Enquiry into BWIA’s 2001 IPO needed

THE EDITOR: As a holder of some, now worthless BWIA shares, I would like to express my concern and dismay with regards to the non-action of the Securities and Exchange Commission in investigating the February 6, 2001 Initial Public Offering (IPO) of BWIA. You will recall that on February 6, 2001, the BWIA IPO was allowed on the stock market at a value of TT$7.85. On the first trading the share value dropped $0.65 cents, ever since there has been a steady decline of the value, which is currently trading at $0.30 cents. A loss of $7.55 cents per share or 93 percent of the original declared value. A total loss of $53,000,000 of the people’s money.

It was and still is very obvious, that the information supplied by BWIA to the SEC for approval was based on speculation and questionable financial projections that were totally unachievable. The people responsible for the IPO, who actually produced the prospectus for the IPO, were never called upon to give an account for this unprecedented and disastrous miscalculation of the share value. The SEC has maintained a hands off approach when it comes to BWIA and has even allowed BWIA to remain listed when the value of the share is less than four percent. The SEC has done nothing to recover the shareholders’ money.

In the USA or Europe, as in the case of Enron and Arthur Andersen in the USA and Panalat of Italy, the people responsible were brought to justice. In Trinidad, it seems that BWIA can do no wrong. If this was any other public company on the local stock market, the DPP office would take the necessary legal action. Fifty three million dollars of the people’s money gone and no one has raised a finger to find out why. I am appealing to the Prime Minister, the Chief Justice, the Attorney General and the Director of Public Prosecutions to initiate an immediate enquiry into the BWIA IPO and to take legal action against those found responsible for the loss of our money.

GEORGE T FITZGERALD
Shareholder