Chinese nationals operating new businesses in T&T are latching on to a fast and easy money-making venture—gambling through unregulated and unlicenced gaming machines and bush whe whe that can make them targets for ambush and robberies. It is also an easy avenue for money laundering, president of the San Juan Business Association Abraham Ali said.
“Some of these people come to the country and look like they don’t have no money at all, and suddenly you see money going into renovations and the purchase of new and existing properties. So then you know there is an aspect of laundering.” Ali said in the last three years, San Juan has become populated with gaming machines which are owned by Chinese people. The machines are strategically placed in bustling shops, where a rent and a small profit is paid to the owner.
“The bulk of the winnings are collected by the Chinese,” he said. The most popular machine is the one-armed bandit which can leave the player penniless, Ali said. Ali said word on the ground is that 90 per cent of the money illegally collected from the machines is converted into US dollars and sent to China.
“The US dollars are not purchased from banks but at black market prices. The Chinese (people involved) cannot approach the bank to buy US currency for a number of reasons. For one, they have a language barrier. Secondly, they do not own legitimate businesses to acquire large sums of US currency, so they buy it in an underhand way.” The Chinese people involved pay as much as $6.50 (TT) for one US dollar, Ali said.
“One of our main concerns is the expatriation of funds. There is always a big issue where we, as Trinidadians, fight to obtain US currency from the banks; but it is being sneaked out. This creates a negative effect on the economy.” Ali said Susan Francois, director of the Financial Intelligence Unit (FIU), hosted a seminar for the San Juan business owners last year to sensitise its 200 members about money laundering and its implications.
At the gathering, Ali said he raised the issue of the free movement of US currency out of T&T by Chinese people. He said while Francois assured that measures have been taken to address this, she could not divulge details since they were sensitive and confidential. Meanwhile, president of the Tunapuna Chamber of Commerce David Edwards is pleading with the authorities to take swift action against the illegal operators before it is too late.
Edwards and concerned members will discuss the matter at the chamber’s next meeting.
He said while the overnight proliferation of Chinese restaurants and supermarkets throughout the country was a matter that needs to be addressed—since many of them violated health laws, refused to hire local labour, and kept the operations of their businesses secretive—what was most bothersome was the unregulated and unregistered roulette machines and placing of illegal bush whe whe bets within the confines of several bars in Tunapuna.
He said it was a new trend that the chamber has been monitoring, since the Government was losing thousands of dollars in revenue with these unregulated machines. “The authorities need to look at this urgently because gambling is already a serious problem in Trinidad,” he said. During the 2014 budget presentation, Finance Minister Larry Howai described gambling as an emerging and substantial industry in T&T, with consistent growth in unlicenced and unregulated gaming.
Howai said under the current legislative framework, all casino operations conducted by self-styled private members’ clubs, and all gaming machine operations in recreation clubs, pubs, arcades and shopping malls are illegal activities. Howai pointed out that gambling has the potential to lead to criminal activity and devastating consequences for a minority of customers, including minors and compulsive gamblers. “There is a clear public need for regulation,” Howai said.
Edwards said in the last year, Chinese nationals, some of whom own restaurants and supermarkets, have been renting spaces inside of bars in Tunapuna to operate roulette machines:
“So far, there are four in operation in Tunapuna that I know of.”
Illegal gambling
He said they also use the bars to take bets on bush whe whe games, similar to the National Lotteries Control Board (NLCB) Play Whe operations, and also use the NLCB draw to make their payouts. Bush whe whe is an illegal gambling game. Bets are quietly taken on the side, where the stake for every dollar is far more than the NLCB pays its winners. The stakes are further increased if a coloured ball is played.
Of the two options the players have, Edwards said the machines seem to be mostly favoured because of the high odds. “The machines attract mostly mature men. Once you win, a call would be made and the payment is dropped off.” Edwards said he wants to believe that the payouts are not sought from banks, but are stored at the homes of those who own the machines. This, he said, made Chinese people a target since they could be easily monitored and trailed.
Having observed one bar on a regular basis, Edwards said the gaming operation “is not bad business” for both parties involved. “The bar owner collects a big rent at the end of the month, and those who operate the machines rake in a lot of money in one night. I watched it several times and saw people gamble away thousands of dollars in one go.”
Edwards said he would love to know what the Chinese involved do with the money from the losing bets. “I think they help bring other Chinese here. But you have to ask what kinds of activities is it funding?” Edwards said he also noticed roulette machines in San Juan and Curepe. “They are cropping up all around.” He said the chamber was willing to engage the Chinese business owners once they are here legitimately.
Bartlette: I am a bit puzzled
President of the San Fernando Business Association Daphne Bartlette said there were many unanswered questions about some Chinese nationals in Trinidad.
“Why are they allowed to operate businesses in T&T when they cannot speak English? What immigration laws cover and do not cover them? Do we have immigration officers who go out and check on these people to find out what documentation they have to stay here permanently? Are they fulfilling the laws and regulations of the country? Is there an unwritten law that these people can come in and set up shop?”
Bartlette said that for years these questions have remained unanswered. She said she was a bit puzzled by the Chinese influx. “It’s a bit hazy as to what is really happening. I am not sure what laws are being overlooked.
“What the members are also saying is that they are giving tremendous competition to the bona fide business owners. Everywhere you turn there is a new business. We asked the past and current governments to find out what is causing the proliferation of these expatriates, because they are certainly not second-generation Chinese.” Bartlette said it was a known fact that several Chinese restaurants that did not adhere to proper health standards were shut down by health inspectors in South.
She said what bothered her was the issue with our foreign exchange. “I always say we should guard our foreign exchange in a way that we would not have wanton spending or leakage.” Bartlette said what was also strange was that none of the Chinese business owners had approached the association to become members.
Boodhu: Trinidadians not ambitious like Chinese
Interim president of the Sangre Grande Business Association Kenneth Boodhu said before welcoming the Chinese to T&T, the Government should ensure that they pay and file taxes, make NIS contributions, and employ local labour. “I am suggesting that tax officers visit these businesses to audit them to ensure that they operate legally. Are these people coming here and are not being regulated? This is hard to tell because no one is keeping tabs on them.”
He said if there was no regulation, legislation needs to be drafted to ensure that they operate within the law. Boodhu said they should not only source labour within their families, but give locals an opportunity to work in their establishments. In the last seven years, Boodhu said at least ten Chinese restaurants were established in Sangre Grande with little or no complaint from the association.
He said the same way Trinidadians go to USA, Canada and England to open businesses, he did not see a problem with Chinese coming here to do the same. “I see nothing wrong with these people coming in and setting up businesses in Trinidad. If we Trinidadians can emulate their work ethic, we can increase productivity. They are contributing to the upliftment of our town.”
Boodhu said while people have been frowning at the growing number of Chinese businesses, Trinidadians are just not as ambitious as they are. “The Chinese are taking advantage of opportunities. They work very hard. I think we should embrace them.”
Nancis: Treat everything with caution
President of the Arima Business Association Eustace Nancis said while the increase of Chinese businesses in the corporation has not been discussed by members, “it is always a concern to see the number of them cropping up here, there and everywhere.” He said, “We just have to observe it and treat everything with caution.”
Nancis said while Arima has several established Chinese businesses for years, new ones are popping up, mainly restaurants. “How much Chinese food can one eat?” Nancis said the authorities need to monitor these restaurants to also ensure proper health standards are met.
Sookhai: Huge presence of Chinese in Chaguanas
Chaguanas Chamber of Commerce president Ritchie Sookhai also confirmed that Chaguanas has a “huge presence of Chinese businesses.” He said the owners of the new wave of Chinese supermarkets, casinos and restaurants in Chaguanas had not approached the chamber to become members, nor have they lodged any complaints. Sookhai could not say if the new Chinese business owners have been operating legally or illegally, were granted work permits or import licences.
Aboud: Chinese creating strong competitive environment
President of the Downtown Owners and Merchants’ Association (Doma) Gregory Aboud also confirmed an influx of “new Chinese businesses opening in the downtown area,” but said that only the older Chinese businesses form the core of Doma.
“The family business model is at the heart of the success of the Chinese community, and this model has proven itself to be a successful concept for centuries. We should not despise the Chinese community. What we should do is emulate this model, where a strong family business model can lead to a strong country.” He feels the investment the Chinese businesses are making can be seen in a positive light.
“These new entrants should be required to follow all the conditions under which local businesses operate and in this way, they can contribute towards the further development of towns and cities.” Aboud said while it is true that these Chinese have been creating a tough competitive environment for those who may have been accustomed to higher margins, “by the same token they have many lessons to teach us with respect to their work ethics.”
Maharaj: Some Chinese supermarkets pay no taxes
Former president of the Supermarket Association of T&T (Satt) Kumar Maharaj feels that some Chinese nationals come to T&T to set up businesses in order to acquire sufficient money to obtain permanent residency in Canada. Maharaj said all that was needed for a Chinese national to become a permanent resident in Canada was $100,000 Canadian.
However, a check on the Web site www.canadavisa.com/pnp-business-immigration, revealed that “certain provinces have their own business immigration programmes within their Provincial Nomination Programmes (PNP) where certain Canadian provinces will nominate applicants for permanent residency under their Business Immigration Programme.”
Under the PNP, the Web site stated that a deposit of $100,000 Canadian is required for the province of Manitoba, but this has since been suspended. Anyone entering Canada must have a visa. Maharaj, who owns and operates West Side Supermarket in Arima, said he counted 36 new Chinese supermarkets from Arima to San Juan, many of which employ “their own family.”
He said the Chinese had several advantages: they live on the premises of their businesses, did not pay for security, and opened extended hours. “So their overheads costs are significantly less.” He feels sooner rather than later, the national economy will pay a price for this. While some customers admitted that the Chinese supermarkets offered cheaper prices on goods, Maharaj disagreed, stating that the prices at local supermarkets were just as competitive.
Maharaj also alleged that some of the Chinese “pay no taxes and they have no banking accounts.” Newly-elected Satt president Dr Yunus Ibrahim, of Ramish and Leela Supermarket, refused to comment on the growing number of Chinese supermarkets because he said the topic was “close to the heart of the supermarket association” and was a “tricky” one to answer.
—with reporting by Neal Rasmine