Maple Leaf Foods writes off investment in ECGC?

10.AUG.07

Editor: In Maple Leaf Foods’ (MLF) annual report and financial statements, published in April 2007, it notified its shareholders that it had acted on the strategy it outlined in October 2006 by writing off its investment in ECGC. This report is available on the Internet for all to view and read.{{more}}

The report indicates that MLF wrote of CAN $7,300,000 (EC$19,000,000). MLF by this action has indicated to us all in Canada and the Caribbean that it considers the investment in ECGC to be worth little or nothing. Imagine ECGC was once the most successful, and profitable, company in the OECS.

Why has this not been reported in the local media? Are Vincentians aware that their beloved flour company is now considered worthless by its multinational shareholder? Is the board of directors of ECGC aware that a major shareholder has lost faith in the company?

The Government of St. Vincent is a shareholder of ECGC. Is it aware of this development?

We in Canada have always been proud of the ECGC success story, particularly in view of the partnership between Canadian and local investors. Now all seems to have fallen apart. Ironically, by the way, at the same time, the new OECS envoy, in a statement to the Canadian press, promises to strengthen ties between the Caribbean countries and Canada with a focus on enhancing trade, investment and tourism as part of his mission.

Could this action by MLF be related to the high cost of legal and professional fees incurred to go after the man who engineered this success story? Have the directors lost their way by focusing on a vendetta rather than running the company to the same standards for which it was once known and admired.

A concerned Vincentian in Canada