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What’s all this BS got to do with SRT?
Apols for the somewhat O/T , but it IS the weekend.
It may be cold comfort for SRT investors, but we're not alone in being caught up in domestic Philippine politics, where this time it seems ideology, rather than financial gain, is frustrating a public good that would benefit the poor.
It concerns the recent prohibition on Golden Rice, a genetically-engineered rice that can materially reduce blindness in children caused by Vitamin A deficiency.
The case FOR is here :
hxxps://www.nnc.gov.ph/regional-offices/mindanao/region-ix-zamboanga-peninsula/5767-golden-rice-a-staple-food-with-precious-benefits
The background is here :
hxxps://geneticliteracyproject.org/2019/11/08/golden-rice-the-gmo-crop-loved-by-humanitarians-opposed-by-greenpeace/
"Note that because the two academic scientists who developed the original Golden Rice stipulated that it be made available to poor farmers for free Syngenta, or any other corporation, does not own the intellectual property in developing countries and therefore cannot charge royalties. According to IRRI (the International Rice Research Institute) the terms of the licenses in place in the Philippines and elsewhere ensure that Golden Rice varieties will cost no more than their conventional equivalents. This means that farmers will be able to save and replant Golden Rice seeds."
The benefits are clear :
.."Vitamin A deficiency (VAD) is one of the most important issues in terms of global public health, according to the World Health Organization. It is a leading cause of childhood blindness in the developing world, and weakens the immune system, increasing vulnerability to illnesses such as measles, respiratory infections and diarrhea, often leading to death.
The condition affects more than 140 million pre-school children in 118 nations, and more than seven million pregnant women. UNICEF estimates that 1.15 million child deaths are precipitated by vitamin A deficiency each year..."
The recent judgment by the Court of Appeals - to put a moratorium on the use of Golden Rice- is applauded by Greenpeace in these terms
ttps://www.greenpeace.org/philippines/press/63501/greenpeace-statement-on-peoples-win-against-genetically-modified-rice/
.."We reiterate our stance: the involved companies and agencies have yet to show concrete evidence that these crops would be in the best interest of Filipinos, our environment, and our agricultural sector..."
It's not quite clear who benefits from this verdict - apart from being a 'win' for Greenpeace's worldview, which seems to be that 'the environment' matters more than the people (witness its IMO equally irrational stance against nuclear energy, even more bizarre considering its potential as a transition contributor to 'net zero').
This is all sadly redolent of the apocryphal comment after the My Lai massacre in VietNam in 1968
'In order to save them [Ed.: from Communism] we had to kill them'.
Shame on you, Greenpeace!
Rant over.
Oh Dear indeed! I have been invested here for well over 3 years and only in profit by a smidgin and very briefly at that. However I bought the story - as a lifelong yachtie it chimed with my interest in things nautical and jam tomorrow did look like a likely outcome. However yesterday I thought it had been too quiet for too long on the SRT front with the sp drifting down all the while. I thought I had better take a look at all the recent announcements in detail for myself instead of relying on reports from others. Something about the way the RNS re changed year end was worded did not sit comfortably with me one bit and still giving it benefit of doubt I thought read the next announcement immediately. Most of my working life was in credit insurance and changes of year end make me sit up and take notice. Then I saw the Malayan newspaper article (Thanks goodapple) and that was just too much for me and I got out entirely at 24p. I see it went down again today albeit it has come back a bit late on but I would have thought there should be some much more definite reassurance. I still buy the idea the technology is good and maybe if it goes as low as I fear it may it will be worth a punt on the possibility of a bid. After the record -dilutions and all - I will be very cautious. Fortunately it was only a tiny holding in my portfolio.
Hi Ecologist - that was the point of my earlier post about my discussion with the FD - your experiences echo mine; I was concerned that SRT would be getting into that to win contracts, but he was adamant that all there has been a culture shift and most emerging nations try to be squeaky clean. (Not sure about Nigeria!)
"If the EU flexes its muscles, this mess may get sorted out, AFAICS."
Shame we're not still a member.
Extrader, thank you for passing that on, it is very helpful.
Simply my take:
Having worked in Africa and Asia for a combined 35 years, doing business is never simple and too frequently there is someone attempting to be 'on the take'. Some people / companies are ready to grease palms (= graft or bribes or dash or bakhsheesh) in order to win contracts with the cost of bribes being factored into the contract costs.
All that said, I am in no way suggesting that our company is in anyway involved in corruption. Indeed the RNS, tells us that SRT, the company, has been exonerated. But the sword is hanging over Simon's head and I cross fingers that he is soon exonerated too. (And I have a problem understanding how Simon alone can be under suspicion).
Meanwhile, the sp will continue to suffer until the situation is cleared up.
See also part 2
https://www.rappler.com/newsbreak/investigative/big-fishers-close-in-small-filipino-fisherfolk-battle-municipal-waters/
If the EU flexes its muscles, this mess may get sorted out, AFAICS.
NAI, DYOR etc
Hi all,
Hat tip to rwh3ue on s'pedia for this.
See hxxps://www.rappler.com/newsbreak/investigative/officials-private-interests-spoil-effort-track-big-fishers/
.."SRT Marine Systems (LON:SRT) I hold
ST is one of my largest holdings and I follow events closely. I too read and contribute on ADVFN where some posters are extremely well informed and their opinions worth listening to.
The current news flow is all about the negative stories of misdeeds around the contract for vessel monitoring in the Philippines. To understand what is going on you need some background. SRT, as is always their modus operandi, spent years gaining the trust of the customer and an understanding of what they required. When the tender for a vessel monitoring system VMS was issued much of the detail was based on the known capabilities of SRT's offering. These included the fact that the operational cost was significantly lower than any competing system and the functionality was superior. In an obvious attempt to influence the contract award, the French government offered a loan to pay for the system as long as it was awarded to a French company. It just so happens that CLS (French) were also keen to provide a system.
When SRT were awarded the contract, the French withdrew the loan offer. Despite this the Philippines stuck by their decision and found it possible to include the cost in their budget. The project went ahead and was successfully implemented while President Duterte was still in post.
The next big step was to be the roll out of transponders to all of the fishing boats in the country, I think up to 50,000. That is when it became a big political issue
There are vested interests that do not want to be regulated. They are the big commercial fishing companies and the families that control them. In essence they want to continue to fish waters within an exclusion zone of 15km. They are able to do so now because there is no official monitoring. The new VMS would change that. Small fishermen depend on the fish that the big boats take and that is why current President Marcos wants to proceed with the rollout. The EU have a role to play here as they can issue a so called red card if fish exported from Philippines cannot be shown to be compliant with IUU regulations.
It looks to those who follow SRT closely that battle lines have been drawn and that the commercial side are using the allegations of impropriety as a weapon to maintain their ability to fish inshore. It is no coincidence that some parties in a position to decide matters are related to people who own the commercial fishing companies.
From my perspective, SRT acted properly and have nothing to hide, but the vested interests will use their power and money to try to prevent a mechanism designed to stop illegal, unreported and unregulated fishing.
Don't just take my word for it. Read this article in Rappler who investigated the story and published on 5 April..."
Steady the Buffs!
GLA an
With the slow release of the rns coupled with the earlier change in reporting date I decided to fully get out . Very disappointed if honest but as others have said there seems to be a history here not withstanding this mess of talking big but not delivering. Good luck to all who remain, I hope it comes good for you.
So business is “in line with market expectations”. Market expectations as declared by SRT were that, when y/e was March 31, H2 would shoot the lights out.
I assume the same applies to the H2 + 3 period….?
Be interesting to see if he clears his name, in the shirt time I've seen SRT mentioned he seems to over promise and under deliver
Well we've got our statement. I suppose that's as much as we can expect at this stage, and I fear this may rumble on a bit. From the highly informed viewpoint of a bloke sitting in an armchair in Leicester, I expect there are both political rivalries and pressures such as kickback on the policy from some in the fishing community to factor in, not just any sharp practice there may or may not have been in the awarding of the contract.
The fact that this all started two years ago and this is the first we are hearing of it is not on , so I've sold most of my shares , I'll keep a few in case it all comes good .
I had a chat to the FD at one of the AGMs some time ago. I had done a lot of business in the Middle east, and was interested in what doing business was like in smaller, growing countries these days. He reassured me that most countries were desperate to show they were ethical places to do business that there was no back handers or late payments these days.
P/ E of 500 and a spread of 10%. Shame but I think SRT is uninvestable. They were very naughty over spinning prospects when they did a 40p p/s capital raise. No they have consigned themselves to the serious investors rubbish bin.
Silence, especially in that region , implies guilt. You need a response that your supporters can get behind. At the minimum you need to stabilise the share price. No rns, further falls
That article (which is all I have seen on this subject is a Malay article. yet it's written as though their Government Officials have been charged with wrong doing. What's a Phil contract got to do with Malaysia?
Whether Simon will respond today depends on many things - where he is, what his plans are and what legal advice he's receiving. Right now for the company issuing the right statement is more important than issuing it NOW.
After series allegations that in my opinion will affect other opportunities I am surprised given the share price fall that there has been no response from a company that is normally so good at talking itself up . Concerning
Also surely Ocean Infinity’s DD would have cleared the contract before they put their £9 million in ?
Something weird here. The contract was announced over 2 years ago and we have been led to believe that installation has been in progress since then. If, as seems to be the case, the issue is that various individuals have conspired to get the contract awarded to a UK company by creating a dummy French company to qualify for French government funding it doesn’t seem credible that the contract would have lasted 2 days never mind 2 years before someone was asking questions.
Tucker needs to explain before the markets open tomorrow.
Sorry all, I thought I was reading a UK publication. Just noticed it's Malay, which clears some of my confusion.
Goodapple, very well found. I've read it and am confused on a number of levels. Any clarification would be much appreciated,
What exactly are Graft charges?
"P2.1b" - Does P stand for pounds? Why not use £ which everyone understands. If not what does it stand for?
How come the BFAR folk who have been identified sound like Italians? That also applies to the BFAR man who has been cleared and the lawyer who raised the case.
I don't see how a British Company winning a contract rather than a French one is disadvantageous to the Government (assuming it is the British Government.)
It sounds like whoever is making the ruling assumes companies providing transceivers and maritime monitoring services are ten a penny and that The Philippines could have chosen a whole host of suppliers.
I see there being a lot of activity in the coming days, clarifying all this.
I think Simon has to provide an explanation to shareholders as soon as he is able
Ah. Oh dear.