Caribbean Insight
The Caribbean Council's Flagship Fortnightly Publication
Caribbean Insight is The Caribbean Council’s flagship fortnightly publication. Our comprehensive publication offers the latest in news, analysing business and political developments across the region.
From The Bahamas to French Guiana, each edition consists of a country-by-country analysis of the leading news stories of consequence, distilling developments across the Caribbean into a single must-read publication. Each edition contains two leading articles providing in-depth analysis of topical political, economic and developmental issues in the region.
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Lead Articles Featured on Caribbean Insight
6 September 2024
Amid recent sales of Caribbean operations by Canadian banks, RBC Financial (Caribbean) Ltd.’s move to reduce its capital by US$200mn is drawing attention.
Though registered in Trinidad and Tobago, RBC Financial is a wholly owned subsidiary of RBC Holdings (Barbados), whose ultimate parent company is the Royal Bank of Canada (RBC).
Consequently, the decision to reduce capital by such a significant amount is fuelling speculation that RBC is positioning for an exit of the Caribbean market following the sale of its operations in Jamaica, Suriname and the Eastern Caribbean over recent years, beginning in 2014.
In its consolidated financial statements for 2023, RBC Financial (Caribbean) reported a stated capital of US$1.77bn for the year ending 31 October 2023.
A reduction of US$200mn equates to an 11.2% decrease from the capital reported as of that date.
In a notice to creditors dated 25 July 2024, RBC Financial detailed that during a board meeting on 25 June 2024, it was proposed that the sole shareholder pass a resolution to reduce the company’s stated capital.
On 12 July 2024, RBC Financial’s sole shareholder approved a reduction in the bank’s stated capital by US$200mn “for the purpose of making a distribution to the holders of the ordinary shares of RBC Financial on record on the date the capital reduction occurred”.
Some analysts are interpreting the move and the notice to creditors as a means by which the sum of money could be returned to RBC Financial (Caribbean) Ltd.’s parent company in Canada.
RBC Financial’s notice to creditors emphasised that the announcement of a capital reduction was merely a formality required by the Companies Act of Barbados. The institution assured that all creditors will be paid.
“This capital reduction does not affect the operations of RBCFCL [RBC Financial Caribbean] and we remain committed to maintaining strong relations with our clients, employees and communities across the Caribbean,” stressed the bank in its notice. However, scepticism remains as memories of RBC’s historical withdrawal from the Caribbean in 1987 linger.
“Our regulatory capital ratio at year end stood at 27.30%, which is well above regulatory thresholds,” said RBC Financial Caribbean CEO, Darryl White in his January 2024 report.
Speculation is mounting that RBC Financial may be over-capitalised and plans to return US$200mn to Toronto for better utilisation, given perceived risks in Caribbean lending. The Central Bank of Trinidad and Tobago (CBTT) indicated that capital reductions can be due to reasons like returning surplus capital, simplifying capital structure, or corporate restructuring.
“Financial institutions may reduce stated capital for a number of reasons. Some reasons include returning surplus capital back to shareholders, simplifying their capital structure to become more efficient, reducing or eliminating paid-up or unpaid shares, cleaning up its balance sheet, and corporate restructuring,” said the Financial Institutions Supervision Department of the CBTT.
The central bank made it clear that it would not usually get involved in cases where capital reductions do not negatively impact operations of financial entities.
“In this instance, the company has stated its reason as being for the purpose of making a distribution to its shareholders. In general, the Central Bank would not take issue with a reduction of stated capital where the financial institution is not impacted negatively,” said the CBTT.
Responding directly to a question from local media in Trinidad and Tobago about whether the reduction in capital foreshadows its departure from the Caribbean, RBC Financial’s Senior Manager, Corporate Communications, Andrew Knowles, asserted that while they appreciated the interest, the bank is “unable to provide any comments at this time”.
In March 2008, shareholders of RBTT Financial Holdings voted in favour of the proposed US$2.2bn amalgamation of RBTT with a Caribbean subsidiary of RBC marking the start of the Canadian bank’s Trinidad and Tobago operation as we know it today.
Since then, RBC has sold its operation in Jamaica in 2014 to Sagicor Group Jamaica. In 2015, RBC completed the sale of RBC Royal Bank (Suriname) N.V. to Republic Bank Ltd (RBL). In 2021, RBC secured regulatory approval for the sale of its Eastern Caribbean banking operations to a consortium of regional banks comprised of 1st National Bank of St Lucia, Antigua Commercial Bank, Bank of Dominica, Bank of Montserrat, and The Bank of Nevis.
This included its branches in Antigua and Barbuda, Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines, effectively marking its exit from the sub-region, save for Barbados.
Against the background of recent divestments by Scotiabank and CIBC, two other Canadian banks in the region, the Caribbean will no doubt keenly observe RBC over the coming months.
2nd August 2024
The governments of Trinidad and Tobago and Venezuela have signed an agreement for the exploration and production of natural gas from the Cocuina-Manakin field.
The 20-year agreement to exploit the field, which extends across the maritime boundary between the two countries, was signed in Venezuela days before the now controversial presidential election in there.
The deal grants a licence to British energy giant bp, and the state-owned National Gas Company of Trinidad and Tobago (NGC) to develop the Venezuelan side of the Cocuina-Manakin field.
Trinidad and Tobago’s Energy Minister, Stuart Young led the country’s delegation to the event, which was attended by several high-ranking Venezuelan officials including President Nicolas Maduro.
“We continue to take monumental steps as you say, Minister Stuart Young, to consolidate a relationship of good neighbourliness and brotherhood which is and should always be a relationship that serves as a model in the world for relations of cooperation and peace, increasingly,” said President Maduro.
teleSur reported that among the documents signed were authorisation for the tax admission of the production of the Cocuina Field of the Deltana platform, agreements on the timeframe for the implementation of the Manakin-Cocuina Field Area Unit, the Approval Act for its functional and governance structure, and the licence for the exploration and exploitation of non-associated gaseous hydrocarbons in the Cocuina Field of the Deltana platform.
“Once again we have shown the world what happens when two fraternal countries work in a way united, in difficult times, stand up for what is right, the sovereign rights of two countries,” said Stuart Young at the signing ceremony held in Caracas and broadcast live on Venezuelan state television.
The field, estimated to contain 1tn cubic feet of gas, is expected to form part of the rejuvenation efforts to increase production in Trinidad and Tobago’s flagging oil and gas sector. The deal follows the July final investment decision (FID) announcement by Shell T&T Ltd, local subsidiary of Shell plc, for the long-awaited Manatee liquefied natural gas (LNG) project.
“The award of the licence would not have been possible without the significant diplomatic efforts by the Government of T&T and its leadership in driving strong collaboration between bp, the National Gas Company and the governments of T&T and Venezuela,” said bpTT President David Campbell who was also present for the signing.
The press release noted that securing the licence is an important milestone which will allow the company to move forward with planning for the development of these significant resources in a bid to bring more gas into the country’s existing gas infrastructure during this decade.
The agreement now means that bpTT has licences and operatorship for both the Manakin and Cocuina gas fields which the company says will simplify the joint development plan from the unitised field.
The deal was also welcomed by acting President of NGC Verlier Quan Vie who called the development “a continuation of efforts to export natural gas from Venezuela to Trinidad and Tobago,” adding that the NGC is excited to work collaboratively with all the parties to progress this and other opportunities for the benefit of the citizenry.
Local stakeholders have also praised the government for successfully negotiating the deal to allow the development of the gas field.
The Energy Chamber of Trinidad and Tobago congratulated bpTT, NGC and the Rowley Administration for what it sees as a project that can provide significant volumes of natural gas to the LNG and petrochemical sectors and help extend the life of the gas industry and create business and job opportunities in the country.
The Cocuina-Manakin agreement is the second major deal after the Dragon Field deal, which will proceed following a US Treasury Department licence issued in May, allowing the project despite existing energy sanctions on Venezuela.
However, with intense protests ongoing in Venezuela after both Maduro and opposition candidate Edmundo Gonzalez claimed victory in the election, many are looking at the US reaction after the Biden Administration accused President Maduro of election manipulation.
“We are going to take that into account as we map forward where we may head with respect to sanctions toward Venezuela,” said an unnamed US official in an interview with Reuters.
Photo: AP Photo/Lucanus Ollivierre
19th July 2024
Insurance companies in the Caribbean are anxiously assessing what could be as much as US$500mn in losses following the destruction caused by Hurricane Beryl.
The storm, which made history as the earliest category 4 hurricane on record during the Atlantic hurricane season, left a trail of destruction from as far south as Trinidad and Tobago to Texas in the US.
Now that the dust is settling, the claims are rolling into insurance companies by the hundreds.
Noted catastrophe risk modelling company, Karen Clark & Company has estimated that private insurance companies in the Eastern Caribbean (where the tri-island state of Grenada, Carriacou and Petite Martinique and St Vincent and the Grenadines were hard hit) and Jamaica are staring down the barrel of close to US$510mn in losses.
Prior to reaching Jamaica’s shores, the storm also impacted areas of Haiti and the neighbouring Dominican Republic on the island of Hispaniola.
Insurers in the US and Mexico are also expected to face costs of US$2.7bn and US$90mn, respectively.
Speaking to the media after the passage of the hurricane, officials estimated a 95% loss of the housing stock on Petite Martinique and up to 98% in Union Island and Canouan.
“One hundred percent of the persons on Union Island and Canouan have been impacted,” said Elizabeth Riley, Head of the Caribbean Disaster Emergency Management Agency (CDEMA).
While assessments are at an early stage, it is expected that the damage in the Caribbean will run into the hundreds of millions according to regional leaders.
However, given the relatively low rate of home insurance penetration, only a fraction of this will likely fall on the insurance companies. For example, Prime Minister Ralph Gonsalves of St Vincent and the Grenadines reported that only 79 of the 1,300 houses on Union Island have insurance, and a total of 346 out of close to 6,000 on all the Grenadine islands.
Unfortunately, the average homeowner in many Caribbean countries only acquires home insurance to meet the requirement for a mortgage. Since a significant proportion of homes are built in stages ‘out of pocket’ and without a mortgage, insurance penetration is often low.
“Just for today, we had 20 claims coming in,” said GK Insurance Claims and Legal Manager, K Michelle Reid in a Jamaica Observer interview days after the passage of Beryl.
Other insurance companies including British Caribbean Insurance Company (BCIC), and IronRock also reported an uptick in claims both for buildings and in some cases for damage to vehicles.
“Once there is a storm there is usually an uptick in insurance interest. Certainly, there were a few instances of people whose policies had expired, and they were getting in touch with us to reinstate them,” said Peter Levy, Managing Director at British Caribbean Insurance Company (BCIC) in a Sunday Finance interview.
He also believes that what happened with Hurricane Beryl is that the notice was such that there was only one working day for people to get the coverage they needed, thereby causing many to remain uninsured as the storm made landfall in Jamaica.
With insurance premiums across the region already on the increase since the beginning of the year due to spiralling reinsurance costs, there are fears that Hurricane Beryl and future storms this season could push those premiums even higher.
Some analysts have also blamed higher interest rates in the Caribbean and across the world for the increase in insurance premiums. Investing in insurance companies is now less attractive since it is now relatively easier now for investors to earn higher returns on other securities.
With global inflation slowing and central banks signalling likely interest rate reductions, insurance companies are hoping that investors return to the market.
“So far, we have our fingers crossed, we’re hoping that this isn’t the event that pushes rates up further, but we will wait to hear. And of course, the sobering thing is, we’re only at the start of the hurricane season, with the forecast being predicted for a record amount of storms,” lamented Bruce Ferguson, President of the Bahamas Insurance Brokers Association.
“Obviously, the Caribbean insurers have taken a hit on the Caribbean islands… It was moving fast, which is often a good thing,” said Ferguson, making reference to slow-moving Hurricane Dorian which devasted The Bahamas over a prolonged period.
In 2022, President of the General Insurance Association of Barbados (GIAB), Randy Graham reported that an estimated US$55bn in claims was paid out by reinsurance companies for damage caused by hurricanes in that year, ultimately driving up insurance premiums. With a possible price tag of US$500mn for insurance companies from Hurricane Beryl alone, it is expected that they would turn to their reinsurers to cushion the blow.
Both categories of insurers now wait with bated breath to see what costs will come during the remainder of the hurricane season.
Photo: AP Photo/Lucanus Ollivierre
5th July 2024
Countries across the region are reeling from the effects of Hurricane Beryl, a Category 5 storm which swept across the South Eastern Caribbean to Jamaica and Cayman leaving over seven dead and thousands homeless.
The storm was unprecedented both in term of the speed with which it intensified from a tropical storm to a hurricane, and how early in the year it came. Hurricane Beryl was the first Category 5 storm to hit the Caribbean this early in the year in over 100 years of records with scientists attributing the very fast intensification and early date of the storm, to the record high temperature of surface waters – reaching 30 degrees centigrade, well over the normal threshold of 27 degrees which provokes hurricane formation.
After hitting Barbados on 1st July with high winds and storm surge, the hurricane continued its path, causing further damage in Dominica and Saint Lucia and then increased in strength to a Category 5 storm where it was most destructive to islands in St Vincent and the Grenadines and Grenada. The storm’s intensity then diminished to a Category 4, and as it glanced off the South Coast of Jamaica and to the South of the Cayman Islands, the level of damage and destruction was mercifully less severe than was initially feared. There was still widespread damage to buildings, fallen trees, storm surges resulting in flooding, power outages and disruption to water supplies and telecommunications. 60% of customers were without electricity in Jamaica at one point.
The most severe devastation has been recorded in Grenada’ sister islands of Carriacou and Petite Martinique, and the Grenadine islands of Union, Bequia and Canouan with 90% of the housing stock damaged in the most affected islands
Carriacou and Petit Martinique suffered between 70% and 97% of buildings damaged, respectively, and severe agricultural destruction. Satellite images from the Copernicus damage assessment highlight the widespread devastation. In Grenada itself, the northern parishes of St. Patrick, St. David, and St. Andrew experienced significant housing and agricultural losses.
Describing the destruction on Carriacou, Grenada PM Dickon Mitchell said “Having seen it myself, there is really nothing that could prepare you to see this level of destruction. It is almost Armageddon-like. Almost total damage or destruction of all buildings, whether they be public buildings, homes or private facilities. Complete devastation and destruction of agriculture, complete and total destruction of the natural environment. There is literally no vegetation left anywhere on the island of Carriacou.”
In St Vincent and the Grenadine’s Union Island, critical infrastructure such as schools and hospitals were destroyed, leaving residents without essential services like electricity, water, and communication. The destruction of rainwater harvesting systems has exacerbated the humanitarian crisis, leaving many vulnerable to health risks. The airport terminal and power plant on Union Island is reportedly extensively damaged. On Canouan, almost all buildings sustained damage, with roofs ripped off and severe shortages of water and electricity. The full extent of damage in Canouan and Mayreau is still not known due to telecoms outages.
Regional disaster response mechanism, CDEMA, has already deployed several teams to the affected islands together with the National Emergency Management Coordinators, the UN Emergency Technical Team (UNETT) and the private sector.
The UN Secretary-General, António Guterres, reiterated his solidarity with countries affected by hurricane Beryl, releasing $4 million from the UN Central Emergency Response Fund to Grenada, Saint Vincent and the Grenadines, and Jamaica. The European Union has approved US$486,600 in humanitarian aid for SVG and Grenada.
In the aftermath of the hurricane however, leaders of the worse affected Caribbean nations expressed their concerns about access to international finance to fund rebuilding and called on richer countries to honour their climate commitments. Ralph Gonsalves, Prime Minister of St Vincent and the Grenadines said:
“For the major emitters of greenhouse gases, those who contribute most to global warming, you are getting a lot of talking, but you are not seeing a lot of action – as in making money available to small-island developing states and other vulnerable countries. I am hopeful that what is happening – and we are quite early in the hurricane season – will alert them to our vulnerabilities, our weaknesses and encourage them to honour the commitments they have made on a range of issues, from the Paris accord to the current time.”
Other countries across CARICOM have been quick to offer support with shipments of emergency supplies and shelter being provided by unaffected Governments and their private sectors in Trinidad and Tobago, Guyana and Antigua and Barbuda among others.
Photo: usatoday.com
4th July 2024
Dear Members and Friends
As you will have followed in the media, Hurricane Beryl has caused widespread damage, destruction, power outages and disruption to water supplies and telecommunications in the South Eastern Caribbean. After hitting Barbados with high winds and storm surge, the hurricane continued its path, causing further damage in Dominica, Saint Lucia, St Vincent and the Grenadines, and more extensively to Grenada. The most severe devastation have been in Grenada’ sister islands of, Carriacou and Petite Martinique, and the Grenadine islands of Union and Bequia.
The impact on Jamaica has been less severe than feared, however some parishes, Manchester and St Elizabeth have suffered serious damage.
We wait to hear the read-out this morning from the Cayman Islands where the storm continues to rage. It is expected to pass within 50 miles of the South of Cayman and to be over by 4pm UK time.
The scenes of the devastation across the islands are heartbreaking with many people left homeless, many businesses destroyed, and seven people killed. Our thoughts and prayers are with all those affected and their families.
At the time of writing, the main information we have been able to gather so far is as follows:
Barbados:
The storm caused severe damage to the south coast and significantly affected the fishing industry, with over 200 fishing vessels damaged or destroyed.
Grenada:
The northern parishes of St. Patrick, St. David, and St. Andrew on Grenada’s main island experienced significant housing and agricultural losses.
Hurricane Beryl caused extreme damage to Carriacou and Petit Martinique, with 70% and 97% of buildings damaged, respectively, and severe agricultural destruction. Satellite images from the Copernicus damage assessment highlight the widespread devastation.
Emergency relief items are urgently needed, significantly as water supplies have been disrupted since Sunday and shelter.
St Vincent and the Grenadines:
Hurricane Beryl caused widespread devastation across St. Vincent and the Grenadines, with Union Island, Canouan and Mayreau bearing the brunt of the impact.
In Union Island’s Clifton, critical infrastructure such as schools and hospitals were destroyed, leaving residents without essential services like electricity, water, and communication. The destruction of rainwater harvesting systems has exacerbated the humanitarian crisis, leaving many vulnerable to health risks. The airport terminal and power plant on Union Island is reportedly extensively damaged.
On Canouan, almost all buildings sustained damage, with roofs ripped off and severe shortages of water and electricity affecting daily life. Essential services like ATMs and supermarkets are closed, forcing residents to seek shelter in compromised locations such as leaking buildings.
Approximately 1,750 people are currently housed in 71 public evacuation centres across the islands, underscoring the urgent need for humanitarian aid. Ongoing assessments are underway. So far it is estimated that 90% of the housing stock is damaged in the most affected islands, with 100% of the people in need.
These communities urgently require tarpaulins, roofing materials, and basic supplies to address immediate needs and ensure safety.
Jamaica:
Jamaica escaped widespread damage however there are reports of dozens of housing damage, flooded and blocked roadways, fallen trees and landslides however the island. The main damage to housing and infrastructure was in Manchester and St Elizabeth
HOW TO SUPPORT:
We will be making donations to each of the following and we hope you will join us in supporting and disseminating the various initiatives to raise funds and collect resources for those affected by Hurricane Beryl.
Please do consider the following:
GRENADA:
Fund being managed via the High Commissioner of Grenada in the UK:
Grenada Red Cross:
ST VINCENT AND THE GRENADINES:
Fund being set up by the Government of St Vincent and the Grenadines:
https://www.svghurricanerelief.gov.vc/ (will go live in next 24 hours)
SVG Friendship Foundation (UK) (UK registered charity chaired by High Commissioner Cenio Lewis).
Bank- Lloyds Bank
Sort code – 30-98-97
Account – 61803263
Swift – LOYD GB 21031
If your company are engaged in other initiatives to support those affected and the recovery efforts, please do let us know and we will be very happy to circulate them to our membership and our wider networks.
With best wishes
Chris and the Team at The Caribbean Council
Photo reference: Grenada
21 June 2024
The US Treasury Department’s Office of Foreign Assets Control (OFAC) has sanctioned a senior Guyanese public officer and two prominent businessmen.
The sanctions come in response to alleged corruptions involving the parties and the business they operate and are pursuant to Executive Order 13818, which aims to combat human rights abuses and corruption globally.
“The US is imposing sanctions today on Nazar Mohamed, his son, Azruddin Mohamed, their company, Mohamed’s Enterprise, and Mae Thomas, the former Permanent Secretary to Guyana’s Minister of Home Affairs and current Permanent Secretary to the Ministry of Labour, for their roles in public corruption in Guyana,” said a press release from the US State Department.
The statement also revealed that the US was designating “two entities, Hadi’s World and Team Mohamed’s Racing Team, for being owned or controlled by Mohamed’s Enterprise and Azruddin, respectively”.
They are the result of a coordinated effort with several investigative and law enforcement agencies including Homeland Security Investigations New York Organised Crime Drug Enforcement Task Force (OCDETF) Strike Force, Customs and Border Protection (CBP) Office of Intelligence, and the FBI Miami Field Office.
It is alleged that between 2019 and 2023, Mohamed’s Enterprise failed to declare over 10,000 KG of gold in import and export records to international markets, including the US, Canada, the United Arab Emirates, and the EU, avoiding more than US$50mn in duties and taxes owed to the Government of Guyana.
Nazar Mohamed established Mohamed’s Enterprise in Guyana and later expanded his operations to the United States, starting as a moneychanger and then moving into gold trading. This expansion led Mohamed’s Enterprise to become one of Guyana’s largest gold exporters. Azruddin Mohamed later took over the business, which now also operates under the name ‘Confidential Cambio’.
“Today’s action underscores our commitment to holding accountable those who seek to exploit Guyana’s underdeveloped gold sector for personal gain,” said US Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson, adding that they remain committed to safeguarding the US financial system from abuse by corrupt actors.
To hide this scheme, the company reportedly bribed government officials, enriching those involved and undermining Guyanese institutions while depriving the state of needed revenue.
Mae Thomas stands accused of misusing her role as Permanent Secretary to the Guyana Minister of Home Affairs from October 2020 to August 2023, to provide benefits to Mohamed’s Enterprise and Azruddin in exchange for cash and expensive gifts.
It is alleged that she manipulated procurement processes, provided insider information, influenced the award of contracts and the issuance of weapons permits and passports to the benefit of the Mohameds and their companies.
It has also emerged that Thomas was a member of the governing People’s Progressive Party Central Committee, but that she has since resigned following the imposition of the US sanctions. This has fuelled allegations of involvement or complicity by other senior members of the administration.
The Irfaan Ali Government said that it has requested “additional information on the matters highlighted, with a view to aiding local law enforcement agencies,” and that Thomas has been sent on leave by the state pending an investigation, with a promise that she faces the necessary penalties should sufficient evidence be found of her involvement.
Vice President Bharrat Jagdeo has announced stringent measures against large-scale gold smuggling following the revelations unearthed by the US. These include the introduction of tougher penalties and sanctions aimed at deterring the lucrative practice of smuggling gold.
Jagdeo stressed that the government’s proactive approach in seeking information from US authorities regarding the misconduct that triggered the sanctions and all individuals involved. He outlined measures to review all transactions and contracts involving the Mohameds across various government agencies to ensure compliance with the sanction regime.
The Central Bank of Guyana has also moved to revoke the license of Confidential Cambio, aiming to prevent further exposure to potential sanctions for government entities.
There have also been questions as to the timing of the sanctions by the US, with elections in Guyana constitutionally due by December 2025, but widely expected before then. The country’s elevation as one of the fastest growing economies thanks to its burgeoning oil and gas industry has also fuelled speculation in some quarters that Guyana is being targeted by the US.
However, US Ambassador to Guyana, Nicole Theriot defended the move, arguing that there was a “preponderance of evidence” against those targeted, which was gathered over more than two and half years of investigations, kept secret from Guyanese authorities due to their sensitivity.
As a consequence of the sanctions, assets and properties owned by targeted individuals within the US or under US control are now frozen and must be reported to OFAC. Any entities that are directly or
indirectly owned, individually or collectively, by 50% or more by these blocked persons are also subject to the same restrictions.
Without explicit authorisation from OFAC, US persons and transactions involving these assets are generally prohibited. Financial institutions and other entities face sanctions for engaging with these individuals, including providing or receiving funds, goods, or services.
7th June 2024
President Luis Abinader has secured a second term in office after securing victory in the first round of the election.
Abinader, who turns 57 this year, secured 57% of the vote, decisively avoiding a runoff with his nearest competitor, Leonel Fernández, a former three-term President, who won 29% of the votes according to the Dominican Republic’s national electoral authority.
“I accept the trust placed in me, I will not let you down,” said Abinader after the results were announced. He called for the country to come together “without distinction, without sectarianism and without party colours”.
A former tourism executive, Abinader ascended to power four years ago with a pledge to combat corruption. He held a commanding lead heading into the election as challengers failed to diminish his popularity with voters.
“In general, the electoral process was carried out correctly, openly and democratically,” said Luis Fortuno, a former governor of Puerto Rico who was deployed as an international observer.
After his victory, President Abinader called for a meeting with his two closest runner ups in the election, Leonel Fernandez (Fuerza del Pueblo) and Abel Martinez (Dominican Liberation Party) for talks on how to move forward with important election issues.
Abel Martinez, who received 10.39% of the vote in the election, promptly agreed to meet and pledged his support for bills benefiting the collective good. Although Fernandez initially agreed to a meeting, he later announced an indefinite postponement.
“The country expects its leaders to have the ability to sit down and talk and seek consensual solutions to the challenges we face. The indefinite postponement of this meeting may send the wrong message to citizens, suggesting that partisan differences continue to prevail over the national interest,” read a statement from a Presidential spokesperson in response to the postponement.
Meanwhile, Former President Danilo Medina announced that he will not seek re-election as president of the Dominican Liberation Party (PLD) in the next party convention now slated for 30 June 2024. This follows an internal meeting initiated to reorganize after a poor performance in the 2024 general elections. Presidential candidate Abel Martinez underperformed, and the PLD did not win any Senate seats, losing primarily to the ruling Modern Revolutionary Party (PRM).
Despite this, President Abinader has signalled his intent to carry on with his tough stance on migration from Haiti which seems to have garnered approval from the voting population.
Since taking office, Abinader has overseen the construction of a 164km (102-mile) concrete wall along the border with Haiti to control illegal migration. Aljazeera also reported that more than 250,000 migrants were deported in 2023, despite international pressure for the country to welcome more refugees.
“The policies he’s implemented, how he’s cracked down, closed the border and built a wall, I feel like it’s a good initiative to control the problem of Haitian migration,” said a voter after the election, arguing that the steps taken have improved the safety of ordinary Dominicans.
Quoted in a New York Times article, Dominican political analyst, Rosario Espinal argued that while President Abinader could have secured a second term by just focusing on fighting corruption, he could not have done so “the margins that he wants”. “He needed to find a new topic that would resonate… He found that in migration,” Espinal asserted.
Apart from migration, Abinader now faces decisions on how to use his political capital, potentially tackling constitutional or fiscal reforms, and improving public services.
He has previously supported constitutional reform to ensure the attorney general’s independence but has publicly opposed changing the two-term limit for presidents. Fiscal reform is another priority, as the government consistently runs a deficit, though tax increases are unpopular.
Abortion laws remain stringent, with no exceptions currently allowed, despite past efforts for reform. Improving education, health, housing, and transportation services is critical, as is maintaining anti-corruption efforts, a cornerstone of Abinader’s initial rise to power.
Finally, the PRM must select a successor for the 2028 elections, a process in which Abinader will be influential, potentially facing internal party challenges.
This is a lead article from Caribbean Insight, The Caribbean Council’s flagship fortnightly publication. From The Bahamas to French Guiana, each edition consists of country-by-country analysis of the leading news stories of consequence, distilling business and political developments across the Caribbean into a single must-read publication. Please follow the links on the right-hand side of this page to subscribe, or access a free trial.
Photo: (AP Photo/Matias Delacroix)
23rd May 2024
The Andrew Holness Government and the Golding-led opposition Peoples National Party (PNP) are seemingly at an impasse on constitutional reform in Jamaica.
Opposition Leader, Mark Golding, is standing firm, demanding a clear separation from the monarchy and the UK-based Privy Council as part of the nation’s constitutional reform process. Golding has called for the non-negotiable transition to the Caribbean Court of Justice (CCJ) as Jamaica’s apex court.
Amid the Government’s review of the Constitutional Reform Committee’s final report, Golding’s stance signals potential parliamentary deadlock, as he has threatened to withhold opposition support for changes requiring more than a simple majority vote.
“We’re not in favour of a phased approach to decolonisation. We’re not in favour of having one foot in and one foot out of the King’s yard. We [have to] decide to be in or out. It can’t be neither fish nor fowl. Time come to deal with this matter once and for all,” stressed Golding.
Rejecting a phased approach to decolonisation, Golding advocates for a decisive departure from colonial vestiges. He opposes a referendum which members of the Andrew Holness government are suggesting to have the population decide if to abandon the British Monarch, stressing parliamentary prerogative in constitutional decisions.
Since then, media houses in Jamaica have reported on the contents of the report by the Constitutional Reform Committee (CRC), which was expected to remain confidential until released by the government.
It suggests pivotal reforms including the transition from the British Monarchy to a ceremonial President similar to what now obtains in Barbados. It recommends that the Prime Minister, in consultation with the Opposition Leader, nominates the President, to then be confirmed by Parliament with a two-thirds majority vote.
Qualifications and specifics of the Office of President include Jamaican citizenship, residency, and no allegiance to foreign powers; presidential powers replace those of the Governor-General, with a President’s Council; a seven-year term, renewable once for five years. Immunity from lawsuits and prosecution during office is recommended, while removal from office requires a two-thirds majority vote in Parliament due to incapacity, national security risks, or misconduct.
More controversial suggestions being circulated in public domain include a change where only Jamaican citizens can hold parliamentary positions, a change from the current rule which bars dual citizens, except those whose second citizenship is from a Commonwealth nation from sitting in the Jamaican Parliament.
This recommendation has stirred up controversy after the Opposition Leader suggested that it be reconsidered, prompting questions about whether he possesses dual citizenship.
“I am a born Jamaican and have a Jamaican passport,” said Golding initially before backlash prompted him to speak on rumours that he is also a British citizen. “I am a Jamaican citizen by birth. I am also a UK citizen by descent. I have not renounced my British citizenship as it is not legally necessary for me to do so,” admitted Golding.
“To be the ultimate executive leader of the country, you should have no other citizenship. There should be no question by your citizens that you lead that you have, somehow, split loyalties. That you have a parachute should in case anything goes wrong,” asserted Prime Minister Holness in a television interview, labelling it “untenable” and “incurable”.
The CRC reportedly does not contain any recommendations for an impeachment process against elected officials for fair of political abuse. It does however call for a fixed five-year parliamentary term with the Prime Minister setting the election date within three months is proposed.
The report also contains a proposal to change the composition of the Senate by increasing membership to 27; all appointed by the President with 15 recommended by the Prime Minister; nine by the Opposition Leader; and three at the President’s discretion. This is meant to keep the arrangement where the ruling party can pass Senate measures by a simple or absolute majority.
There are also less controversial recommendations aiming to “Jamaicanise” the constitution by replacing imperial elements with national symbols and preambles, underscoring national unity and pride.
However, with the results of the recently held local government elections considered in some quarters as a shift in the country’s political landscape in favour of the PNP, battle lines have clearly been drawn on the issue of constitutional reform with both parties working to control the narrative heading into the next general election.
This is a lead article from Caribbean Insight, The Caribbean Council’s flagship fortnightly publication. From The Bahamas to French Guiana, each edition consists of country-by-country analysis of the leading news stories of consequence, distilling business and political developments across the Caribbean into a single must-read publication. Please follow the links on the right-hand side of this page to subscribe, or access a free trial.
Photo: jamaica-gleaner.com
10th May 2024
Plans for foreign security deployment are advancing following the installation of Haiti’s transitional council after the official resignation of former Prime Minister Ariel Henry’s controversial government.
“We have served the nation during difficult times,” said Henry in a statement released before the nine-member council took their oaths at what was reportedly a secret ceremony at the presidential palace.
“The swearing-in of members of the Presidential Transitional Council (CPT) represents a critical step in Haiti’s return to inclusive governance. We commend all participants for their commitment to seeking compromise and working together to improve the lives of all Haitians,” said US Assistant Secretary for Western Hemisphere Affairs, Brian Nichols.
However, since the ceremony, the council has been faced with questions of longevity following internal strife.
Already under scrutiny for its contentious decision-making process, the council is making another shift. This time, the focus is on redefining the criteria for pivotal decisions, including the selection of the country’s next Prime Minister and determining leadership roles for coordination and international engagements.
The development unfolds against a backdrop of internal turmoil, threatening the council’s stability and prompting intense negotiations.
The Miami Herald reported that a majority of the council’s seven voting members has opted to revoke Edgard Leblanc Fils’ presidency, favouring instead a rotating leadership structure among four members. Additionally, the council has agreed that critical decisions will require a supermajority of five members.
These adjustments follow discord stemming from the council’s initial decision to elect a president, which sparked controversy and almost led to its dissolution.
In the past week, following an announcement of a public vote for the selection of their leader, the council abruptly walked back the decision. Instead, a “Solidarity Majority Bloc” comprising four members unilaterally opted to install Leblanc, a former president of the Haitian Senate and presidential candidate, as their leader.
Disregarding established protocols, they also handpicked Fritz Bélizaire, a former Youth and Sports Minister, to replace the former Prime Minister, Ariel Henry.
This move sparked immediate controversy, with minority bloc members and various sectors of Haitian society accusing the majority bloc of violating the 3 April political agreement. Allegations surfaced of clandestine dealings aimed at gaining control of governmental portfolios for personal enrichment and manipulating the electoral apparatus ahead of pending general elections, the scheduling of which remains uncertain.
“The members of the presidential council have the heavy responsibility of leading this transition and demonstrating good governance and transparency in their decisions in order to restore confidence among the population in their leaders and elites,” said a joint statement from a group of civil society organisations.
Despite these issues and what seems to be a lack of a concrete governance arrangement that will hold until the council’s mandate expires in 2026, the majority of the council appears to be in agreement on the need to deploy the international mission to bring the surge in violence in the country under control.
The New York Times reported that civilian contractors and supplies have begun arriving in Haiti aboard US military planes, heralding the imminent deployment of a multinational security mission led by Kenya.
These contractors are expected “to help secure the airport before building a base of operations there for the international security force. More planes carrying construction contractors and equipment were expected in the coming days”.
“The deployment of the multinational security support mission in Haiti is urgent, and we’re doing all we can to advance that goal… Every day that goes by is a lost opportunity to provide greater security for the Haitian people. And that’s why we’re doing everything we can, along with our Kenyan partners to advance that,” said the US’ Brian Nicholls.
Several nations, including The Bahamas, Bangladesh, Suriname, Barbados and Jamaica, have pledged personnel, with training initiatives already underway. However, despite reports that it may be a matter of weeks, it remains to be seen just how soon Haiti will see actual boots on the ground.
This is a lead article from Caribbean Insight, The Caribbean Council’s flagship fortnightly publication. From The Bahamas to French Guiana, each edition consists of country-by-country analysis of the leading news stories of consequence, distilling business and political developments across the Caribbean into a single must-read publication. Please follow the links on the right-hand side of this page to subscribe, or access a free trial.
Photo: Ralph Tedy Erol/Reuters