Editorial

‘Seychelles issues another Bond on the International Capital Market’ (VOL. XXX NO 160 - Seychelles Nation - Friday August 24)

The above appeared on the front page of Seychelles Nation on Friday 24th of August, a whole week after ‘Le Nouveau Seychelles Weekly’ had revealed in its Issue of the 17th August, 2007, that the amount of debt the government of President Michel is seeking to place with the international financial community this time is worth (US$ 30,000,000.) THIRTY MILLION Americans Dollars.

“The Government of Seychelles has priced a US $30 million tap of the US $200 million, 9.125% Eurobond due October 3, 2011, a communiqué from the Central Bank announced yesterday” it read. The article in the Seychelles Nation went to state that. “To date, significant efforts have been made in clearing up arrears with African Development, European Investment Bank and World Bank and negotiations are under way for restructuring some of the outstanding debts so as to improve the repayment process.” This is a big lie – it is a line that is constantly being used to justify the unjustifiable. It was last used when they issued bonds to the tune of US $200 million only recently. A few months ago they told us that we were up-to-date with our payment to the African Development Bank, now they tell us that we are still in arrears. Can someone please, not Chang-Leng, go on SBC TV with a truthful explanation of what is really going on in this country over our external debts situation!

According to the same communiqué received at the Seychelles Nation on 23rd August, 2007, from the Central Bank of Seychelles, Lehman Brothers acted as the sole lead manager in the transaction of the US $30 million. It is the same Lehman Brothers who acted as sole lead manager in the transaction involving the US $200 million. Lehman Brothers, for those with short memories, is the company who owns our tuna factory. Yes! The same tuna factory that the French people gave to the people of Seychelles as a gift to exploit the abundance of tuna, not oil, in our Exclusive Economic Zone (EEZ). The SPPF could not manage that; they failed, just as they are failing with the economy which they have been managing for thirty-one years.

This Government wanted to hide this information from the Seychellois public. The ‘Weekly’ has forced them once again into admitting that they are involved in placing more debt burden on our heads and on that of the future generation. Instead of trying to fool the people into believing that oil exists, James Michel should be concentrating on infrastructural development that has been ignored ever since 1977. Cosmetic planning as simple vote-buying process does not put money into the ordinary Seychellois pockets. Long to medium term economic strategies should be developed for socio-economic development. Borrowing money to re-pay debts does not make any economic sense. Investing in the future of the country and its citizens is what makes sense. Time for a change of philosophy not just strategy.