Alister Hughes l2th 1976
P 0 Box 65
THE GRI ADA IW>LUT1R L.L Y
Por The Week .Endin ,1th Marh 1976.
THE CLAEoY AFFAIR .- EWSLETTE ThEAT.LED.
A source close to Government disclosed to NEWSLETTER on Monday of this
week (8th) that Prime Minister Gairy has received a memorandum from
the Attorney General's office recommending that an investigation be
undertaken into the affairs of a wealthy American, Mr John Clancy,
with a view to instituting fraud charges and deporting Mr Clancy.
The source said that the memorandum had been copied to the Cabinet
Secretary, Mr Godwin Brathwaite, the Govemoe. General, Sir Leo
deQa1e, and Commissioner of Police James Usen.
Mr Clancy, who arrived in Grenada shortly before Christmas 1973, has
been the subject of recent "Washington Post" and "New York Times"
newspaper stories alleging he obtained over US*1 million by passing
bogus cheques in the New Jersey area. Mr Clancy is said to be, in
fact, race-horse trainer Eugene Zeek, and accompanying him to Grenada
is his former jockey-associate, Karl Korte, who now passes as Frank
Clancy and is. married to Prime Minister Gairy's personal secretary.
Mr Clancy lives in the south coast residential district of L'ance aux
Pines, paying US*500 per month for a pose4 house surrounded by
brilliant flood-lights and guarded by ferocious Rottweiler and
Doberman dogs. His friend Naney Julia Mueller presides there as
hostess under the name of Nancy Clancy, but reliable sources say her
real name is Mrs Zeeb and her maiden name is Wilson.
Also residing there are three pre-teen Grenadian children who, more
than a year ago, were "adopted" by the Clancy&. from the Queen
Elizabeth Home for underprivileged children, who now go to the high-
priced private Westmoreland School, and who, observers say, are
"lavished with love" by Nancy Clancy.
This action by the Attorney General's office comes in the wake of an
incident last week which seems related to the allegations against
Mr Clancy. Last Tuesday (2nd) while Grenadians were celebrating
the second day of the annual two day Carnival fete, two white
Americans arrived from Barbados by early LIAT flight. These
visitors are described as "swarthy", and, giving their names as
THE GRENADA NEWSLETTER Week Ending 13.3.76
L. Geoullo and C lannelli, checked in at &osfa Point Inn in +ba hotel
district south of St.Georges.
Rose Point Inn management is tightlipped, and precise details are not
available, but Messrs Geouilo and lannelli made no secret of the fact
that they were on a "debt collecting mission" to Mr John Clancy. It
is believed that Mr Clancy was first looked for unsuccessfully at his
L'Vnce aux Epines residence and then at his "Patio" nightclub on the
southwestern fringe of St.Georgea harbor. Talking to a Rose Point
employee on Tuesday afternoon, Mr lannelli expressed impatience. "I
hate to chase a wild-cat", he said, "we don't want to kill Zeek because,
that way, we doat get our money, but we're not leaving the island before
we see him."
Meanwhile, Defence Force gurads were posted at Mr Clancy's residence and
Inspector Cosmos Raymond of the Criminal Investigation Department headed
a detachment of Police at the "Patio" nightclub. There was a round-the-
clock Police vigil outside Rose Point Inn, and Police searched the rooms
and belongings of Messrs Geoullo and lannelli. Nothing, however, was
taken away and they were not detained.
Next dmy the two visitors held two secret meetings with Mr Clancy, and
observers saw the three men arrive at Rose Point Inn by car that
afternoon. Mr Clancy did not stay, but, later in the evening, taxi
drivers parked in Ross Point Inn yard saw M" Clanco arrive and deliver a
package to Mr lannelli. On Thursday, the two visitors left for Barbados
A telephone call on Monday (Mth) to Langley Yachts, a charter boat
operation run by Mr Clancy, got the information that he is "not in the
island". A lady identifying herself as Miss Phylls Vrancts, Mr Clancy's
secretary, said he left (Crenada last week-end for an unknown destination
and it is not known when he will return.
Miss Francis said Mr Prank Clancy is also off the island. A few days
before the arrival of Messrs Geoullo and lannelli, Mr Frank Clancy
suffered a "nervous breakdown" and entered a private clinic where two
Grenadian doctors, Michael Radix and Alister Budhlsll attended to him.
Mr Frank Clancy spent 48 hours in the clinic before being taken to
Barbapos by Dr Michael Raeix, and he is reported to be now hospitalized
THE GRENADA NEWSLETTER Week Ending 13, 3, 7'
in that island.
Mr Desmond Christian, Grenada's Attorney General has been
engaged in the High Court this week and has not been available for
comment. At the Clancy residence, a female voice with an
American accent disclaimed any knowledge of the whereaboata of any
member of the Clancy family.
On Monday evening of this week (8th) details of this newastory were
given by me in voicecasts over Radio Antilles in Montserrat, CBG
Radio in Barbalos and 610 Radio in Trinidad. About an hour after
these voicecasts were aired, a male American voice phoned NEWSLETTER'
residence and said, "Talk all you want now, Alister, because you don't
have very much time. You're f...ing around with the wrong type of
people this time." This threatening phone call was reported to
CoMmissioner of Police Jamea Usen.
Reliable sources disclosed yesterday that Mr George Hoaten, Minister
of Finance, will resume negotiations today with the team appointed by
the Civil Service Association, the Technical & Allied Workers Union
and the Grenada Union of Teachers to hold discussions relative to
a salary revision for all Government employees.
These negotiations are based on a demand by the Unions for a 65S
salary increase for employees in the lowest income bracket, 50? for
employees in the middle income bracket and 40% for top income
earners, these increases to be effective from u-nuary 1st 1974.
Earlier this month, Mr Hosten counter-proposed increases effective
January let 1975 and spread over three years. For the lowest
income bracket, Government offered 121% in 1975, 121fo in 1976 and
1/o in 1977. Over the same period, the middle income bracket wees
offered 10%, 10% and 15%, while the offer for the top income earners
was 71%, 71% and 10%.
The Unions' negotiating team rejected these offers and, on Friday 5th
Cabinet gave further consideration to the matter. The Unions also
THE GRENADA NEWSLETTER Week Ending 13.3.76
held a meeting to discuss negotiating strategy, anA a source close to
the negotiating team said it was hoped that, at today's meeting,
Government will demonstrate "a more realistic approach" to the
proposals put forward on behalf of Government employees.
DEMUTION "NOT OFFICIAL"
A source close to the Grenada Police Force confirmed the information
given to NEWSLETTER by the Editor of the Grenada "Torchlight" newspaper
in an interview last week that a Police Corporal had been telephoned a.
his station by Superintendent of Police Osbert James and had been told
that he had been demoted and would be transferred to Grenada's island
ward of Carriacou.
This telephone call came after the Police Corporal had charged a
member of Prime Minister Gairy's ruling Grenada Labour Party with a
The same source told NEWSLETTER on Wednesday (10th) that Commissioner
of Police James Usen had spoken to the Police Corporal and had asked
him to "carry on" with his duties as "the demotion and transfer were
WISA MINISTERS MEET.
The 19th meeting of the Council of Ministers of the West Indies Associated
States, Montserrat and Grenada opened yesterday (11th) at the Tropical Inn
in Grenada with a reported 38 delegates and advisors.
Premiers John Compton of St.Lucis, Milton Cato of St.Vinoent and CbAef
Minister Austin Bramble of Aontserrat are attending and Senator Derek
Knight is leading Grenada's delegation.
The agenda has not been disclosed for this two day meeting which concludes
today (12th). (74 words)
The S S "Geesttide" arrived today to load bananas. This is the first
shipment since the "Geeststar" loaded on February 25th.
CRUISE LINER CALLS.
Regretfully, NEWALETTER must report that the authorities are still unable
to give the required statistics covering cruise liners and their passenger