The SMB-STC Back To SMB Money Machine Killing Private Sector

After the 2007 Lehman Brother Bond Defaults, the government of James Michel in his Second Term of office opted for a IMF Standby Arrangement. The IMF immediately released some funds for fuel, to keep cars on the streets going around the clock tower.

Privatize The Seychelles Marketing Board (SMB)

In its recommendations the IMF said that one of the reasons for Seychelles failure of its economy was the Seychelles Marketing Board (SMB) presence. The IMF said this one party state leviathan of merchandising which turned over SCR. 400 Million a year had to be broken up and privatized.

SMB Sucks Up Foreign Exchange, Stock piles Misuses Capital  

SMB because of its sheer size and political influence, had immediate priority access to commercial bank hard currencies. They retained the title: Most Favorite Trader at the demise of bona fide traders like R. Pillay, Deenu, PJ Hardware, BODCO and other Small, Medium Enterprises (SME’s). These players would go to the prolific black market for funds.

SMB Turns Into STC

In the prime time IMF moment, SMB was privatized into a company called: Seychelles Trading Company (STC). Its promise to the Public was to import only essential goods into the country. The PL pulled the wool over the eyes of those dumb ass text book IMF technicians, thinking that when a leader says something in Africa, it is the same as a leader in Washington DC, where IMF is based .

Enter Veronique Laporte

Seychelles Trading Company is currently managed by Veronique Laporte, a very smart lady, well heeled in the right places and cunning as a fox in heat. While she initially took on the jargon: “STC is committed to importing essential goods” she went on a frolic, contrary to what IMF could ever imagine and started to import everything from cheap unbranded wines from South Africa, to hair spray, make up, bed sheets, pillow cases, lipstick, cologne, plastic animals, floating plastic animals, you dream of it, today, STC ex SMB imports it.

In her usual cunning defense, Miss Laporte took time off work, went to SBC and told us: “ STC must import other goods, to make a profit, and offset the low margins in essential goods.” IMF was gone or thought Seychelles was on auto pilot by then.

 Who Keeps Track of the SCR. 400 Million Plus

Who keeps track of this SCR 400 Million Plus or more business? Who counts the receivables daily? How much is really taken in? How much is really banked? Does a commission get paid out to the powers that be? Is cash hand carried from point A to point B?  Is it all banked? No one knows. It is up to Miss Laporte to give us the proof that STC is above board, and not under the table.

Question: What does STC do that the private sector could not do better?

Answer: Nothing. We are still in a “Free Communist Market”

More next week!

Sesel Pou Seselwa!

May God Bless All Freedom Loving Seychellois!