POST MORTEM-SPPF DEFAULTRemember Mr. President’s talk about having paid off all our Debts? Remember Chang Leng going on SBC and sounding like he was Captain Courageous with our money and our economy? You don’t have to remember anymore.You will only be wasting precious valuable energy you will need to survive under SPPF.It will only get worse now, we are in fact poor,poor,poor.This time its SPPF saying it to us, not me. We should be rich,rich,rich by now SPPF. What happened? All Seychellois young and old, must read below carefully.I have done the home work for our Children’s future and our National Pride.
August 1,2008 AKA "Black Friday”
On Friday August 1, 2008, Seychelles financial status in the World changed officially, dramatically. On that day, Seychelles Long Term Country Rating was downgraded from B/B (meaning Likely to Default) to “ccc” Negative Watch-Default status.
Standard and Poor’s of London, issued the financial report card on Seychelles, after it failed to make Principal and Interest payments due July 1st on the Euro 54.75 Million Lehman Brothers Private Junk Bonds, issued last year to assist SPPF Government meet some of its obligations. It is unclear what obligations were met if any.
Ministry of Finance asserted that the Bonds were improperly issued and lacked proper documentation. They allude that they somehow, did not receive all the funds.
Hence, the reason why they have not made the payments on the Bond. However, Lehman Brothers assert to the World, that SPPF Government of Seychelles has already received and used all the money raised on the Private Bond Market.
Apparently, securing the proper documentation by Ministry of Finance should not take more than a phone call to the Governor of the Central Bank, if he would or could take the phone.
Risking Seychelles credit rating over this internal fiasco between Finance and Central Bank, only shows how SPPF runs this Country: Seychelles is broken up into little Kingdoms and we are suppose to survive in between. The left eye does not know what the right eye is doing.
Standard and Poor’s asserted in its Report that the Government’s actions raise the broader question of whether or not it will be able to perform on the larger $230 Million Junk Bond due in 2011, which has already been rolled for another five (5) years.
SBC failed to air this key item of paramount National Interest until Wednesday, August 6th, 2008, a delay of over six (6) days, in a World, where a day, can be a lifetime.
August 3rd, 2008 The Scatter Everyone GAME
August 3rd, 2008, Chang-Leng, the Governor of the Central Bank, left Seychelles for Mauritius with aides Florence Barra and Noemie Stravens. What work they had in Mauritius while Seychelles underwent a Credit Down Grade and Lehman Brothers representative was due to arrive the next day for some answers, only an Independent Investigator can verify, since Chang-Leng is “Independent” these days.
The President of the African Development Bank (ADB) can verify Chang-Leng’s presence on the flight.
August 4th, 2008
Lehman Brothers representative arrives in Seychelles for discussions with nowhere-to-be- found Chang-Leng. Chang-Leng has left Seychelles. The Representative tries to meet with Minister Faure, without success. He tries to meet with Afif without success. He calls for an audience with James Michel, no success. The Lehman Brothers representative gets an audience with Jean-Paul Adam. But Adam’s hands are tied. He knows nothing about the payments due or Junk Bond negotiations.
Lehman Brothers representative hangs around before the next flight going home empty handed.
August 4th, 2008 Was A Busy Day
Bloomberg issues press release on Seychelles Debt. The Seychelles Country rating was cut three(3) steps below the “B” rating. Seychelles bond holders said Seychelles missed Interest and Principal payments due on the Euro 54.7 Million of privately placed securities due 2011.
David Beers of Standard and Poor’s, London said in this situation, it will be difficult for Seychelles to refinance debt in general....they (Seychelles) are in a challenging situation.
Bloombergs, New York, says Ahmed Afif of Ministry of Finance Seychelles, did not return phone calls for an interview on the matter. Brian Charlette, Director of Public Debt referred calls to Afif, but Afif did not reply. One message was sent to his email, but at the time of Bloomberg going to Press, the mail was not answered.
Mr. Afif, of course, went on SBC on August 6th, 2008 and gave the People of Seychelles another story, but we are not trying to collect the debt of course, it is Lehman’s.
One Investor in Seychelles Euro Bonds, Markus Piros said, “there was absolutely no information I could find about the Default at the time.”
Markus works for COMMERZBANK and bought the Bonds as a personal investment. He trusted SPPF with his private investment. People of Seychelles, tell Markus: “Trust No More”! Open your eyes Markus, if not, soon your belly will be filled with air, like us here in Seychelles.
August 6th 2008 Another Manic Wednesday
Mr. President does not meet with Lehman’s man in Seychelles, says he is too busy and makes it off to Beijing to visit Olympic athletes in the village. It is a “surprise” visit! Surprise everyone!
Minister of Finance Danny Faure did not meet with Lehman’s either. He was off to Singapore for a little shopping.
The only attention to the matter came in the form of a letter to the Nation signed by James Mancham, Former First President in which he wished Mr. President Bon Voyage and a speedy return to face the troubles left behind surrounding the Country Downgrade.
While SPPF was on holiday and running off to where ever they could, the World financial houses worked overtime on Seychelles, faster than Chang-Leng could remove the tin doors at the entrance of the Central Bank to show off his new renovated doors. I suppose there is something to be said about going down in style for Chang-Leng and the Merry Ladies that live better than most Seychellois.
August 7th, 2008 Seychellois Pay For SPPF Failure
Standard and Poor’s, London through Mumbai office, issues another Country rating downgrade for Republic of Seychelles, the second time in one (1) week. While SPPF frolic, Standard and Poor’s gives us an “SD” meaning “Selective Default” lower than a “CCC” citing the country’s failure to pay the principal due on July 1st,2008 of the privately placed Euro54.75 Million Bond, due in 2011. Did Government of Seychelles ever receive all that money Mr. Chang-Leng? How come we do not have medicine in the hospital, Mr. Cheng-Leng? Where’s the BEEF, Mr. Cheng-Leng? Did we miss something here, in Seychelles, Mr. Cheg-Leng? Speak up Mr. Cheng-Leng! Where is John Esther to explain to us on SBC what a CCC rating means? Then he can also explain what an “SD’ rating means in the same way he proudly explained to us what a “BB” rating means.
Furthermore, this same day, the S&P ratings, lowered the rating on the $230Million Bond due in 2011 in the same stroke, to “CCC-“ from “CCC” citing, that since the privately held Bonds are in default, there is a high risk the global (JUNK) Bonds will also default.
As if the whole World turned against us On the same day, Bloomberg cites the Seychelles Bonds are trading for cents .50 per $1.00 value. People of Seychelles, by the time you read this article, it will have gotten much worse, because SPPF is on holiday. Boss is in Australia, Michel in Beijing, Chang-Leng is in Mauritius and Faure is shopping in Singapore, while the crisis unfolds with their full knowledge.
Where is IMF? They came; no one was in town, so they left. Where is Lehman’s man? He also came. No one was in town. So he too left. But they liked the new doors at the Central Bank Building! They are optimistic the Governor will use it on his return from Mauritius, if he ever come back that is.
Ministry of Finance Allegations
Ministry of Finance allegations that all documents are not in order for the EURO 54.75 Million Bond leads to the conclusion that if true, there may be fraudulent conduct in play concerning the issuing of the Bond. This being the case, I would use this opportunity to call upon Mr. President to create an Independent Prosecutor’s Office to be established, with full authority to investigate and charge all culprits in the matter leading to our defaulting status, even if it leads to the Governor of Central Bank or even if it leads to Mr. President’s Office.
There are allegations, by implication, that high ranking officials have been taking bribes in connection with the Debts now in Default.
These Bribes may have been shared by some high ranking officials of the land. If bribes were paid, it may have violated USA and European laws as well. This possibly being the case, the Independent Prosecutor must have full authority to cooperate with law enforcement bodies in those countries to also bring non-Seychellois participants to Justice.
If this is in fact the case, then it means that foreigners have taken advantage of our lax laws and lax enforcement culture under SPPF. It will imply what foreigners think in Seychelles, good contacts means: carte blanche to commit crimes of corruption and steal our money with impunity at the detriment of our Patrimony and our children’s future.
These money magnets if they so exist, should be put on notice, that we will investigate and prosecute them and their co-conspirator Seychellois, if there are any, to the fullest extent of the law.
If Mr. President’s Government will not do anything about it, then we must throw him out, and the next Government must do something about it. It is a matter of necessity and national dignity, and national pride, that we do it. Euro 54.74 Million is a lot of money for Seychellois to pay, when we have not received the full amount owed in the first place, or have we?
May God Bless ALL Freedom Loving Seychellois!