The Grenada newsletter

MISSING IMAGE

Material Information

Title:
The Grenada newsletter
Physical Description:
v. : ill. ; 36 cm.
Language:
English
Publisher:
A. & C. Hughes
Place of Publication:
St. George's, Grenada, West Indies
Publication Date:
Frequency:
twenty no. a year
semimonthly
completely irregular

Subjects

Subjects / Keywords:
Periodicals -- Grenada   ( lcsh )
Politics and government -- Periodicals -- Grenada   ( lcsh )
Economic conditions -- Periodicals -- Grenada   ( lcsh )
Social conditions -- Periodicals -- Grenada   ( lcsh )
Genre:
newspaper   ( marcgt )
newspaper   ( sobekcm )
Spatial Coverage:
Grenada

Notes

Dates or Sequential Designation:
Began in 1973.
General Note:
Description based on surrogate of: Vol. 11, no. 1 (Jan. 22, 1983); title from caption.

Record Information

Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
oclc - 24157414
lccn - sn 91021217
Classification:
lcc - F2056.A2 G74
System ID:
AA00000053:00072

Full Text





Alister Hughes .5rd &Vivl 1,,7'
P 0 Box 65
St.Georges
GRENADA 1 3
TqhB GMAE A iw8LETTER 0) D k
For The Week Ending 3rd April 19 76------
LJTTERY LICECL QGRAATEL

A Company registered in Grenada, "The Orenadian amwnay tix.Ited",
has been granted a licence by Government undir a 99 year fam ^a
to run a lottery based in Grenada. According to the terms of thk
licence, however, no tickets may be sold in Grenada and informed
sources say most sales are expected in Latin America, the Middle
East and Hong Kong.

The granting of this licence received rapid attention by Government
following the passing of the Gambling, Lotteries & Betting
(Amendment) Act 1976 which empowers the minister of Finance to
"grant to a Company registered in Grenada a licence, upon such term
as the Minister shall think fit, to promote and conduct a lottery",

This Act was taken through all its stages and passed by the House of
Representatives and the Senate on March 24th. On the following
day it was assented to by Governor General, Sir Leo deGale, and on
the same day became law when it was published in an Extraordinary
issue of the Government Gazette. Alao on that day, March 25th,
the exclusive lottery licence was issued to The Grenadian Co. Ltd.

A check at the Registraeacoffice disclosed that The Grenadian Co Ltd
was only one day old when the licence was issued. The Company was
officially registered on March 24th, the same day the Act was being
debated and passed by the House of Representatives and the Senate.

According to the terms of the licence, the Company must deposit
"the Gross Receiptsw of lottery ticket sales and other related sums"
in a "Trust Fund" at an approved Bank which is "convenient for the
purposes of the management and administration of the Trust Fund and
the distribution of funds."

In this connection, the Company may, with the approval of the
Minister, establish a "banking institution" in Grenada which would
provide "all financial services", including the handling of the
Trust Fund.
(continued)











Alister Hughes
THE GiENADA NEWSLETTER Week Ending 3.4.76


Sales Agents.
As soon as the Gross Receipts are deposited, the Bank must pay a 290

commission to a Company designated by the Grenadian Company Ltd as

Sales Agents. The balance of the Gross Receipts must be held by

the Bank, and, after the winning ticket or tickets have been drawn,

the Bank must pay out the prize money at the direction of the Company.

After prize money has been paid, the Bank must pay the Company 2go

of the Gross Receipts to cover "administrative, processing and general
promotional expenses", and the remainder of the money, what is called

the "Net Amount" is to be split three ways.

First, the Treasury of Grenada is to receive a percentage of the

Net Amount, this being 20S in the first year of operation and 25o

in each subsequent year. A minimum of US$600,000.00 per annum

is guaranteed and the Company is to make an initial payment of

US$200,000.00 and a monthly payment of US$50,000.00 with effect from

July 25th 1976.


Next, 5%o of the Net Amount must be paid into the "Direct Investment
Account." This "Account" is a fund which will be operated by a

three-man "Direct Investment Board" which "shall establish with the

assistance and advice of the Company a scheme to be known as *The

Grenada Direct Investment Programme', and shall finance the said

scheme by means of the Direct Investment Account." A minimum of

US$150,000.00 per annum is guaranteed for the Direct Investment Account.

The third beneficiary from the Net Amount is the Caribbean Investment

& Development Corporation Ltd, the parent Company or "sponsor" of

The Grenadian Company Ltd, and, after the first two shares are taken
out as above, the Sponsor receives the balance. It is understood

that the Caribbean Investment & Development Corp. Ltd is located in
the Cayman Islands.
Purpose
There is another condition which the Company must meet and which is

not clear. In the original draft of the licence, this condition

was that the Company should pay "to an entity designated by the Minister

forthwith the sum of US$50,000.00". In the licence issued, however,

this has been altered to read that the Company must pay "US$50,000.00
(continued)










Alister Hughes
THE GRENADA NEWSLETTER Week Ending 3.4.76.
Page 3
forthwith to the Government of Grenada for a purpose to be designat

by the Minister." It is not known whether it is significant the
this amount is stated to be paid to the "Government of Grenada" and
not to the "Treasury of Grenada" as is the'case with sums to be pai

from the Net Amount.

Among the facilities given the Company are thgt work permits will b

granted "to those whom the Company shall reasonably desire to emplo
and that "in furtherance of the lottery, the Government agrees to
allow the free movement of currencies brought into Gremada by the

Company without restriction or limitation, in and out of Grenada".
Further, the Company will be exempt from the payment of Income Tax
and no stamp duty will be paid on lottery tickets.

In order to guarantee what the licence calls "the integrity and
accuracy of the lottery and to assure the necessary confidentiality'
the Minister and the Company will jointly appoint a three-man

"Supervisory Committee" which "will be privy to all: operations of tl

lottery and will report to the Government at such time or times as
the Minister may require but at least annually." In this
connection, the licence states that "no other disclosure will be

required of the Company or the Sponsor."

Informed sources state that the Articles of Association of the
Grenadian Co Ltd and the draft licence were drawn up by an English
barrister in cooperation with a Grenadian law firm, Messrs Henry,

Henry and Bristol. These Articles were registered by Henry,
Heary & Bristol, and the first two shareholders each holding one

share were two employees of this law firm, Beryl Date and

Margaret J Williams. Subsequently (on March 29th) these two
shareholders became Directors of the Company together with Joseph

K Newman who is described as a United States Citizen and a Company
Director, and whose address is given as 745 5th Avenue, New York.
At the same time, Margaret J Williams became Secretary to the

Company.
ubjects.
The objects of the Company go far beyond the operation of a lottery.

These objects include the purchasing of lands and the conversion of
those lands into "roade, streets, squares, gardens and pleasure
(continued)








Alister Hughes
THE GRENADA NEWSLETTER Week Ending 3.4.76
Page 4

grounds and other conveniences." The Company may also construct

"sewers, roads, streets, tramways, gasworks, water-works, lime kilns

and works, houses, flats, shops, offices and business premises".

Other objects are to produce electricity, to supply heat, light and

power and to deal in bills of exchange, debentures etc.

The share capital of the Company has been fixed at EC$1 million and

this is divided into 10,000 shares valued at EC$100.00 each. The

number of persons in the Company is limited to 50 and no shares will

be offered to the public.

Informed sources state that the objects of the Company have been framed

with a view to purchasing and developing one or more of the

peninsulars on Grenada's south coast. It is understood that the
intention is to develop a high-class residential area which will

attract wealthy families from abroad, and the intention is to make

the area self-contained with its own public utilities, banking

facilities, shopping areas and entertainment centres.

Apa t from the three persons registered as Directors of the Company,

Mr Roland E Hunt, a New York investment broker, is understood to be

interested in the undertaking. Mr Hunt, it is said, is an associate

of Mr Keith Barrish of the GRAMCU Company of the Bahamas. Also

interested is said to be Mr Dennis Love, a Canadian who is president

in Grenada, and Columbian born Mr Jose Maria Chavez, Grenada's

Deputy Permanent Representative at the United Nations.

Two other Companies registered in Grenada applied for licences to run

lotteries. They are The rames Milne Co Ltd and Maria Scott & Co

Ltd. Both applications were handed in to Government on March 24th,

the day on which the Act was debated and passed. To date, neither

Company has received a reply from Government.

Interviewed today (3rd), Mr D M B Cromwell, Managing Director of

Maria Scott & Co Ltd, said, "It is obvious that the legislation was

created to favour a particular group of people, and foreigners at

that. It was all arranged in advance and nobody else had a

chance. The whole thing smells rotten."
(t389 words)
-0-0-0-0-0-0-0-0-0-0-0-










Alister Hughes
THE GRENADA NEWSLETTER
Page 5
BA14K iAHAKERS CUNCEPIIED

A reliable source said this week that the Managers of BanKa
operating in Grenada are concerned over the "Banking (Special

Deposits) Act 1976" which was passed recently by the House of
Representatives and the Senate. The source said the Managers
will be seeking a meeting to discuss the Act with the Minister of
Finance, Mr George Hosten.

This Act calls upon all Banks to deposit 5% of their "deposit
liabilities" with the Accountant General, and these "liabilities"
refer to all savings accounts, fixed deposits and current accounts
The Act also provides that monies which have remained "dormant" in
Banks for six years must be transi.rred to the Accountant General.
Provision is made for claims to be made for such monies up to 10
years after they have been passed to the Accountant General, after

which, they are absorbed into the revenues of the State.

Banking circles have expressed concern that Government did not disc
the implications of the Act with the Banks before taking action, an
it was indicated that a meeting would be sought with Mr Hosten to
clarify certain aspects of the situation.

Questioned by the Press this week, Mr Hosten said he was not aware
of any scheduled meeting with the Banks, but he did express an
interest in knowing the Banks' reaction to the Act.
(214 words)
-0-0-0-0-0-0-0-0-
FIRE DESTROYS MINISTRY OU AGRICULTURE

Shortly after 8.00 pm on Friday March 26th, the Ministry of
Agriculture building located in the Botanical Gardens on the
southern fringe of St.Georges, caught fire and, within a short time,
was completely destroyed.

This old wooden building was separated by about twenty feet from a
modern concrete structure housing the Lands & Surveye Department
and other offices related to the Ministry of Agriculture, and this
wing suffered extensive damage.

Located in the same compound as these two buildings is the building
housing the Prime Ainister's office. The concrete wing of the
(continued)








Alister Hughes
THE GRENADA NEWSLETTER Week Ending 3. 4.76
Page 6

Ministry of Agriculture shielded the Prime Minister's office from the
intense heat and flame, and that building was undamaged.

Some filing cabinets and other items were saved from the modern wing
of the Ministry of Agriculture, but nothing survived from the old
wooden building, and it is understood that valuable records were lost.
(146 words)
0-0-0-0-0-0-0-

GOVERNMENT'S DEBT TO CDC 1OUNATING.

At the end of 1975, the Government of Grenada was in arrears of its
electricity bills by EC$275,000.00, and this figure is rising by about
EC$25,000.00 per month in 1976.

This information was disclosed at a Press Conference on March 25th
by the General Manager of the Commonwealth Development Corporation
CDC), Mr P.Meinertzhagen, who was then on a visit to Grenada.

Grenada Electricity Services, to whom the Government of Grenada is in

debt, is a joint venture of the Government of Grenada and CDO,
Government holding 417. of the shares and CDC, 59b.
(94 words)
-O-O-0-0-0-0-

PUBLIC SEtVICE APPOINTMENTS UNCONSTITUTIOtNAL.

A source close to the Civil Service Association and the Grenada Union

of Teachers disclosed today (3rd) that a protest has been made to
Governor General Sir Leo deGale over the appointments made by him
t'x the Publio Service Commission with effect from March 3rd 1976.

The source pointed out that, according to the Grenada Constitution,

two members of the Public Service Commission (PSC) are to be
appointed "by the Governor General acting in accordance with the

advice of the Prime minister after the Prime Minister has consulted

with the appropriate representative bodies".

The"appropriate representative bodies" are the Civil Service

Association (CSA) and the Grenada Union of Teachers (GUT), and the
Constitution makes the provision that these bodies must approve
the appointments.

According to this source, neither the GUT nor the CSA were consulted
b.-Aore these appointments were made to the PSC, and, under date of
continuedd)








Alister Hughes
THE GRENADA NEWSLETTER Week Ending 3.4.76
Page 7
26th March, the Presidents of the two bodies wrote a joint letter
to the Governor General protesting that the provisions of the
Constitution were not adhered to and appealing for "some early
action by Your Excellency in this matter so that our Constitutional
Rights would not be further abridged."

The letter stated further, "We consider, Your Excellency, that
all appointments, transfers and other actions taken by this
Commission would be null and void and of no effect."

To date (3rd), no reply has been received by the Unions.
(218 words)
-0-0-0-0-0-0-

GOVERMUMiT WORKERS ACCEPT COAPROAIBE

A source close to the Negotiating Team appointed by the Civil
Service Association, the Technical & Allied Workers Union and the
Grenada Union of Teachers to negotiate a salary increase for all
Government workers disclosed this week that a compromise has been
reached on an interim increase to be paid.

This compromise agreement is that employees in the lowest income
bracket will receive a 2/o. increase, those in the middle income
bracket will get 15% increase, and top income earners will receive
10S increase. These increases will be effective from let
January 1975 and will be reflected in the pay packets at the
end of this month. Back pay due to workers will be paid
in June.

This compromise has been accepted on the condition that the matter

of a salary revision be put in the hands of a Salaries Commission,
that that Commission be appointed immediately, and that its
findings be implemented in January 1977.
(151 words)
-0-0-0-0-0-0-
TAWUv/CWC AREEEj T ,oR EX WEEK.
Mr Curtis Stewart, President of the Technical & Allied Workers Union
(TAWU) said today (3rd) he expected that the deleted Agreement
between his Union and the Central Water Commission (CWC) will
be signed on Monday 5th.
(continued)









Alister Hughes
THE GRENADA NEWSLETTER Week Ending 3.4.76
Page 8

Mr Stewart said that, on monday of this week (29th), TAWU had

served strike notice on CWC in protest against the failure tor

pay back-pay by February 29th, and the failure of CWC to honour

certain agreements reached with reference to.deductions from

back-pay.

These agreements, said Mr Stewart, were that deductions were

to be made from the back-pay of workers who did not go on strike

last January, and these deductions were to be paid to workers

who lost wages because they went on strike. OThis agreement

was reached in principle between CWC and TAWU", said Mr Stewart,

"and only the amount of the deductions was to be discussed.

However, the Minister for Labour, Mr Franklin Dolland,
countermanded the agreement and we have included this as one of r

the reasons for our strike on April 12th".

Mr Stewart said he felt certain the Agreement would be signed

next week and he expected that back-pay from March let 1975 would

be paid out by next week-end. He felt, however, that the

deductions from back-pay might not be settled in time to avert

the intended strike.
(229 words)
-0-0-0-0-0-0-0-

CRUISE LINER CALLS

NEWSLETTER regrets that the statistics for the week ending 27th

March are not yet available from the authorities. It is hoped

that this information can be included in the next issue of

NEWSLETTER.
-0-0-0-0-0-0-0-

BANANA ShIPFENTS.

On 25th and 26th March, S S "Geestatar" loaded 23,943 boxes of

bananas weighing 719,573 ibs and valued at EC$57,565.00. There

were 51 boxes of fruit rejected.
(25 words)
-0-0-0-0-0-0- /72. 0


1976