The new Novelo's managers started their second day in office with a bang as transition tremors were felt at the company's headquarters on West Canal when police had to be called in to keep the peace.
First bus drivers threatened to strike - but after a dialogue with Manager Bob Garcia that crisis was averted. Then a former supervisor and David Novelo bodyguard came into the office and tried to take a computer. He had to be stopped and removed from the compound by police. When the excitement was over, the new managers went back to their work of trying to turn around a company that's $50 million in debt and by the claim of its last owners losing $9.2 million a year.
It's not an easy job, but everyone keeps asking: where did it all go wrong? That's the question we put to Prime Minister Said Musa today.
Hon. Said Musa, Prime Minister
"We've tried with the company over the last two years to follow their business plan, they have not done that to our satisfaction and indeed to the bank's satisfaction so this is a move to ensure this company is operated in a way that it can pay its debts."
Keith Swift,
"Most would argue the government created this problem by lending the Novelo's brothers this $30 million."
Hon. Said Musa,
"The truth of the matter is that if the company, we did not lend the before examining the books. A study was done by the accounting firm of KPMG to show that this could have been very profitable."
"We tried to put some stability into the system. It hasn't worked out because the company did not follow the business plan as approved by the accounting firm of KPMG."
Keith Swift,
"Well we ever get back the 30 million dollars?"
Hon. Said Musa,
"Time will tell whether the government or the bank will get back their money."
Keith Swift,
"As the Prime Minister can you commit to aggressively pursue this 30 million dollars?"
Hon. Said Musa,
"Certainly. That is the whole objective. So that the bank gets back their money and so that DFC can get back their money."
Keith Swift,
"Does GOB accept blame for what happened?"
Hon. Said Musa,
"This is not a case of denying blame for anything; it is easy for the opposition to try to blame us, that seems to be their role. But it is easy to blame the government for everything. We have to take the responsibility as a government and I am not docking any responsibility. It is our responsibility and we will make sure we straighten this thing out."