Abhorrent to the public’s interest

LUCAS STOCK INDEXThe Lucas Stock Index (LSI) declined 1.46 percent during the second week of trading in July 2013. With a small trading volume among four companies, a total of 16,100 shares in the index changed hands this week. There were no Climbers, three Tumblers, and no movement for the stocks of one company. The Tumblers were Demerara Tobacco Company (DTC), which fell by 2.08 per cent on the sale of 300 shares; Sterling Products Limited (SPL), which fell 7.14 per cent on trades of 3,800 shares and Republic Bank Limited (RBL), which fell 3.85 per cent on the sale of 10,000 shares. Demerara Distillers Limited (DDL) sold 2,000 shares with no change in value.

Backseat
It is not often that so many issues of capital budgeting are discussed as stories in their own right in the newspapers, even though matters of public spending are reported upon quite frequently. Such matters usually take a backseat to the more dramatic and sensational news of crime, piracy and disasters, natural or manmade.

More prominent have been concerns about project performance and not so much about the cost and benefits of the project.  When the discussion is about performance, it is usually a signal that Guyanese agree with the project, but do not like how the work was done.  Of late, there has been an intensified scrutiny and criticism of a collection of investment projects in which concerns have been expressed about the soundness of the decisions themselves.

The debate and analysis are concentrated around the construction of the Marriott Hotel and the