Alister htghea. 10th April 3976
P 0 Box 65
THE GRLMADA NEWSLLTTI ------
For The Week Ending April 10th 1976
TAX HAVEN IN GERENADA (?)
The issue of creation of a tax haven and free-port in Grenada was
revived this week when the text of an advertisement appearing in a
german newspaper became known here.
This advertisement, which appeared in the Munich "Suddeutshe Zeitung
during the last week of March, offers "Dream Houses from DM 100,000u
in the Caribbean Tax Haven in Grenada." The advertisement says
also, "Permanent residency guaranteed. Tax Free t Fnundihg
or establishment of Banks and Companies possible." And it says,
"Information from Grenada Financial Consultants Ltd, P 0 Box 4 4,
A check at the Registry indicates that Grenada Financial Consultants
Ltd was registered in Grenada on March 4th 1976 and, among the objec
of the Company are to operate as Capitalists, Financiers and Money
Lenders. The Company has a share capital of ECO250,000.00 divide
into 250 shares of ECl$,000.00 each.
Two share-holders are recorded (each holding one share, Armond
Williams and Daniel Williams, both of whom are barristers and
solicitors with offices in St.Georges. Mr Armond Williams was,
formerly, a member of Mr Gairy's Grenada United Labour Party, was an
elected Member of the House of Representatives and held the political
appointment to the post of Attorney General.
Contacted yesterday (9th) Mr Armond Williams said he and Mr Daniel
Williams were interested in this Company only as Solicitors, that
they had been instrumental in registering the Company and that they
knew nothing of the advertisement appearing in the German Press.
The Company's Post Office Box, number .44, belongs to the Carib
Insurance Company whose Managing Director is Senator Paux Slinger,
Minister of Tourism in the Grenada Government. Contacted on the
telephone today (10th), Senator linger disclaimed any knowledge of
the advertisement appearing in the "Suddeutshe Zeitung", but he did
say that he had been asked by Mr Hermon Morriaty, the organizer of
Grenada Financial Consultants Ltd, "to become involved in a real
THE GRENADA NEWSLETTER Week Ending 10. 4. 76
estate transaction." Senator Slinger said, however, he had not
yet decided whether he would take up the offer.
Asked about the use of the Post Office Box number of Carib Insurance
Co Ltd by Grenada Financial Consultants Ltd, Senator Slinger expressed
surprise that this had been done, but said that this Post Office
Box number was shared by other businesses. The building in which
Cr ib Insurance Co Ltd is located is owned by David Slinger & Co Ltd,
of which Senator Slinger is Managing Director, and several other
business concerns opoupy sections of that building. Senator Slinger
seil these business concerns, which include the Chase Manhatten Bank,
all share Post Office Box number 44.
Since last year, Grenada's Commercial Community has been concerned
over reports that the Grenada Government was planning to create both
a free-port zone and tax haven in Grenada, but, no official
confirmation has been had. On August 12th 1975, Grenada's Consul
General in New York, Mr Francis Redhead, appointed a United States
firm, Messrs Picard International Ltd, to be "Purchasing Agents" for
the "recently constituted Free Port Zone in Grenada", and Mr Redhead
said Prime Minister Gairy had "taken a very keen interest" in the Zone.
Reinforcing the belief that a free-port zone was soon to be
established in Grenada was the fact that, on October 15th 1975,
Mr John Clancy, alias Eugene Zeek (a fugitive from justice in the
USA), registered a business in Grenada under the name of "Grenada
Freeport Company Ltd". However, questions raised in the Senate
on December 29th 1975 received replies that Government has not
declared a free-port zone in Grenada.
The advertisement appearing in the German Press, describing Grenada
as a "Tax Haven", and using a Post Office Box number closely
associated with a prominent member of Government, has again raised
speculations. Senator Slinger advised NEWSLETTER that he has been
told by Mr Peter Capella, Grenada's Totrist Representative in Germany,
that the organiser of Grenada Financial Consultants Ltd, Mr Morriaty,
will be in Grenada on April 21 at. Senator Slinger has promised to
arrange an interview for NVWSLETTER with Mr Morriaty who may be able
o) give answers to questions raised by the wording of his advertisement.
TEE GRENADA NEWSLETTER Week Landing -0.4.76
QCOQA INDUSTRY BOARD ACCOUNTS PUBLISUBID
In the Government Gazette of April 2nd, the Accounts of the Cocoa
Industry Board for the year ending 30th September 1975 have been
published. Certified by the auditing firm of Coopers & Lybrand,
these accounts carry the signatures of Sir D6nnis Henry, q C,
Chairman, and Conrad B Douglas, Secretary.
Publication of these Accounts comes as a sequel to a request by a
group of Cocoa Producers made in February that a General Meeting be
held on March 18th. This request was sent to Sir Dennis Henry,
Chairman of the Government appointed Cocoa Board, and 4 source close
to t-e Cocoa Producers said the only response had been an .
acknowledgement of the Cocoa Producers' letter.
Government took control of the Cocoa Industry Board in 1969, and it i
reported that, until last year, no accounts were published. The
accounts for the year ending 30th September 1974 were circulated to
Cocoa Producers, but, since the take-over by Government, no General
Meetings have been held.
The Accounts published in the Gazette show that, as compared with
5,167,079 lbs of cocoa sold in 1974, sale increased in 1975 to
5,288,000 lbs. The value of the 1974 sales was EC$5,238,597.00
which, in 1975, increased to EC47,193,434.00.
Total expenses in 1974 amounted to EC$1,253,270.00, and in 1975, to
LC0$2,340,945.00. Breakdowns of these figures are given and show
that salaries and wages in 1975 increased to EC$83,213.00 from the
1974 figure of EC$67,170.00. Maintenance of equipment and
buildings almost doubled between the two years, from ECO4,722.00 to
ECO8,526.00. There is a figure for "Surplus expense estimate",
which, in 1974, is shown as ECO1,760.00 and in 1975 as EC011,185.00.
In both years, the biggest expense recorded is that for'Export Duty.
In 1974, this stood at EC0737,785.00, and in 1975 at EC$I,120,568.00.
According to the Statement of Income and Retained Eawnings for 1975,
provision has been made for the sum of EC$1,350,000.00 for "surplus
due to growers". The "surplus due to growers" figure in 1974 was
EC$1,060,000.00. In 1974 and 1975 tWe sums of EC#78,895.00 and
THE GRLNADA NEWSLETTER Weok Ending 10.4.76
EC$80,055.00 respectively were transferred to thu Reserve Iland, and
the Balance Sheet shows a total reserve of EC$212,394.00 as 30th
Sources close to the Cocoa Producers said it was not considered
satisfactory that the Accounts of the Cocoa Industry Board should be
merely published, and that, since Government had taken over the
Industry, no opportunity had been given to Cocoa Producers to ask
any questions as to the operations of the Board. These sources
could not say whether any further action was contemplated following
the failure of Sir Dennis Henry to call a General Meeting
CHAMBER SEEKS NATIONAL ECONOMIC CUOlIITTEE.
Mr Lyden Ramdhanny, President of the Grenada Chamber of Commerce,
said on Thursday (8th) that his Chamber has suggested to Government
that a National Economic Committee be established.
The President was speaking after the Annual General Meeting of the
Chamber at which he had been reelected for his second term of office,
and he disclosed that this is the second occasion on which the Chamber
has made this proposal to Government.
"In July 1972", said Mr Ramdhanny, "realising the depressed state of
our economy, the Chamber wrote Government suggesting the setting up
of a National Economic Committee to advise Government on an Economic
Development Programme." "Unfortunately", continued the President,
"Government did not see fit even to acknowledge receipt of the
Mr Ramdhanny disclosed that, "realising that the present state of the
economy is no better than in 1972", the Chamber has again written to
Government requesting the setting up of such a Committee which will
comprise various sectors of the Community including the Trade Unions.
"It is the Chamber's hope", concluded the President, "that Government
will recognize the urgent need for a National Economic Committee, and
thus save Grenada from economic disaster."
THE GREHADA NEWSLETTER Week Ending 10.4.76
*ihbRCHA TS To PAY LIChNCE
Saturday April 17th, the Saturday before Easter, is to be declared a
Public Holiday as a part of the celebration of Grenada's Laster Watez
Parade, and all business places which wish to stay open on that day
will have to purchase a special licence.
This was disclosed by the President of the Chamber of Commerce,
Mr Lyden Ramdhanny, at a press conference on Thursday (8th), and
Ar Ramdhanny said Members of the Chamber were concerned over this
action by Government.
"Easter Saturday is a big sbhpping day", said the President, "and it
is unfortunate that business people will be forced to buy a licence
to take advantage of it. The situation has been made worse for
the supermarkets and other business places located on the Carenage,
as the public will be charged a fee to enter that area."
Ar Ramdhanny disclosed that the Chamber has been advised that
business places must apply for the licence to stay open on Easter
Saturday, and the fee for this licence will range between 30050.00
Sources close to the Civil Service Association (CSA) and the GrenadE
Union of Teachers (GUT) disclosed this, w6k that a letter had been
received from the Cabinet Secretary apologising for the fact that tl
provisions of the Grenada Constitution had not been followed in maki
recent appointments to the Public Service Commission (PSC).
On March 26th, the Presidents of CSA and GUT wrote Governor-General
Sir Leo deGale protesting that the two Bodies had not been consults
on the appointment of two members of the PSC as required by the
Constitution. The Governor-General was told that, because of th
all actions of the PSC would be considered "null and void and of no
The Source told NEWSLETTER that, on March 30th, the Cabinet Secreta
advised that an error had been made. Following this, there were
consultations with CSA and GUT and, on Wednesday 7th, Mr E R.L Hind
V2, A: Waltor RS,.Tolh wre sworn in ).3 members of PSC,
THE GRENADA NLWSLETThR Week Ending 10.4.76
Mr St.John had been one of the persons unoonstitutionally appointed.
It is understood that Mr E R L Hinds, a retired Primary School
Headmaster, replaces Mr Claude Morrison, a businessman who is now
Chairman of the Government appointed Interim Board of the Grenada
Cooperative Nutmeg Association.
JUDGEMENT IN NUTMEG BOARD CASE RESERVED.
The hearing of the Suit brought by six members of the dissolved Nutmeg
Board challenging the validity of the Dissolution Order made on July 4th
1975, continued on Tuesday (6th) before Mr Justice Archibald Nedd in
the High Court.
Hearings in the Suit first began last December 1st, continued on December
2nd and were resumed on January 19th 1976 and then adjourned to April 6th.
They were continued until yesterday (9th) when Mr Justice Nedd reserved
Throughout this week, the Court was packed with Nutmeg Producers, and
there was an incident on Tuesday when Senator Derek Knight, appearing
in the case for Mr Claude Morrison, Chairman of the Interim Nutmeg Board
appointed by Government, was booed in the yard of the High Court.
Recurrence of this incident was prevented by a detachment of the Defence
Force which mounted guard at the High Court during the remainder of the
BANK AARAGERS MELT MINISTER
A source close to Government told NLWSLTTER that, this week, Managers of
Commercial Banks met the Minister of Finance, Mr George Hosten, for
discussions on the new Banking (Special Deposits) Act 1976.
-IsWSLETTER understands that these discussions centered around the drafting
of regulations which will control operation of the provisions of the Act-
but Managers of Banks were unwilling to 6ive details or to say whether
they were satisfied with the outcome of the talks.
Reliable sources disclose that the Grenada Cooperative Bank Ltd was not
included in these talks with Mr Hosten and observers read this as
indicating that this Bank will not be asked to comply with the provisions
of the Act. 00000000 (112 words)
CRUISE LINE CALLS.
Unfortunately, the statistics for the weeks .ending March 27th and April
3rd are not yet available from the authorities.
On 2nd and 3rd April, the S S *Geeststar" loaded 16,896 boxes of bananas
weighing 508,403 lbs and valued at EC$43,214.00. There were 162 boxes
of fruit rejected.
/ t9 0Alister Hughes
/ 10th April 1976