The STAR Businessweek - Bankers Brace For Change by STAR Publishing

THE STAR BUSINESSWEEK AUGUST 25, 2018

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SAINT LUCIA’S BANKERS BRACE FOR CHANGE

Global tax bodies are ramping up regulatory pressure. Is Saint Lucia ready or will it find itself back on the EU blacklist? BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

Venezuela creditors eye oil assets in battle over unpaid debt As Venezuela and its state-owned oil firm PDVSA lurch from crisis to crisis, defaulted creditors are jockeying for position to ensure they are among the first to receive cash when payday eventually comes Page 3

Anti-Ortega protests leave Nicaraguans living under the volcano At the foot of Masaya volcano in Nicaragua, shoppers and children in school uniform bustle about town. But the ominous rumble from deep inside the crater is a reminder that it could blow at any time

When Saint Lucia found itself on the EU’s tax haven blacklist in December 2017, it was a wake-up call for the financial services industry. The government moved quickly to address the EU’s concerns and earned a reprieve just four months later, but Saint Lucia’s banking sector still faces intense pressure from regulators and a host of compliance-related challenges. Continued on page 4

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AUGUST 25, 2018

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TAKING FLIGHT: THE CARIBBEAN AND SPACE EXPLORATION BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

The more gradual and incidental progress, such as the 2017 discovery of micro bacteria on the side of the ISS that could be alien in origin, while certainly valuable to space research overall, less readily captures hearts and minds.

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THE CARIBBEAN CONTRIBUTION

BY CHRISTIAN WAYNE – EDITOR AT LARGE

Last weekend I commented on the readiness of Saint Lucia’s financial services sector for the impending September deadline of the Common Reporting Standard (CRS) and the country’s commitment to make its first CRS-compliant filing during that month. Contrary to the consternation expressed by Calixte Leon, Executive Director of Saint Lucia’s Financial Services Regulatory Authority, in our interview last year, 1st National Bank of Saint Lucia’s new Managing Director Johnathan Johannes is singing a different tune. In our lead story “Saint Lucia’s Bankers Brace for Change”, Johannes’ perspectives and attitude provide a glimmer of hope for those who have lost faith in our indigenous banking system and our ability to keep pace with the world around us. His interview is not one to miss. We’ve all heard of SpaceX and maybe, if you’re a little savvier, you might’ve heard of Blue Origin, both premier space exploration companies, but I’m willing to bet that the majority of our readers (myself included) have never heard of Project HARP (not to be confused with HAARP, the ongoing US naval ionospheric research programme that’s become a delicacy among conspiracy theorists) and the Caribbean’s contribution to one of America’s proudest moments of technical prowess— its national space programme. For more on this quirky, yet fascinating, topic, be sure to read “Taking Flight: The Caribbean and Space Exploration” starting here on page 2. I also wanted to make special mention of the Tourism Enhancement Fund and the group’s commendable work in the areas of general philanthropy and human resource development in Saint Lucia. The organisation’s efforts, under the leadership of CEO Noorani Azeez, were highlighted at a recent function I attended. The TEF may be a humble organisation but its work is extremely impactful and, quite frankly, demonstrates how effective the private sector can be—when incentivised adequately—to manifest change in the absence of a focused central government. Bravo to them! It’s Nothing Personal. It’s Business. Stay connected with us at: Web: www.stluciastar.com Social: www.facebook.com/stluciastar Email: starbusinessweek@stluciastar.com

Barbados—Project HARP Space Gun. Designed by Canadian ballistics engineer Gerald Bull (assassinated in 1990 in Belgium while working on a space gun for the Iraqi government). At its apex, the gun was able to fire an object a staggering 112 miles into the sky, setting the 1963 world record for gun-launched altitude at 93 KM

ince the beginning the stars have always been a source of inspiration and ambition to us. The past century saw humans begin to claim a place among them, with the moonwalk of the Apollo crew on July 20 1969 not only an achievement in history, but a declaration of intent for the future. Now in 2018 there is a new era and new momentum for humans to once again venture boldly into space. It’s often little-known the role the Caribbean has played in the work of space science. So, just as it has before, what role could the region play now in this new era?

LOOKING BACK AT LIFT OFF

Alongside the achievement of the Apollo 11 moon landing, the fact it came almost 66 years after the Wright Brothers first achieved human flight on a cold North Carolina beach in 1903 is testament to the speed of human progress, but also to the reality of geopolitics. This helps explain why we are where we are today in space research, and also why we have not progressed further. Following World War II the race began between the USA and the USSR to become the unquestioned leader in space technology, and be

the first to land on the moon. This competition drove progress between the two nations and their allies. Even though the USSR ultimately never landed on the moon, the post-Cold War world has seen Russian tech power launches of the Atlas V in the US, and astronauts delivered to the International Space Station (ISS) with a Soyuz fleet of rockets. Post-Apollo 11, the USSR soon scrapped its moon landing plans and, with no other human landings having been attempted beyond the moon since, there’s been a strong perception in the minds of many that space progress has stalled. While this is a misconception - the perpetual orbit of the ISS launched in 1998 alone shows the tremendous progress that has been made since the Apollo missions finished their launches in December 1972 - it is also a reality that popular support for space programmes among taxpayers will always be linked to delivering ‘wow’ results. The landing of the first Mars rover on the Red Planet in 1997, and the 2012 announcement that the Voyager 1 satellite had exited our solar system and travelled into interstellar space the first known human-made object to do so - have served as blockbuster pieces of news that can instantly inspire and engage all people.

Neil Armstrong and Buzz Aldrin’s moonwalk fairly won acclaim for their American nation. Just the same, the moon landing was one that saw many nations contribute. Beyond the splashdowns of John Glenn and Michael Carpenter off Grand Turk, the US and Canada’s High Altitude Research Project (HARP) in Barbados - that aspired to shoot satellites into space via a modern-day, cannon-like structure - was another flirtation of the region with a direct link to outer space. In more time recent times, notable luminaries of space science, like Trinidadian spacecraft engineer Camille Wardrop - just three years old when the moon landing occurred - show on an individual level the contribution the people of the Caribbean can make in this field. This alongside the growth of private space companies like Elon Musk’s Spacex that is boldly aiming for a Mars landing by 2022, and a human mission just a few years after that, and Amazon tycoon Jeff Bezos’ Blue Origin venture, that seeks to redefine space tourism, just as Amazon has done eCommerce. These new ventures don’t replace or overlook the pioneering work done of public agencies. Though recent turbulence has seen Caracas rightfully focus on Venezuela’s domestic problems here on Earth over opportunities in space, since its establishment in 2005, the Bolivarian Agency for Space Activities has been a leading institute for space research in Latin America. Instead, at core, Spacex and its competitors show new opportunity. With the growth of private companies like Virgin Galactic - and their decision to launch future space tourism flights from Italy - Caribbean nations could look upon this chapter of space exploration as an opportunity to build commercial links that Continued on page 5

VENEZUELA

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AUGUST 25, 2018

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VENEZUELA CREDITORS EYE OIL ASSETS IN BATTLE OVER UNPAID DEBT

State-owned PDVSA and refiner Citgo are targets as court rulings prompt show of force BY GIDEON LONG IN BOGOTÁ AND JOHN PAUL RATHBONE, FINANCIAL TIMES CORRESPONDENT

s Venezuela and its state-owned oil firm PDVSA lurch from crisis to crisis, defaulted creditors are jockeying for position to ensure they are among the first to receive cash when payday eventually comes. The Opec country is essentially bankrupt and creditors are increasingly chasing its oil assets with their biggest target being Citgo, the Houston-based oil refiner that processes Venezuelan crude oil and is estimated to be worth roughly $4bn. Next in their sights is seizing Venezuelan oil cargoes at sea, as US hedge fund Elliott Management did with an Argentine ship in 2012 after it won a US court ruling to collect on unpaid debts. Venezuela is reportedly transferring oil cargoes in safe harbours including Cuba to avoid such risks. The shift in creditor strategy is a show of force by the private sector against the regime of President Nicolás Maduro, which is overdue on $5.7bn of debt payments. Although Mr Maduro survived an assassination attempt this month, is wrestling with an economy wracked by hyperinflation, and faces a series of government sanctions by the US, Europe, Canada and Latin America’s biggest countries, he also appears to have sealed his political control over the country. The latest win for creditors came

Venezuela’s oil minister and president of the Venezuelan state oil company PDVSA Manuel Quevedo (centre) at a news conference in Caracas earlier this month © Reuters

last week, however, when Canadian mining company Crystallex won a key battle in its attempts to force Venezuela to pay $1.4bn in compensation for expropriation of a mining project. A US judge accepted Crystallex’s argument that PDVSA is an “alter ego” of the Venezuelan state and that therefore

Two years ago, half of Citgo was pledged as security for more than $3bn of PDVSA bonds

the Canadian miner has the right to seize PDVSA assets in the US. The ruling could serve as a precedent. “This judgment . . . is unambiguously negative for Venezuela, given its loss of an asset of significant value,” said Francisco Rodriguez, chief economist of Torino Capital, a boutique advisory. He added that “in all likelihood” the ruling would spur “creditors to attempt to pursue PDVSA assets”. ConocoPhillips has already done just that. In April, after it won a $2bn arbitration award against PDVSA from the International Chamber of Commerce, the US oil major seized the company’s assets in the Caribbean. The seizures left PDVSA without access to facilities that process almost a quarter of Venezuela’s oil exports. To avoid the risk

of other assets being taken, PDVSA asked its customers to load oil from its anchored vessels acting as floating storage units, Reuters has reported. Conoco’s fight for reimbursement, though, looks straightforward compared with that of Crystallex, which involves taking on PDVSA, rival bondholders and the Russian oil group Rosneft. Two years ago, half of Citgo was pledged as security for more than $3bn of PDVSA bonds. The other half was then pledged as collateral against a $1.5bn loan from Rosneft. As Citgo is worth roughly $4bn, according to estimates by Torino Capital, a US investment bank, it may have little residual value left to meet Crystallex’s $1.4bn claim. Such complications mean that while both the Crystallex and Conoco rulings are significant, they are unlikely to spark an immediate wholesale plunder of other PDVSA assets. “The ruling is a win for Crystallex, no doubt. But I’m not convinced that it immediately . . . marks a tipping point,” said Robert Kahn, a professor at the American University and a former International Monetary Fund official. Lawyers agree. “[The Crystallex ruling] doesn’t mean that every Republic of Venezuela bondholder can automatically assume that PDVSA assets are available to them,” said Richard Cooper, senior partner at New York law firm Cleary Gottlieb Steen & Hamilton. Venezuela, which owes $31bn of sovereign bonds and $28bn of PDVSA bonds, also owes billions of dollars to China and Russia, but its sole foreignexchange generating industry is in steep decline. Oil output has dropped below 1.3m barrels per day — back to 1947 levels, according to Caracas Capital. Additional reporting by Robin Wigglesworth in New York

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AUGUST 25, 2018

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SAINT LUCIA’S BANKERS BRACE FOR CHANGE Continued from page 1

Global regulators have increased pressure in recent years on so-called ‘tax havens’ in an effort to thwart tax competition. Being a small island nation with a relatively young financial services sector, Saint Lucia has been hard hit by waves of burdensome regulation beginning in 2013 with the Automatic Exchange of Information and culminating in the latest compliance framework, the Common Reporting Standard (CRS). Under the CRS, financial institutions are obligated to report on the assets of foreign clients - delivering that information to tax authorities in the client’s country of origin. Saint Lucia committed to its first reporting under CRS by September 2018 and, as that deadline looms, it’s crucial that the country is seen to meet its obligations if it wants to remain off the EU’s radar. Managing Director of 1st National Bank St Lucia Ltd, Johnathan Johannes is confident that the industry is ready, saying: “The banks are well on their way to being fully compliant [with CRS]. We have been

having meetings to ensure we make the deadline and it has all been very positive.” Johannes, who is also Public Relations Officer for the St Lucia Bankers Association, says getting the sector compliant hasn’t been without its challenges, however. “The hard part is generating the new information from customers. We have had to update our entire database. We try to comply in a way that is not disruptive or intrusive to our clients.” And there is also the issue of resources. Banks have had to absorb the costs of compliance, which can be high. “To remain in compliance drives up your costs,” says Johannes. “You have to increase your budget, invest in new software, hire additional people. It can be expensive.” Getting CRS-ready may be an expensive, time-consuming and complicated process but non-compliance is not an option. Failing to appease regulators can land countries on the EU’s blacklist - as Saint Lucia discovered last year.

The St Lucia Workers’ Credit Union Opens New Premises on Bourbon Street, Castries

Shaking things up: Mr. Jonathan Johannes, Managing Director of 1st National Bank St Lucia Ltd

The St Lucia Workers’ Credit Union continues to go from strength to strength creating greater opportunities and advantages for its members at every stage. Indicative of the SLWCU’s faith in the future is the announcement of the credit union’s move to its new bigger and better facilities on Bourbon Street Castries on 23rd July, 2018. Three years ago, the St Lucia Workers’ Credit Union had the foresight to move their then location at the Gable Woods Mall to the place that were once occupied by the RBTT/RBC bank. As one interested bystander stated at that moment, “The St Lucia Workers’ Credit Union is really snapping at the heels of the big foreign banks!” The comment, though frivolous, was quite apt. A comparison is appropriate because like all credit unions, the St Lucia Workers’ Credit Union is owned and operated by its members, which means better rates and lower fees than those that customers in both local and foreign commercial banks have to put up with. While it would be wrong to imply that the Boards of Directors of Commercial Banks do not necessarily work with the best interests of their clients in mind, their first obligation is to make money for the bank’s shareholders; whatever the message broadcast on flashy expensive billboards might convey, commercial banks are operated in such a way as to provide their shareholders with the maximum profit. They are not there for the benefit of their customers. Like all credit unions, the St Lucia Workers’ Credit Union differs from banks; it is a not-for-profit organization. Having said that, it has to be stressed that the credit union is operated on strictly professional lines to create a surplus – similar to a

profit – the difference being that much of such surpluses or profits are returned to its shareholding members through a system of Dividends and Patronage Refunds. The savings of members are safe – at least as safe as bank deposits, if not more so – in their credit unions; deposits are insured through CUNA Mutual at no direct cost to the members. The Board of Directors and the employees of the St Lucia Workers’ Credit Union are excited by this move to new premises and the opportunity to serve their members even better in the years to come. The credit union’s easy access and heightened visibility in the center of Castries will, it is anticipated, result in more and more St Lucian Workers discovering the advantages of joining their union. Credit unions are governed by unpaid volunteer Boards of Directors democratically elected by the membership from the membership. All members get one vote regardless of their financial position. At present, the St Lucia Workers’ Credit Union has a branch at Gable Woods Mall as well as the new locality in Castries. The opening hours are membership-friendly: Monday to Thursday, 8:00 a.m. to 3:00 p.m. and Fridays, 8:00 a.m. to 4:00 p.m. at Bourbon Street to facilitate early 8:00 a.m. business, and at Gable Woods, where commerce starts a little more slowly, Monday to Thursday 9:00 a.m. to 3:00 p.m. The Gable Woods branch is also open on Saturdays between 9:00 a.m. and 1:00 p.m. to make life easier for shoppers. As from September 01st 2018, the office on Bourbon Street will also open on Saturdays between 9:00 a.m. and 1:00 p.m. The St Lucia Workers’ Credit Union has

come a long way since its inception. Thirty six years ago, it was not the entity it is today. The seed was sown within the walls of Cable and Wireless. The idea of forming a Credit Union was borne in May 1981 when one of the founding fathers explored the possibility during a trade union training course and discussions began with other members who already knew of the concept. The St Lucia Workers’ Credit Union was formed in July, 1982 by the staff of Cable & Wireless who used their bond of membership of the St Lucia Workers’ Union to come together to better themselves financially. The original members deserve praise for their vision of a better tomorrow. The Credit Union could not have become what it is today without their firm support and commitment. The St Lucia Workers’ Credit Union is the ideal, and natural choice for the Workers of St Lucia when considering how best to safeguard their futures and build a better tomorrow. A Union implies Unity, a Common Bond, a Shared Goal, and Mutual Assistance and Support. The next time you pass the premises of the St Lucia Workers’ Credit Union both at Gable Woods and Bourbon Street, pause for a moment and consider whether or not the credit union would be the right choice for you. Now is the time for the workers of St Lucia to form a common bond to the benefit of us all. Let the St Lucia Workers Credit Union become the private sector Credit Union for the workers of St Lucia.

Visit a Credit Union near you today and let us partner with you in building your future!

Visit or call us today at any of our branches Bourbon Street - Tel: 758-453-2706 or 758-451-7705 Gablewoods Mall - Tel: 758-458-1923 Email sluwcu@candw.lc |Web: sluwcu.org

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FROM BLACKLIST TO GREY LIST

In December 2017 the EU released its tax haven blacklist - naming and shaming Saint Lucia alongside 16 other countries. According to the bloc, the list is designed to clamp down on nations that have failed to meet international tax standards, encouraging transparency and discouraging unfair tax practices. The blacklist is not without controversy. Critics have labelled it a ‘white list’, pointing to the glaring omission of wellestablished financial centres such as those in the US and the Cayman Islands, as well as the hypocrisy of ignoring tax havens within the EU’s own borders such as Ireland, Luxembourg and the Netherlands. Its validity may not be acknowledged by everyone but inclusion on the list is no small matter. Not only does it come with the threat of heavy sanctions from one of the world’s most powerful trading blocs, it can also damage a country’s reputation internationally, directly affecting its ability to forge and maintain correspondent banking relationships. “We were all a bit unnerved but did not expect much to come out of it,” says Johannes who believes that Saint Lucia’s reputation remains intact after the blacklisting, aided by a swift response from government. “We felt that the government had the capacity and the wherewithal to get off the list. They looked at the actions that were required, which were just a formality. They needed to move quickly and that is what they did.” Saint Lucia was moved from the blacklist to the grey list in March 2018, after meetings and negotiations with the EU Code of Conduct Group.

STAYING SAFE

The EU may have welcomed Saint Lucia back into the fold, but that security is not guaranteed. With continual revising of the blacklist, countries can find themselves in a dizzying whirl of being on again, off again. “In order to stay off the list we need to understand what is required of us, have people research the changes taking place in the industry, and move swiftly to discussing these things at a national level,” said Johannes. “We need to stay on top of these things; we cannot circumvent these

regulations.” The EU blacklist has been highly criticised for its vague methodology and its willingness to play the shame game. For those nations in its crosshairs, it’s not always clear why they are being targeted or what they can do to protect themselves. Johannes says preparation is key, as well as the ability to be nimble and pivot when necessary. “We need to stay relevant. The landscape has changed and the faster we can change with it, the easier it will be. “Lobbying does play a key role but the OECD, EU and US have demonstrated that they will get their way. What we need to do is start falling in line with compliance whilst continuing to lobby, not scrambling to be compliant when the lobbying efforts fail. We can explain [to regulators] how it affects our economies and our livelihoods but, at the end of the day, we need to find a way to be compliant because the regulators will not wait, the rules will come into play.”

AN INNOVATIVE FUTURE

Five years ago Johannes left the banking sector to move into retail. After just four years he returned to finance and says this is indicative of his faith in the industry and its future. “I would not have come back to banking if I did not believe in the resilience of our industry.” One of the mainstays of the Saint Lucian economy, Johannes believes that banking will rise above any regulatory challenges and evolve to explore new areas of opportunity. He predicts that financial technology will force the sector to embrace a more digital future saying: “I see increased competition but not from banks, from FinTechs. This competition will lead to increased collaboration as banks partner with FinTechs and a whole new ecosystem emerges.” This new spirit of innovation and collaboration within the sector is a result of tackling the regulatory challenges, according to Johannes who says bankers are becoming more creative and more united in the face of the international threat. “We are prepared to survive and thrive,” he says. “There are exciting times ahead; we just need to be prepared for change. We need to hold on tight and enjoy the ride.”

AUGUST 25, 2018

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TAKING FLIGHT: THE CARIBBEAN AND SPACE EXPLORATION Continued from page 2

agencies can lead here - is now void. Just as our ambitions for space have grown, so too has our world become smaller, thanks to modern communications and globalisation. This signals promise for the Caribbean.

GOING UP AND UNDER

Located roughly ten minutes from Grantley Adams International Airport, the longer cannon is still easily visible to visitors

offer mutual benefit to private business, and local communities keen to grow jobs in this emerging sector.

SUNSHINE AND SPACEFLIGHTS

Alongside other emerging tech that could find a ‘natural home’ in the Caribbean - like green energy cars that could utilise the sunshine of Aruba for testing, or new blockchain initiatives that have the potential to find a sizeable local audience in the financial and tourism industries - there is nonetheless the reality that building a new Caribbean space hub would ideally have at its foundation a stronger Caribbean tech hub than exists right now. There have been fantastic inroads made in this area, over many years and in more recent times, so this reality

is no derision on the present industry or the future possibilities locally, just a recognition that there remains a distance between the milestones passed and the one that lies ahead to really incentivise more space research and commerce. Yet, contribution to a new era of space tech does not necessarily demand local launches or the in-person presence it once did. While the ‘Big Six’ of space agencies in the world - USA, Japan, India, Europe, Russia, and the People’s Republic of China - have launched rockets, other nations have been leading contributors to the collective effort of human beings (beyond national rivalries) to progress space tech. If there is a core takeaway from the rise of private space business in recent years, it’s that the old way of thinking - that certain nations and certain

It’s not only looking upwards to the skies that could see this new era of space programmes bring benefits to the region. There is the possibility for advances in space tech to bring real results here on the ground, and beneath the sea. While humans have been taking to the seas for thousands of years, in 2018 over 80 per cent of our ocean remains unexplored. For our region, not only its natural features but its history of sea-voyaging mean many of the world’s estimated three million shipwrecks lie within Caribbean waters. Before his death in 2004, former NASA astronaut turned diver Gordon Cooper made maps of Caribbean waters while he was in space, recording anomalies that he held to be shipwrecks. The map has already borne fruit, with a shipwreck discovered off the Bahamas in June of this year. In the stars, sands and seas, there is every reason for the Caribbean to look forward to this new era of space exploration.

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ROTARY COLLABORATES WITH THE TOURISM ENHANCEMENT FUND BY THE ROTARY CLUB OF SAINT LUCIA

ast President Konrad Wagner introduced our guest Noorani Azeez, CEO of the Tourism Enhancement Fund (TEF). He also went on to brief us on discussions which had been ongoing with the TEF for several months, to explore the possibility of a collaboration with Rotary on the procurement of wheelchairs through the World Wheelchair Foundation. Our thanks go out to Past President Konrad for his ongoing commitment to the work of Rotary, having spearheaded discussions on this initiative. Noorani Azeez gave an overview of the origins and work of the TEF which covered a broad segment of the tourism sector as well as the community as a whole: “The TEF is a private sector initiative established on 1st October, 2013, designed to allow the tourism industry a greater opportunity to play an integral role in the sustainable development of our destination. “The TEF is financed by a small, voluntary

donation from our guests of US$2 per night which goes towards community development and environmental projects and actions which will affect the livelihoods of our current and future generations. By collecting a small voluntary fee from our visitors, the Saint Lucia Hotel and Tourism Association will also be able to support projects specific to ensuring that our island is clean and safe for visitors and residents alike, including the beautification of specific areas of our island. “The TEF is managed by a Board of Trustees comprising representatives from the public and private sectors who ensure that projects undertaken by the fund continue to have a strong educational, environmental and developmental impact. For more information on how you can participate or benefit from one of our grants please reach out to us at grants@stluciatef.com.” At a recent meeting, the Rotary Clubs of Saint Lucia and Gros Islet signed a Memorandum of Understanding with the TEF to assist with the procurement

CEO of the Tourism Enhancement Fund Noorani Azeez presents the first instalment of funds to Rotary Club President Soraya Warner-Gustave

of 270 wheelchairs of assorted types and sizes for donation to persons with disabilities, through the World Wheelchair Foundation. Under the agreement, the TEF will commit to funding EC$120,000 towards the initiative. The financing will be made available in three equal instalments, the first of which was presented to Rotary Club President Soraya Warner-Gustave. Rotary will commit to the importation of the wheelchairs and selection of beneficiaries, and will facilitate discussions to establish a training programme for disabled persons to repair/ service wheelchairs, thereby generating part-time employment opportunities. The targeted beneficiaries are persons who are unable to walk and who would otherwise be unable to obtain such chairs due to financial constraints. This will enable mobility of persons with disabilities to undertake employment, provide for their families and encourage independence of recipients, thereby restoring or enabling their productivity and a sense of self-confidence. The handover of the first instalment of EC$40,000 was made by Noorani Azeez at our regular luncheon. The remaining funds are expected to be handed over by mid-September and mid-October respectively. Our club registers its deepest appreciation to the TEF and its Trustees for their support with this important initiative that will go a long way to benefit the community we mutually serve. For more information on the TEF visit: www.saintluciatef.com

The Saint Lucia Government Gazette Company Registration Name: LA Farms, Inc. Description: Farming Directors: Anthony Anthony Date Incorporated: 7-Aug-18 Chamber: Bapson Ambrose Chambers, Saint Lucia Name: Lucian’s Food Ltd. Description: Food exportation Directors: Venisa Chassang; Elvis Herelle Date Incorporated: 10-Aug-18 Chamber: SEDU, Saint Lucia Name: DMM Ltd. Description: Digital media Directors: Renoir D’Auvergne Date Incorporated: 13-Aug-18 Chamber: Brickstone Law Chambers, Saint Lucia Name: Diamond Boys Taxi Service Ltd. Description: Taxi service Directors: Kervin Mitchell; Carlan Mitchell; Julia Caroo-Mitchell Date Incorporated: 13-Aug-18 Chamber: Pierre Mondesir & Associates, Saint Lucia Name: D. Hill Shipping Services (SLU) Ltd. Description: Port services and marine logistical services Directors: Hayden Hill; Ross Dorner Date Incorporated: 17-Aug-18 Chamber: Gordon, Gordon & Co. Chambers, Saint Lucia

NICARAGUA

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AUGUST 25, 2018

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ANTI-ORTEGA PROTESTS LEAVE NICARAGUANS LIVING UNDER THE VOLCANO Fragile calm returns after roadblocks are broken up but few believe unrest is over BY JUDE WEBBER, FINANCIAL TIMES CORRESPONDENT IN MASAYA, NICARAGUA

A masked protester shoots off his homemade mortar in the Monimbó neighbourhood during clashes with police in Masaya in June © AP

t the foot of Masaya volcano in Nicaragua, shoppers and children in school uniform bustle about town. But the ominous rumble from deep inside the crater is a reminder that it could blow at any time. The same could be said for the town itself, still recovering after four months of protests against President Daniel Ortega. While a fragile calm has been restored after paramilitary forces loyal to the government broke up protesters’ roadblocks last month, few believe the unrest here and across the country is over yet. “Things are not normal, and we don’t know whether they will get better or worse,” sighed Kenex, 32, a social worker who, with his wife Ingrid, was one of only a handful of visitors to the normally busy volcano national park on a recent public holiday. Once upon a time the dramatic volcano, just a 20-minute drive from the capital city of Managua, would have drawn hundreds of visitors a day. No longer. Terrified by attacks on protesters after demonstrations against pension reform began on April 18 and swiftly snowballed, Ingrid had not ventured farther than her home, her work and her mother’s house since the crisis began. “People aren’t calm. It’s terrible to have seen so many people suffer, so many mothers cry,” she said, standing near the deserted site museum where a forlorn fruit seller and souvenir stand also had no takers. “The scars are still open.” Mr Ortega, a Sandinista revolutionary who helped topple dictator Anastasio Somoza in 1979, then headed the junta

that ruled Nicaragua and is now on his second term as president, is under fire at home and abroad for a brutal paramilitary crackdown on civilian protesters. ANPDH, a rights group, says nearly 450 people have died, including police. The government has put the death toll at 197 and blames the violence and economic damage on coup-mongers. Nicaragua’s legislature, which like other state institutions is under presidential control, last month rushed through a bill to try protesters for terrorism. Mariela Cerrato’s daughter, María Adilia Peralta, jailed three weeks ago, faces trial on terrorist charges on August 24 for her role in protests in Masaya. “She said, ‘How long will they give me, 30 years?’ and started crying,” said her mother, who had been allowed a brief recent visit. “I told her, ‘Yes, but you won’t serve it . . . because Daniel will be out this year’.” Many share her optimism that the protests — which are still continuing nationwide, though in smaller numbers — are the beginning of the end for the 72-year-old president. But by breaking up the roadblocks that protesters had thrown up across the country, Mr Ortega appears to have strengthened his hand. Even at this low point he has a solid base of about 30 per cent support, according to a recent poll. “It’s better for him to stay, to avoid a war and more bloodshed,” said José Ramón Centeno, in Monimbó, an indigenous neighbourhood of Masaya that was both a Sandinista stronghold in 1979 and the last bastion of the roadblocks in this year’s protests. “Things are looking better,” he said. “For me, the terrorism was when there were roadblocks.”

The roadblocks are gone but fear persists. Vladimir Gómez, a primary school teacher in Monimbó who became involved in the protests “because it was necessary”, said that only 20 of the 250 students enrolled at his school in the mornings were attending class. School hours have also been cut. It is not just in Masaya that normality is only skin-deep. In Managua, “for rent” signs have mushroomed. Bars and restaurants are shut or empty and traffic is light as the economy quietly crumbles. “Consumption is down, there are daily lay-offs,” said Mario Arana, a former central bank president and finance minister. “The adjustment we’re going to

have to make is going to be brutal.” The government has trumpeted a return to normal but at the same time rushed to pass draconian budget cuts and approve the issue of emergency domestic bonds to guarantee financial stability. Indignation at Mr Ortega continues to seethe despite the veneer of business as usual. “It’s like a pot on the boil with a thin lid that bursts off,” said Ms Cerrato. “There’s no going back until he goes.” For Alfredo Dávila, an out-of-work lecturer from Monimbó who praises the paramilitaries for clearing out “delinquents”, the future looks rocky. “To say this is over, no, I don’t see it like that,” he said. “There’s a lot of effort going into trying to bring down the government, not peacefully but with hate.”

THE STAR BUSINESSWEEK

AUGUST 25, 2018

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