 Hi all,
Hat tip to rwh3ue on s'pedia for this.
The link at the end is very informative.
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.
hxxps://www.rappler.com/newsbreak/investigative/officials-private-interests-spoil-effort-track-big-fishers/
See also part 2
hxxps://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
GLA |
Given that no one ever expected the share price to ever get this low again, I hope there are no valuation covenants on any loans. |
I note that Hurd has been designated as handler of comms addressed to Simon, which I believe is the textbook response in these circumstances.
HMG's 'man in Manila' will/ should have some insight into the underlying,IMO
GLA |
Today's RNS:
SRT MARINE SYSTEMS PLC
Response to reports in Philippine press
SRT notes the recent share price movement and reporting in the Philippine press with regard to the IMEMS fisheries project.
SRT wishes to clarify that the IMEMS contract was won following a competitive international tender, which has been successfully implemented and is operational. On Monday the Ombudsman confirmed that both SRT and Richard Hurd are cleared, but has recommended further investigation into Simon Tucker and other individuals outside of SRT. The Board is fully supportive of Simon who is now working to clear his name.
Our work continues as normal as we carry out our contractual obligations to ensure a first-class fisheries monitoring and management system capability for the benefit of The Philippines.
Trading remains in line with market expectations. |
Yes. Odd it says that he is working to clear his name not we are |
Hi Kinbasket
It is not really a case that he has brought but more of a complaint which the Ombudsman has looked into. I think it is there that mischief has been made if any, which I take to be local illegal fishermen and not the French. I remember also at the time that SRT said that the French had changed their minds abouit the loan following some brouhaha, but that the BFAR had already asked for the loan to be cancelled. |
Perhaps I’ve watched and read too many bits of corporate conspiracy fiction, but its a long time to wait for a Phillipines lawyer to start on this. ie. Events happened years ago.
“If you want to get SRT and its technology on the cheap, now would be a good time to muddy their waters”
“Have you got a contact ?”
“Lets see what I can arrange” |
Anyone who read the article when first published could have sold at around 30p. So SRT needed to issue an RNS as soon as they were aware of the price sensitive news and probably before the article was even published!!!!
It's too late now the damage has been done. |
Sorry Dave fair point I didn't know the originating papers were public and it isn't just press comment that was being discussed |
They should say sometime even if it’s ’we are considering the content with our advisors’ Otherwise the company will become uninvestable |
It’s not just press speculation. Why aren’t SRT commenting? |
...that Indonesian project being cancelled/retendered is my biggest concern. Not really concerned on the BFAR shenanigans. |
at the same time they should come clean and explain at least a little about the problems on the loan for Indonesian project. It is nearly a year of crossing 'i's and 't's. Yeah, right... |
Yep. It's a "response to press speculation" type RNS...the share price has moved materially as well. They have to RNS I think. |
Whatever the reality and shenanigans behind that newspaper report, it's an item that's in the public domain and it would be good for the company to communicate something with its shareholders. |
Gone from bad to very bad. |
I thought an RNS in these circumstances was a requirement not optional! Failure to do so could have serious conseqences imo.
In the current situation those that read this BB, LSE and others now have an unfair advantage over those in the dark. |
Disappointed no RNS. Lawyers probably delaying the process! I always respected ST so hope my judgement is well founded. |
Richard Hurd is the FD
Simon T is the business-without him, it’s difficult to see a future unless it was owned by a bigger parent.Surely they have to say something about it all even if ‘nothing to see here sir’ |
Yump. 1. Foreign CEO's or companies being charged is nothing new. 2. if the investigation shows nothing to worry about, then business as usual.3. If the investigation shows something happened, it is a whole new ball game. Any USA support for SRT would probably disappear, and, indeed, SRT may then not be able to do business in the USA or with any USA company until it has paid the DOJ a large fine.4. How long will the investigation take ? Are any elections imminent that could alter the outcome ?5.. why was Simon implicated, but Hurd (the CEO) wasn't ? When is the new year end ? June ? |
[14260]
It takes two to tango... |
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
Hot Features
Premium
