, and no one in the Opposition even bothered to alert to it, by a simple “POINT OF CLARIFICATION, MR. Speaker ”. How much do we pay these People to sip water as PL tramples the People of Seychelles?
Mr. Faure says that the debt has been reduced under the IMF program. True. It now stands at $480 Million. It is 1/3 of our debt, not 2/3 as Faure wants us to believe again, in his magic.
Mr. Faure does not tell us about the interest on the External Debt and is silent on that. Most of that debt, which is commercial, will be at 10% interests per annum.
By 2017, when SPPF promised to double our GDP, in 2006, we will have redoubled our debt in interest payments and bring it back to $860 Million, and Faure is not worried about meeting the $45 Million instalment then.
Magic- Man Faure cannot meet funding for ministries in 2010, but in 2017, he says, he will have no problem paying the $45Million in instalments due then.
When he lies, watch his cheeks and lips go into automatic vibration mode. It is a built in mechanism to expose deception.
By 2017, James Michel will be gone, Albert Rene will have been forgotten, even by DA’s but our debt will have been doubled again, back to $860 Million, wherein we started with SPPF, who had to change their names to continue to function.
Only IMF will still be around in 2017 under Faure’s program.
When Faures Tricks Do Not Work, He Has An Answer
Magic –man Faure is no fool and is politically very, very ambitious. He knows that Michel is a spent force and is credited with bankrupting Seychelles.   
Magic knows in the PL, he is touted by Rene as the promised child to deliver them from defeat. But Magic has to lie about our financial reality to get through the next Six (6) Months in a fake Budget proposal.
After June 2011, we will have a different reality, and Faure has built in an excuse in his speech, so you do not blame him for the grand failures ahead.
Magic –Man Faure, has said that 75% of Seychelles revenue comes from the European market, and they are undergoing recession. He says this will make Seychelles “vulnerable “ to external factors. This is the excuse he gives, when things will go bad by mid year 2011 and he will announce the severest measures to cut the fake budget back to reality figures. By as much as half of what he proposed, unless Khalifa decides to build another castle and buy more blocks.
United Nations projects that world food prices will increase by as much as 20% in 2011. The Magic man is silent on this and does not increase salaries by 20% to help the mass of Seychellois cope. He cannot of course. There is no money, really for any salary increase, not even his which is 38%.
Magic does not tell you that European economist have already chartered a course for the worse economic and finance year to be 2011 in Europe, with national bankruptcies looming, sovereign downgrades apparent, strikes, civil unrest, become common everyday events. When that happens, Europeans will not venture far from home for a holiday or buy expensive fish for meals . We are moving towards a double dip recession, worldwide. St. Ange at STB will have the mother of challenges before him.
Social Ills Discussed by Demoralized Leaders
Faure sites for us all the good money running after the bad social ills that have gripped our Nation. Each year, the grip tightens on our People.
Faure does that to show how compassionate his Party is in spite of their policy to sell our patrimony and displace our people under PL. But the reality is that a society, that has no moral compass, cannot be free of drugs, alcohol, prostitution, theft, burglary and crimes of violence or corruption. The dream of  a computer in each house will be a quixotic exercise if the moral fibre of our society is not strengthened.
This is the type of society the Communist Party,  as admitted by Madam Marie Lise Potter, has built in Seychelles , today. This is nothing to be proud of Madam Potter, it is a title of shame and disgrace you carry upon yourselves.
No number of houses or schools, built with donations and hand outs from foreign friends can erase this shame and disgrace upon the SPPF-PL. It is a revelation to what you have allowed Seychelles to become, a society wherein morality has no place, good is sidelined, and evil and deception prevails.
Hence, the Leader of the Opposition, has the courage to speak to us with  heightened moral tone, in the budget debates, about the poor, vulnerable, disabled, HIV victims, prostitution, and the lack of adequate funding for these segments of society.
I ask the Leader of the Opposition, where was his moral compass when he went into legislative conspiracy with SPPF PL to vote himself and his party, along with PL, a 38% salary increase , and 70% Pension for life?
In my opinion, and in the opinion of many good God fearing Seychellois, this single incident, destroyed all moral authority Mr. Ramkalawan had, to speak on behalf of the poor of Seychelles, and the weak of our society. It showed us all that he was just using the poor and the weak, as a stepping stone to his own well being and his own wealth creation, which he has been greatly successful at, becoming Seychelles first priest millionaire cum political leader, or the other way around. Take your pick, either, way, it is the same result.
At a time when Seychelles went under IMF administration, then the Queen cancelled her 600 strong Christmas Party, the UK Parliament cut salaries by 15%, and Faure says our Tourism market is vulnerable, in Seychelles, they gave themselves a pay raise and pension for life.
I call on Mr. Faure, and Mr. Ramkalawan, to put your heads together, as you did for your salaries and explain to the People of Seychelles, why in this Budget, you did not reduce salaries and cancel your pensions, to help the victims of social ills a little more as you profess you wish to do.
People of Seychelles are tired of the fancy talk from both sides, if there are two sides. More and more, it all looks more like an acting stage.
The Pain Has Just Begun
The PL have used this Budget as an attempt to fake success to prepare for elections. They know if they get a mandate, at mid term of 2011 the Budget will be adjusted to reflect our realities. That means cut this Budget according to IMF demands.
Then for Four(4) years we will drink Communist brewed red vinegar. Ironically, the SNP voted in favour of this Communist brewed red vinegar for the last Four (4) National Budgets, or they abstained in silence.  They have been part of the conspiracy of our failure all along as they played along with the SPPF-PL every step along the way. Today, they act like they do not agree with the Budget.
Tax Foreigners on Land
By suggesting a tax on foreign owned properties in Seychelles, they also attempt to validate the SPPF PL Policy under James Michel, to sell our Patrimony and regulate Seychellois to third class citizens in their own country.
By remaining silent on Eden Island, and silent on “Sesel Pou Seselwa”, silent on the non certification of MSR, they too are guilty of failing the People of Seychelles as SPPF –PL.
Misdeeds of SPPF-PL cannot be just brushed over by the officially sanctioned and salaried, PL opposition, which is today SNP.
This is a crime upon our People, as we face a collapsing democracy, SNP is only playing the chorus line to PL song and dance, instead of setting a serious  political, social, economic, finance agenda for Seychelles. They have been doing that since 2006. 
You do not need power to set the agenda SNP, you need brains and a commitment to your country, not your pocket.
Sesel Pou Seselwa!
May God Bless All Freedom Loving Seychellois!
Merry Christmas to All Seselwa Rasin........and even you sell outs Communists that do not believe in God....,the message of Christmas is the message of HOPE, for all of mankind, hence we hate not the ignorant nor do we hate he who haveth  not a  moral compass to guide himself or his country through these turbulent and difficult years ahead, which will endure for many, many years to come in spite of the message of this Fake Budget!
As the People of Israel spent Forty years in the dessert, the People of Seychelles, do their time in their dessert.
Stay Strong!


Anonymous said...

Why don't you walk down the beach and bat en bon lapounyat Gill!

Anonymous said...

Reply to Collaborator-

Thank you for your comment. Please consider, contributing a more substantive point to the issue raised.

You are setting a bad example which others, may be tempted to follow and reduce the level of debate.


Anonymous said...

Very good analysis. I have had the opprtunity to listen to the Leader of the Opposition as well. I am a young profesionals, i worked hard at school, i work hard at University and i work hard as a profesional(that is why i have been absent from this site for some time), i already pay an awful lot of money as taxes: taxes for my employees, business tax, now income tax. The proposition of Ramkalawan is that as a profesional i be taxed even more because i work harder than my friend who did not bother to study, hold a steady job. I already pay enough through schemes. i will not pay more. That is is not liberalism Mr Ramkalawan. I am extremely disappointed with your half baked ideas, propositions that borders communist ideology...and i thought you guys were for a free market.

Mr Faure, your budget stinks. VAT is going to kill small businesses. Do us a favour and read B Pool analysis. It is an explanation that can easily be understood by a 9 year old. The amount of money that is going to used to police the VAT is not in proportion with the money that will be collected, is it worth the trouble sir?

Mr Georges, you also deserve a doctorate is being he lawyer in town that steals most from his clients! You are dishonourable.

As for the others, it is just an imcomprehensible rambling. I am angry that i have to pay for you idiots to talk nonsense!

I am pissed off with you morons.


Patrick X said...

Like it or not, VAT has come to stay and will only increase in the years to come. I do not see anything wrong with VAT as it is a good and secure way to collect well needed taxes which in due course will benefit the nation as a whole although it naturally may be an economical burden to some.

I see the SRC doing a good job in attempting to create order in our tax system, but I feel they lack the resources needed to maintain it and not least collect those taxes. Naturally every tax law has a loop in it and sooner or later people will find it and use to avoid paying or to pay less. We cannot however with one voice ask for progress and with the other cry about the cost of making progress.

My sympathies to all you small businesses who are struggling with the VAT, but if it's any consellation your competitors are struggling with exactly the same. Naturally it causes more paperwork, but also more jobs for accountants and not least those working at the revenue office.

VAT is here to stay so get used to it and just pay up.


Anonymous said...

A Pointless ramble. Grade B-

Talking of slip of the tongue, did you say that your point is "invincible" to them? Oh dear, the high level of your debate.

You do start with some interesting factual numbers, but they do not support the conclusions you draw from them. Once again we see pessimistic spin, bigot-friendly exaggeration and downright dishonest projections.

Glad to see you are looking for a moral compass. Keep looking, you have not found it yet.

Sesel pou seselwa pa pou bigotwa ki apel zot lekor ranns-inn-vwar!

Anonymous said...

Shameful budget from Faure and Lepep and shameful, uneducated responses from both Ramka and Potter.

Firstly, VAT is going to kill the small Seychellois business. The amount of paperwork will be so high and the small business cannot hire accounting staff like a large business. Bernard Pool is right as well in saying that the Government Tax Department will have to triple the number of workers in order to keep up with a VAT system. And to think James Michel was going to make our Government smaller and smarter and more efficient. Kill the VAT now before it kills us.

As for the budget itself, anyone with brains can see that it is an election budget, full of funds for ridiculous embelisment programmes that will serve as honey for the election campaign. This time around, Party Lepep does not need to get money from their supporters like Ramados. They are simply taking it from the coffers and passing it down. In the end, it is the Seychellois workers and businesses that are paying.

As for Ramkalawan's response, what a disaster. Simply proves that SNP is finished and have no clue as to how to manage an economy, let alone a budget. Ramka has stated that if SNP was in power, they would make sure that there would be no foreign gardeners, waiters and carpenters allowed into Seychelles. As usual, one can see that Ramka never consulted with the tourism trade, let alone his once SNP candidate Alain SteAnge who heads STB. One can also imagine that with this ridiculous statement, SNP has now lost all their past supporters who own hotels such as Louis Doffay of L'Archipel, Mason's Travel and others.

Ramka obviously does not understand the problems hotels are having with finding local labour, let alone the issues with GOP for foreign workers. SNP has no clue as to the number of workers needed in the tourism industry, let alone the construction industry or any other fields for that matter. Even the Government has to hire accountants from outside. I cannot believe that SNP leadership is dumb enough to think that Seychellois want to be gardeners or night guards or carpenters. Most young Seychellois today are looking for professional work, not manual labour work. Thus, the opposite is true and any opposition who understands would state clearly that foreign workers must be allowed in as and when deemed necessary by the owner of the business, and not at the whim of politicians or an Employment officer who has never ran a business. Has Wavel tried to get a local carpenter, plumber or mason lately to work on his house? Has he tried getting someone to cut his grass? He is living in a dream world with his fat salary and pension as he has never ran a small hotel let alone a business. A church is not the same Father Ramka.

As for ML Potter, what can I say except that she is a huge liability to Party Lepep. Everyone I speak to, especially my Lepep friends, hate that woman and simply call her the idiot bitch with the squeeky voice and no substance. They also swear that she sucks Michel's gonads and will continue to suck anyone until she is made a Minister. Dream on Marie-Lou.

Overall, this country is doomed with or without Party Lepep or SNP. I am no supporter of Gill or Boulle. I am as frustrated with our leadership as my next door neighbour who has vowed never to vote again in this country.

As for me, I am staying home for this election as the candidates are not credible. Maybe we should have a question on the ballot paper to ask whether we need a government or not, or a box that we can tick to state that we do not want any of the candidates on the ballot paper. I am sure that the latter would win more votes that the candidates.

cucoon said...

Black Market?? Really? Eden Island Hotel??? "Hotel License" ?? Where can you get 5 star for 50 euro??( really would love to go) Khalifa's 1000's of workers??? (HAHA Where?)$860 minus $782 = $100??
actually $78mil maybe you missed $22 million No biggie... anyways I'm not even going to bother dissecting this bull but please provide facts next time...


Anonymous said...

Reply to Cucoon-

You reference crap, Collaborator because what I say exposes your catagorical failure, even in 2010.

Eden Island Management has been granted a hotel pool license, this is not crap. They have been operating an illegal sanctioned by PL hotel operation for years now.

The euro 50.00 per night room rate at Eden is on the Internet go look it up.

The rates Epehila and Lemuria used this year was nothing less then selling a 5 star product at a 3 star price, creating instability in the market.

Hence Constance has lost how many millions this year , Collaborator?

MU 280 Million ?

The interest payments on external debt has not been discussed by Faure. This is irresponsible.

The domestic Debt has not been discussed by faure. This is dishonest.

You can crap all you,like, we will state facts.

Sesel Pou Seselwa!

Christopher Gill

Anonymous said...

I concur with the comment that Ramkalawan is out of touch with the needs of the Hotel Industry.

Currently there is an acute labour shortage and our people do not want to do menial work in a disciplined setting.

They opt for more glorious posts, then gardeners, bin dumpers, and so forth. Every individual should have the right to choose what work they want and do not want to do.

But every Seychellois establishment in the trade should be free to hire who they choose.

If the internal labour market cannot supply, they should be allowed to freely bring in workers they decide will be helpful to their business and bottom line.

Government should also not impose min. wage limits on imported labour.

The key issue on imported labour is that they should not stay and become citizens after entering the country under GOP.

After their contract ends, they should go back home, to where they have been sending their money for years, while working in Seychelles.

Meanwhile, 30,000 Seychellois live overseas. We need to create the opportunity for them to be able to return to Seychelles to contribute and benefit from life in Seychelles, not castigate them as outsiders in their own country as PL SPPF tries to do.

We will not accept that.


Christopher Gill

Anonymous said...

Actually when it came to building his houses Wavel Ramkalawan gad recourse to taking a foreign owned contractor and even black market indian workers over the week ends. Whislt i do not believe he was wrong to do that (i would have done the exact same thing) he is a hypocrite for now wanting to stop other ppl from doing the same thing!

cucoon said...

Where are the "thousands" of so called workers that you stated is employed by Sheik Khalifa?
Strange I've never seen Eden Island being advertised as a "5 star hotel" can you please show me where you found that info and price of 50 euro (I actually looked and couldn't find anything under 100 euros per night for a 1 bedroom)? Also reference to where it states Eden Island have recieved a "hotel pool license illegally" other than on your conspiracy articles? Also would like to know where these hotels (not Eden since it's NOT a hotel) as you stated are for 50 euro's?

Anonymous said...

Eden Island has been given a licence to operate as a hotel using the properties of absentee owners. Don't you ever listen when Danny Faure grunts ?

Anonymous said...

You have never and you will never see Eden Island advertising as Hotel because it is done internationally and second because it is illegally operating as a Hotel Us50 dollars per night.

The thousands of workers working for Khalifa you want see them why.Because they in side the country illegally and not registered as GOP.You rember how ASCON illegal workers came in our country' in containers.

Where is stated that Eden recieved a pool licence,well it is stated nowhere,why becuase that is how communist operates they donot keep records of their illegal practices .Examples,SEPEC;IDC;AIRSEy etc did not keep records until IMF came in to force Pp to do so.

Another example,PP is signing whatever in our names for the expliotation of oil,have anyone of your see a public publication of what they signing_',of course no,that is how communist workers.

Jeanne D^'Arc

Anonymous said...

Comment to Jeanne D'arc's last statement:

Well said, thank you for bringing cucoon out in open.


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