Members of the Arouca Task Force on Tuesday night seized a gun and 10 round of ammunition during a search at Maloney Gardens.

Police said the officers went to the housing scheme around 9.45 am where they found the gun and bullets along with a plastic bag containing 36 packets of marijuana with an estimated street value of $384.

No one was arrested in the exercise which was conducted by constables Coombs, Mc Cathy, Simon and Beepath.

Q. You have advised entrepreneurs to hire to their weaknesses. I’m an idea guy, and I love being in front of an audience. I’m not a sales guy, nor a marketing guru, nor a finance wiz, so I do need to hire to those weaknesses.

Once the right people are in place, how do I delegate responsibilities while retaining overall ownership of the business and my idea? I have no problem letting people succeed and gain recognition. I’m more concerned about coming into conflict with someone who thinks that they can do things better than I can.

Also, how do I ramp up the business while protecting it from competitors who have money and know-how, say, someone who has been in business 50 years and grown hundreds of companies squashing me like a bug and claiming my ideas as their own?

—Bill Hagen

As you work toward the launch of your business, keep two things in mind: the easiest part of being an entrepreneur is coming up with ideas; the hardest part is making those ideas become a reality.

Why? The latter usually involves doing something you’re not necessarily good at, like building a Web site, for example, or producing an app or coming up with a strong marketing strategy. In my case, I had trouble with the financial side of things. I’m hopeless with spreadsheets and numbers, and I didn’t completely understand the difference between net and gross until I was at least 50 years old!

That said, Bill, you must be wondering how Virgin managed to grow into a global brand that spans the telecommunications, health, fitness, hospitality and aviation sectors. Our team’s secret is simple: We’ve always hired smart people. And we have found that the key to finding the right people to hire is to look for those who are energized by your passion, want to add to your ideas and aren’t afraid to suggest ways to improve them.

Since I’m dyslexic, I learned how to work around my limits early on. As a student, I’d had to rely on classmates to help me study for tough exams; when I started my own business, I was quick to delegate. Great people have joined our organisation ever since then. (Even the name “Virgin” was the result of a team effort. We were thinking about naming our records business “Slipped Disc” until a young woman jokingly pointed out we were all virgins—at business, that is.)

While you might feel wary of conflict, hiring people who challenge your ideas will be good for business. You can’t be right all of the time, so employees and colleagues who have the courage and good sense to voice their honest views will be valuable assets. 

We’ve made some mistakes at Virgin, but we would have made far more if I had been surrounded by “yes men.” When you get your business up and running, it’s likely that some people overseeing parts of your company will feel that they can do things better. But that’s absolutely fine. You need people who have ideas. Listen to them, delegate to them, and trust them, otherwise they won’t feel valued.

Some of your people may eventually to on to start their own companies, but this only means that you make good hires. It has happened a few times at Virgin: Adam Balon, who worked for Virgin Cola, went on to co-found Innocent Drinks; Rowan Gormley worked for a number of Virgin companies before setting up his own business, Orgasmic Wines, which we later bought when we were creating Virgin Wines. Their successes remind our competitors that for every great person who’s left Virgin, we have many more on staff.

It’s true that if your business is based on a great idea and ends up threatening to disrupt an industry, it’s likely that an established player will try to copy you or put you out of business. This has happened to Virgin a number of times. When we launched Virgin Atlantic, for instance, British Airways subjected us to years of intimidation, which included the company trying to poach our passengers and leaking anti-Virgin stories to the press. This so-called “dirty tricks campaign” ended in a lawsuit that cost British Airways £3 million.

How did we survive? We used our small size to our advantage. We were nimble and took advantage of spur-of-the-moment opportunities for publicity. We also made the most of new technologies - Virgin Atlantic was the first airline to introduce seatback entertainment and we were the first to have a bar in the sky. These days, nearly every airline has these features, and we keep striving to find new ways to innovate.

It’s important to keep in mind that your established competitors may have money, but it’s unlikely that they can swiftly adjust course. An entrepreneur with a few expert employees and loads of ambition can disrupt any industry.

(Richard Branson is the founder of the Virgin Group and companies such as Virgin Atlantic, Virgin America, Virgin Mobile and Virgin Active. He maintains a blog at www.virgin.com/richard-branson/blog. You can follow him on Twitter at twitter.com/richardbranson. To learn more about the Virgin Group: www.virgin.com.)

(Questions from readers will be answered in future columns. Please send them to RichardBranson@nytimes.com. Please include your name, country, email address and the name of the Web site or publication where you read the column.)

The Beetham Wastewater Recycling Plant (BWRP)—being constructed by a consortium led by the omnipresent Super Industrial Services—has faced a barrage of criticism since the award of contract. 

These criticisms have focused mainly on the issues of possible corruption and NGC’s involvement in a project that is remotely connected to its core business. But, even as the project proceeds apace, I think it is important for us as a nation to question the viability and rationale for this project, as we should with all other mega projects.  

Multimedia advertisements financed by NGC, have extolled the many virtues of the BWRP. 

“This is just what is required at this time,” “ A most important project,” and “A long overdue project.” 

It is estimated that an astonishing $500,000 was spent on advertisements aimed at convincing the general public that BWRP is a worthwhile project and that the benefits to be derived from it will justify the expenditure of approximately $1.1 billion. Interestingly, I cannot recall one of these advertisements presenting in quantitative terms the expected benefits of this project. 

From a national perspective, we need to ask a few pertinent questions: 

• Does this project represent the best allocation of scare resources? 

• What were the alternatives considered and does this project yield the highest net benefit? 

• Waste-water recycling is just one of four major methods for winning more water and eliminating any shortage. 

• Other methods are harvesting of fresh surface water (from rainfall), drilling for ground water, and desalination of sea water. 

According to the World Food and Agricultural Organisation (FAO) waste water reuse is an option that is being increasingly taken up in regions in the world with water scarcity, growing urban populations and growing demands for irrigation. 

It is not surprising that waste water projects are most popular in arid regions such as the Mediterranean, Middle East and desert regions of the USA, to name a few. There is a close correlation between those countries with severe water scarcity and those that are engaged in the reuse of waste water. 

Do any of these factors explain the urgency with which NGC/WASA are attaching to this plant?

Globally, water scarcity is measured by the water stress index—defined as the amount of fresh water available to each person. A country is considered to be experiencing water scarcity if the amount of water available in a country is below 1,700 cubic metres per person per year. 

World Bank data indicates that 2880 cubic metres of water are available for each person in T&T, placing this country well within the no risk zone on the global water stress index. In this blessed land, climatic conditions ensure there is no shortage of water from nature. 

Our annual rainfall is more than adequate to take care of our all water our needs year round. Yet data from WASA suggests that T&T faced an annual water shortfall of about 35 mg/d in 2012. The problem is not water availability but water capture and delivery. 

Our failure to capture nature’s water in the rainy season, compounded by an insufficient and leaky infrastructure, create water shortages particularly in the dry season and in remote areas. The Beetham project does not address these problems.

It was evident from the early 1990s that rapid growth in Point Lisas would have created competing demands and therefore strain available supply. It is in response to this threat that the desalination plant in Point Lisas was constructed in 2002 with the primary purpose of serving the needs of the estate. It continues to do so today.  

Point Lisas demand is approximately 12 million gallons per day compared with a desalination capacity of 32 million gallons per day. The desal plant is currently undergoing an expansion which would take its production capacity up to 40 million gallons per day.  

While this is ongoing, we are told that the Beetham project will provide water to Point Lisas and the supply of the desalination plant will be distributed for domestic use. 

The explanations provided by the authorities have been woefully short of what is required. In this period of limited resources and legitimate competing demands, we need to ensure that as a nation, we derive maximum benefit from each dollar spent.  

It is reported that the previous government had abandoned this project because it proved economically unfeasible. Has any comparative cost benefit analysis been done to determine whether this scaled-down version is the most cost-effective approach to meeting the shortages in domestic supply? 

Has this project been evaluated against other available options including the onsite expansion of the desal plant, expansion of existing fresh water facilities, building of new fresh water facilities? 

For example, for over ten years now we have been hearing of the proposed Mamoral Dam. 

This is a project that is touted to yield multiple benefits. As recent as 2012, NIDCO president Dr Carsen Charles is quoted as saying, “the new Mamoral Dam will not only prevent flooding but will also allow the Water and Sewage Authority to capture water for domestic use.” 

Charles, at that time, also said that a contract was awarded for the” feasibility and design” of the Mamoral Dam. Nothing has been heard of it since that time. 

Similarly, the BWRP needs to be assessed against other plans to build small-scale desalination plants in the remote areas thereby creating diversity in supply and bringing the solution closer to the source of the problem. 

Two such plants are already in operation in Point Fortin and Moruga. 

In the absence of the hard data from such analysis, the current advertising campaign is nothing but raw propaganda. Failure to produce the analysis also means that the Government is paying lip service to the principles of good governance, prudent management of resources and sustainability. 

Gregory McGuire is an energy economist and consultant.

Mortgage rates on new and existing homes are likely to increase later this year, as a result of Monday’s announcement by the Central Bank of an increase in the Mortgage Market Reference Rate MMRR) by 25 basis points to 2.50 per cent.

In a statement on Monday, the Central Bank said: “This up-tick was due to increases in both the 15-year Central Government Treasury yield and commercial banks’ cost of funds.   Commercial banks and their affiliated non-bank financial institutions are expected to apply the MMRR–plus a margin–to all  existingand new residential mortgage loans  that  are  due  to  be  re-priced from June 1,  2015.  

“The  margin  will  be negotiated between the  commercial bank and the customerand takes  into account the customer’s credit rating, the location of the property, the size of the downpayment and the size and quality of collateral.”

This week’s increase in the MMRR to 2.50 per cent in June 2015 is the first hike in the rate since its introduction in December 2011.

Contacted for comment, Scotiabank TT’s managing director, Anya Schnoor, said: “The MMRR is a variable rate mechanism which was introduced by the Central Bank in 2011. 

“The MMRR is an index rate which is tied to most retail mortgages. It is determined by a combination of the average rate on deposits in the banking system as well as the 15-year government bond yield. When market conditions change the MMRR may be adjusted, as is the case this quarter. Mortgages tied to this rate would be adjusted in line with the agreed index mechanism.”

 As  at December 2, 2013,  the  MMRR  methodology  was  adjusted to  incorporate  the  15-year Central Government bond yield rather than the 10-year Central Government bond yield.

  In an MMRR fact sheet, the Central Bank stated: “The MMRR will make you aware of changing  conditions  in  the  mortgage  market. This  will enable you to better  determine  when  and  why your mortgage rate is likely to change.   

“You should anticipate that your mortgage rate can change when the MMRR changes. If the MMRR declines, you should benefit from lower mortgage rates once you have a variable rate mortgage or  an  adjustable  rate  mortgage  that  is  due  to  be  re-priced.  You should  also  note  that  if  the MMRR rises, your mortgage rate could rise but your bank has an option not to increase this rate.”

The next MMRR announcement is scheduled for September 1, 2011

Permanent Secretary in the Ministry of Energy and Energy Affairs, Selwwyn Lashley is promising that dozens of contracted service providers working at the Ministry will be paid by the end of the week.

Lashley confirmed that the workers who have been retained by the Ministry to work on several projects have not been paid for May because the Ministry simply did not have the funds to do so and that it is waiting for the Ministry of Finance to release funds.

He told BG: "There has been an administrative challenge between the Ministry (of Energy and Energy Affairs)  and the Ministry of Finance which is being sorted out. We realised last week that we had not received the funds to pay the workers for their services and we wrote to the Ministry of Finance seeking the funding. We have since sent out an email to everyone indicating that they will be paid within the next week."

Lashley pointed out that the workers are people who have been hired by the Ministry on an as- needed basis and that the Ministry pays them based on the satisfactory provision of services.

"They are working for different units in the Ministry. The way it works is if a unit requests that they bring in a special skill to help on a project, then a person is hired as a service provider for a maximum contract of six months. We have tried to pay them generally at the end of each month but on this occasion we are awaiting money from the Ministry of Finance."

Well-placed sources say those employed on these service contracts do not have to be selected through a transparent process but it is done in a direct contract between the individual and the permanent secretary.

In addition, BG has been informed that the number of service providers  at the Ministry of Energy.

These providers are not part of the Ministry's contract staff which is another category of workers who are used to fill positions that are not in the public service and those positions have to be advertised and are usually in a duration in excess of one year but not exceeding a five year period. There is also a graturity associated with the position.

BG has also been informed that other suppliers of services to the Ministry have not been paid; a fact that Lashley did not deny in a telephone interview on Monday. There are also reports in other Ministries of short-term workers not being paid because of financial challenges.

Director of Stallion Property Trust (SPT), Joseph Rahael, says one of the risks associated with real estate investment is illiquidity, and that a new investment opportunity backed by his family will provide liquid access to a portfolio of properties. 

SPT intends to commence trading on the T&T Stock Exchange (TTSE) in July 2015. It launched its Initial Public Offering (IPO) on May 18.

The trust is a real estate investment trust offering 5,072,957 common units, 100,000; three-year three per cent fixed income units and 180,945 seven-year 4.5 per cent fixed income unit. Collectively, SPT hopes to raise $382.4 million from the sale of units to the public with that money being used to pay off debt used to acquire the properties.

The trust was given a ‘AA’ credit rating by CariCris. An individual as well as a large investor, including banks and insurance companies and trade unions can invest in the trust once they register with a stockbroker. 

Rahael spoke to the Business Guardian on Tuesday, at Amera Caribbean Development Ltd’s No1 El Socorro Extension office, San Juan.

Substantiating his point for an investment in SPT, Rahael said: “For instance, if you were to buy property as an investment and paid $1 million or $2 million for it, and you needed to sell that property to get $100,000 you couldn't sell piece of it, you have to sell the whole thing. 

He added: “If you decided you wanted to sell the entire property, you’ll have to go to the market contact a real estate broker, put it on the market, you might have to price it, it may go up or down depending on what kind of feedback you get from the market place. When you finally get a buy, you then need to hire a lawyer, you have to take three months for it to close, the buyer may not close. There are all sorts of risks associated with selling the property and that Is the liquidity risk.”

Investing in SPT allows the investor to diversify their investments across nine properties without having to physically purchase any of those properties. 

The risk with this investment is mitigated due to the diverse set of properties. Comparing that to an individual investor, he said: “If you are a single investor and you bought one property you have the risk associated with it. If a tenant you have there were to leave, you no longer getting rent, what do you do? You'll have to try to find another tenant, you'll have to spend money to renovate.”

The trust owns Endeavour Holdings Ltd (EHL). This company’s investment portfolio consists of nine properties with a total market value of $831.6 million, according to its prospectus. The properties are leased out to commercial tenants who are bound by the terms of the lease for a particular period, which means that the revenue from the properties is predictable.

The property managers of the trust are: 

• Ernst & Young Services Ltd, financial advisers; 

• Terra Caribbean, independent valuer, 

• Brent Augustus & Associates Ltd, independent valuer, 

• First Citizens Trustee Services Ltd, the trustee/administrator, 

• T&T Central Depository Ltd, the registrar/transfer agent, 

• First Citizens Brokerage and Advisory Services Ltd, the lead broker, 

• Amera Caribbean Development Ltd, the property manager, 

• Hamel Smith & Co attorneys-at-law, the legal adviser 

• PwC Chartered Accountants, auditor.

Now that the IPO closes on June 12, director of the trust, Joseph Rahael spoke to Business Guardian to outline what SPT is about and the benefits of investing in a real estate investment trust.

According to Rahael, anyone can invest in SPT since the investor can invest any amount they can afford once they register with a stockbroker.

“When you are investing in real estate, you may not find a property that meets your budget. You may have $100,000 to invest, you may not find a property for that. Good real estate goes at a premium and it is not always available, so you may only find properties that are outside of your budget,” he said.

What’s a real estate investment trust?

This is an entity or trust with multiple owners that own or operate income-producing real estate. Rahael said publicly-trade trusts have the added benefit of being listed on the TTSE. When this is done, it gives the investor the flexibility and liquidity to sell their shares on the TTSE. This can be compared to the long drawn-out process of selling a property to obtain cash which can be time-consuming especially, if the investor needs the money right away.

 First Citizens Trustee is the third party which is responsible for administering the trust. The trustees are the ones who operate the trust on behalf of the trust holders.

“The members of the public will be comforted in knowing that a third-party professional trust management company is operating the trust.”

Another benefit of investing in SPT is that the construction risk is eliminated completely.

Interest rates

Since September 2014, the Central Bank has been increasing its repo rate and, on Monday, it increased the rate by 25 basis points. Given that SPT is a real estate trust, Rahael said the increase interest rates should not deplete the value of the investors’ investment.

“What an investor should be looking at is what are the returns they can get in the marketplace, as compared to the returns they can get in the SPT. 

“An investor may look at the repo rate to get an indication of where rates will be heading. Despite those repo rate increases the three-year government bond yield is below two per cent. The seven-year government bond is just over two and a quarter per cent. Our fixed income units for three years is paying three per cent. The rate on our seven-year is four and a half; much higher than the yields that are associated with investing in government bonds.”

He added that repo rates would have an impact on a bank’s lending rates.

“We are paying three per cent on the three-year fixed income units and 4.5 per cent on the seven-year fixed income units, this means that we are reducing our lending costs. It creates value for us because we are reducing costs of our debt and it creates value for the investor because they are getting a higher rate.”

Approved by SEC

Referring to SPT’s legitimacy, he said SPT had to submit documentation to the local Securities and Exchange Commission (SEC).

“We met with the SEC and got all requisite approvals. The TTSE has fully blessed this offering so all our approvals are in place, all of our marketing stuff has gone by them for their approval. The prospectus has been approved by stock exchange and the SEC.”

Now that the company has gone through the approval agencies, he said business people generally would want the red tape reduced as much as possible. 

“Certainly there are areas of opportunity for improvement, particularly when it comes to timeliness. Both organisations—the SEC and the TTSE—were thorough in their review of the prospectus and all of our submissions. They were co-operative in our discussions.”

The prospectus, the financial statements, marketing documentation, amalgamation documents, articles of association, bye-laws and legal documents all had to be submitted to TTSE and SEC collectively.

It is likely that property prices in the real estate market may not rise much further in the future, says Sally Singh, president of the Association of Real Estate Agents (AREA). 

“The market is still experiencing high levels of sales and rentals. If prices are not going to be sustained what we as real estate agents have to do is look at the demand and supply in the market. We will have to adjust accordingly. We as agents do not set the prices, we sell properties, we rent properties, we lease properties. Of course, it is easier to adjust upwards, than downwards. That is why we have regular meetings and try to keep our members updated on all the economic and social issues that are involved and everything else that is relevant to our industry,” she said.

Singh referred to University of the West (UWI) economist Dr Roger Hosein, who said at an AREA seminar last month that current real estate prices cannot be sustained and that past prices were based on an environment where oil prices were much higher.

She continued by saying that based on what Hosein said, house prices and prices in the real estate market are not likely to rise further.

In her opinion, the group that has been hit by high property prices is the middle-income group.

“The sector that has been neglected the most is the middle class. They fall in a bracket where they do not have the income facilities to access and they cannot afford the upper end of the housing market and they are not given the sort of the incentives for there. On the other hand, the lower income sector has access to the Housing Development Corporation (HDC) programmes. It is very difficult for a young professional couple to get anything under $1 million.  That is a challenge. They may have to depend on their parents or other means to assist them,” she said.

She also said that when one wealthy investor buys property and then sells at much higher prices it drives up prices and distorts the market.

“In the economy and the market there are a lot of investors who can afford to purchase property and speculate. So you would have someone with the capacity to buy ten houses pre-construction at a ‘reasonable’ price  and this distorts the market as those prices are not ‘reasonable’ to the lower income groups. That is just one of the many reasons why the price of properties is so high,” she said.

Singh spoke to the Business Guardian at its Port-of-Spain Bureau two Tuesdays ago.

She was elected as president in May and will serve for a year. She replaced Mark Edgehill.

Increasing membership

Singh spoke about how the industry has evolved over the last few decades.

“We came about as there was a need for professionalism in the real estate industry. In the 1960s, there were not many real estate agents and there were probably about five in Port-of-Spain and even less in San Fernando. During the 1970s more people started to earn more income. With the oil boom came a greater demand for housing  and more agents arose. The problem is that everyone operated with different guidelines  and confusion arose. Many agents were not doing justice and doing what they should have been doing. 

“By 1990 a group of brokers got together and decided it was time to have standards and professionalism. When AREA started there were about eight broker members and 25 salespeople. Now we have grown to 58 brokers, 30 sale agents and 15 corporate associate. The corporate associates would be like bankers and valuators, people who are associated with the real estate industry.”

One of the main issues the AREA has to deal with are agents who do not abide by industry standards.

She also explained that many agents are not even part of the association.

“Only about 20 per cent of real estate agents right now are members of the association. One of my main goals is to have more agents and brokers as part of the association. This would enhance the level of professionalism in the industry. When everyone is guided by ethical rules and guidelines the public would benefit from it. 

“A lot of it has to do with the nature of the society with people getting away without having to operate with any guidelines. I think agents being part of the association should be mandatory. It is a modern society. Getting a home is one of the biggest investments a person makes and you need to have that person give you the right advice. We do not want people in this for the short term and just for the commission. We want people guided by deeper principles.”

Real estate legislation

Singh said legislation is important and AREA wants to promote the Real Estate Professional Bill of 2015.

“Currently we are working on submitting the bill. We have approached the Minister of Trade and plan to have further discussions with him with respect to piloting the bill in Parliament. Another challenge we face is compliance with anti-money laundering legislation and collaboration with the Financial Intelligence Unit (FIU). Our proposed legislation will help to reduce the opportunities for any real estate agents to handle transactions in an unethical manner. This, in turn, will deter the potential money launderer from attempting to use property as a means of laundering funds. Certainly AREA has been very successful in helping its members to meet their individual challenges of compliance with the FIU regulations and this is gratifying for us,” she said.

She added that the legislation would “strongly encourage” agents  to be members of the AREA.

“That would boost the membership. We would have to follow guidelines such as to become an agent you must have basic qualifications, do certain courses, continuous education programmes. This exists in all other professions. We have been getting the support from agencies like the FIU. We agents from AREA are not only area agents but once you are operating in the real estate industry, you should be registered with the FIU. “

She admits that there are some agents “operating under the radar” and are not registered with the FIU.

“You can check on the FIU Web site. It will show you how many agents are registered. But there are also many agents who are not registered. Real estate is one of the biggest money laundering avenues. That is why we want to increase our membership so people would be guided and trained to be professionals.”

She said AREA has its own disciplinary committee where it deals with members.

Regulating prices

She also spoke about educating members of the public about purchasing a home and other details related to the real estate industry.

“We want to get the relevant information out there pertaining to the association so people could be guided accordingly.”

She spoke about the need for more data in the association and the real estate industry.

“You need data so you would be able to properly price the property. One of the things we face in the industry is that sometimes it seems that people just wake up one day and they decide to set a price. So if you have to insert data that you sold a property in Port-of-Spain for a certain price where the square footage is at, then the price would be standardised and there would be little variation in what prices are. So the agent would be guided by a certain figure, the owner or land lord would also have to accept these figures as it is the norm at the going rate. If there is no data then anything can happen,” she said.

Singh said a proper data base and standardised pricing would not only help the real estate agents but it would also help valuators, the Government and all stockholders in the industry.

“You can go on the US real estate Web site Zillow and get figures of a property on a specific street for a three- bedroom house and it is very precise. We have nothing near that in T&T. Right now we have multi-listing system but we have something in the works which would enhance what we are doing and we will give details about later on. This would really assist us.”

 About Sally Singh

Sally Singh is a broker at S2 Real Estate Services and has had in excess of ten years’ experience in the real estate industry.

Singh was elected to AREA’s board of directors on April 29, 2013, became vice president on May 12, 2014 and was elected president of the association on May 12, 2015.

Singh is a graduate of the University of the West Indies where she holds a Masters in International Relations and a BSc in History. She also has a diploma in marketing from the Jamaica Institute of Management and Certificates in Principles of Real Estate Sales and Real Estate Valuation and is currently pursuing a diploma in real estate brokerage, which is being offered at Roytec in collaboration with the Association of Real Estate Agents.

There have been several comments on the statement by President of the National Gas Company, Indar Maharaj, in this space last week, that the state-owned natural gas distribution company intended to price the Initial Public Offering (IPO) of shares in Phoenix Park Gas Processors at below their cost price.

For those new to the story: in September 2013, NGC acquired the 39 per cent stake in Phoenix Park held by US oil giant ConocoPhillips for US$600 million ($3.84 billion).

As part of the current administration’s divestment programme, around the middle of last year, NGC proposed to sell 75,852,000 shares in the holding company named TTNGL at $25 per share, representing a 49 per cent stake in the company. That proposed IPO of Phoenix Park shares would have raised $1.89 billion, which would have meant that NGC would have recovered almost exactly what it paid ConocoPhillips, given that it was only selling 49 per cent.

In January, having done some research into the Mont Belvieu prices of propane, butane and natural gasoline (Phoenix Park’s three products), it struck me that NGC was setting itself up for failed IPO if it opted to return to the local stock market this year with a $25 per share IPO price. And I expressed that view in three consecutive commentaries in this space starting with, “Will lower product prices affect Phoenix Park IPO,” on January 22, continuing with, “Is NGC approach in investors’ interest on January 25, and, “Is sharing state wealth a bad thing? on January 29.

The premise of my three January contributions was that T&T’s institutional and individual investors would have little appetite for the Phoenix Park shares if NGC and its owner, Corporation Sole, offered 75.85 million shares for sale at $25.

But there would be significant appetite if those shares were sold at a price that was more reflective of the decline in Phoenix Park’s product prices.

In the January 29 piece, I wrote: “...If NGC sells 75 million shares at $20 at IPO, it earns $1.5 billion at the IPO. But if those shares then go to $36, NGC’s remaining shares (about 225 million) would be worth $8.1 billion. 

“But if the IPO starts at $25 (raising $1.89 billion) and declines to $22 a year later, NGC’s remaining stake would be worth $4.85 billion).”

In the January 22 edition, the views of the NGC president and the Minister of Finance, Larry Howai, were sought and reported faithfully.

In January, both men, by their statements, suggested that there would be no deviation from the $25 per share price aimed at raising $1.89 billion.

Thankfully, good sense prevailed and the opinions expressed by Mr Maharaj last week in this space indicate a change of thinking that brings him in line with my own views. 

But that position—that it is better to sell the shares now at a price that reflects Phoenix Park’s product prices—does not seem to be widely held.

Mary King, in a letter to the Business Guardian editor published on page 10 of this edition, argues: “To sell at this time of uncertainty and of low prices below clearly what is the market value of the shares is financial irresponsibility, if not an attempt to provide a steal of a deal to potential investors.”

And I got this response from someone whose intellect and communications skills I have grown to hold in high regard.

“The editorial in the May 28 Business Guardian confirmed what I have been warning the citizens of Trinidad and Tobago about for months. This is yet another wake-up call  for Trinidad and Tobago.

“The President of the National Gas Company (NGC) has confirmed that the value of the shares of Phoenix Park Gas Processors Limited (PPGPL) has dropped since they conceptualised the IPO of PPGPL.

“NGC has now confirmed that it is expected that the price that they will offer PPGPL's share at, will be less than the price at which they, (NGC), bought it in September 2013.

“This confirms the ‘fire sale’ of a very valuable state asset by NGC and the Government of Trinidad and Tobago. They are selling assets at less than the value at which they purchased them (only a short time ago). Our valuable state assets should not be the subject of ‘fire sales.’

“Furthermore, it is stated that the money earned from the IPO of PPGPL will be used to ‘fund the shortfall between Government's revenues and its expenditure.’ This was stated by Kamla Persad-Bissessar, the Prime Minister.

“What this means is that the Kamla Persad-Bissessar Government is funding their expenditure, in an election year, by selling off valuable state assets in a ‘fire sale.’

“The sale of valuable state assets should not be done when their value is lower than their potential value and furthermore, the revenue derived from any such sale should be used as investment for the future generations and not squandered by a Government to fund its expenditure in an election year.

“Do not forget that the Kamla Persad-Bissessar-led government has already been found to have taken unprecedented dividends from NGC of over $10 billion within the past couple of years. Again, this was used to fund recurrent expenditure and not invested for future generations.

“This Government should not be allowed to sell our valuable assets in fire sales. Citizens must be alert and call upon this Government to halt with the proposed IPO of PPGPL a matter of days before a constitutionally due general election.”

The letter was written by PNM Senator, Stuart Young, who is an attorney.

With respect to the positions espoused by Mr Young and Mrs King, if the NGC decides to sell the shares at the IPO at a fire sale price, who benefits?

It seems quite evident to me that the institutions and individuals who invest in the shares will eventually benefit.

Shares in the Phoenix Park IPO are not going to be sold to a small cabal of UNC supporters or to foreigner individuals and institutions. They will be offered to T&T citizens and residents as well as to the country’s pension plans, mutual funds, trade unions, companies, commercial banks and the National Insurance Board.

If the IPO is a success, and the offer is oversubscribed—as the First Citizens IPO was—then the Phoenix Park share price is likely to increase sharply in its first six months of trading. This will lead those who are looking for short-term profit to sell their shares, which will increase their wealth. 

Those who hold the shares for the long term are likely to benefit even more as Phoenix Park’s revenues and profits increase over time when its product prices improve.

And then there is the twice-yearly dividend the company will distribute to its new owners, which according to the NIB executive director is equal to a dividend yield of more than 7 per cent.

Those who participate in the Phoenix Park IPO are likely to receive both capital gains and a steady stream of dividends for years to come, which would increase the wealth of both the country’s institutions and individuals.

Is transferring wealth from a state-owned company to the country’s institutions and individuals bad public policy?

And even if NGC sells the IPO shares for less than it paid for them, if the share price increases to more than $25, all of NGC’s shares in Phoenix Park would be worth more at that point. It is important to remember that NGC was a 51 per cent shareholder in Phoenix Park from its inception and that subsequently some of those shares were transferred to National Enterprises Ltd in exchange for shares in NEL. 

It is my view that there is nothing wrong with a fire sale if the entire country benefits—as is likely to happen if the country’s financial institutions and thousands of individuals buy the shares.

What’s wrong with providing people looking to get on the first rung of the property market with a “steal of a deal” that increases their wealth? If the IPO comes off this month, it is also well-timed to address some of the liquidity challenges that will result from the payment of back pay to thousands of public servants, teachers and UWI workers.

While agreeing that one has to deal with the future in mind, former Windward Islands opener Lockhart Sebastien believes that picking too many young players is not a good thing.

Sebastien is a wide ranging interview with the T&T Guardian in Dominica where the first Test of the Sir Frank Worrell Series is being played said: ”While I think that the selectors should always keep their mind on the future, they have to make changes in a phased basis. I think that the dropping of Shivnarine Chanderpaul was not the right thing to do at this point in time. They should have given him the two Test matches against Australia and then wave good bye in a tangible way. The man has served West Indies cricket brilliantly and giving him the two matches should not have been a problem.

“I know that the management is keen on getting the young players in but they also have to control the number of them they are using at one time. They need to have that experience mixed in there and looking at what has transpired in the first Test, that experience is lacking. Chanderpaul’s experience was much needed out there in this clash.”

Chanderpaul the 40-year old veteran was dropped from the West Indies team just 86 runs short of becoming the highest run scorer in Tests for the Caribbean side.

He has vowed to come back, saying he will use his bat to do the talking and hopefully he gets a look in. For that to happen, there would have to be a change in the selection panel, as the current one led by Sir Clive Lloyd and including Courtney Walsh, Courtney Browne and Eldine Baptiste has shown an inclination to go for youth.

They have packed the squad for the Australian series with young players. Among them are Guyanese Rajindra Chandrika, Shai Hope, Shane Dowrich and Jermaine Blackwood.

FIRST TEST DAY 2 - Tea
Australia led by Adam Voges progressed from 156 for 6 at Lunch to 280 for 9 at team on the day 2 of the first Test against Australia at Windsor in Dominica. Voges moved from 45 at lunch to an unbeaten 114 and with Josh Hazelwood undefeated on 17. Bishoo has bagged six for 75.

Tea Time score -- West Indies 148 v Australia 289/9 (Voges 114, Hazelwood 17; Bishoo 6 for 75)

Startup Weekend 2014, which seeks to improve lives in T&T, takes place June 12-14 at One Woodbrook Place, Port-of-Spain. 

Participants will have the opportunity to pitch their ideas, form teams, validate concepts, build a product, and present their work to a panel of well-qualified and experienced judges—all in just 54 hours! The event will be co-sponsored by the Inter-American Development Bank (IDB).    

The IDB—through the Demand Solutions Model—is seeking to foster a culture of innovation in Latin America and the Caribbean that will encourage new approaches to addressing development challenges, while generating an active dialogue on innovation, creativity, and calculated risk-taking.

The IDB’s Demand Solutions Model is based on Open Innovation and relies on using internal and external paths and ideas to develop new solutions. 

The strategy is to connect every innovation activity into one participative model for all IDB components. The Demand Solutions model is designed to accelerate the process of improving lives.   

The winning ideas will be awarded the opportunity of becoming part of the REACH Caribbean Innovation Competition (CIC), a regional contest and business start-up accelerator for innovative ideas with commercialisation potential. The CIC will be launched in the summer of 2015. 

With financing from the IDB’s Regional Public Goods Initiative, the REACH Project aims to strengthen the business commercialisation capacity of competitively selected Caribbean entrepreneurs and firms and is being executed by the University of the West Indies in partnership with the World Intellectual Property Organization, Compete Caribbean, Caribbean Tales, and the Young Americas Business Trust.

More info

For more information on the agenda, speakers, mentors and the topics during Startup Weekend in T&T, check the Web site: http://www.startupweekendtt.com/

David Dulal-Whiteway, managing director of Republic Bank Ltd (RBL), does not expect the prime lending rate to increase any time soon, following Monday’s announcement by the Central Bank that the repo rate had increased by 25 basis points.

He said liquidity was still strong and “with the high liquidity even though the base rate is going up, mortgage rates have not increased to that same extent. It has remained pretty constant over that period of time.”

Dulal-Whiteway, who spoke at a news conference at RBL’s Park Streetl, Port-of-Spain, offices on Wednesday, said there had been a slowdown on demand for loans this year. 

Asked how that slow growth was going to affect the bank’s revenue, he said: “Our intention really is to maintain increasing bottom lines so you would have seen in our half year results we were still able to maintain a two per cent improvement over last year.”

He said a decrease in demand for loans was not unusual for the bank because at the time of the economic downturn in 2008 demand for loans decreased and only started to pick up in 2013.

“The growth in loans is slow this year and it has to be that the uncertainty is having an impact on people’s readiness to take on additional loans. I won’t say that people are not conscious of the uncertainty and making decisions due to those uncertainties.”

He added that trends show there is a slow down in the lead up to elections.

Dulal-Whiteway said falling oil prices were of concern to the bank. Referring to T&T’s foreign exchange situation, he said: “The good thing about it is that we do have a good bit of foreign exchange and it is a matter of how we manage the foreign exchange. 

He said there was need to look at the ways foreign exchange could be increased and the way it was sourced.

“We talk about diversification but we can’t rely only on the energy sector to provide us with all the foreign exchange that we demand,” he said.

Annually, billions of dollars are lost worldwide to shoplifting with an estimated loss to retailers on average of 1.7 per cent of their annual sales. Shoplifting affects every type of business that has goods on display. This article presents key tips and reminders to maintain the edge on potential shoplifters. It focuses on understanding the methods used by shoplifters as part of retail business owner’s loss-prevention strategy against shoplifting.

Who shoplifts? 

Shoplifters appear in any possible form, age, sex or size. In this article, we use four types of shoplifters: professional, amateur, drug users, and thrill seekers. Statistics show that the amateur is the largest group.

Amateurs come from every economic group and education level. Their thefts are generally impulsive, although a significant number find economic or more often emotional satisfaction in their action. As the frequency of theft by a particular individual increases, they become virtually indistinguishable from the professionals. The rest of the amateurs have no particular pattern of theft and may only steal once or, at most, a handful of times.

Professional shoplifters can wreak havoc on retailers. Their methods are well-planned and practical. Most times they work in groups or with a partner. They appear to be ordinary shoppers in every way; after all, fitting in to their environment plays a critical role in their success. The cleaver ones actually purchase items from the retailer they target.

Detecting the shoplifter

Professional shoplifters will not be deterred by normal means. They would not be discouraged by measures that would deter the great bulk of amateurs. In today’s world, you need a combination of effective electronic surveillance equipment and well-trained security personnel or store detectives to have the best chance at apprehending them. Other than being familiar with the routine and operations of your outlet, the floor staff, store managers and surveillance team must make it their business to understand and learn the different patterns that shoppers use, for instance:

• A person on lunch hour who shops to kill time; 

• The energetic early morning customer with a specific mission in mind; 

• The after-work rush-hour;

• Shoppers who are hurry to get home. 

• Understanding the difference in the pace of customers in the 10 am crowd from that of the 4.30 pm crowd.

Once we become familiar with these patterns, then we must learn how to spot a potential shoplifter. 

Some shoplifting methods are:

1. Using large baggy clothes like bloomers or pantyhose that can be fitted like shopping bags.

2. Slitting pockets in coats or jackets, or hiding merchandise inside a jacket or upper sleeve.

3. Wearing stolen clothes under the thief’s own clothing.

4. Hiding items in purses or umbrellas.

5. Placing small items in the palm of the hand. 

6. Using shopping bag and the store’s own bag.

7. Hiding items within other packaged items, eg, placing jewelry into soap, toothpaste or cotton boxes.

8. Wearing the item in plain view and walking out with large items.

9. Snatch and run—grabbing items placed close to the door and running out of the store.

10. Cages—these are specially designed to be worn by women to make them appear pregnant.

11. Hiding items in books, newspaper and magazines.

12. A technique usually used by females is where an item is held in place by the thighs under a skirt or dress.

13. Using baby prams or strollers to hide the items.

14. Uses a baggy jacket to hide items under.

It is also beneficial to know the physical actions and reactions that shoplifters make as these can help a storeowner identify potential shoplifters.

• Makes excessive eye and head movements, constantly looking around or “scoping out” the premises for alarms, cameras and employees. 

• Refuse to look you directly in the eye.

• Quickly refuses assistance when offered.

• Seems to be avoiding salespeople.

• Do not appear to have a deliberate purpose to purchase items.

• Picks up and puts down a variety of articles. 

• Place bags on the floor while looking at stock. Items can be easily dropped into a bag before the business owner/employee has a chance to notice. 

• Not handling or looking at merchandise they pick up. They may be attempting to steal and conceal it quickly. 

• Take identical pieces of clothing into a fitting room. 

• “Sampling” merchandise that may not fit their character. 

• Walks with short steps to conceal merchandise between their knees. 

• Walks behind a desk, into a stockroom or anywhere else they shouldn't be. 

• Loiters in an area that would not normally be of interest to them, for instance, a man in a women’s department. 

• Leaves an area hastily. 

• Remains in the store for lengthy periods of time. 

• Frequently return to a particular spot within the store.

• Kneels to look at merchandise. 

Prevention actions

There are actions that store personnel can take to help reduce shoplifting losses. These include:

• Acknowledge all customers; 

• Always face customers, especially when using the telephone; 

• Keep customers in view at all times; 

• Focus on people who fit the shoplifter typology;

• Watch out for customers who do not appear to have a deliberate purpose to purchase items;

• Watch out for diversions;

• Pay attention to unsupervised children, especially during school hours;

• Watch out for overcrowding around the cash register area, particularly by school children; 

• Use common sense, be vigilant and watchful; 

• Watch merchandise near the edges of tables or counters. 

In addition to physical actions, there are several anti-shoplifting tools available to retailers which include closed circuit television, uniformed guards, electronic article surveillance, close customer service, exit inspections, no package inside policy and in-swinging doors. When these anti-shoplifting options are combined with knowledge of shoplifting methods, the deterring and apprehending of shoplifters can be increased.

Contact the Caribbean Institute for Security and Public Safety for training programmes to prevent shoplifting, robbery, theft, violence as well as risk assessment, first aid, CCTV, etc, in your workplace from the almost 100 training programmes available. 

Tel: 223-6999, info@caribbeansecurityinstitute.com or www.caribbeansecurityinstitute.com

Brian Ramsey, MBA,

Ricardo La Borde, CPP 

After the early loss of Darren Bravo this morning, the West Indies were fighting back on day three of the opening Test of the Sir Frank Worrell series in Dominica.

Facing a deficit of 170 runs, the West Indies reached lunch at 97 for three, still 73 runs short of making Australia bat again.

Bravo fell to Josh Hazlewood this morning for five courtesy a wonderful catch by David Warner at mid-off.

At the crease at lunch were Marlon Samuels 26 not out and Shane Dowrich 31 not out.

The son of disgraced former world football boss Jack Warner has described his role in a multi-million dollar World Cup ticket scam, buying up seats and selling them at inflated prices, in court documents unsealed June 5.

Daryan Warner's guilty plea to a string of charges is set out in a 2013 agreement with US prosecutors to provide evidence of FIFA wrongdoing.

His brother, Daryll, also made a plea deal after being accused of mortgage fraud.

The documents suggest the US Department of Justice is investigating fraudulent ticket sales dating all the way back to 1994, when the World Cup was held in the United States for the first time.

"In 2006, I purchased the tickets directly from FIFA, and I misled FIFA to believe that my partner in reselling the tickets was not involved in the transaction, because I believe that FIFA would not have sold them to me had he been involved," he said.

"In 2010, I purchased tickets from others, in order to mislead FIFA to believe that I was not receiving tickets, because I believed that FIFA would no longer sell tickets directly to me."

Despite the seriousness of the crimes being examined, there were light moments. At one point, Daryan Warner struggled to read a statement setting out his crimes, prompting the judge to intervene.

"Take your time," he said. "Take a drink of water. Slowly and loudly. Channel your inner Lord Vader, not your inner Woody Allen, okay? That's what I say all the time."

His brother, Darryl, pleaded guilty to making a fraudulent mortgage application and wire fraud. The deals were crucial to the U.S. Department of Justice investigation. 

Darryl admitted trying to buy a condo in Miama for himself, his father and his brother fraudulently. 

Their father, Jack Warner, has been charged over alleged corruption at Fifa. 

He has been arrested and bailed in his native Trinidad, and made a defiant TV broadcast on Wednesday night claiming he has an 'avalanche' of evidence he will reveal.

Jack Warner quit his position in FIFA and as head of the Confederation of North, Central American and Caribbean Association Football (Concacaf, which was more widely known by its acronym) in the wake of bribery allegations in 2011. 

The investigation ended with his resignation. The hearings were conducted in a closed court and the transcripts sealed until now to allow the investigation to continue in secret, unknown to Fifa's higher echelons.

His brother's guilty plea concerned the purchase of a $1m condo in Miami. He told the federal judge that he knew he would have been turned down for a mortgage and made false statements.

He also admitted making a series of deposits of less than $10,000 in banks with the intention of dodging federal reporting rules which notify the Internal Revenue Service of any deposits greater than $10,000, and deposited more than $100,000 in six months from July to December 2011.

Both men are yet to be sentenced. Daryll, who is a US citizen, faces a maximum sentence of 20 years, although it is likely to be significantly less because of his cooperation with the federal authorities.

Daryan, who is not a US citizen, faces removal from the US, and a maximum sentence of 20 years. Similarly it is likely to be significantly less because of his cooperation with the federal authorities.

Source: Daily Mail

GENEVA—In soccer's version of the long goodbye, Sepp Blatter is staying put.

“Golden Horn, do you think he’ll win the Epsom Derby?” I asked veteran trainer Barry Hills earlier this week; “what’s gonna beat him?” he replied!

This is a man I’ve more respect for any other in racing; he’s been there, done it (so often!) and that was a proper, genuine, pragmatic, retort to the question which so many are bound to be asking.

We talk EVERY morning, it’s an education to listen, a bit like Lester Piggott, he never wastes a word and it comes back to the old saying (in racing!), “less said the better, and that’s too much!”

Barry doesn’t do frivolity, he made that clear at the outset and one advises/handicaps his horses, in the full knowledge he can’t ask a question that wont be answered; I know everything, form-wise, about those he trains exclusively for Sheikh Hamdan Al Maktoum.

We’ve been a formidable combination, ‘two heads are better than one’ and we both value, appreciate, the colossal experience gained during life terms on the racing scene, which combine more than 100 years.

My answer, incidentally, William Buick.

This young man was aboard unbeaten Golden Horn when they stormed away to beat Jack Hobbs over an extended ten furlongs of York last month, achieving a time-handicap mark that wins the Derby nine times out of ten; prior to that Frankie Dettori partnered this Cape Cross colt at Newmarket.

Frankie will be in the plate this weekend, Buick on Jack Hobbs, for the first time in public!

Godolphin has stepped in and purchased a large share of Jack Hobbs and William Buick is contracted to the ‘boys in blue!’

Both are improving at a rate of know and trained by John Gosden!

William is an intelligent young man, cast in the mould of Steve Cauthen and indeed Piggott, he’ll be hell bent on getting it right; his tactics are bound to be setting sail into Tattenham corner and exposing any stamina weakness that Golden Horn has; don’t forget owner Sir Philip Oppenheim is convinced extra distance is unknown territory but a plus for Jack Hobbs.

Perhaps Dermot Weld trained second-favourite Zarwaq will aspire but he needs to improve considerably and in summary I’m totally convinced that Jack Hobbs represents the definite each-way special tag and will reverse that two and three-quarters lengths defeat on the Knavesmire; I’ve bet on it.

Incidentally when asked about the record of Frankie Dettori at Epsom (one out of 19!) Lester said, “some races obviously don’t suit some jockeys, do they?”

Priceless!

Ten go pt to post for the £40000 listed Woodcote Stakes over six furlongs (a one-time juvenile classic!) and Mark Johnston-trained Buratino makes strong appeal, mount of Buick!

Elsewhere one of eight meetings on yet another hugely overwhelming day will be staged at good to firm Doncaster where it will be no surprise if four-year-old Foolaad causes one in the Maiden Stakes over five furlongs.