Thursday, April 17, 2014

A $130 million gift to the rich

When the government announced that it was selling off Genesis Energy, it deliberately underpriced it, with a discounted price, generous bonus scheme, and huge dividend. And today that has had the expected result, with Genesis shares leaping almost 20% on their debut, an increase in value of $130 million. Rather than being retained by the government, that $130 million has gone straight into the pockets of the donors and cronies who bought into Genesis.

This is nothing but a corrupt, government-enabled theft by the rich of public wealth. It must be reversed, and the thieves and those who enabled them punished.

Meanwhile, in the next few months, we'll no doubt see some of that $130 million make its way back to the party which handed it out, in the form of political donations (and possibly with honours corruptly given in exchange). Its a nasty little circle which enables further corruption, and we need to stamp it out too, with public funding to drive corrupt wealth out of our political system.