Tag Archives: House of lords

Funny Money, Amusing Thickheads

There are two issues and they do not link, but they are supportive of one another. I made notice of this situation 5 months ago in my article (at https://lawlordtobe.com/2019/04/27/then-the-hard/) called ‘Then the hard‘, in the article I give “Now we get to the part where the €2.5 trillion mark matters, as the ECB is trying to find new ways to convince others that the continued provision of stimulus to the economy matters“, as I see it the stimulus protects banks, makes them more powerful, it allows for political stupidity, yet the economy has not been saved (not in the two attempts), it has not been jump started, and it has not been a positive impact for its citizens, merely the industrial executives and the rich CEO’s (OK, that was a more biased view from yours truly, the writer).

As Bloomberg gave us on Saturday (at https://www.bloomberg.com/news/articles/2019-08-31/more-ecb-officials-pile-into-stimulus-debate-as-economy-wilts) ‘More ECB Officials Pile Into Stimulus Debate as Economy Wilts‘, and when we see: “the ECB should keep all options on the table to reinvigorate inflation and growth, including a relaunch of quantitative easing“, it is at that point that the EU citizens are getting screwed (again), more debt (again) and no resolution because the ECB is about the gravy train and not about resolutions. Yes that same article gives opposing voices, yet I would not be surprised that (by a narrow margin) the stimulus people win. This is why Brexit was so important!

In the end the retirees get hammered for those debts, the ECB officials have too fat wallets to care. At this point the debts have surpassed €3,000,000,000,000 and it seems that the end is nowhere near, yet the stage of bankruptcy is there. Even at 0.1% (no debt interest is ever that low) implies that the interest is €3 billion a year. A payment that is way beyond the budgets of any of the EU nations, payment due every year whilst the bulk of them have overextended themselves with budgets that should have been shrunk by well over 5%, so pretty much all the EU nations are running an economic deficit whilst the Mario Draghi Posse is handing out more money, printed money, for a lack of a better term funny money.

What the ECB is not telling anyone that most stimulus options fall flat when the UK officially leaves the EU that is the despair there. Their options melt away when the UK is out and that is why everyone is suddenly in a panic, that is why we get these moronic acts and even UK Labour is all about remain now. And with that part we move to the second part of this.

Now we get to the Chief of Grief, the Duke of Fluke, the one and only real loser in history (as I personally see it) Jeremy Corbyn. When we see headlines like ‘No-deal Brexit: Jeremy Corbyn vows to ‘pull Britain back from the brink’‘, or ‘Final sovereignty on Brexit must rest with the people‘ we see the idiot he is. There was a referendum, there was a voice and Brexit won, the issues with the ECB shows us that we are a lot better outside then inside that mess. There is no brink of Brexit, there is an economic mess and we will enter a stage of recession, anyone telling you that it can be presented is lying to you, or they are wielding massive amounts of money, amounts that no one has. This has been shown by people more intelligent than me and by people with actual economic degrees; they all are on the ‘remain’ fence, merely because it butters their bread. It gets worse when we see that the Hysterical Remain groups that have become violent, abusive and out of control, more important, to a larger degree the media isn’t even covering it. How is that for balanced information?

I have heard one or two actual ‘remainers’ who made a really good case, yet in the end, they have no control over the ECB and the ECB is in Europe at present the great evil. What they claim is good for Europe is to a much larger extent merely good for big business. When we look at those companies leaving the UK, these are all companies hiding behind taxation options, or facilitating to really large players and to some degree that is fine, but the ECB forgot that the well over 150 million small business owners see nothing of any of that and more important, they will see the impact of the 3 trillion euro of debt that the ECB created, things are that much out of whack and I do not get why people accept the presented BS that people like Jeremy Corbyn have been presenting to the masses. I am aware and I also believe that Brexit had its own waves of BS presenters. I made up my own mind and for the most I was leaning towards Remain, Mark Carney (the Marky Mark of the British bank) and especially his speech to the House of Lords was the setting of that stage. Yet he too had one flaw (if you want to call it that), there was no controlling the ECB and they are out again making some lame excuse on the essential economic need for more stimulus, whilst we already know now that it will not save the economy and they are willing to wager another trillion euro and spend it up front.

These people are not held accountable in any way and I say: ‘Enough is enough!‘ The UK is better off by itself steering the economic waters as it had done for centuries. Oh, I almost forgot the second part on sovereignty, sovereignty does not rest with the people, it rests in Buckingham Palace with HRH Queen Elisabeth II. There was a referendum and the Brexit group with a little over 51% won. And to those people still in doubt, you only have yourself to blame with the mess you are creating. There were 46 million votes, representing a 72% group, so 28% did not even bother to vote! Those 13 million votes were invalid straight of the bat, with only 25,000 invalid or blank votes we see no real impact, it they were all remain voted it would not have mattered. When you consider all this and you see the hooligan masses being remain people, we see two parts, the first is that they are moronic (worthy of UK Labour), yet the larger issue is that a lot are in anger because they are not getting properly informed. Stories like: ‘UK government officials told the food industry that supplies of liquid egg could run out in a no-deal Brexit‘, yet the operative word is ‘could‘ we just do not know, and not knowing is adamant in a lot of this, yet the people have faced two years of fear mongering, all large consortiums that see a danger to their margins, not the margins of the shop, the margins to executives and their bonuses, and the people are eating the fear hook, line and sinker. There will be actual issues, but the foundation of all this is that this has never happened before and the EU and the ECB did this to themselves. We all forget how this started, this all started when Greece in 2009 had misrepresented itself and we saw issue after issue, debt after debt and the politicians that caused it merely walked away. Then we were told stories on how Greece might be evicted from the EU, the news was all over that yet the truth was that we were misled (or is that made Miss Led?) The Guardian (in 2015) gave us: “As Athens will be unable to satisfy its financial obligations after a default, many hardliners expect Greece to leave the Eurozone, and printing as much neo-drachma as necessary. Some see this as the only solution to the Greek crisis: it would allow Greece to devalue its new currency, supposedly making the country competitive and resulting in economic growth and the ability to repay its debt“, in addition we get: “while only article 50 of the EU treaty regulates how a state can leave the union. And a mechanism for leaving only the Eurozone or for expulsion even has not been provided for at all“, basically the stupidity of the EU was that they stated that every member will always be up front and do what must be done, which was deceptive in its own rights. So a group that is merely inclusive and under stringent rules can they leave, yet in addition other sources gave us that NO MEMBER can be expelled. This is called a Corporatocracy, not a democracy. Corporations decide on what happens and that is what we basically see at present. The problem here is that any Corporatocracy will limit its actions towards enablers and consumers; the rest is pretty much screwed. In a monarchy all citizens matter and the people do not seem to be able to grasp that, the UK (and the Netherlands, as well as Sweden, Belgium and so on are monarchies within a Corporatocracy and that is a very different setting, that stage can only be made profitable where debts are soaring and the banks not the government decide where you can be at, a situation we see all over Europe. this is not new, I did not invent it, other voices going back to 2014 say pretty much the same thing, I merely have a lot more data available at present. The media relies on advertisement money from any Corporatocracy, so you cannot expect them to actually inform you, it is a double edged blade and both sides are pointed at YOUR guts, it is that detrimental a situation.

So as Greece made a few issues clear in the wrong way, people like Nigel Farage went with the notion of ‘Better Out than in‘, I agree with him, yet I remained on the fence for the longest of times. It was the second ECB stimulus who would put us so much deeper in debt that got me across. The first stimulus was fine, it was an option and even as it did not work out, it gave Europe time, yet the second one the best we could hope for was time and that is where the problem started and now as stimulus 3 is on the table the setting is too unacceptable, the UK needs to get out and fast, deal or not.

Let’s not make a fairy tale, this will not be a nice time and things will get worse for a little while, anyone telling you different is lying to you. The issue is that with the ropes cut the EU cannot force debts on the UK to the degree it is doing now, more important the UK gets to make a few other choices and it will down the road (3-4 years) turn the economy in something stronger. It will result in an actual better quality of life over time, but it will not be immediate. This is why the ties and economic options with players like Huawei (5G), nations like Saudi Arabia (all kinds of goods) and a few other players become important (optionally India with generic medication). Anyone with the misguided notion that Human Rights are the optimal route better stay at home. If Human Rights were an actual power there would be no age discrimination, there would be actual better (and more) housing and there would be a better social security. All missing and mostly because in a Corporatocracy, corporations are largely tax exempt, exactly what we see today. In that stage we now see the rumblings, even as players like Google, Facebook, Amazon, Apple and others are all making noises on leaving, they do so at the risk of losing 69 million consumers. Facebook is truly global, so is Google to the largest extent, yet for Apple we get Huawei, ASUS and HP, Amazon leaving would give the people a slimmer HMV and optionally small businesses come back (my preferred solution), and even as corporations are shouting, screaming, streaming and threatening, they all realise that you cannot walk away from 69 million consumers. Not when they need to share the smaller EU pool with 3-4 competitors at every corner. That is the part we all forgot, consumer power is actually power and we listened to the likes of Jeremy Corbyn for far too long. To be honest, I never thought that it would be possible to be more dim than Nick Clegg (LIBDEMS), yet I was wrong, Jeremy Corbyn pulled it off nicely. I am not stating that Boris Johnson is without flaws (his barber being the obvious one). I am stating that the UK has been in a dangerous position for far too long and as long as the ECB does the way it does it, the danger stays, getting away from that danger is an immediate need at present.

 

Leave a comment

Filed under Finance, Law, Media, Politics

Evolving an infrastructure

The news is all over the place when it comes to Saudi Arabia. Reuters (at https://www.reuters.com/article/us-saudi-defense-naval/saudi-arabia-signs-warship-construction-deal-with-frances-naval-group-idUSKCN1Q60B0), with the headline ‘Saudi Arabia signs warship construction deal with France’s Naval Group‘, then there is Arab News giving us (at http://www.arabnews.com/node/1453471/saudi-arabia) ‘Saudi crown prince oversees $20bn of deals with Pakistan‘, all opportunities lost to the US and Europe (well most of Europe). A lot of it is ‘part of its efforts to develop domestic manufacturing capabilities‘, which they have been very clear about for some time now. All options lost. In part to the circus that Turkey had put in place. Some give us: ‘Turkey Has Not Revealed All About Khashoggi Killing: President Erdogan‘, others give us: ‘Khashoggi’s remains may have been burned in well‘, items like ‘not all revealed‘, ‘may have been‘, as well as a few other implied making statements that leave too much doubt on the matter. The fact that Turkey apparently has not revealed all implies orchestration. As the lackey of Iran it makes perfect sense, the fact that the media has been skating around that issue for months now does not. The fact that Turkey is trying to push the US, whilst they should have revealed all the facts and evidence is a much larger issue.

Let’s be clear, I am not stating that Saudi Arabia is innocent (because I cannot tell), I am not stating that nothing happened (something happened that is clear, what exactly happened is another matter), I am merely claiming that there are too many issues in all this from the very beginning. When it comes to the media, we see close to 18 million placements on ‘Kim Kardashian’ and ‘boobs’, we see 889,000 placements on ‘Jamal Khashoggi’ and ‘tapes’, yet how many made a critical analyses on the tapes? We see mention in papers on: “a man alleged to be Maher Mutreb, the suspected coordinator of the mission who worked for some time in the kingdom’s embassy in London, is quoted as replying to the Washington Post columnist“, we see ‘alleged’, so how were the tapes critically analysed? We also see: “The report adds that a later recording captures another “hitman”, Mustafa al-Madani, who was used as a body double to Khashoggi, saying: “It’s really creepy that I am wearing the clothes of someone who was killed minutes ago.”” as we see ‘a later recording’ should that not be one and the same recording? Then there is ‘transcript of a tape recording’, the fact that it is stated to be ‘a recording’ not ‘the recording’ is also mind for analyses and that list goes on.

We see claims by a Kardashian getting numerous cross references, with Khashoggi there is a consistent stream of doubts and debatable issues. As I stated, I am not saying nothing happened, I am merely wondering what actually happened. The fact that Turkey goes crying to USA to put pressure on Saudi Arabia merely gives more and more debate and debatable doubt to the entire setting. We also see the mention at the UN of “The Special Rapporteur travelled to Ankara and Istanbul with British Baroness Helena Kennedy, a forensics expert who sits in the House of Lords, and homicide investigator Paul Johnston“, yet in the BBC we see: “Evidence suggests the murder of Jamal Khashoggi was planned at the highest level, Baroness Helena Kennedy says“, yet here the BBC states ‘evidence suggests’, which is something different from ‘Evidence shows beyond reasonable doubt’ and for the most that should initially suffice if the stakes were not too high for comfort. In the UK the Press Gazette gives us: “After an initial examination of the evidence, Callamard found that Khashoggi was the victim of a “brutal and premeditated killing planned and perpetrated by officials of the state of Saudi Arabia”“, yet when we look on we also get claims on quotes made in 2017. All an emotional package to push us in a certain direction, and whilst we might accept: “Woefully inadequate time and access was granted to Turkish investigators to conduct a professional and effective crime-scene examination and search required by international standards for investigation,” the fact is that the event occurred on Saudi territory and the Turkish government has no jurisdiction there. If there was such a level of evidence with the tapes, they would have been made public, yet we see more and more games played by the Turkish government making the issue debatable again and again. We can argue that if they had gone out and revealed everything, the entire setting would be different. They basically invalidated themselves with all the preposterous claims.

This is when we go by the source I used (at https://pressgazette.co.uk/jamal-khashoggi-un-saudi-investigation/). As stated there are issues, there really are, but the emotional games played using the media takes away a lot of credibility. As we were shown “Germany halted arms exports to Saudi Arabia over what it said was the uncertainty surrounding the murder“, we now see well over $20 billion in deals going to other places. That is the name of the game. The issues are important because the governments being holier than though, yet refusing to hold Turkey to account over well over 200 incarcerated journalists is part of the entire package. It comes across as a mockery when we get treated to Turkish journalist Nazli Ilicak who is now apparently serving life plus 6 years in prison. Now we can agree that one should not be the other and I would agree with this. Yet the fact that there is doubt on many levels and the fact that the media kept on shouting and screaming ‘alleged‘ as well as ‘according to unnamed sources‘ whilst there is all kinds of issues in several directions is also a reason for some to not include certain parties. We can argue the same part in the stage with the USA, when we consider “The US Senate, in a largely symbolic gesture, voted in December to end US military support for the war in Yemen and blame the Saudi crown prince for the murder of Khashoggi“, this whilst we can agree that a partial case can be made for the Yemen conflict, the fact remains that the Houthi forces have been receiving support from both Iran as well as terrorist organisation Hezbollah, making the withdrawal by the US a bit questionable (yet not invalid), as for blaming the Crown Prince whilst there has been no evidence showing his involvement is just slightly too silly. If there was clear evidence beyond all reasonable doubt that would be one part, but that part has not been given, now once in 16 weeks makes the claim silly, France was happy though, so there is that to consider.

There is still space for the Dutch if they reconsider a few places. I am decently certain that Saudi Arabia would love to get their ships upgraded with the Dutch Goalkeeper system which is (for the most) a defensive system. And that is merely the defence part, there is a much larger goal for Saudi Arabia and the Dutch could become contenders is a few ways. And in regards to the stage, is being critical about what is written that bad a position to have? I am not stating avoiding writing anything, merely be clear and produce evidence, if we demand it in some directions, should that same request not be in all directions?

The issues evolve even now. As we were introduced to: “Jubeir said the public prosecutor responsible for the case had sought evidence from Turkey but had received no response” is the reference to Adel al-Jubeir, Saudi minister of state for foreign affairs. The fact that evidence is not shared is also an issue; it could imply that there is no evidence at all making this hot potato no longer a potato, but a disaster in the making. If the evidence was so clear, it would have been in Turkey’s interest to share it with the world and all the media (to some degree), the media will refer to the event as leaking (like they normally do). I wonder when all the facts are clearly published, what would be left?

The fact that News24 also gives us “The CIA has concluded the Saudi operation was likely directed by the powerful crown prince” is now a growing concern. It is not ‘beyond all reasonable doubt‘, it is not ‘on the likelihood of probability‘ it is merely ‘was likely directed‘, implying that evidence is missing on a whole range of issues. So when we see all the unsupported accusations, all the calls for ending cooperation with Saudi Arabia, are we even surprised that Saudi Arabia is spending their cash somewhere else? And when we see the 500 billion and 185 billion go to alternative places, how will that impact economies? To be honest, I would love to get my fingers on the full report of homicide investigator Paul Johnston. It might clear up a whole truckload of issues, and perhaps leave too much reasonable doubt. I honestly do not know, yet I would love to find out.

So when we see that here truly is too much reasonable doubt and when the US hopes to make deals for the good of the economy, we will see what the decisions form Riyadh will be. The fact that 8 hours ago the news as given with ‘Sultan Bin Salman reviews prospects of cooperation with Russian space officials‘ is from my point of view a first message that Saudi Arabia is seeking more interactions on a global scale (read alternative cooperation partners), the fact that it is not going to Europe or the US should be a clear indication that there are troubles brewing under the Saudi sands, and more is coming when we look at the upcoming cutbacks that NASA will be facing.

When we see the amount of evolution that Saudi Arabia is trying to give its own infrastructure should be a massive input towards global economies, but so far the players needing it the most end up with the least, it could of course be a coincidence, but when we realise that it is not, can we actually place any blame, or should we merely blame our own politicians for bluffing whilst holding merely a pair of threes, I will let you decide on that one.

Too many questions and a lack of clear reporting contributed to all this, of that I personally have little to no doubt at all.

 

Leave a comment

Filed under Finance, Law, Military, Politics

One to the hospital, one to the morgue

It is not a setting, not a statement; it is merely the observation of what we see happen. Yet the question becomes who is who? It is a setting of placing Interserve next to the Cardigan Integrated Care Centre that is where we see a situation evolving. And it would not be a London project that is in danger, would it?

Why the situation? It is the timing, even as everyone is still ‘working with’ and ‘LOCAL health board officials are confident that Cardigan’s new £24m health care centre will not be affected by the financial problems of outsourcing company Interserve‘, I am less certain that this will not have an almost deadly impact on the project. The article (at https://www.tivysideadvertiser.co.uk/news/17301424.interserves-problems-should-not-affect-cardigan-integrated-health-centre-project/) gives the people none of that and as far as I read the article, there is nothing there indicating the views I have, yet the setting is already staged to become worse, much more worse I might add. That is an easily given fact as the project is not due until the end of 2019.

You see, the article also gives us: “Interserve is responsible for delivering the project but there are fears over its future after it confirmed it was in rescue talks that would see retail shareholders virtually wiped out and creditors take control. Yet that is not the directive part in all of this, and the article (through no fault of it, or its writer) gives that part to the reader. You see, that part we get when we contemplate ‘Struggling Interserve may hand construction unit to lenders‘ (at https://news.sky.com/story/struggling-interserve-may-hand-construction-unit-to-lenders-11581667). the first question that rises, if there is such a debt, why would we see: “drawing up plans to hand its £250m building materials unit to its lenders as part of an ambitious plan to secure the company’s future“, which is a choice, yet when we see another article also giving us: “Outsourcing giant Interserve is preparing to spin off its lucrative building materials division in a bid to reduce its debts“, so why would a ‘lucrative’ part get sold off? Lucrative clearly implies the part that allows for a much quicker turnaround and in absence, that lucrative part used to keep the lowest bidding in place will also (optionally) drastically increase the cost of projects when it falls away and that is where the Cardigan health centre find itself optionally soon enough. We might think that ‘RMD Kwikform makes equipment used to build concrete structures‘ is no indication, yet this equipment is often merely leased per project and a new owner implies new (or additional) fees or another destination for that equipment, changing the entire setting of the project and experience, as well as history taught us that a board in trouble does not tend to care too much about their running projects.

Am I correct?

That remains to be seen, because there are several factors in this that are unknown, yet the setting that the project is a year away implies that there are plenty of stages uncompleted and they are therefor at risk. The fact that this news is 2 hours old means that there is no given setting, yet the large impacts will be seen in the next quarter and that is when the pennies drop for several projects, the question is on how the stage will be maintained.

The fact that Interserve stock has been reduced by 45% and when we consider that the Interserve board is close to a month away from revealing its plan, as well as the fact that this thunderstorm has been looming for over a month does not help matters.

From another source

The Financial times is giving us another setting here. With ‘UK government to continue awarding contracts to Interserve‘ (at https://www.ft.com/content/03f63e62-fd41-11e8-ac00-57a2a826423e), we saw that the government last week was setting the stage for Interserve to get some deals going as these projects mean money and money coming in is always a good stage to continue the work. So when I see “Government sources told the Financial Times that it does not view the company as another Carillion— the contractor that failed in January — and that it would consider Interserve for further tenders“, we should consider it as a partial truth, when you are down in a debt that soon will be pushed towards an approaching £1,000,000,000 (as I decided to round it towards the worst case scenario), we need to realise that something has gone terribly wrong, That amount approaches to the annual income of 32,000 construction workers, and their pensions, so there is another side to investigate soon enough (although we do acknowledge that the Interserve pension is high in the green).

Are we overreacting?

That remains to be seen. The fact that this large a debt is an issue on something this big needs to be scrutinised in several ways, not merely what is to come, but how come the debt is there in the first place. Improper pricing, inefficient project management, wrongful costs are all stages here that pushes additional costs through the roof and that is where it all hurts, and without proper vetting the pain remains and we will see additional projects operating at a loss. that part was given by Construction News in April this year when we got ‘Interserve suffers £244m loss for 2017‘, the quote “an “inefficient operating model” with high overheads had left the firm “exposed to weaknesses” in the support services and construction industries” by chairman Glyn Baker is clear enough, the wrongful setting and we see an amazing growth of losses and debt. the fact that we were given the implied “Interserve said the business will need a “significant de-leveraging event” to stay viable, which would likely be an asset sale, or raising further equity before December 2020“, which against ‘cut costs by £15m in 2018, and is on course to add £40m to £50m to operating profit by 2020‘ sounds almost like a joke, to with a debt over 800 million (conveniently rounded to a billion by me), we see the mention of “limiting the cost issue by 1.8%, whilst adding debt reduction by 5% in two years’ time is exactly the message in a stage how we should read it, A Joke!“, oh and that is all whilst in those 7 months £300 million was added to the debt, is anyone waking up yet?

In all this, Interserve has gone from bad to worse from 2015 onwards, all whilst some might expect that with Carillion out of play, options for Interserve should have opened up, no matter how bad the market was, one larger player was removed.

Round 2 is worse

The audience has been avoided getting exposed to certain parts of the business, we might not have realised it, yet that part is actually given the limelight by the Investors Chronicle (at https://www.investorschronicle.co.uk/alpha/2018/12/13/interserve-the-warning-signs-were-ignored/). You see, I saw certain parts a month ago, but for me, it was partial news as I never looked at Interserve before. So when we are given certain points, and I am merely leaving the ones that matter:

  • Low profit margins.
  • A reliance on acquisitions and cost cutting.
  • High debts both on and off its balance sheet.
  • A big pension fund deficit that needed large amounts of cash flow to reduce it.
  • A difficulty in converting operating profits into operating cash flow – a classic sign of poor profit quality.
  • The need to sell assets in order to maintain and grow dividend payments.

At what point did we not consider the massive danger Interserve was in? The events that I have been able to track go back to early 2016, The Financial Times in May 2016 and the Independent in August 2016 give us some of the goods, in addition there was Forbes in 2017: “Overruns lead to £70m charge for construction and services group“, as well as “The Reading company advised that a tight control of working capital across the rest of its business last year substantially offset the adverse cash impact over at EfW. Consequently net debt clocked in at between £270m and £280m as of the end of 2016“. It is the fact that we see a clear level of inaction (or bad management) that gives rise to the situation, the fact that these issues were clearly in place almost 2 years ago, gives rise that the government had a clear duty to intervene to some degree, that level might be up for debate, yet the ‘let’s leave it for now’ and the presentation (at https://www.interserve.com/docs/default-source/investors/financial-reports/presentation-results/2018/h12018-results-presentation.pdf) now give the consideration that there is every chance that shareholders might be seeking legal counsel. You see Interserve ‘presented’ the so called facts: ‘Fit for Growth initiatives delivering savings and creating a simpler, more effective Interserve‘, as well as “Overhead reduction and efficiency measures to deliver £15m savings in 2018“, gives serious contemplation that the shareholders were not properly informed of the dangerous place that they were in at that meeting in August 2018. In addition, slide 20 gives rise to another contemplation; the fact that two posts (Manufacturing and Regulated industries) are set to a marker size of £22 billion, 2 out of 7 mind you, and we see the losses incurred, we see additional worries on management and pricing. Even at a 1% margin, we should see £220 million in the plus for these two alone, the fact that the overall is set to minus £800 million, and a mere positive move of up to £50 million is a much larger debate and as such, one might argue that there is a lot more going on in the negative of Interserve that we might think.

Baskets of fruit

In opposition to my own view, I am in several ways comparing apples, pears and oranges and merely labelling the items as fruit, which in itself is not correct either. However, from my point of view, I see a tradesman dealing in 22 billion pieces of fruit and when left with a certain minus to this degree gives clear indication that the entire business model is wrong on a few levels giving additional worries on the earlier reported premise of ‘The need to sell assets in order to maintain and grow dividend payments‘, the conceded view that selling of your land year after year just to look good implies that the farm devaluates with every year and when we see that this has happened from 2016 onwards, the signs given should have been louder by many players and that (to the best of my knowledge) has not happened.

The Coroner is in the house

When we consider the elements, we can also give rise to what needs to happen. If Interserve continues on this path, there is every indication that we see sell off after sell of, with an optional class action against Interserve, implying that the damage increases, so those projects set for delivery in late 2019 and 2020 (A Wales health centre for example) will find themselves on the coroners slab whilst the media looks at the intestines coming to the conclusion that at present there was no way to save the patient, and when we see that, how will that affect the £25 million Merthyr’s Prince Charles Hospital in Merthyr Tydfil? These two are close to £ 50 million, something will have to give and where will the government spring in when they have to? Will they do that? This does not mean that this situation explodes to that degree, but the signs of patient Interserve are not that great at present. And should there be an interception to protect these two projects, does that imply that Interserve is ready to be shipped to the morgue?

That is the foundation of it, because the stage we see now implies that you can save one, but not both. The stage to the degree as I am seeing it should not allow for it in the first place; it does open up new options that as Interserve breaks down we will see new players come to life, perhaps one per construction project, yet that too has the danger of costs going overboard in a large way really fast, that is the nature of the beast, merely because the largest players implying to have the costing down to a margin is a mere 1%, smaller players can never do good on that promise, showing us that costs will overrun on all projects by a fair bit. To see that in a much more local London setting we see places like the Aecom tower and the stage where ‘overly enthusiastic‘ contemplation was set until we got: “profit was “lower than expected due to the losses taken on an underperforming project in one of the company’s core market segments”“. This matters, there is a speculative approach to construction projects and the stage is not merely on how things are pushed, it is on how pricing models are staged and presented by all and that requires a much larger oversight, or better stated, it needs additional scrutiny on a few levels. There is a stage that clearly is part of the Interserve failure. Even if the ‘new’ model implies that we might optionally see: “the tower will now house 861 apartments of which 765 were for private sale, the adjustment now allows for a private sale of 813 apartments“, screwing over even more social housing points. If that is allowed, certain councils should be overhauled and those parts of the stage allowing for that should be required to be facing the dock and optionally dismissal of the project as well as the investment amounts to be considered a total loss. There is a lot wrong in this entire stage and it all started with optional pricing models that were seemingly not realistic in the first place. Carillion clearly showed that element as I personally see it and whilst the board of Interserve is contemplating what to do over the next few months, they to require a level of scrutiny that is a lot larger than anything we considered before. The Greenland Group and Aecom, merely illustrate that what we are seeing in the Battersea Power Station debacle as well as a much larger stage of construction jobs out there (Interserve pricing anyone?).

So when the Financial Times gave us merely a day ago: “A refinancing arrangement between its Malaysian owners has been delayed for the third time; the cost of labour and materials is increasing; the developers have more than halved their expected returns and there are disputes with Transport for London over the cost of the Northern Line Underground extension to the area“, we see that the pricing stage for construction companies (as we clearly see with Interserve) is a much larger concern, we could argue that someone is dampening the cost and margin part merely to get things started and in that trend, we might need to consider other avenues. Perhaps consider nationalising projects in this stage and those shareholders and investors will have to live with their 100% losses. Why leave this level of unacceptable pressure on taxpayers and governments?

And the fake messages of keeping Britain good for investors also required those pricing goons to consider that it comes at a cost. If the players cannot do their job, then those hurt must seek legal consideration against those firms using flaccid pricing models, making matters worse for Interserve, but should we actually care at that stage?

There is every consideration that Interserve goes to the Hospital whilst the projects in wales go to the morgue, but personally I do hope that it is the other way round, as the Battersea Power Station project implies (and a few more beside that); the entire problem on construction has been around for close to 5 years, implying in my personal opinion that these problems started long before Interserve was in the deep financial problems it currently is in, giving rise to several issues that require discussion in the House of Lords at the very least, and perhaps starting the discussion of that agenda no later than week 2 of January 2019 would not be the worst idea as I personally see it.

Do you want to see an avoided discussion on how a health centre went to the morgue no matter where it was supposed to be built?

 

2 Comments

Filed under Uncategorized

Smite the analysts

It is time to change the game. It is time to do a lot more than merely claiming to do something about fake news. I never claimed to bring the news, I have merely been in the process of nitpicking it as much as possible and the Guardian got my feathers plenty ruffled this morning, so it is time for me to be a little speculative of the matter.

We love our idiot products at time; it is something to laugh at or something to make a joke about; for the most harmless fun. Yet today something snapped. It might have been the abuse that Theresa May has been receiving, it might have been watching some poor sod holding a ‘We’re poorer without EU‘ sign, whilst like me that person is unlikely to have any economic degrees.

So when I see: ‘Theresa May’s Brexit deal could cost UK £100bn over a decade‘ by Richard Partington (at https://www.theguardian.com/politics/2018/nov/26/theresa-mays-brexit-deal-could-cost-uk-100bn-over-a-decade).

I hereby make my first demand (do not worry, no one will listen anyway).

In regards to: ‘People’s Vote-commissioned study says loss is equivalent to annual output of Wales‘, I DEMAND a full disclosure of the names of the people involved as well as a clear documentation of all sources used. this includes the names of those in the ‘People’s vote’ those who commissioned the study, the price paid for the study, as well as the names of those who made that report (not just the three who wrote it), the data sources used as well as how the report was set to the data and its results. I expect to find a dozen flaws in the very least. In this case any arbitrary choice (which at times is perfectly valid), should be seen as a flaw, unless clearly stated as such.

It is time to hold these people up to the limelight exposing what the Guardian (and many other newspapers) are giving voice to as being ‘the facts’. I would like to go as far as prosecuting (to some extent) the makers of these loaded and dubious reports by banning those names from any governmental research for life! When that happens, we will get all kinds of excuses and well phrased words or denial. Yet, I feel that we have come to a point where these activities can no longer be tolerated. Not by any government and not by any organisation with political aspirations, or connections.

The reality here is that the UK will lose income, lost funds and lose options for the short term. This has always been known. We always knew that things would get a little worse. Yet NOONE is making any call on the waste of three trillion euro’s by the ECB on their Quantative Easing and the waste of now close to three trillion that the taxpayer has to pay back, whilst people like Mario Draghi walk away with a ton of money, a member of an elite banking group of 20 and no accountability to anyone. The media refused to hammer on the ECB on any of it and the lack of clarity and transparency that the ECB has. This happened in full view whilst they all had 50+ articles on the death of a journalist no one really cared about (aka Jamal Khashoggi).

My larger concern is seen in: “Garry Young, the director of macroeconomic modelling and forecasting at NIESR, said: “Leaving the EU will make it more costly for the UK to trade with a large market on our doorstep and inevitably will have economic costs.” The NIESR report found May’s deal would not be as damaging for the economy as Britain leaving the EU without an agreement, which would cost the economy about £140bn over the next 10 years.” From my personal point of view, these people are in it for themselves, most of them are. Even as I will immediately admit that this report looks actually valid and good, issues come forward to a degree that might not have been seen at the beginning of it all, yet the scrutiny after the report is also lacking making the issue larger. What some call ‘lucrative European contracts’, we see a lack of investigation on both sides of the isle in all this, because as a Brexiteer, I will never deny a Bremainer to voice their opinion, or their opposition to it all. It is the acceptance of democracy that demands it from within me. The UK has not really profited from the EU, merely large corporations have and that is actually the biggest issue with the entire EU at present. When we look at the 68 million consumers, many of them have not been able to afford any of it. The bulk of all of us are dependent on moments like Black Friday to get the hardware we normally cannot get. It is a known issue that the quality of life is still low all over the UK and in many other places. The only true beneficiaries of the entire EU setting are the large corporations. The local grocer sees no real benefit, whilst the large supermarkets have all these deductibles that for the larger extent benefit its board members, not the customers. People like Gary Young are eager to make mention of ”inevitably will have economic costs“, which is a truth; I and many realistic others do not deny it. Yet in equal measure we can move away from a multi trillion bond buying scheme that has done nothing for the people whilst making the banks fat and rich. Never before in the history of mankind did the banks and Wall Street have such a large hold on governments and its citizens and we sat down and let it happen. Brexit is for the UK the first step to undo that damage and it will take time, we all get that. So as we realise that the ECB failure, in part to unmanaged ‘freedoms’, lack of transparency and accountability has greatly impacted the UK, at that point will we realise that there is a weighted and loaded stage against all of us, in every EU nation. The second part in all this is what some call: ‘the EU gravy train’, I have made mention of it on a few occasions and the lack of actions in that regard is close to sickening. Even The Times gave us some time ago: “MEPs are clinging on to lavish, tax-free handouts for travel despite publicly pledging to repay them, according to an internal report by the European Parliament. They have kept an estimated €6million (£4 million) after promising before the 2004 elections not to claim the money. “They get exposed, promise to be modest and then keep riding the gravy train. It is appalling,” said Hans-Peter Martin, an Austrian MEP, who has led a campaign against abuse of expenses. The €60 million-a-year travel allowance system is so generous that many MEPs admit it amounts to legalised embezzlement of taxpayers’ money. MEPs are paid a first-class air fare for travel to the parliament, even if they use budget airlines. They make an average of £20,000 a year tax free“. We can agree that in that meantime something was done, yet how much was done? The taxpayers have to come up with 751 times £20,000, giving us a total of fifteen million pounds and that is only the travel item every year, one of a lot more items, so how much extra are these people getting? The simple fact that many of these issues have not been adjusted for over 12 years is a clear stage that the EU is the goose for exploiting extra income and benefits, something taxpayers never signed up for in the first place. Even now (8 weeks ago) we see: ‘Details of MEPs’ €4,416-a-month expenses to remain secret, court rules‘ (at https://www.theguardian.com/world/2018/sep/25/mep-expenses-eu-court-ruling) with in addition: “MEPs are also refunded first-class travel expenses and get a €313 daily allowance for hotel and living costs when working in Brussels and Strasbourg“, which in the most optional stage grants them an additional £60K each, adding fuel amounting to £46,562,000 to the tax payers fire. I think I have made my point, did I not?

When Brexit is done and we start seeing the impact, I predict it will be less than 2 years before the complaining starts, not from the UK, but from the other nations that now have to pay for the part that the UK will no longer be paying for and that is the ballgame here. When that happens, and it will we will see a rejuvenation by both France and Italy wanting to get out as fast as possible leaving merely Germany as the large economy to carry the weight of the EU and they will not be able to do this and it will all collapse. That is not a speculation; it is a certainty as I see it. It will only need one of those three to join the leave team and it will already fail. In light of all that is happening it seems to me that Italy is now the frontrunner before France, yet that might be what the horse lover calls a nose length photo finish. It was almost two weeks ago when French Marine Le Pen gives us almost the same view in the Daily Herald with: “French far-right leader Marine Le Pen is blaming the policies of the European Union for Britain’s exit from the bloc. “If the EU wasn’t what it is now, the United Kingdom would still have been a member of a structure that respects the nations, the people, that doesn’t impose migration polices and deals that have very heavy consequences on our industries and agriculture,” Le Pen said Friday at a news conference in the Bulgarian capital, Sofia.” It was for the most what pushed me into the Brexit field a few years ago; even as Mark Carney, Governor of the British Bank and his presentation in the House of Lords gave me reason to doubt that, the acts of stupidity by Mario Draghi and the ECB pushed me straight into the Brexit field, supporting Brexit. A situation that had been known for years, yet in light of 751 beneficiaries nothing was done to keep tabs on it and Brexit become a fact.

So as we accept the setting (via many sources) that Marine Le Pen is giving through “the EU wants to punish Britain by imposing “conditions that are unacceptable to a large majority of the people in the U.K. and to members of the British government.”“, we have seen several parts of that in the media. Is it not interesting how infantile the EU gets when you do not want to be a member? They threatened Greece to throw them out, whilst there was no legal option for the EU, and they demand the impossible from those wanting to leave. In that setting, who wants to remain a member? I would go with the speculation that the EU is for: ‘those who needs the power of exploitation‘.

It is getting worse

In this we look back at Greece. Some might remember the big boast that Greece made. I mentioned it in my blog: ‘They are still lying to us‘ (at https://lawlordtobe.com/2018/06/23/they-are-still-lying-to-us/), so when we were treated on June 23rd to ‘Greece ‘turning a page’ as Eurozone agrees deal to end financial crisis‘. Here Alexis Tsipras was happy to be quoted with: “Greece is once again becoming a normal country, regaining its political and financial independence”, we saw none of the EU reservations in a claim that was off by decades. I also commented in favour of the Greek opposition shown by Kostis Hatzidakis with: “The opposing party reacted to the credit buffer with ‘Kostis Hatzidakis said it reflected the lack of faith international creditors had in Athens’ ability to successfully return to capital markets.‘ And in this Kostis is right, the international markets have zero faith in their return, they rely on a small thing called mathematics and the clarity there is that the scales are not in the favour of the Greeks.” Now we see a mere four days ago ‘How Greece Is Scrambling to Save Its Banks — Again‘, the EU has become this short sighted, this convoluted in misrepresenting the facts to the people. So as we see: “Greece is scrambling to figure out how to save its banks — again. Burdened by bad loans that make up almost half of total lending, crippled banks remain one of the biggest hurdles to Greece’s economic recovery. There are even worries that the country may face yet another financial crisis if it can’t dislodge its lenders from their downward spiral. With bank shares tumbling, the government and the Bank of Greece are working on plans to help banks speed up efforts to shed soured loans” and this comes one day after: ‘EU: Greece has Not Implemented 16 Bailout Program Prerequisites‘, which we get from the Greek Reporter. We see: “The European Commission is urging Greece to proceed with 16 prerequisites that have to be completed by the end of the year, as agreed with creditors. The first report after the end of the bailout program in August that was released on Wednesday says that Greece is delaying to implement 16 important measures and reforms. Among them are the staffing of the independent public revenue authority, the repayment of overdue debts, the legislative framework for resolving the problem of non-performing loans and the development of the new primary health care system“, the article by Philip Chrysopoulos also gives us “Despite the fact that Greece’s 2019 budget meets the target of a primary surplus of 3.5 percent of GDP” will see a speculative setback (speculated by me) by close to 2% at the very least, in what will likely be a wave of managed bad news. The EU is now that useless and pushing down all the other European players. If only the EU legal setting had allowed for removing Greece from the Euro setting and EU economy settings in 2014, a lot of the issues (like Brexit) would never have been an issue. It is in my personal view greed driven EU stupidity that allowed for this. A blind faith in Status Quo that pushed the need of large corporations and that might become the downfall of the EU as a whole.

Do you still think that the EU is better for the EU economy? First Greece and now Italy are becoming the weights drowning the EU. Merely one hour ago, the BBC reported that: “Italy’s government says it will stick to its high-spending budget plans, setting up a potential stand-off with the European Union over its deficit.“, are you actually believing in fairy tales when you think that this will not hit back on the rest of the EU? Even as the Independent reported 13 hours ago: “The pound fell 0.19 per cent to €1.1284 off the back of reports that Italy is headed for a breakthrough with its budget, which would bring to an end weeks of wrangling between the EU and the Italian government.” we now get the reality that there was no breakthrough, we merely see more of the same and the impact of Italy is not immediately reversing and upping the pound against the Euro is it? In light of the revelation, the pound should be up by no less than 0.27 percent against the Euro (the gain and the 0.19 percent loss), we will not see that will we (or we will see it as late as possible so that the 0.27 percent can be largely minimalized. When you realise that the UK is getting unfairly hammered to this extent, would you want to be part of that group? And when (not if) the UK shows the improvements making the UK economy better, what excuses will the EU, ECB, IMF and Wall Street give the people of Britain?

To be part of any exploitative regime as the EU is starting to show it in a few ways. The evidence of this statement was shown by the Clean Clothes Campaign last June when we see (at https://cleanclothes.org/news/2018/06/11/complaint-lodged-against-the-european-commission-for-failing-to-uphold-fundamental-human-rights-in-trade-policy) ‘Complaint lodged against the European Commission for failing to uphold fundamental human rights in trade policy‘. Here we see: “Bangladesh has committed serious and systematic violations of fundamental workers’ rights. Conditions are unsafe for millions of workers in Bangladesh. Additionally, the labour laws of Bangladesh create significant obstacles to the exercise of the right to freedom of association, to organise and to bargain collectively. Further, the government has not effectively enforced even these flawed laws, and workers complaints to authorities are routinely ignored. Without bargaining power or legal recourse, workers have been forced to live in extreme poverty.” and when we realise that the lack of activities, naming and shaming those who are part of it all, whilst the EU remains inactive to a much larger extent, my case of large corporations being in charge of those acting in the EU parliament is close to well made, tailor made one could state. The lack of visibility given in the EU and the oversight on what is imported into the EU from Bangladesh is frightening. The Dutch CBS reported 3 weeks ago: “The average import price per vest exceeds 3 euros in 2018. With an import price of around 2 euros, vests manufactured in Bangladesh are considerably cheaper. Prices of vests from China (approx. 2.50 euros) are also lower than average, while vests from India were average-priced (around 5 euros) and those from Turkey more expensive than average (around 5 euros).” good luck trying to convince me that this is not about money and that there is a proper investigation into the Bangladesh situation. The fact that even China cannot match these prices is partially evidence enough. The fact that manufacture owners in Bangladesh are part of the 250% plus stage that we see with: “This is the largest quantity ever recorded and approximately 2.5 times more than in 1998“, the lack of questions by those gravy train people is just a little too weird and more questions are not coming forward. That is the European Union that its members seem to like and letting the UK out is also not an option. The analysts are merely the first circle we should go after (the first of several mind you). Any report that is not clearly documented with the names of all the people involved in this should immediately be disregarded and kept on record for prosecution and smiting afterwards (when those reports are proven to be incorrect) at that point I wonder how many studies we will get that are so overwhelmingly negative. And it is not merely the analysts. The names of the people commissioning for the report and the clear definition of the question that was asked will also be set to scrutiny. I wonder how many politicians and corporate figures will suddenly run for cover and darkness like a group of cockroaches.

Feel free to disagree or even oppose my view. Yet also remember, I merely want to see the names and all data on those so called ‘commissioned studies’. Is that such a bad question? When we are given the results, should we not wonder HOW they got there? Is that not a duty we all should have?

When we look at The National Institute of Economic and Social Research, we see a clear stage of names, Arno Hantzsche, Amit Kara and Garry Young (which is a proper thing, mindyou). We also see on page 7 and 8: “The Governor of the Bank of England estimated that by May 2018, UK household income was 4 per cent lower than it would otherwise have been as a consequence of the referendum (Carney, 2018): “one third of the 4 per cent shortfall in real wages reflects stronger-than-projected inflation, which is almost entirely accounted for by the referendum-related fall in sterling. The remainder reflects weaker-than-expected nominal wages, the majority of which can be accounted for by weaker-than-anticipated productivity growth“, which should not be disregarded.

Am I opposing my own view?

No, when you see the charts in that page, we see the UK not being in a good place. Yet considering ‘UK economic growth relative to other G7‘ and ‘UK inflation relative to other G7‘, the UK situation would not look great whilst this is staged up to 2018, and now we get the good part. The G7 are Canada, France, U.S, U.K, Germany, Japan and Italy. Now consider the Italian part dragging down due to the stupidity of their budget decision (which might be seen as their right). In addition the Greek issue will drag down the EU as a whole and the USA is in a trade war that will also impact the USA, all parts seemingly not taken into account and suddenly the UK already looks a lot better in all this. Now, we cannot completely fault the report called ‘The economic effects of the government’s proposed Brexit deal‘, yet there is already a non-negative impact for the UK (it is a stretch calling it a positive effect). In addition we see properly placed “We have assumed” in the proper places and only thrice, which is also a good thing and for the most utterly unavoidable. We also see in one place: ‘Sterling effective exchange rate (January 2005=100)‘, which is possibly merely arbitrary, from my personal view the fact that 2008 and 2016 have impacted it all might also be a stage where the UK had more hardship than before and as such the three stages should have been included. My final issue is on page 15; I do not doubt the numbers or the statement perse. Yet when we consider “Ramasamy and Yeung (2010) find that openness to trade benefits in particular FDI inflows to services sectors, much more than to manufacturing. Ebell and Warren (2016) survey the empirical literature and calculate that reverting to trade under trade arrangements similar to those between the EU and Norway would reduce FDI into the UK by 8–11 per cent, and by 11–23 per cent under a Switzerland-type relationship” that openness of trade also implies the open acceptance of the unacceptable ethical stage that Bangladesh is showing to be, we need to ask the tougher questions on EU inactions to the degrees currently seen. You see, when we accept one part, we need to accept that all these sweatshop articles are out of bounds. They are merely emotional banter pressed on those trying to meet budgets, there is no humanity left, we should not allow for that. In this way my statement is harsh, yet that is what the EU has become, a harsh proposer of status quo at the expense of whatever is coming next. If you do not agree, feel free to ban all Bangladesh T-shirts, leaving others with 215 million T-shirts to sell; was that example too direct?

Even when we accept the part of ‘how the deal affects uncertainty and confidence‘, which is a topic that will remain as there will always be uncertainty, the entire report is seemingly staged towards the bad side, whilst any improves economic marker from the second year onwards are basically ignored. We can argue that year one will have no upsides, yet the stage of no upsides in year two is lose to unimaginable. Apart from the ‘EU donation‘, which has been significant, the downturn of Italy and Greece that will no longer impact the UK is clearly escalating and France is basically scared shitless of that part. France is so scared as it is in a much worse position than Germany currently is, who will also feel that impact to some extent.

No matter how this plays, it is a mess that will test the reality of a lot of people. My largest concern is not how good or how bad things get, it is the fake revelations by speculative analysts that are the impact of a lot of things and the moment when we see the managed bad news after the fact, we will also see the weakness that has become the EU, in light of an already weak USA, this merely strengthens the need for a segretative community (read: nationalistic approach to national issues). It is the one part where I see eye to eye with Marine le Pen: “the policies of the European Union as well as the lack of transparency and non-accountability” are the biggest drivers in this entire sordid affair.

I wonder how draconian the changes will become when others realise how correct my view of the matter was. I am less likely to facing the fact that I was wrong, there is too much documentation pleading for my view, especially as the Wall Street Journal reported “Greece’s Eurobank Ergasias SA said it will acquire real-estate company Grivalia Properties REIC, boosting its capital and paving the way for the creation of a “bad bank” to help deplete its pile of nonperforming loans” a mere 5 hours ago. So when exactly did the people ever benefit from a bad bank solution? We saw that in 2013 with the Dutch SNS and Reaal setting. So as Brussels treated us to: “The costs to the Dutch taxpayer were still substantial, resulting in a deterioration of the budget balance (excessive deficit procedure definition) for 2013 with 0.6% and an increase in EMU debt of 1.6%“, we see Greece doing the same 5 years later. As we look at the quote: “In fact, since the nationalization the Dutch press has regularly published pieces that show how the commercial real estate has been mismanaged for a substantial time period. Did this go unnoticed by the regulator? Why did it not intervene?” We now get to unite that part with the overwhelming inaction of the EU and the unacceptable actions of the ECB, so this will be a much larger thing that Greece is printing on the rest of the EU then the people are currently aware of and the impact will be felt much larger, the fact that the bulk of the EU states cannot keep a proper budget merely makes mathers worse (not a typo, it means ‘reaper of hay’), and now I am in a state of moments uncontrollable deriving laughter.

The lack of visibility to several parts (an issue I cannot blame the media for in this case) is just incomprehensible. In part this is due because there are so many elements interacting, yet the fact that the issues are not visible is still a matter of great concern, and also an additional reason to push for Brexit.

 

Leave a comment

Filed under Finance, Media, Politics, Science

Sleeping with the enemy

We have heard the expression; most will remember the movie with Julia Roberts and Patrick Bergin. The expression is slightly harsh and a little over the top for the setting that I find myself presently in with PwC. You see, some people are playing a dangerous game. So when I see ‘UK firm PwC criticised over bid for major Saudi Arabia contract‘ (at https://www.theguardian.com/world/2018/jul/31/uk-firm-pwc-criticised-over-bid-for-major-saudi-arabia-contract), I find myself on the side of PwC supporting them. The article is an issue on a few levels. I touched on a few two days ago with: ‘Oman’s neighbour‘ (at https://lawlordtobe.com/2018/07/30/omans-neighbour/), so this setting is actually most informative when we consider the issues seen here. I objected to the setting that Amnesty International gave a consequence, yet the original setting that started it was missing, in all this, the fact that the Houthi forces are firing missiles into Saudi Arabia, as is Hezbollah and Iran is the puppet master behind all this, so when I see “Peter Frankental, Amnesty International UK’s economic affairs programme director, urged PwC to explain what due diligence it had undertaken before pitching for the work“, I wonder if Peter Frankental has done its due diligence into the situation where a terrorist organisation (with evidence from several sources) is operation on Yemeni soil with full backing of Yemeni officials, who are also extremely aware that they are facilitating for Iran. That part is missing from the charade that Amnesty International states is ‘the humanitarian nightmare‘. We agree that too many Yemeni are in the middle of this, no one denies that, yet the actions by Iran via Hezbollah and the Houthi’s are an issue and in this they merely ignore the founding factors.

In addition, the UK, with a desperate need to improve the economy has options and opportunities in Saudi Arabia, creating a dialogue, helping Saudi Arabia move forward. We admit that it will not be fast, it might raise obstacles, which is a fact of life. So when Peter Frankental sets ‘due diligence‘, I am of the mind that he clearly did not proceed with that duly noted diligence to a rather large extent.

So when I see “The United Nations guiding principles on business and human rights make it clear that a company may be viewed as complicit if they are seen to benefit from abuses committed by another party“, in that view, Frank please explain to me how you will prosecute Northrop Grumman, Palantir, Blackberry, Dell, Pelican and Apple? I would really like to know that at present. I am going to grasp back at an expression that we get from Robocop, it was spoken by Kurtwood Smith: ‘Good business is where you find it!‘ and Saudi Arabia has business settings for up to £825 billion, so PwC is getting vetted for a chunk of business that could optionally keep thousands employed, grow optional new businesses and industries. In addition, when exactly did Peter Frankental set the stage for a similar attack on Virgin? Are they not setting up the first Hyperloop there? So where is Frankie boy in all that? Now, it is not my intent to slam out at Frank, he seems to have his heart in the right place. Especially when we look at a paper by the House of Lords called: ‘Any of our business? Human Rights and the UK private sector‘, it seems that he has forever focussed on this, the paper (Attached) is from 2009, where we see on page 15 “In particular, we contend that the UK state could and should play a greater role in the governance of corporations so as to contribute to the protection of human rights from corporate abuse, whether the abuse occurs in the UK or abroad“, that is fair enough, yet he is setting now the acts of an attacked government into a corporate right, in that same setting all exports to the US should in that light be equally questioned and regarded as illegal, you basically can’t have it both ways Frank!

So when we grasp at: “In particular, we do support the idea of some kind of international instrument for corporate accountability within the UN system, but we agree with Professor Ruggie that such an instrument would not exist to monitor the activities of tens of thousands of transnational corporations, that would be unfeasible, but it would exist to reinforce the will of states to hold companies to account within their jurisdiction” and set the dimensionality of a flaccid UN when it comes to the events in Syria, there is such overwhelming evidence of inaction (through Veto or not), which gives us that in the faced setting PwC should not even be a blip on his radar. Not when we compare it to “the US contractors are mostly focused on supporting the 2,000 US troops in Syria by delivering hot meals, gasoline and other supplies. More than 30% of them support logistics and maintenance, according to the quarterly Pentagon report, and another 27% help with support and construction of US military outposts in the region” (source: Al-Monitor, April 2018). So how much visibility did Frank give here? In all this, he does not get to hide behind the ‘It is not linked to the UK‘ you just cannot become a ‘local’ party towards a global event when you decide it is. It just does not work that way.

In this, we also see: “PwC already has a presence in Saudi Arabia, but it is the company’s UK operation that is behind the defence project“, which is true, because I applied and they were not taking any non-UK citizens. Darn!

In addition, with: “PwC has launched a “call for resources” – asking specialists and consultants in London whether they would be interested in moving to Riyadh to start the work – because, it has said, it is “currently finalising the deal”“, we see that PwC has the setting to move people to Saudi Arabia, more employment and in addition a sector growth that could lead to 10 figure long term deals, but fear not! Peter Frankental will be there to try and undo the economic boom that will benefit the UK (was that overly simplified?)

So with the upcoming opportunity and the subsequent quote “focus on how to reshape recruitment, resourcing, performance management and strategic workforce planning, and how to manage and communicate change“, it actually goes further than that, even as a lot more performance management is likely to be shown, it will also be about what is the hierarchy and what is not. In light of work safety and preparedness (yes, even in the military), the setting of ‘Own the challenge‘ is a lot harder to scribe into the soul of the person. To set ‘solving’ the issue as the forefront of ‘that what is my actual responsibility‘ tend to be a challenge even within the most flexible workers, so I predict that there is a shift that will soon be shown in places like Saudi Arabia as well. I will admit that having never worked there, that this setting is more speculative than anything else.

So when I see Frankie give us: “As any accountancy firm involved in work for the Saudi ministry of defence must know, the Royal Saudi air force has an appalling record in Yemen, with the Saudi-led military coalition having indiscriminately bombed Yemeni homes, hospitals, funeral halls, schools and factories. Thousands of Yemeni civilians have been killed and injured“, the equal question on how many missiles that Iran enabled the Houthi and Hezbollah forces allowed to be shot into Saudi Arabia, and there is the drone strike issues in the UAE to consider as well. In addition, it is called ‘Saudi Ministry of defence‘, not the Hezbollah missile strike team. It might be nit-picking on my side, but then, I was always willing to go for broke.

Then there is the setting of “the UK “should be focusing on trying to stop this terrible conflict, not assisting the Saudi government.”“, yes it is an interesting setting by Anna Macdonald (younger sister of Ronald). When we go to the site (at https://controlarms.org/meet-the-team/), we see Anna Macdonald, Raluca Muresan, Zoya Craig and half a dozen volunteers. Yet, lets also congratulate on the bang up (or is that blow up) job they did in Syria, as well as a few other places. So when I see: “a global coalition working for international arms control“, which is a good goal to have, the flow of missiles and arms from Iran into a few places was not really stopped was it? Iran has exported small arms and ammunition to Sudan and Syria, anti-tank missiles to Syria, Sudan and Somalia; rocket exports to Syria, Sudan, Libya as well as shipments to Hezbollah and Iraqi insurgents. So in that list, and the goal Anna Macdonald envisions is a noble one, no one denies that, in all that, with at least two dozen of export mentions excluded, I think that PwC should not be on her list either. Especially, as the Saudi Arabian civil population is still under threat of missiles from a terrorist organisation. No one denies that the Yemeni people caught in the middle are in a really unbearable place, but all these actions means that no actual actions are taken against Iran. So as we were given ‘the European Commission has moved to add Iran to the investment mandate of the European Investment Bank (EIB)‘ a mere 18 hours ago, it seems to me that in all this Anna Macdonald and Peter Frankental should be setting their focus in a different direction, or perhaps that will merely not give them the limelight that they so desperately need (for all the right reasons mind you).

In all this, the defence from Saudi Arabia in the person of the foreign minister, Adel al-Jubeir was reduced to a mere: “Judeir blamed the Houthi rebels for blocking aid and contributing to the humanitarian crisis“, is that not interesting too? The actual blockers of humanitarian aid was set into a mere footnote, a mere 14 words, so in all this, where is Peter Frankental at this point?

 

Leave a comment

Filed under Uncategorized

Physical vs Virtual (part2)

In part 2 we look at the virtual aspect in all this and for that we need to take a look at the other part of the equation, and see where the interaction ended up, because that is also a matter that truly counts.

Virtually

It started way before now, but the now gives us ‘Facebook moves 1.5bn users out of reach of new European privacy law‘ (at https://www.theguardian.com/technology/2018/apr/19/facebook-moves-15bn-users-out-of-reach-of-new-european-privacy-law). You see the law is one thing, yet in all this, when we see “Facebook has moved more than 1.5 billion users out of reach of European privacy law, despite a promise from Mark Zuckerberg to apply the “spirit” of the legislation globally“, was anything illegal done? When we see: “when asked whether his company would promise GDPR protections to its users worldwide, Zuckerberg demurred. “We’re still nailing down details on this, but it should directionally be, in spirit, the whole thing,” he said“, did he lie?

Those are the immediate questions. The General Data Protection Regulation (GDPR), the EU in this gives us “replaces the Data Protection Directive 95/46/EC and was designed to harmonize data privacy laws across Europe, to protect and empower all EU citizens data privacy and to reshape the way organizations across the region approach data privacy“, so the people created their account long before these privacy issues were there. They never cared for the longest time, as long as the US government didn’t get any data and when we respond to pornographic images and videos on social media, oh no, that was not us, that was merely Gavin Barwell (see part 1), in a time when his mind should have been all other kinds of matters. Ah well, we all have an itch now and then. Yes, it is that itch, because we are all on social media for some reason, to share, to look, to listen and to judge. Some of them actually communicate, and that has also been proven so communication on social media is not a fab. So when we see the EU site on the GDPR: “the biggest change to the regulatory landscape of data privacy comes with the extended jurisdiction of the GDPR, as it applies to all companies processing the personal data of data subjects residing in the Union, regardless of the company’s location. Previously, territorial applicability of the directive was ambiguous and referred to data process ‘in context of an establishment’. This topic has arisen in a number of high profile court cases. GPDR makes its applicability very clear – it will apply to the processing of personal data by controllers and processors in the EU, regardless of whether the processing takes place in the EU or not“, the first thing we see is that social media has no business having offices or processing data in the EU, that basically is the signal for Facebook to vacate using the ASAP protocol and they did just that. And Mark Zuckerberg did it all in the spirit of it all, it is just not what was expected and the Senate hearing just gave themselves (allegedly) access to de data to nearly all the European users. the second part gives us “The GDPR will also apply to the processing of personal data of data subjects in the EU by a controller or processor not established in the EU, where the activities relate to: offering goods or services to EU citizens (irrespective of whether payment is required) and the monitoring of behaviour that takes place within the EU. Non-Eu businesses processing the data of EU citizens will also have to appoint a representative in the EU“, so with ‘monitoring of behaviour that takes place within the EU‘, is a much larger issue and Alex Hern makes no mention of this anywhere in the article (that is not an accusation), merely that Facebook has moved the data and that the people in the EU have less rights under US law. Was that not always the case? Was that not the initial setting when Facebook started? So when we read “This is a major and unprecedented change in the data privacy landscape. The change will amount to the reduction of privacy guarantees and the rights of users, with a number of ramifications, notably for consent requirements“, which we get from Privacy researcher Lukasz Olejnik, we actually do not get anything new, because the GDPR would not have been enforced until next month, so there! (OK, not an entirely justified outcry, but I am feeling batty)

In all this the missed issue of monitoring is actually a lot larger for some and those boasting on what they bought on the dark net (some people remain simple on every level) will have a few repercussions, yet in all this when it regards Cambridge Analytica, we see all kinds of media exploitations, rumours, alleged actions, yet no arrests, no one in the dock and still the entire mess is merely focussed on Facebook. We have seen news on a massive amount of apps collecting data, smart toys, and with the upcoming 5G, the RFID and mobile tag as well as device tags will be an exponentially growing data market with the entire Fortune 500 chomping at the bits to get their fingers on that data, yet at present the legislation has been faulty at best and nominally missing completely. All that because the people give it all away willingly, that is what the next fridge with a £250 discount will warrant, as did the 2016 Sony Smart TV as just about all following models. that is not a joke, you agreed to this when you bought the TV,

it is in the end users license agreement and they are not alone, it is a massive list of corporation that are doing this and the media was, yet they were largely silent about it and the Sony issue in 2012, where the media is what I would personally label as: ‘whoring for advertisement options‘ instead of informing 30 million consumers on the change and its impact, is what still has my nostrils flaring 6 years later and I am an actual Sony fan.

So as we see how we are singularly focussed on where our personal data is and not what we allowed it to be used for, especially as it came with the free use of Facebook, we all need to accept that nothing is for free and the corporation requires its return of investment, well in the case of Facebook merely 60 billion. Where did you think that value came from? Watching advertisement? In that Facebook and google are largely alike. So in these issues in the physical and virtual side, we are short on memory, too large on emotions and unclear on how to make the houses of Lords and Commons more accountable for the matters at hand. Even as they cannot prevent you from staying with Facebook, we all have been failed by legislation that was too slow and MP’s that are showing to be lacking the necessary skills to do something successfully. It would be so lovely if Sir Martin Moore-Bick would be kind enough to show both matters, because it would have a much larger impact. Even as we see, (what I would personally call) the failed false promises of Jeremy Corbyn regarding housing, with: “One million new “genuinely affordable homes” over a decade, mostly for social rent. That’s not quite 1m new council houses – a chunk of these would be delivered by housing associations – but it gets very close” is also a Porky Pie of the largest order. You merely have to look at google Maps to see that there is no place for even 30% of that in London, so will they mostly be in Wales, Penzance, Brighton and Scarborough? In addition, none of the sides of the houses
(Lords or Commons) have successfully done anything to make a change, regarding leasehold which will drive the entire social housing matter further and 1,000,000 houses will not nearly be enough. So, back to the Virtual part, because that is still central in this. In that part I have to thank the realtor Harcourts for bringing the juice.

You see, with: “NPP1 – Collection of Information; Agencies are prohibited from collecting personal information unless it is necessary for one or more of its functions. Personal data should only be collected in a lawful, fair, and not unreasonably obtrusive way. The agency must disclose certain information at the point of collection“, yet in all this the terms: ‘unless it is necessary for one or more of its functions‘ gives a much wider scope, does it not? In addition, with ‘only be collected in a lawful, fair, and not unreasonably obtrusive way‘. So when they (the real estate in general) offer a £199 rebate for registering you as the leasehold owner, how many people do you think that will consider it necessary and not unreasonable? It merely needs to satisfy one function and the deed is covered with the mantle of opportunity. In addition we see “Personal and sometimes sensitive information may be collected and stored on standard real estate industry forms, such as tenancy applications, listing forms, etc. These need to be secured and available for inspection by customers“, so when did you look at what some call the RP Database? In Australia there is a firm CoreLogic and it has a product called RP Data Professional. In all this we see: “RP Data Professional is the leading property data solution used by property professionals in Australia. Prepare reports for prospects and clients, generate value estimates, verify information and conduct valuable research and highly targeted marketing. Packages starting from $150 / month“. It is widely used by debt collecting agencies as well as realtors. You would be surprised to see all that data and what every address offers. Do you think that they are the only ones? Data is gold, it is the printer that allows you to print your own money and for the most it is massively unchecked. Now, I know that RP Data is merely a facilitator in all this, all perfectly valid, and nothing illegal. Yet when we consider ABC in 2016 with “The Reserve Bank has taken the highly unusual step of switching its preferred home value data, arguing that CoreLogic’s figures overstated price growth in April and May due to a methodology change“, so as you see the data goes a lot further and for the most the people, the tenants and Real Estate seekers are totally unaware of such parts and in all this do you think that the UK does not have its own options. In all this, with the explosive cladding issues, did you not think that the clad dealers were not tailoring to ‘property value increase at minimum costs’? This goes a lot wider in several lanes and the sudden much larger issue of cladding is almost not looked at (I did say almost).

So when we see “CoreLogic’s head of research Tim Lawless acknowledged that the changes to the index may have temporarily bumped up the figures for a couple of months. However, he said other data indicate that those two months were still relatively strong for Sydney and Melbourne housing sales” we forget to look at the aligned indications and what else is setting the pass in all this. Even as the last parts were the Australian side of this, CoreLogic is also active in the UK. In this no one seems to have talked to CoreLogic to see if the cladding industry has been given (through subscription) access to the UK RP Database. Is that not interesting too? You see, when we accept the January setting of “Just three tower blocks out of almost 300 with the same “dangerous” and “flammable” cladding as Grenfell Tower have had panels taken down and replaced“, how come the number of buildings is so high? Are all cladding providers so very bad, or was there a very intelligent salesperson selling cladding to the right people, when the timing was just right? I am fairly certain that this part of the conversations has not been showing up anywhere.

The virtual side to the Grenfell disaster was not seen, perhaps that part was immaterial at that time, yet when we see 297 tower blocks in a serious setting of harm, with the initial setting of finding the proper candidates, have we considered that corporate social media (like LinkedIn) could be used to get the goods (in alleged Cambridge Analytica style) to create fear in other ways? A lack of value versus a larger valuation set against a minimal investment. You show me a person who turns that down and I will introduce you to a person who is very aware of the concept of dishonesty.

You see, we have seen for the better part of 5 years the notion of taking fear from the workplace, usually in the style of ‘Corporate Leaders Must Remove Fear Factor from the Workplace‘, which we get from the Huffington Post (at https://www.huffingtonpost.com/mary-prefontaine/corporate-leaders-must-re_1_b_1437445.html) as early as 2012, so when we see “As reported in the Harvard Business Review, employees faced with incivility are likely to narrow their focus to avoid risks, and lose opportunities to learn in the process. Obviously this impacts their level of personal success and the success of the organization“, yet in equal measure, those actors never considered to take the fear factor out of the boardrooms, which are forever ruled by the bottom line and in that respect there is very little difference between a corporate boardroom, or places like the Kensington and Chelsea TMO, which has one bottom line, which is the value of housing and the rise of values of upcoming new housing. So now, the entire Metro section we saw in part one with ‘Cladding added to Grenfell Tower to ‘improve view for nearby luxury flats‘ it makes a whole lot more sense does it not? It is my personal view and opinion, yet in all that data was at the very Core and Logic of it all (pun intended). So when you think the Facebook data is an issue, guess again. The issue is a lot bigger, wider and more exploitable at the expense of yourself of course) than you would have thought.

All within the considerate view of those not looking at any of this, and you think I went deep here? I merely touched the surface and I will be very surprised if the public inquiry touches on any of those matters, not because they do not want to, but because the legal scope is unlikely to be there, as it would have been in the emotional seeking justice side. I guess that it is one of the questions that certain councils do not want to answer, so making sure that the question is not asked will be a first priority for all of them, because if it does get to the table, those who want to stiff Leaseholders with a £40,000 bill might optionally end up being not so successful and there is every indication that a fair chunk of those 297 tower blocks are currently facing a similar dilemma.

That is just my thought on the matter, and in all this, when you start realising the issues at hand and the time that this has taken, in addition that I saw some in minutes a few more in hours and one or two through my decades of data experience, are you not surprised that the elected officials remained in the dark? I know I am one of the better ones on the planet, but I know close to a dozen equal or better than me, many living in London. Do you actually think that some were in the dark or are they allegedly keeping themselves ignorant? In that case, if more happens, how many lives was the price of that ignorance? Can we afford to find out?

I’ll leave you with those questions, have a great Friday and do try to enjoy the weekend!

 

Leave a comment

Filed under Finance, IT, Law, Media, Politics

Pinata whacking Couper

There is a little mean streak in me, you see, it started with Tesco, and it actually started a little earlier. But the gist is that when it concerns PwC (PricewaterhouseCoopers) I tend to take a swing at them whenever possible, I just roll that way. So there I was looking at ‘PwC charges more than £20m for first eight weeks of Carillion collapse‘ (at https://www.theguardian.com/business/2018/mar/21/pwc-charges-20m-eight-weeks-carillion-collapse-final-bill) when I realised that when I wack those boys I usually have good reason and supporting documentations to test my latest sledgehammer on a member of their board of Directors. In this article, when I saw “MPs have accused the accountancy firm tasked with salvaging money from Carillion on behalf of its creditors and pensioners of charging “superhuman” fees, after it racked up a bill for £20.4m in eight weeks” it took a mere 3.2 seconds from spitting in my hands and getting ready to swing that hammer at Kevin Ellis (yes all the way from Sydney, my arms are that long). I held off and went ‘wait a minute!

You see, I always had as I saw it good cause, but who are these MP’s thinking that they have good cause? The first is Rachel Reeves, the Labour MP in charge of the business select committee. So she mentioned that ‘superhuman’ part. What does she know? The Wiki claim states that she is an economist. So how much does one charge for 112 consultants? You see at £199 an hour we get £891K for these people working a mere 40 hours a week. As it is the UK, they are more likely to work 60 hours which gets us at flat rate £1.3 million a week which leaves PwC with an overhead of a mere £100K whilst I have not taking into account any additional expenses and they tend to get high. I reckon that these people are likely to make a lot more than 60 hours a week, that is the result of “£2bn to its 30,000 suppliers” and as the article states “a week to employ 112 staff to keep the company running and to honour government contracts” we do not see the inclusion of any additional staff that was not hired and that is still assigned via PwC. So that took a mere 6 seconds to realise that I was not getting to whack Kevin Ellis. Leave it to a Labour MP to spoil a perfectly lovely Friday morning feeling. Now, let’s also realise that my calculations could be way off, there are so little actual facts in the article (I am not blaming the article here) that there are hidden traps all over the place. I think that Rachel should have gotten up from the right side of the vibrator that morning, as we need to realise what an amazing mess Carillion is. The oversight had fallen short on so many sides, with the mention of pensions and a shortfall that is close to a £1,000,000,000 should be a much larger issue and the fact that this had fallen short implies a level of what I regard to be criminal negligence that is unheard of. We merely need to look at ‘Carillion’s pension crisis defies magic legal cure‘ (at https://www.ft.com/content/5041d10e-1a1c-11e8-aaca-4574d7dabfb6). So when we see “Yet in the seven years before its collapse, Carillion made contributions to the fund of just £280m while paying out dividends worth more than £500m“, my first idea is to look at the auditors and the accountancy firm. So how much overview did Rachel Reeves give regarding KPMG? We get part of this when we see ‘Why didn’t anyone working with Carillion say it was going to fail?‘ (at https://www.independent.co.uk/voices/carillion-kpmg-auditors-audit-hbos-financial-crisis-self-regulation-deloitte-a8185356.html). Here we see: “In March 2017, the giant audit firm KPMG signed off on the annual accounts of the construction giant-cum-outsourced services provider Carillion, saying they gave a “true and fair view” of the state of the company’s affairs. For this work, KPMG received a fee of £1.4m. This followed £1.4m of fees recouped the year before. In fact, KPMG had been Carillion’s auditor every year since it was founded in 1999. You don’t need to be an accountant to work out that that adds up to a very lucrative client relationship” that whilst we get the news that a mere four months later “its contracts to provide services were worth a remarkable £845m less than they had previously been valued on its books” that is an amount that exceeds whatever Richard Branson has in his wallet on his best days, so how was this overlooked? So as Rachel Reeves was kind enough that the value of KPMG is not good enough to audit the contents of her fridge, she should also be aware that this entire audit is not merely the outstanding invoices, there is a decent concern that the audit of KPMG has been unable to correctly assess issues for 17 years. So there is a real need to set up the correct framework to be able to take a long term look to the matters as well as the ability to set the right data dimensionality so that the data does not need to migrate over and over as more is found. I would think that an MP who part of the ‘the business select committee’, as well as a graduated economist would know that. You see as an experienced IT worker and a data analyst, I saw that coming a mile away.

So here I am partially standing up for PwC (so how fucked up will my day become?), news at 23:00. So when we get back to the Financial Times article and we see “As a House of Commons report has noted, Carillion’s growing borrowings were not used to invest in the company. In fact, while the group’s debt rose 297 per cent between 2009 and 2017, the value of its long-term assets grew just 14 per cent“, can we agree that there is a side that is terribly wrong here? These matters should have been clear in the KPMG reports, which now clearly overthrows the statement “they gave a “true and fair view” of the state of the company’s affairs“, I think that we can all agree that this part has been debunked in 30 seconds flat. In addition the Independent gives us “Moreover, KPMG was not the only auditor of Carillion’s numbers. Its 2016 report relates that it had a special “internal” auditor too, in Deloitte, with which it worked even more closely than with KPMG. So why didn’t Deloitte pick up on the dodgy contract numbers?” For me that is an interesting side as I have never seen anything dodgy in Deloitte. The fact that they might be part of the mess (unlikely though) is also cause for concern. More important, as I personally see it, it will be up to PwC to get that part out in the open. What was the exact assignment of the internal auditor, what data was presented, what data was accessed and used and who was part of the entire reporting stage of this internal audit? It would show more players in all this and could optionally give a better path in seeing the navigations that the decision makers in Carillion were involved in.

That is a part that we need to realise and consider.

There is another concern that the Independent brought to light. With: “Previous probes by the FRC have produced nothing but clean bills of health for auditors. “In nearly every major financial scandal we’ve had since the financial crisis, the FRC decides none of its charges have done anything wrong,” notes Jim Armitage, city editor of the Evening Standard. Worse, these rulings come with no reports or published evidence, making a mockery of the FRC’s claims to “promote transparency”” we might think that it is merely the FRC, yet what Wall Street taught us is that the entire 2008 joke gave rise to an 8 trillion write off, whilst no actual laws were broken, or at least none that could be proven, so in that regard, if that happens again now, we can clearly look at the House of Lords, point fingers and tell them to improve laws immediately and hold any MP and minister accountable for naming and public shaming. It might work, but I doubt it. You see, until there are large and unforgiving prison sentences, whilst also remove all the rights of ownership to those involved in Carillion, nothing will change. I have seen people setting the ownership of their large estates to their wives and then deny that they had any outstanding financial responsibilities in more than one country. Until these matters are settled this game will continue because greed will always win in the end.

So when we get back to the initial article we get “Kelly, who said his personal rate was £865 an hour, said PwC’s costs would gradually fall as more parts of Carillion were sold and staff from the accounting firm stopped working on the project. He said the firm initially had 257 people working on Carillion, with a bill for about £3m for their services in the first week after its collapse“, we see where part of the costs went to, so as my calculations was based on smaller settings we see how easily these costs were attained and the end of it is not in sight. Rachel Reeves should have seen this clearly as she had access to data I still have not seen. I think it is much more interesting to look at “Finance director Richard Adam, who retired in December 2016 after nine years at Carillion received almost £1.1m in salary and bonuses in 2016“, which we get from the BBC. So if we get to see the wrongdoings of Richard Adams, this is a reasonable speculation as the entire mess goes back a lot further than 2016, will we see these same MPs demand the auctioning of the goods of Richard Adams to make up for the losses of Carillion? You see the article stated MPs, not singular. Rachel Reeves might have been the visible one, but I want to see all those names, because when we consider the BBC news (at http://www.bbc.com/news/business-42703549) as it gives us:

  • The £350m Midland Metropolitan Hospital in Sandwell: opening delayed to 2019 due to construction problems.
  • The £335m Royal Liverpool Hospital: completion date repeatedly pushed back amid reports of cracks in the building.
  • The £745m Aberdeen bypass: delayed because of slow progress in completing initial earthworks.

We need to ask questions on several MPs all over the field, all over the UK apparently. These three alone show a £1.3 billion issue are so out in the open that these three alone will constitute evidence of a much deeper required accountancy dig. Three issues shown last January and these three alone gives rise for me to think that PwC will be able to charge a lot more and in addition, the entire settling and selling could take a lot longer than some expect it to take. So these elements are the setting for additional costs, so those MPs might claim that there is a case of ‘milking the Carillion cow dry‘, but they better be ready for me to take a look at more than these three projects, because I will ask openly on their failings to get a handle on matters, because I am 99% certain that these three projects alone will lead to a dozen others all over the UK and if there are no clear memo’s from those MPs in regards to Carillion, they will be named openly to give rise to their shortcomings (perhaps also what was between their legs), because if you do not have the balls to go against the larger players, you should not be in office at all. Yet, that might be merely my warped expectation of elected officials.

Carillion is a clear mess that had been going on for a much longer time than some expect. You see, that part is seen in ‘cracks in the building‘, ‘construction problems‘ and ‘slow progress in completing initial earthworks‘ it implies optional failings going all the way back to the foundation of the works that were possibly never correctly done in the first place.

So I might still end up treating the bosses of PwC UK as piñatas, but at present there are plenty of other targets and so far (remember I say ‘so far’), in this particular case PwC seems to be in the clear (darn!).

 

Leave a comment

Filed under Finance, IT, Media, Politics