Skip to main content

Canadian 'farmer logic': Who benefited from GSFC's obscure investment in Karnalyte?

On November 8, Counterview carried an article titled “Pump and dump strategy? Erosion of GSFC's Rs 250 crore investment in Canadian firm”, by a 1975 batch IAS bureaucrat, who was called a “turnaround man” by the Times of India way back in 2006. Second article by Luke on the subject (the first one was on January 4), it is based a letter he wrote to Gujarat chief secretary Anil Mukim protesting against a 2013 Gujarat State Fertilizers and Chemicals investment of Rs 250 crore in Canadian firm Karnalyte in 2013, whose value has now fallen to Rs 10 crore!
Based on the article – which argues that the PSU investment was allegedly made without taking into account the Canadian firm’s profile the for production and supply of potash, facing glut in the international market – the “Indian Express” carried a follow-up on November 10, even as quoting GSFC CMD Arvind Agrawal as stating he had not seen the letter, as it “is very long”, adding, “It is a seven-year-old matter and there is no point in going in, digging (sic!).”
This was followed by the Congress-controlled “National Herald” doing a detailed story on November 20 (following it up with a front page flier on November 22 in its Sunday print edition), titled “Gujarat rope trick”, and wondering, “Who decided in 2013 to invest Rs 250 crore in a dubious company in Canada? The investment has turned into junk and the Canadian company with three employees did not fulfil its commitment in the last eight years. But somebody benefitted. Who?”
Based on these article, Stockhouse, a top Canadian financial portal, one of North America’s largest small cap investor communities, whose members include affluent investors actively researching stock and looking for new opportunities, carries a scathing letter on the GSFC investment by one of its members. Titled “Farmer Logic”, the letter has been apparently written by a Canadian farmer, referring in passing that Luke, on retirement, has taken up farming. Read on:
*** 
Interesting articles out of Gujarat! Thanks for putting those on for me to read. A few months ago when I started my thoughts on here, I had a hard time aligning why a State run enterprise would invest in a foreign country to get something they could buy on the open market. Those posts were around August 17th.
Having been to India many years ago, I saw (and it happens here too) that a Government might not be corrupt but people in the Government can and sure will be, and they try to get their hands on some money.
In one of the articles Mr. Luke who is on the back 9 of his life and has taken up farming (God Bless him) said he has no personal interest in this but wants to bring the truth to the people of Gujarat. Note, no personal interest but he knows something was up all along. 
At another point in one of the articles, it says that money went down the drain.....and farmer logic says check the end of the drain to see who that money benefited.
Who has zero-NO Shares in this venture but yet have a personal interest and are getting paid?! The current management and board members! Doesn't anyone else see that?
Of course they want to keep things the same and conserve cash.....to pay themselves.
Those of you who are from the farm or are handy will know that when issues/problems come up, people look for someone or something to blame. I have an adopted brother who many years ago used to help on the farm. Everything he touched broke or got smashed. He could blame this or that or another person but it turns out he was the common denominator involved in every wreck and managed to survived with excuses and blaming others and other things until my Dad (he loved that boy and gave him many chances) realized that the boy was the problem.
Who is the common denominator and has survived all this turmoil? Danielle and GSFC board members (individual people) have continued to be personally paid since this all started and in the meantime have invested not one dollar personally into this company!!!?
Danielle and the current board have seen Mr. Phinney get run over and out of the company, along with all the other board members who actually owned shares as well as an interim CEO who owned a good amount of shares and a recent CEO.
Danielle and the current board are at the end of the drain receiving all the money and the benefit. I looked through the Proxy materials. Danielle and the whole board who own no shares are the ones getting paid and they are disparaging proposed board members who actually own shares? Doesn't anyone else see that as upside down?
in one of those articles from Gujarat media Mr. Luke or the writer says that the current interim CEO is unknown!!!
Read the Proxy that was just sent out, Danielle is praised as having all this experience and knowledge....in what operating/producing fertilizer venture? In Political alignment with the personal individuals from GSFC on the board it would appear she is well versed at. She, along with the GSFC individuals took home good personal money and survived Mr. Phinney and everyone else ever involved and not one of them owns a share!
To me it is right there! They are the only ones benefiting Can't anyone see that? It appears the higher ups in GSFC and people in the State of Gujarat and the Government are figuring it out.
The Fox is in the Hen House. There is no one left for Danielle to throw under the bus and survive, unless someone from GSFC will be the fall guy.....or will GSFC turn on Danielle?

Comments

TRENDING

When phone tapping rumours were afloat in Gujarat among BJP leaders, IAS babus

Gordhan Zadaphia By Rajiv Shah While alerts were coming in over the last few days about a series of articles on how phones of “journalists, ministers, activists” may have been used to spy on them with the help of an Israeli project, Pegasus, finally, when I got up on Monday morning, I saw a Times of India story quoting (imagine!, we never used to do this, did just a followup in case we missed a story) the Wire, a top news portal on this providing some details, along with government reaction.

Gandhi Ashram 'redevelopment': Whither well-known Gandhi experts, Gandhians?

Sudarshan Iyengar, Ramchandra Guha By Rajiv Shah Rehabilitating about 200 families, mostly Dalits, living in the Gandhi Ashram premises by offering them Rs 60 lakh in order to implement a Rs 1,200 crore project called Gandhi Ashram Memorial and Precinct Development Project reportedly to bring the Ashram into its "original shape" as Gandhi established appears to me strange, to say the least.

Gandhi Ashram eviction: Finally historian Guha speaks out; but ageing trustees are silent

By Rajiv Shah Finally, at least one expert, top historian Ramachandra Guha, has spoken out on eviction of 200 families living in the Gandhi Ashram premises. Last week, I received an email alert from a veteran academic, Ashoke Chatterjee, former director, National Institute of Design (NID), Ahmedabad, which happens to be one of the most prestigious academic institutes of India based, informing me about it. NID is one of the several top institutes founded when Jawaharlal Nehru was India’s Prime Minister.

Will Vaishnaw, close to Modi since Vajpayee days, ever be turnaround man for Railways?

By Rajiv Shah Ever since Ashwini Vaishnaw was appointed as railway minister, I was curious to know who he was and how did he come closer to Prime Minister Narendra Modi and, most important, when. Hence, I decided to talk with some Sachivalaya officials in Gujarat in order to find out if there was, if any, Gujarat (or Modi) connection.

Non-entity 6 yrs ago, Indian state turned Fr Stan into world class human rights defender

Jharkhand's Adivasi women  By Rajiv Shah A lot is being written on Father Stan Swamy, a Jesuit priest who is known more for his work for tribal rights in Jharkhand. His death at the age of 84, even when he was an under trial prisoner for his alleged involvement in the Bhima Koregaon violence three years go, has, not without reason, evoked sharp reaction, not just in India but across the world.

Home Ministry data vs Health Ministry data! Gujarat's poor sex ratio at birth data

Home minister Amit Shah, health minister Harsh Vardhan By Rajiv Shah Don’t India’s top ministries – of Health and Family Welfare (MoHFW) and of Home Affairs (MoHA) – tally data before releasing them? It would seem so… A few days back, I did a story in Counterview , based on an MoHA report, stating that Gujarat has the lowest sex rate at birth (SRB) at 901 girls as against 1000 births, followed by Assam (903), Madhya Pradesh (905) and Jammu & Kashmir (909), raising valid apprehensions that widescale female foeticide may be prevalent in India’s “model” State.

July 1: Observing communal harmony day in Ahmedabad, a highly segregated city

Activists at Vasant-Rajab memorial on July 1 By Rajiv Shah Celebrated as Communal Harmony Day in Ahmedabad, July 1, 2021 is remembered for the sacrifice of two friends, Vasant Rao Hegishte and Rajab Ali Lakhani, laid down their lives for the cause of communal harmony on the July 1, 1946 in the city. A memorial stands in their memory in Khandni Sheri, Jamalpur, Ahmedabad.

Periyar opposed imposition of alien culture on Dravidian people, but wasn't anti-Hindi

By  Vidya Bhushan Rawat* Thiru K Veeramani is the ideological disciple of EVR Periyar and one of the senior most leaders of the Dravidian movement at the moment. He started working under his mentor EVR Periyar at the age of 10 years when he delivered his first speech in Salem. Veeramani is President of Dravidar Kazhagam and editor of Modern Rationalist, a monthly journal devoted to Periyar’s ideas. That apart, he is editor of many other magazines and journals in Tamil. This interview was conducted by Vidya Bhushan Rawat at the Periyar Thidal on November 1st, 2019. These are some of the excerpts and the entire interview can be viewed at the youtube link being provided at the end of the article. Dravidian movement internationally Thiru Veeramani said that “It is high time that Periyar must be globalised now. He said that it was easier in relation to Dr Ambedkar since he has written in English and almost all the western audience read him through his work. But the southern part of India

Positive side of Vaishnaw? Ex-official insists: Give him loss making BSNL, Air India

By Rajiv Shah A senior chartered accountant, whom I have known intimately (I am not naming him, as I don’t have his permission), has forwarded me an Indian Express (IE) story (July 18), “Ashwini Vaishnaw: The man in the chair”, which, he says, “contradicts” the blog (July 17), "Will Vaishnaw, close to Modi since Vajpayee days, ever be turnaround man for Railways?" I had written a day earlier and forwarded it to many of my friends.

Gujarat cadre woman IAS official who objected to Modi remark on sleeveless blouse

By Rajiv Shah Two days back, a veteran journalist based in Patna, previously with the Times of India, Ahmedabad, phoned me up to inform me that he had a sad news: Swarnakanta Varma, a retired Gujarat cadre IAS bureaucrat, who was acting chief secretary on the dastardly Godhra train burning day, February 27, 2002, which triggered one of the worst ever communal riots in Gujarat, has passed away due to Covid. “I have been informed about this from a friend in Jaipur, where she breathed her last”, Law Kumar Mishra said.