THE STAR BUSINESSWEEK JUNE 2, 2018
WWW.STLUCIASTAR.COM
Malta bank was set up with ‘criminal proceeds’, say prosecutors A Maltese private bank accused of having been used to launder money linked to high-ranking government officials was set up using the criminal proceeds of an unrelated sanctions busting scheme involving Iran and Venezuela, US prosecutors allege Page 3
Big Four accountancy firms plan for forced break-up
BUILDING A 21ST CENTURY SAINT LUCIA BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT
Christian Wayne, founder and director of TeleCarib Labs, Inc. (also director of the award-winning STAR Publishing Company, parent company to this newspaper) is spearheading a movement poised to revolutionize what education and entrepreneurship look like in the Caribbean – with Saint Lucia serving as ground zero. Continued on page 4
The Big Four accountancy firms have drawn up contingency plans for a breakup of their UK businesses, an option politicians and regulators are increasingly pushing to solve conflicts of interest embedded in the industry Page 7
2
THE STAR BUSINESSWEEK
JUNE 2, 2018
WWW.STLUCIASTAR.COM
ARGENTINE ALLIANCE BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT
crucial area. Between 2011 and 2013, the FOAR assisted Saint Lucia with a project to promote SME development. The initiative brought in Argentine experts to train 20 public officials in drawing up SME-friendly policies. The Argentine delegation shared their experiences of Plan Argentina 2020, the country’s strategic development plan, and suggested ways to adapt that template to Saint Lucia’s business environment. The project came to a close with a seminar in November 2013 that laid the groundwork for future technical cooperation.
AGRICULTURE
I
The Argentine Cooperation provided technical assistance to the Garrahan Regional Hemotherapy Center of Guyana to improve their Quality Management System to make better use of blood and increase quality of patient care
n an increasingly globalised world, regional partnerships aren’t just a way of building political goodwill, they’re a matter of economic survival. Latin America and the Caribbean have long enjoyed a symbiotic relationship: trading, negotiating and collaborating with the help of institutions such as the Community of Latin American and Caribbean States (CELAC) and the Inter-American Institute for Cooperation on Agriculture (IICA). In recent years Argentina has climbed out of its post-recession slump to become one of Latin America’s fastest growing economies with GDP growth of 3.5 per cent in 2017. With its rebound gaining momentum, the country is looking to leverage links with its CARICOM neighbours to the north. The Argentine government is actively expanding its reach across the region, re-opening embassies in Barbados and Guyana and establishing a new embassy in Suriname. Saint Lucia welcomed its first resident Argentine Ambassador in 2014. In 2013 the Organisation of Eastern Caribbean States signed a Memorandum of Understanding on Cooperation with the Argentine Republic. The agreement listed possible areas of collaboration, including health, education, tourism, trade and investment and agriculture. The latter two were the subject of scrutiny at a recent Regional Cooperation Workshop held in Barbados. The workshop, which took place in April, looked at strengthening
ties between Argentina and the Caribbean in terms of small and medium-sized enterprise (SME) development and agriculture. The event, organised through the Argentine Fund for SouthSouth and Triangular Cooperation (FOAR), focused on building capacity through the exchange of knowledge, technologies and best practices. Over 30 officials from nine countries attended the meeting, including Deputy Director in Saint Lucia’s Ministry of Agriculture, Barry Innocent. Representatives from regional bodies such as the Caribbean Development Bank and IICA were also present.
SME DEVELOPMENT
Caribbean SMEs are struggling to get off the ground. Thwarted by a lack of capital, bureaucratic red tape and time-consuming and costly start-up requirements, entrepreneurs in the region are failing to reach their potential. Argentina wants to help redress the situation by assisting Caribbean economies in developing business clusters and incubators. These will give SMEs and entrepreneurs a space to develop their ideas, passions and talent through exposure to expertise, skills and mentorship. Often, potential start-ups are stymied by lack of resources and knowledge. Providing training for both businesses and policymakers, Argentina can help the Caribbean create a framework for growth. There is already precedent for Argentine’s involvement in this
Agriculture—once a key driver of Caribbean economies, providing jobs and trade opportunities—is on a downward trajectory in the region thanks to limited technical capability, lack of resources and vulnerability to climate change. Argentina can help. The country has made significant strides in engaging family farmers and leveraging the latest technologies to boost production. At the Regional Cooperation Workshop held in April, two particular areas of focus were identified: soil and water conservation and plant quarantine. Policymakers are now drafting tangible projects to tackle these issues. In March senior members of the Ministry of Agriculture in several Caribbean countries (including Saint Lucia) toured Argentina’s National Agricultural Research Center in the National Institute of Agricultural Technology, where they were given an insight into Argentina’s use of natural resources, climate awareness and family farming. The trip, which was coordinated by IICA, was designed to help the Caribbean work towards food security. “It is both natural and necessary to foster this rapprochement between countries that are vulnerable to climate change and concerned about food security, and an economic superpower like Argentina, whose temperate-climate agriculture is one of the most efficient in the world,” said IICA Director General Manuel Otero. “This affords opportunities to increase cooperation and carry out work in matters related to family farming, associative undertakings, the use of water resources, and resilience.”
SOUTH-SOUTH STRENGTH
Confronted with similar issues, yet diverse enough to learn from each other, Argentina and the Caribbean are natural collaborators. “Argentina is far away in terms of geography but we are a really close country in terms of friendship,” said Ambassador of the Argentine Republic to Barbados Gustavo Martinez Pandiani, speaking at the recent workshop. “We are trying to have a permanent presence in this part of the world. Our idea is that Latin America and the Caribbean is not just a figure of speech but a geographical and political reality. We are looking forward to fostering stronger ties.” South-South collaboration of this kind is vital. Developing countries have a lot to learn from each other, particularly when they are at different stages in their development. Argentina and the Caribbean nations have all suffered similar growing pains and can now pool their resources to face common obstacles. Boosting a country’s economic profile is a complex task, involving a range of resources. International aid plays a part but traditional donor-based projects and programmes are not the only piece of the puzzle. Knowledge transfer and technical cooperation gives countries the tools to shape their own path to growth and build sustainable, strategic frameworks.
THE STAR BUSINESSWEEK
JUNE 2, 2018
WWW.STLUCIASTAR.COM
© The Financial Times Limited [2018]. All Rights Reserved. Not to be redistributed, copied or modified in anyway. Star Publishing Company is solely responsible for providing this translated content and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation
MALTA BANK WAS SET UP WITH ‘CRIMINAL PROCEEDS’, SAY PROSECUTORS US claims against Pilatus Bank raise fresh questions over island’s financial system BY FT CORRESPONDENT
A
A police officer stands outside the building that houses Pilatus Bank in the Maltese town of Ta’ Xbiex
Maltese private bank accused of having been used to launder money linked to high-ranking government officials was set up using the criminal proceeds of an unrelated sanctions busting scheme involving Iran and Venezuela, US prosecutors allege. The assets of Pilatus Bank were frozen in March after Seyed Ali Sadr Hasheminejad, its then chairman and owner, was arrested and charged with organising a scheme to illegally funnel more than $115m from Venezuela to Iranian-controlled companies via western banks. The indictment did not refer to Pilatus Bank. However, a new letter filed to the US court by prosecutors alleges that Mr Sadr used nearly 9m Euros of “criminal proceeds directly linked to the Venezuela project” to “establish and
capitalise the bank” in 2013. The US prosecutor’s allegation will raise fresh questions about whether Malta’s financial system is equipped to stem the flow of allegedly criminal money through its system to the rest of Europe. Malta’s rule of law has come under scrutiny by European lawmakers in recent months, particularly following the death in a car bomb of investigative journalist Daphne Caruana Galizia. Her allegations of high-level government corruption in the island nation have unleashed a political scandal. Her reporting also focused on Pilatus Bank, revealing damning intelligence reports from Malta’s anti-money laundering unit which highlighted suspect transactions involving the bank. Brussels in April proposed measures to enhance anti-money laundering rules, including improving cross-border co-ordination and data sharing among law enforcement authorities. New rules are also under consideration,
Malta’s rule of law has come under scrutiny by European lawmakers in recent months, particularly following the death in a car bomb of investigative journalist Daphne Caruana Galizia
according to a Reuters report on Thursday citing EU officials. The plans were prompted by banking scandals such as Pilatus Bank and ABLV, formerly Latvia’s third-largest bank, which was accused of “institutionalised money laundering”. Both revealed flaws in the EU’s money laundering provisions, with regulators only taking action after US authorities stepped in. Pilatus Bank continued to operate until Mr Sadr’s arrest, despite the fact that Malta’s anti-money laundering unit had been aware since 2016 that Mr Sadr was being investigated in a foreign jurisdiction on suspicion of money laundering. The claim that criminal funds seeded Pilatus Bank will draw further attention to the quality of due diligence carried out by the Maltese regulator, KPMG and the Bank of Valetta. KPMG assisted Mr Sadr in his application for a banking licence and audited Pilatus Bank’s accounts. Pilatus Bank’s initial share capital of 8m Euros was deposited at Bank of Valetta, according to public records. Bank of Valetta declined to comment. KPMG and Pilatus Bank did not respond to a request for comment. “No ‘red flags’ cropped up during the due diligence and authorisation process which would have indicated that any of the companies or activities associated with Mr Sadr were involved in any investigations or illicit activities,” the Maltese Financial Services Authority — which is currently investigating Pilatus Bank — said. David Casa, a Maltese MEP, called for the publication of an intelligence report the MFSA commissioned from an independent company during its due diligence process on Pilatus Bank. Mr. Sadr’s lawyer declined to comment but said his legal team would address the allegations in court.
3
4
THE STAR BUSINESSWEEK
JUNE 2, 2018
WWW.STLUCIASTAR.COM
TELECARIB LABS IS BUILDING A 21ST CENTURY SAINT LUCIA!
I
Continued from page 1
n 2019, Wayne is opening what he calls a “Campus of the Future” that will redefine what it means to Live, Learn and Work in Saint Lucia. The 25-year-old media executive and entrepreneur is transforming a commercial manufacturing property in the north of the island into a mixed-use real estate development project featuring the island’s first and only co-working space, serviced private offices, studio apartments and even an organic café to serve TeleCarib clients and other professionals in the island’s north.
CO-WORKING
Like most Caribbean islands, land in Saint Lucia is expensive; a premium that has driven up not only the price of housing but also the prices of office rentals—which in turn contributes to the difficulties faced by Saint Lucian entrepreneurs in starting their own businesses. “Opening a co-working space where the costs of office-management are distributed among different members who are each sharing basic amenities like electricity, internet, cleaning services, conference rooms and even a secretary, is really just part of what we’re doing,” says Wayne. “Introducing co-working to Saint Lucia’s office rental market is just step one. The real value is in the community we’re creating.”
Christian Wayne, director of TeleCarib Labs (left), and Hon. Bradley Felix, Minister of Commerce, Industry, Investment, Enterprise Development and Consumer Affairs at a TeleCarib entrepreneurship event in Castries, Saint Lucia
BOUTIQUE HOSTEL
In similar fashion to how TeleCarib Labs is disrupting the office rental market, the company’s founder says it’s going to do the same thing to the island’s hotel industry. “I challenge you to find a rental in this country for under US$90 per night. It’s almost impossible.” Saint Lucia’s hotel room stock is comprised of primarily 4- and 5-star luxury accommodations, a norm throughout the region, and a major part of why the island’s reputation is one of luxury travel rather than affordable travel. “Not every traveller needs a private butler and an over-the-water villa. Some people just want a clean, safe place to rest their head, be able to plug into a community, and have an authentic experience while doing it. If
Winston Wilkins, programme manager of Startup St. Lucia and a Jamaican Entrepreneur of the Year (right), coaching students in the art of pitching businesses at the National Castries ICT Centre
THE STAR BUSINESSWEEK
you’re part of the latter traveller segment, then Studios by TeleCarib is right for you,” notes Wayne.
WORLD-CLASS PROGRAMMING
Exciting as introducing co-working and a boutique hostel is, Wayne says the truly disruptive element of TeleCarib Labs is the education and entrepreneurship programmes his team will be delivering to Saint Lucians. Explains Wayne: “There are three flagship programmes we’ve designed in collaboration with different stakeholders in Saint Lucia that we’ll be running at TeleCarib Labs. “Firstly, TeleCarib will be running the country’s first national start-up incubator programme called Startup St. Lucia. It’s a 120-day experiential education programme designed to drive an individual start-up to success or failure through the help of mentorship, services and financing. “Then there’s our Future Farmers programme where we combine hands-on learning in our model climate-controlled indoor farm, in-person skill-development workshops and mentorship, with high-quality online content to equip entrepreneurs with the skills our financial partners look for in investment candidates. “Finally, there’s the Hybrid Learners programme which is designed to increase access for Saint Lucians to high-quality, low-cost education pathways that are careerlinked. Saint Lucians are grossly underserved when it comes to higher education offerings so this programme is going to be a home-run. We couple world-class online education with in-person skill-development workshops to create a compelling education option for those of us who cannot afford travelling overseas for university.”
INTERVIEW
Right now TeleCarib Labs is in an era that very much reflects its region: one with strong foundations and an enthusiastic community, preparing to pursue a new chapter in the 21st century. While TeleCarib Labs’ daily work is unapologetically bold and pursued with optimism, it also commences in an era of great turbulence within the digital arena. This reality is something Wayne recognises. “I think you need to only look at something like the net neutrality issue to know we need more local leadership in the digital world. Right now, many people in our region view net neutrality through a lense that is chiefly American in viewpoint,” says Wayne.
“That’s fine in the short term but soon we’ll have to have that chat locally, especially as nations like Saint Lucia essentially have monopolies in this space. Growing a culture of competition in our region is important for the long term, especially with the rise of a digital economy.” Just as there is a desire to grow a sense of regional competition, so too does TeleCarib seek to drive a new sense of collegiality in the digital sphere. Work in this area is something valued in Saint Lucia and around the region. Giving voice to this new chapter of exploration and bolstering the formation of a new generation in the Caribbean family is at the core of what TeleCarib Labs seeks to offer as an education epicentre, start-up generator and accommodation provider. “I think what’s so exciting about TeleCarib is in the long term it promises to create a new network. Whether someone visits here for a short time or stays for a long time, you’ll forever have a link to TeleCarib, Saint Lucia, and the Caribbean. This is important because until now we’ve not had a Caribbean-wide network like this,” says Wayne. “Sure, there’ve been platforms like LinkedIn but never something that brings everyone, who’d call themselves an innovator and student, under one umbrella. The reach here could also go far beyond our region.”
Though the TeleCarib Labs team is at work each day to create such an epicentre, Wayne readily acknowledges that there is a long path ahead to seeing Castries become a capital of innovation recognised alongside Silicon Valley, Sao Paulo, Dublin, Barcelona and Co. Central to TeleCarib is its education mission. As Wayne tells it, education was always going to be at the heart of TeleCarib but the focus on it evolved as the potential for real engagement globally and locally became clear. “I think for too long we in the Caribbean have tried to start a fire without the fuel. Sure, some things have caught on. We also have fantastic talent here so we will always see some decent success. When it comes to creating a consistent culture for it though— something like a Caribbean version of Silicon Valley where consistent success is seen—I think we need to recognise education is central.” The experience of doing one-week startup bootcamps around Saint Lucia provided Wayne with a vivid example of the strong but inherently practical work TeleCarib Labs could do for his native nation. “We did some bootcamps in Soufriere and Castries. We learned of two people enrolled in the exact same online college, one living in Castries, the other in Soufriere. One had struggled with the class, the other did not.
JUNE 2, 2018
WWW.STLUCIASTAR.COM
5
Previous to this, these two Saint Lucians didn’t know each other existed, were doing the same course, or could be of help to each other,” says Wayne. “We linked them up and one was able to help the other with some learning techniques, and the rest, as they say, is history. It’s a simple but strong story that I think encapsulates the heart and soul of TeleCarib Labs’ work—and I tell you we’re just getting started!” Just as it seeks to grow individuals, TeleCarib Labs recognises its progress will be watched carefully by many would-be entrepreneurs weighing up whether to begin a venture in the region, which is why Wayne and his team will be offering soft-landing corporate services to entrepreneurs eyeing the Caribbean for growth. Wayne recognises that his team will, in time, deliver to Saint Lucia a network of TeleCarib alumni who will offer people of the Caribbean professional links around the world. But he is also intent on seeing results that are more immediate, pronounced and distinctively Saint Lucian. TeleCarib Labs is in active conversations with the government of Saint Lucia to have the projected designated as the country’s official tech-hub. If you are passionate about tech, education or entrepreneurship, ask your Constituency Representative to support this innovative initiative.
Giving voice to this new chapter of exploration and bolstering the formation of a new generation in the Caribbean family is at the core of what TeleCarib Labs seeks to offer as an education epicentre, start-up generator and accommodation provider TeleCarib Labs will be offering flexible memberships and rentals to its co-working and learning campus starting in 2019
6
THE STAR BUSINESSWEEK JUNE 2, 2018
CORPORATE
WWW.STLUCIASTAR.COM
CREW +: INNOVATE IN THE TREATMENT OF WASTEWATER IN THE CARIBBEAN
F BY IDB
ollowing the successful experience of the Caribbean Regional Fund for Wastewater Management (CReW), the IDB, the Global Environment Facility and the United Nations are preparing to implement CReW +, a new programme focused on the innovation. In the Caribbean, a region in which 51% of households lack access to sanitation networks, about 85% of wastewater is discharged into the sea without proper treatment. In spite of the efforts of the region to improve in that aspect, it is necessary to have innovative solutions that allow for the reduction of these indicators in a safe and sustainable manner. So the IDB, the Global Environment Facility (GEF) and the United Nations Environment Program (UN Environment) are about to launch the programme known as CReW +, an integrated approach to management of water and wastewater using innovative solutions and promoting financing mechanisms in the Caribbean Region . This programme takes up not only its name, but also the lessons learned from the Caribbean Regional Fund for Wastewater Management (CReW) which implemented several pilot programmes in 13 Caribbean countries. The new CReW + programme establishes more specific solutions to address the challenges of wastewater management in a more holistic way, using integrated approaches, with the aim of creating value from “reclaimed water” and based on the protection of wastewater. Specifically, the programme will have six components:
The process of wastewater treatment is commonly known as sewage treatment
• Institutional, regulatory, legislative and regulatory reforms for the integrated management of water and wastewater (IWWM for its acronym in English). • Sustainable and customized financing options for urban, peri-urban and rural IWWM. • Provision of innovative small-scale, local, rural, peri-urban and community solutions for IWWM. • Knowledge management and promotion on the importance of the order of IWWM to achieve the Sustainable Development Goals. • Monitoring and evaluation. • Project management.
HANDS
The IDB and UN Middle and GEF team are currently in the final stages of preparation to officially launch the programme, which will involve 18 countries of the Greater Caribbean. The IDB has witnessed the high positive impact that is achieved with relatively simple interventions in the region at the community, local and rural levels. The majority of CReW + projects will be developed in geographic zones highly vulnerable to pollution phenomena of bodies of water, climate change and with few resources for investment. The IDB appreciates the high convening power of the regional programmes and how the Caribbean region shares almost all the problems that are faced for the solution in the sustainable management of water resources. Specifically, the IDB will address interventions in many areas where it and the UN Environment have previous experience in CReW and other programmes in the region. The programme is expected to include, among other projects: reforms in environmental regulations in terms of treated water and discharges, designs of innovative effluent treatment systems, sustainable management of freshwater basins to ensure greater water security for rural communities, integral management of water and wastewater, energy use, better land-use practices and greater efficiency in the use of water, new financing schemes for sanitation projects, action plans and specific business models for rural areas and communities, development of programmes with participation of the private sector, dissemination and education to the community and users, on-line courses, technical training, and will promote and strengthen the relationship between the Caribbean countries. Latin America and the Caribbean has 40% of the world’s biodiversity. However, it has faced a great loss of its natural capital in recent decades. That is why the IDB, in partnership with the Global Environment Facility (GEF), recognizes the importance of acting and supporting the countries of the region to make good use of their natural resources and thus generate economic growth.
The Saint Lucia Government Gazette Company Registration Name: Vista Inc.
Name: Elysee Holdings Inc.
Description: Property Holding
Description: Property Holding
Directors: Pierre Léger
Directors: Joanne Charles
Date Incorporated: 4-May-18 Chamber: PKF Corporate Services Ltd., Saint Lucia
Date Incorporated: 17-May-18 Chamber: Brickstone Law, Saint Lucia
Name: Nivo Inc. Description: Restaurant
Name: Pioneer Productions Inc
Directors: Alessandro Camatarri
Description: Entertainment and production
Date Incorporated: 15-May-18
Directors: Angus Vitalis; Gabriel Francis
Chamber: The Jacobian Law Office, Saint Lucia
Date Incorporated: 18-May-18 Chamber: Deterville, Thomas & Co., Saint Lucia
Name: Advanced Power & Electrical Consultancy (APEC) Ltd. Description: Electrical consultation, design, procurement, and construction
Name: Morne ING Inc. Description: Property Holding
Directors: Garth George
Directors: PIF Corporate Service Inc.
Date Incorporated: 16-May-18
Date Incorporated: 18-May-18
Chamber: SEDU, Saint Lucia
Chamber: Peter I. Foster & Associates, Saint Lucia
THE STAR BUSINESSWEEK
JUNE 2, 2018
WWW.STLUCIASTAR.COM
© The Financial Times Limited [2018]. All Rights Reserved. Not to be redistributed, copied or modified in anyway. Star Publishing Company is solely responsible for providing this translated content and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation
BIG FOUR ACCOUNTANCY FIRMS PLAN FOR FORCED BREAK-UP
UK chairman of KPMG says it is ‘undeniable’ that the audit market is an ‘oligopoly’ BY FT CORRESPONDENT
T
Klynveld Peat Marwick Goerdeler (KPMG), PricewaterhouseCoopers (PwC), Ernst & Young (EY) and Deloitte Touche Tohmatsu Limited (Deloitte), otherwise known as the Big 4 accounting firms
he Big Four accountancy firms have drawn up contingency plans for a break-up of their UK businesses, an option politicians and regulators are increasingly pushing to solve conflicts of interest embedded in the industry. The pressure on the four firms that dominate the sector — KPMG, Deloitte, EY and PwC — to prepare for a forced break-up has increased following highprofile corporate collapses that have called into question the quality of their work as both auditors and consultants for the UK’s largest companies. Executives from all four and the next largest UK audit firms, Grant Thornton and BDO, said they had planned for a potential break-up, in case regulators force them to spin off their audit from their consulting businesses. A parliamentary report this week urged the competition watchdog to consider breaking up the four, saying they operated as a “cosy club incapable of providing the degree of independent challenge needed”. It followed a probe into the collapse of government contractor Carillion in January. The investigation triggered sharp
criticism of KPMG and Deloitte, Carillion’s external and internal auditors respectively over the past 19 years, and of EY and PwC, which had various consulting roles. A break-up scenario could involve two options: either forcing each large firm to split into two smaller multidisciplinary firms; or making all of them spin off their consulting work to create audit-only businesses. This second option was backed by Stephen Haddrill, head of the UK accounting watchdog, in February as a potential remedy for the lack of competition in the market. Bill Michael, chairman of KPMG’s UK business, said his firm had been thinking about break-up scenarios “for some time” as the current business model of the Big Four — which generate a growing portion of their revenues from consulting — is “unsustainable”. “We are an oligopoly — that is undeniable,” he said. “I can’t believe the industry will be the same [in the future]. We have to reduce the level of conflicts and . . . demonstrate why they are manageable and why the public and all stakeholders should trust us.” PwC said it had “a documented business continuity plan covering a range of scenarios that could threaten the existence of the firm”. EY said: “Working alongside regulators
“IF YOU WANT TO SPLIT THE FIRMS UP, THAT HAS TO BE DONE INTERNATIONALLY, ALTHOUGH MAYBE THE UK COULD LEAD THE WAY” Bill Michael, Chairman of KPMG’s UK business
and standard setters, the profession can evolve to best serve business, investors and stakeholder needs.” BDO, the UK’s sixth-largest auditor, has developed contingency plans in case regulators decide to “ringfence” audit work. It has also planned for regulators deciding that “public interest” entities — listed companies and systemically important institutions — should be audited by auditonly firms. In this scenario, BDO would drop its 232 listed clients. Other senior executives at the top six firms are deeply concerned that a forced break-up of their businesses would cause significant disruption for the firms and their clients, with one executive saying there would be a “bloodbath”. David Sproul, chief executive of Deloitte, told the FT in March that creating audit-only firms “would be to the detriment of the capital markets”. Grant Thornton, the UK’s fifth-largest accounting firm, said: “We fundamentally do not believe that this is the solution to the existing systemic issues in the audit market.” Accounting executives also argue that a forced break up of audit firms in the UK alone would be ineffective and messy without similar initiatives from international regulators. Mr Michael said: “The [Big Four] are big beasts because they are big global companies. There will still be big, complex, hairy companies around the world [even after a break-up]. If you want to split the firms up, that has to be done internationally, although maybe the UK could lead the way.” But many academics, politicians and shareholders support calls for a break-up to tackle the dominance of the Big Four, which audited all but nine of the UK’s 350 largest listed companies last year, despite the introduction of sweeping reforms aimed at reducing their hold on the market. Vince Cable, leader of the Liberal Democrats, said the “only way” to improve competition was to break them up. “Unless you do that, three or four companies will continue to completely dominate,” he said. Natasha Landell-Mills, head of stewardship at London-based asset manager Sarasin & Partners, who has previously called for a break-up, said: “In the past, the audit firms argued strongly that mandatory audit firm rotation would lead to weaker audits and potentially chaos. This has not transpired. “[A break-up] would be difficult for the accountancy firms’ business, but that doesn’t necessarily mean it would be bad for the public interest.”
7
8
THE STAR BUSINESSWEEK JUNE 2, 2018
MAKING
WWW.STLUCIASTAR.COM
PHILIP WELLS IS GIVING THE AGRIINDUSTRY SOME MUCH-NEEDED TLC!
W
BY KERYN NELSON, STAR BUSINESSWEEK CORRESPONDENT
ith a unique blend of farming and new age technology, FARMS AI (Artificial Intelligence) is not just out to change the interface of local agriculture but the team is also ushering in an era of efficiency—efficiency we crave but hardly encounter on Saint Lucian soil. I sat down with the company’s founder and CEO, Philip Wells (who recently returned to Saint Lucia following his participation in London’s Pitch @ Palace at Saint James Palace) to discuss FARMS AI’s vision and the formidable path of entrepreneurship.
WHAT DOES ‘FARMS AI’ DO?
WELLS: FARMS AI is a platform which will allow for the collaboration and collection of data along the Agri-business value chain from all the players in the sector; but more so we are looking at wholesale distribution, hotel and tourism and NGOs. What we found is that there is a lack of information being shared, even in the government department, so FARMS AI, with the use of Blockchain technology, allows players in the value chain to securely share information— information that is important to running their businesses and actually developing the sector.
WHAT MOTIVATED YOU TO UNDERTAKE THIS VENTURE?
WELLS: For me, my background is in Information Technology and security; I’ve been doing that for the last 20 years. The concept came about when I faced a particular problem while out getting a meal. I was told: ‘We have no broccoli and our shipment never came in.’ I thought to myself: ‘No, we—Saint Lucia, does have. On the island there are people who plant the broccoli that you’re looking for.’ When I did a little more research, I found out that there was this lack of information; people were not aware of what others needed and who needed it. For those looking, they did not know where to find it and I realized, across the value chain there are
FARMS AI founder and CEO, Philip Wells has his eyes set on improving the livelihoods of Saint Lucian farmers and making a lasting change
a number of instances. That is part of it; the other is that I’m passionate about the people at the lower end of the economic scale. For too long I’ve realized that the farming community are not being rewarded for what they are doing; they are not fairly compensated even though they feed the nation. Also, most of the farms are poorly managed or disorganized. My passion is to help people become better at what they do and to find workable solutions which are not too expensive.
WHY DID YOU INCORPORATE BLOCKCHAIN TECHNOLOGY INTO YOUR BUSINESS MODEL?
WELLS: Two reasons: Blockchain is what’s happening and is popular now; it’s current. Blockchain is not just Bitcoin; it has been driven to other industries. Even African nations have taken advantage of Blockchain, and in a number of ways, as it relates to logistics in agriculture like early warning detection systems. So there are a number of functions Blockchain has and I saw that it was an opportunity for us here as well. Secondly, the technology allows more people to be part of the solution and the data collected on it is secure. People are sharing their data, which everybody can have a copy of but it cannot be altered or tampered with.
MOVES
HOW CAN ‘FARMS AI’ POTENTIALLY CHANGE THE AGRI-LANDSCAPE OF SLU?
WELLS: We live in a region that is prone to natural disasters, hurricanes being one of them. We are very much manual in all that we do but we are developing precision farming equipment. If you are a farmer, in the event your crop were to get wiped out, the data would have been collected over a period of time up to the point where the event actually took place. If you are insured—and we have insurance companies on the platform as well—the insurance would be in a position to assess your damages because both of you can access the data. You would then be in a better position to make a claim based on the value of your estate, of your crop and also your instruments. We also import a lot here. We have farmers who have stuff but they do not know who needs it. On a farms network, once you go out and search by farmer or by crop, you will get a return of everybody who has the crop available and with a forecast for the next three to four months. We would be in a better position then to know how much is going to be available on-island. That way, we won’t need to import so much. As it relates to quality, you would be able to trace which farms and farmers are certified, which farms are organic and what pesticides or weedicides are being used. If you only want to eat organic, you would know exactly where to get it.
CAN WE EXPECT TO SEE THESE SERVICES AND BENEFITS APPLIED TO OTHER BUSINESSES?
WELLS: Well that’s a possibility. What I could say is that the market demands and depicts where you go. Amazon started selling books, now they sell household items, clothing and have gotten involved in every single thing. They started with one thing, and the market just changes; you just need to adapt to it. For us, right now, we’re focusing on farms—one thing—but there is always the possibility to grow.
For more information contact FARMS AI or Philip Wells at: info@farmsai.com/ 1 758 719 7648
PRINTED & PUBLISHED BY THE STAR PUBLISHING CO, (1987) LTD. RODNEY BAY INDUSTRIAL ESTATE, MASSADE , P.O. BOX 1146, CASTRIES, ST LUCIA, TEL (758) 450 7827 . WEBSITE WWW.STLUCIASTAR.COM ALL RIGHTS RESERVED
