MORE CRISES LOOMING ON THE HORIZON FOR MICHEL!
Last year in the run up to the presidential election, a new supermarket conveniently opened its doors in an unfinished government building selling goods usually found in a chain of supermarkets in Dubai. The owners, a Dubai based group said to be investors in a new five star hotel development, admitted they had committed stocks worth only US$ 2 million to the venture, which they estimated would last two months – that is, astride election day itself. The supermarket is still there, however, generally importing small consignments of astronomically expensive fresh fruits and vegetables, which are beyond the means of most low-income households. These consignments sell out in a few hours generating queues at the tills, which can last up to one hour. Observers point out that the management makes no effort to increase the order despite sellouts - week in week out. However, observers point out that such a policy may be reversed as the National Assembly election approaches.
Reports coming to this newspaper, however, indicate that there may be worse news on the horizon, which may yet cause more embarrassment to the government and make the work of the activists on the campaign trail a lot more challenging. According to unconfirmed reports, SEPEC is still waiting to be allocated sufficient dollars to pay for the next consignment of fuel. The recently published trade statistics show that SEPEC – the government owned monopoly importer and re-exporter of fuel and lubricants - needed up to US$ 25 million to cover the fuel consumption of the population in 2006, even after all the revenue of its sales to ships and aircraft in foreign currency has been taken into account. In April 2005, the government borrowed US$28 million from the merchant bank arm of the Bank of Tokyo Mitsubishi in London, ostensibly to repair tsunami damages. In fact most of the money went to cover the SEPEC’s foreign currency shortfall for the year. The loan was supposed to be repaid in 18 months – in other words around December 2006. Central Bank statistics show that official reserves fell by SR109 million - US$ 18 million at the average Central Bank rate for the dollar – between October and November. The Central Bank has still not released data for December 2006, at least not on its website.
