In a interesting notice on the CAREIF’s website they deny that they have crashed insisting that they are restructuring. CAREIF is the acronym Caribbean Real Estate Investment Fund. Here is the full text of the notice.
In a bid to make sure CAREIF Ltd. remain viable and competitive, management took certain measures that resulted in the reduction of unneeded, unproductive members of staff. The company’s income stream dried up because these same ; now with x-members of staff, we are unable to perform under the hostile conditions resulting from the financial services commission’s (FSC) constant attacks on CAREIF ltd, naming and advertising in the mass media, that our company was not licensed to sell securities. These decisions were taken after CAREIF took specific measures including, employing professed experts in sales and marketing, offering extensive training as well as weekly meetings and motivational sessions, with absolutely no improvement in staff performance including those of the so called experts. Maintaining a nonproductive staff in light of no production simply meant that the company had very little choice in restructuring. Which is what was and still is being done. This move is not a notice of closure as was stated by the news article, which sent panic waves to our partners. In several meetings held with the sales and marketing personnel present, they were informed that management had to justify salaries for staff members. Where there is no production indicating none performance, there would come a time when, the monthly salaries would not be paid since the principal was not going to continue to carry an unproductive staff. In spite of several meetings where these statements were made, the principals did none the less carry staff for over 8 months of none production.
CAREIF Ltd. is not involved in the sale or marketing of any securities instruments as defined by the laws in jamaica. Because of these ads, products and services which are normally sold as a means to generate income needed to cover the cost of staff and other regular monthly expenses; though innovative and in demand, just were not being absorbed. The decision therefore was and still is to down size the operations here, restructuring in a manner in which the development side of the business would continue, especially in light of the multiple projects being pursued worth billions in term of projected profits for the company. A further decision was made to keep dedicated staff who would man the clerical and logistic operations while being supplemented with new staff recruited in the new markets targeted to open operations. CAREIF’s operational strategy is to focus on employing skilled professionals in sales, who are motivated to generate high earnings for themselves and the company. These measures will succeed in not just making CAREIF more efficient, but more profitable since we are now expanding our markets as well as our zones of operation earlier than originally planned. One very important fact to remember here is that CAREIF in reality does not need to maintain a large number of people to manage our developments through the permitting phase. Other areas of the developments will be subcontracted again justifying that the company will become financially more efficient. That’s the aim of every business person.
The other strategy was and still is to open in other markets such as the usa, canada, and the uk. Markets where investors and consumers are more mature in understanding the dynamics of what it is that CAREIF Ltd. does and to understand that the accusations levied by the fsc are the furthest things from the truth. In keeping with our model of pursuing the path of least resistance, management decided to, not waste anymore time or money; spending millions of dollars per month, trying to convince home bases jamaicans that, there was nothing illegal in them buying property, membership in our real estate investment club, doing joint venture developments or buying online services and goods such as our e-books services from CAREIF Ltd. The fsc has been very irresponsible by not letting the general public know that CAREIF’s products and services are not securities, especially in light that the majority, including educated professional in the jamaican markets are themselves not sure. What makes it even worse for CAREIF to function in the jamaican market is the fact that these same individuals who pay attention to the fsc, are themselves not willing to educate themselves. They would rather sit quietly even if the fsc is damaging their investments rather than be vocal as was being encouraged by CAREIF Ltd.
CAREIF Ltd. some months ago, bought out an existing web based company that had been failing under the then operator owner with specific terms and conditions. Though deliberately misrepresented as an incomplete acquisition, CAREIF Ltd. has lived up to the contract as signed by both parties. This is being specified because in an article published in the observer news paper in jamaica recently, it was stated; not alleged, but stated as if the information was actually factual, that CAREIF failed to complete the transaction regarding the acquisition. CAREIF’s position remains strong as well as legitimate simply because we ensure that all our activities are properly documented and defined. There is a perversion in the cultural thinking of many jamaicans that agreements where CAREIF Ltd. is spending millions of dollars and has invested in the interest of the business and its partners can simply be broken without consequence. As you will discover CAREIF Ltd. is working with first world standards and efficiency in terms of its operational model and therefore has been finding major resistance form parties stooped in the traditional unprofessional approach to doing business in jamaica. Obviously when CAREIF makes decisions which protect its partners, clients and the consumer in general, they do not necessarily find favor with these unscrupulous individuals. This is also applicable where employment agreements are not respected or honored. CAREIF Ltd. has not broken any employment contracts to date even when there was a restructuring of salary payments as it relates to time and dates. We have and will continue to honor all legitimate obligations which was clearly stated to staff.
The simple fact is that CAREIF’s income from the sale of its product and services are being compromised by the FSC’s activities. It is further complicated when staff directly related to production and sales just simply comes in to collect a monthly salary every month, with very little or no justification in legitimizing their claim to remuneration. How and why should a company continue to pay a sales and marketing team who just does not sell anything? And, how could CAREIF legitimize its position to its partners and clients that it is making the necessary decisions needed to grow the company, by keeping unproductive staff? How could CAREIF justify an out flow of cash from the business with no balancing inflows? It’s not as simply and clear cut as the press would present in trying to use the fact that salaries were delayed to claim CAREIF is going out of business. No where in the memo sent to staff did it say that.
CAREIF’s restructuring is geared towards success in several areas.;
1. to improve the quality of our sales and marketing team. Developing one with self motivated individuals who become assets as opposed to liabilities to the company’s success strategy.
2. to build the company’s human resources by employing person whom management doesn’t need to ride their backs for them to perform as per their job descriptions. To therefore have personnel who will perform in or outside the presence of management.
3. to dedicate resources used to cover the monthly and high cost of maintaining nonproductive employees, instead dedicating cash to capital which will be more beneficial in areas such as our it-department. This department is key to CAREIF’s future success. Hence the reason CAREIF had employed marketing and sales persons with specific responsibility for the site. As mentioned before there was absolutely no justifiable reason to maintain staff in these positions because of nonproductively. Thus refocusing our cash to our it-department will be strategically more important to the company in both the short and the long run.
4. having a smaller work force in jamaica simply means we can now dedicate resources to establish operations in other markets where, there are no hostility to our products and services. There is therefore the assumption of greater profitability from our income possibilities.
5. entering new markets also gives us a significantly larger market where competition is not heavily and deliberately restricted by government to protect the interest of big and older players in the market place. There are therefore policies which encourage businesses as opposed to penalizing them.
This will make it easier to grow the business. Larger markets, friendlier markets and where there are more motivated upwardly mobile professional in significantly large numbers. CAREIF will benefit as well from having more industry experienced individuals who can therefore better market the products. A mature work force and market makes a big difference, one in which CAREIF will benefit.
In closing , though our cash flow issues exist, CAREIF has implemented measures to remedy. For those of you who are partners and members of ric, you will notice that there was never a demand on you to invest in any restructuring plan. That’s an indication that we at CAREIF Ltd. as we have done and continue to do, are working for efficiency, one in which all our obligations are met. As we have also always said in our presentations, in real estate developments and projects, the worse case scenario is that we face delays. Most times these delays are of no-fault of CAREIF Ltd. This is one major reason there are specific clause in our agreements which deals with these situations.
CAREIF Ltd. encourages you to be objective. Panicking is neither objective or sensible. We have taken the time to be as objective as possible and we expect that of you as well. The fact is that CAREIF Ltd. has several developments some approved that will yield the company several billions on completion. Our operational model gives maximum protection to all partners and clients as opposed to another operator in a similar business in jamaica and else where. You therefore have less to fear than most persons investing in all the other options currently operation; regulated and unregulated, in jamaica. We continue to seek you support and to allow your agreements to function as they were meant to. CAREIF Ltd. must act in the best interest of its partners and clients. That’s our responsibility. CAREIF Ltd. will honor all its agreements if allowed to complete our planed strategy as was stated in writing. All our obligations will be met under our restructuring. This is a CAREIF restructuring plan and involves no courts, trustees or receivers who make decisions not necessarily based on the interest of the parties involved. For those of you who may need to leave our partnership, your agreements and contracts does offer you options.
Anthony tharpe CEO.