PLP rejects loan resolution
By KRYSTEL ROLLE
Guardian Staff Reporter
krystel@nasguard.com:
The opposition last night rejected a resolution to borrow nearly $58 million from a Chinese bank to construct a new highway, saying the loan requirement to bring in 200 Chinese workers to build a road is something the Progressive Liberal Party cannot accept.
Minister of State for Finance Zhivargo Laing moved the resolution yesterday in the House of Assembly to borrow $57,999,966 from the Export-Import Bank of China for the development of the airport road project.
He said the nature of the China capital export policy provides for the inclusion of Chinese labor and material. Approximately 120 Bahamians will be engaged for the project.
PLP Leader Perry Christie said given the extraordinarily hard times, it is unacceptable for the government to approve a public project that would require it to hire twice as many foreigners as Bahamians.
"Is there something in this four-lane highway that the Bahamians cannot do?Is there some component?"Christie asked.
Pointing to the Tonique Williams-Darling Highway, the opposition leader said Bahamians have demonstrated in the past their ability to build roads.
The plans include the realignment of the existing John F. Kennedy Drive to create a four-lane highway from Windsor Field Road to the new six-legged roundabout.
"We gave them the work, they did a splendid job on Tonique Williams-Darling Highway,"Christie said of the Bahamian contractors.
"They did the work and they were Bahamian. So the question for me is whether or not the government considered the option of giving the Bahamians the work even though the[overall cost]of the work would have been higher."
He said at the end of the day more Bahamians would have jobs and as a result it would have a greater impact on the economy.
"This is not a private sector project like Baha Mar where the development would not take place[unless the foreign labor component is extended],"Christie said."This is a public sector project where the Government of The Bahamas has control."
Laing pointed to the low interest rate on the loan, which he said will save the government substantial sums of money.
He said the interest rate attached to the Chinese loan is two percent compared to the seven percent minimum that the government would have gotten on the open market.
Laing said if the government were to accept a loan with a seven percent interest rate, the government would have to pay $43 million in interest alone. By comparison the Chinese loan would attract $10.7 in interest.
But Christie said the government made the"wrong decision".
"We have given close consideration to this resolution. We understand the dynamics. We feel that the best decision would have been to have Bahamian contractors to build and we also believe that the economy would be impacted greater than the impact it would have with the Chinese,"Christie said.
Prime Minister Hubert Ingraham pointed out that under the Christie administration 60 work permits were granted to Chinese to assist with the construction of T.G. Glover Primary School.
However, Christie said the circumstances were vastly different.
For example, he said the economy at that time was growing and the unemployment level was nowhere near where it is now.
"At the same time, we had a sector where construction jobs, where a contractor, had the right to make a case to the immigration department for work permits, and at a time when jobs were not the question,"he said.
"At the time the immigration department gave work permits to a Bahamian contractor to help with construction but today the government has total control over the work that is being done. The Bahamas government is issuing the work itself."
9/23/2010
thenassauguardian
A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
Monday, September 27, 2010
Sunday, September 26, 2010
The National Development Party (NDP) says the controversial $2.6 billion Baha Mar project is "not in the best interest" of the Bahamian people
Gov’t Told To Scrap Baha Mar
BY KARISSMA ROBINSON
The National Development Party (NDP) wants the government to scrap the controversial $2.6 billion Baha Mar project because in its current state it is "not in the best interest" of the Bahamian people.
"The deal is not good for Bahamians and that is the bottom line," said NDP member Renward Wells.
"The NDP calls on the Free National Movement (FNM) Government, which touts itself as being a party of accountability and transparency, to immediately table the entire Baha Mar deal. The Bahamian public should be able to see and have an open and honest discussion on this agreement."
Mr. Wells and prominent attorney Paul Moss were guests on the Love 97 talk show, On Point Monday night with host Rogan Smith, where they made it quite clear that the government is about to make a huge mistake.
"Looking at it in totality I am not sure that the financial benefits that the government is projecting is going to happen," said Mr. Wells.
Mr. Wells also objected to 265 acres of prime land being transferred before any construction begins on the project.
"We don’t believe in the sale of Bahamian land. The prime Minister stated that the land will be transferred in Fee simple and Baha Mar says they are paying for the land. I want to know who is right," he said.
Mr. Wells said that there are still a lot of questions that are left unanswered.
"Who will the government have review Baha Mar’s construction drawings for building code violations and design flaws? Who will the government have on-site to inspect and ensure that the design on the blueprint is adhered to?" he asked
Furthermore, Mr. Wells said there are a number of Bahamian mechanical and electrical engineers who are capable of designing such a project.
Mr. Moss said due to the poor state of the economy it seems as if the government would do almost anything to provide jobs.
"They will sell their souls to the devil to try to create jobs. They are not going to get it done that way. What is going to happen is an invasion of this country, strangers will take over your land and future generations will not know The Bahamas as we know it today," said Mr. Moss.
Prime Minister Hubert Ingraham has already gone on record saying that if he was prime minister at the time, he would not have approved the Baha Mar deal.
"It is incredible that even after he said it was a bad deal; he is still going to go ahead with it," said Mr. Moss, who said the country cannot afford to go ahead with this project as it is.
"This deal, given what we know, must be renegotiated. We call on the FNM Government to re-negotiate this deal to ensure that the maximum benefits of this project accrue to Bahamians," he said.
As previously reported, House members will not debate the Baha Mar resolution today that deals with the foreign labour component of the agreement.
Baha Mar wants the government to approve more than 8,000 work permits for Chinese workers to work on the Cable Beach project.
Baha Mar officials have to first deal with their financial issues with Scotiabank.
Baha Mar has an outstanding $200 million loan with the bank.
September 22nd, 2010
jonesbahamas
BY KARISSMA ROBINSON
The National Development Party (NDP) wants the government to scrap the controversial $2.6 billion Baha Mar project because in its current state it is "not in the best interest" of the Bahamian people.
"The deal is not good for Bahamians and that is the bottom line," said NDP member Renward Wells.
"The NDP calls on the Free National Movement (FNM) Government, which touts itself as being a party of accountability and transparency, to immediately table the entire Baha Mar deal. The Bahamian public should be able to see and have an open and honest discussion on this agreement."
Mr. Wells and prominent attorney Paul Moss were guests on the Love 97 talk show, On Point Monday night with host Rogan Smith, where they made it quite clear that the government is about to make a huge mistake.
"Looking at it in totality I am not sure that the financial benefits that the government is projecting is going to happen," said Mr. Wells.
Mr. Wells also objected to 265 acres of prime land being transferred before any construction begins on the project.
"We don’t believe in the sale of Bahamian land. The prime Minister stated that the land will be transferred in Fee simple and Baha Mar says they are paying for the land. I want to know who is right," he said.
Mr. Wells said that there are still a lot of questions that are left unanswered.
"Who will the government have review Baha Mar’s construction drawings for building code violations and design flaws? Who will the government have on-site to inspect and ensure that the design on the blueprint is adhered to?" he asked
Furthermore, Mr. Wells said there are a number of Bahamian mechanical and electrical engineers who are capable of designing such a project.
Mr. Moss said due to the poor state of the economy it seems as if the government would do almost anything to provide jobs.
"They will sell their souls to the devil to try to create jobs. They are not going to get it done that way. What is going to happen is an invasion of this country, strangers will take over your land and future generations will not know The Bahamas as we know it today," said Mr. Moss.
Prime Minister Hubert Ingraham has already gone on record saying that if he was prime minister at the time, he would not have approved the Baha Mar deal.
"It is incredible that even after he said it was a bad deal; he is still going to go ahead with it," said Mr. Moss, who said the country cannot afford to go ahead with this project as it is.
"This deal, given what we know, must be renegotiated. We call on the FNM Government to re-negotiate this deal to ensure that the maximum benefits of this project accrue to Bahamians," he said.
As previously reported, House members will not debate the Baha Mar resolution today that deals with the foreign labour component of the agreement.
Baha Mar wants the government to approve more than 8,000 work permits for Chinese workers to work on the Cable Beach project.
Baha Mar officials have to first deal with their financial issues with Scotiabank.
Baha Mar has an outstanding $200 million loan with the bank.
September 22nd, 2010
jonesbahamas
Saturday, September 25, 2010
Conservationists call for Bahamians to lobby against dredging, excavation and development of Bell Island in the Exuma Cays Land and Sea Park
Appeal for lobby against dredging, excavation and development at Bell Island
By MEGAN REYNOLDS
Tribune Staff Reporter
mreynolds@tribunemedia.net:
CONSERVATIONISTS are calling for Bahamians to lobby against dredging, excavation and development of Bell Island in the Exuma Cays Land and Sea Park as plans submitted by owner the Aga Khan are considered by government.
But former Exuma councillor Henry Rolle argues the development should go ahead as it could benefit employment-starved residents of nearby Black Point.
The controversial plans to dredge 8.8 acres of sea bed for two channels into an existing barge landing and a 20-slip yacht basin to be carved out of an existing salt pond came to light after Environment Minister Earl Deveaux admitted he accepted a free ride in landowner Prince Karim Aga Khan IV's luxury helicopter to attend a film screening in Abaco the day before he went on to Bell Island to do a land assessment.
Conservationists outraged by the plans have cried shame on the Bahamas National Trust (BNT) as wardens of the world's oldest national park and 176 square mile no-take marine reserve for not standing in the way of development on the 349-acre private island.
ReEarth founder Sam Duncombe said: "The Trust really needs to be called out on this one because this is such a flagrant disregard of what their mandate is.
"Everyone in the Bahamas is a member of the National Trust and has a right to call the BNT and basically tell them no developing in the park.
"If we can't protect the oldest marine park in the world what hope do we have for the rest of the country?
"It's a sad day in the Bahamas when we have to protect the environment from it's so-called protectors. That's a really sad day."
But the BNT maintains it has no power over the development of private islands in the park by private landowners who are known to make generous donations to the charity, meaning the alleged $1 million donation to the BNT from the Aga Khan would not stray from the norm.
And development and dredging has previously been done at privately-owned islands in the park such as Soldier Cay, Cistern Cay, Halls Pond Cay and Bell Island, which is private property under the law and not that of the Land and Sea Park.
The multi-millionaire and billionaire owners of the islands also provide an important source of public revenue and provide spin-off benefits for nearby communities in Black Point, Staniel Cay and Farmers Cay, the BNT maintains.
Former Exuma chief councillor Henry Rolle, of Black Point on Great Guana Cay 17 miles southeast of Bell Island, said in the case of the latest development at the 349-acre island where building, excavation and dredging had previously been done, the benefits of development will outweigh the environmental concerns.
"People in Exuma need jobs," Mr Rolle said.
"Black Point has one of the largest populations and they look forward to these opportunities. Investors benefit the whole community, and the spin-off in reference to Bell island could be good for them.
"My interest is to give the people an opportunity, to give the investors an opportunity, so my people can have an employment opportunity during these tough times. If Bell Island was the only area in the park that was dredging and excavating a marina I would say 'lets get them' - but it's not."
September 24, 2010
tribune242
By MEGAN REYNOLDS
Tribune Staff Reporter
mreynolds@tribunemedia.net:
CONSERVATIONISTS are calling for Bahamians to lobby against dredging, excavation and development of Bell Island in the Exuma Cays Land and Sea Park as plans submitted by owner the Aga Khan are considered by government.
But former Exuma councillor Henry Rolle argues the development should go ahead as it could benefit employment-starved residents of nearby Black Point.
The controversial plans to dredge 8.8 acres of sea bed for two channels into an existing barge landing and a 20-slip yacht basin to be carved out of an existing salt pond came to light after Environment Minister Earl Deveaux admitted he accepted a free ride in landowner Prince Karim Aga Khan IV's luxury helicopter to attend a film screening in Abaco the day before he went on to Bell Island to do a land assessment.
Conservationists outraged by the plans have cried shame on the Bahamas National Trust (BNT) as wardens of the world's oldest national park and 176 square mile no-take marine reserve for not standing in the way of development on the 349-acre private island.
ReEarth founder Sam Duncombe said: "The Trust really needs to be called out on this one because this is such a flagrant disregard of what their mandate is.
"Everyone in the Bahamas is a member of the National Trust and has a right to call the BNT and basically tell them no developing in the park.
"If we can't protect the oldest marine park in the world what hope do we have for the rest of the country?
"It's a sad day in the Bahamas when we have to protect the environment from it's so-called protectors. That's a really sad day."
But the BNT maintains it has no power over the development of private islands in the park by private landowners who are known to make generous donations to the charity, meaning the alleged $1 million donation to the BNT from the Aga Khan would not stray from the norm.
And development and dredging has previously been done at privately-owned islands in the park such as Soldier Cay, Cistern Cay, Halls Pond Cay and Bell Island, which is private property under the law and not that of the Land and Sea Park.
The multi-millionaire and billionaire owners of the islands also provide an important source of public revenue and provide spin-off benefits for nearby communities in Black Point, Staniel Cay and Farmers Cay, the BNT maintains.
Former Exuma chief councillor Henry Rolle, of Black Point on Great Guana Cay 17 miles southeast of Bell Island, said in the case of the latest development at the 349-acre island where building, excavation and dredging had previously been done, the benefits of development will outweigh the environmental concerns.
"People in Exuma need jobs," Mr Rolle said.
"Black Point has one of the largest populations and they look forward to these opportunities. Investors benefit the whole community, and the spin-off in reference to Bell island could be good for them.
"My interest is to give the people an opportunity, to give the investors an opportunity, so my people can have an employment opportunity during these tough times. If Bell Island was the only area in the park that was dredging and excavating a marina I would say 'lets get them' - but it's not."
September 24, 2010
tribune242
Friday, September 24, 2010
Prime Minister Hubert Ingraham dismissive on questions in relation to Environment Minister Earl Deveaux's resignation offer
PM DISMISSES CALLS FOR EXPLANATION ON REFUSING MINISTER'S RESIGNATION OFFER
By ALISON LOWE
Tribune Staff Reporter
alowe@tribunemedia.net:
THE prime minister yesterday laughed off calls for him to explain his decision to reject Environment Minister Earl Deveaux's resignation offer last week.
Asked by this newspaper to account for the rejection of the offer or provide any comment on the acknowledged fact that Dr Deveaux accepted a free ride in the luxury helicopter of a billionaire Exuma resident who has an application to dredge in the Exuma Land and Sea Park before his ministry, Prime Minister Hubert Ingraham was dismissive.
Mr Ingraham was in the process of leaving parliament following the morning session in the lower chamber yesterday at the time the questions on the issue of Dr Deveaux's relationship with the Aga Khan, which the Opposition has termed "a conflict of interest", were put to him.
However, Mr Ingraham refused to provide the justification for his decision or any other comment on the matter, instead continuing on his way out of parliament.
Last Thursday Dr Deveaux told Island FM radio host Patty Roker on "The Morning Boil" that he tendered his resignation to the prime minister the previous Monday - the same morning he saw an article on the front page of this newspaper outlining how he had accepted a free ride in the luxury helicopter of the Prince Karim Aga Khan, the billionaire leader of an islamic sect, while having the Aga Khan's application to develop the island before the Environment Ministry that he heads for consideration.
The prime minister, he said, rejected the offer, and no other official statement was made on the matter.
Dr Deveaux had admitted flying on the 12-seater helicopter to attend a film screening in Abaco before going on to Bell Island -- the island in the Exuma Land and Sea Park owned by Prince Karim -- with BNT executives the next day.
The Environment Minister has also stated he was "minded" to approve plans submitted by Island of Discovery Limited, understood to be headed by the Aga Khan, to dredge and excavate at least 8.8 acres of marine sand flats, rock and vegetation for two channels, 12ft and 14ft deep, to construct a barge landing and 20 slip yacht basin, and roads across the 349-acre island. He passed the plans on to the BNT for their input.
September 23, 2010
tribune242
By ALISON LOWE
Tribune Staff Reporter
alowe@tribunemedia.net:
THE prime minister yesterday laughed off calls for him to explain his decision to reject Environment Minister Earl Deveaux's resignation offer last week.
Asked by this newspaper to account for the rejection of the offer or provide any comment on the acknowledged fact that Dr Deveaux accepted a free ride in the luxury helicopter of a billionaire Exuma resident who has an application to dredge in the Exuma Land and Sea Park before his ministry, Prime Minister Hubert Ingraham was dismissive.
Mr Ingraham was in the process of leaving parliament following the morning session in the lower chamber yesterday at the time the questions on the issue of Dr Deveaux's relationship with the Aga Khan, which the Opposition has termed "a conflict of interest", were put to him.
However, Mr Ingraham refused to provide the justification for his decision or any other comment on the matter, instead continuing on his way out of parliament.
Last Thursday Dr Deveaux told Island FM radio host Patty Roker on "The Morning Boil" that he tendered his resignation to the prime minister the previous Monday - the same morning he saw an article on the front page of this newspaper outlining how he had accepted a free ride in the luxury helicopter of the Prince Karim Aga Khan, the billionaire leader of an islamic sect, while having the Aga Khan's application to develop the island before the Environment Ministry that he heads for consideration.
The prime minister, he said, rejected the offer, and no other official statement was made on the matter.
Dr Deveaux had admitted flying on the 12-seater helicopter to attend a film screening in Abaco before going on to Bell Island -- the island in the Exuma Land and Sea Park owned by Prince Karim -- with BNT executives the next day.
The Environment Minister has also stated he was "minded" to approve plans submitted by Island of Discovery Limited, understood to be headed by the Aga Khan, to dredge and excavate at least 8.8 acres of marine sand flats, rock and vegetation for two channels, 12ft and 14ft deep, to construct a barge landing and 20 slip yacht basin, and roads across the 349-acre island. He passed the plans on to the BNT for their input.
September 23, 2010
tribune242
Thursday, September 23, 2010
Baha Mar Development... Debate
Debate on the Baha Mar development
By LARRY SMITH
DEBATE on the government's resolution to approve the Baha Mar development was scheduled to begin today in Parliament - five years after the initial deal was concluded in 2005. But the debate was postponed until the project's principals can come to terms with the Bank of Nova Scotia on outstanding debt.
It's been a long road - although not quite as long as the 13-year BTC sell-off - and conditions in 2005 were vastly different from what they are today. Back then, the credit boom underway in the US had a marked spillover effect on the Bahamas, with major developments planned around the country.
But most of these projects collapsed in the wake of the Great Recession that swept the world in 2008. The Baha Mar project was kept ticking over, even when the original joint venture partners withdrew. It was the brainchild of a Lyford Cay resident named Sarkis Izmirlian, whose grandfather left Armenia in the final years of the Ottoman Empire.
Sarkis' father, Dikran, made his fortune by cornering the world peanut trade. And the family became property developers in Britain, where one of their companies owns the 13-acre site on which London's City Hall is located. While Dikran lives in Switzerland, Sarkis manages the family's assets from the Bahamas.
He is said to be an astute developer who conceived the grandiose Baha Mar project partly to make a name for himself. But the project has been able to survive only because the Chinese are investing their huge currency reserves in support of their strategic interests. According to China's Commerce Ministry, some 800,000 Chinese are now working on energy, infrastructure and housing projects around the world.
Without clear evidence, we should discount the allegations that have been made about the use of Chinese convicts as workers on these projects. But we do think it makes sense for our government to seek a broad political consensus for the project in view of the large foreign labour component.
The 1,000-acre Baha Mar project is owned by the Izmirlian family, with the Chinese Export-Import Bank providing $2.5 billion in financing over 20 years and the China State Construction & Engineering Co as principal contractor.
Challenges
It was unclear at this writing whether the Bank of Nova Scotia, which financed the Izmirlian's earlier acquisition of Cable Beach hotels, would become an equity investor. But it is fair to ask how Baha Mar expects to repay a $2.5 billion loan from China when it has already encountered challenges servicing the current $200 million loan to Scotiabank.
Still, it is the view of most observers that Cable Beach needs to be redeveloped for the country's tourism industry to remain competitive, and whether the land used for collateral is conveyed on a long-term lease or as freehold is beside the point.
The optimum use for that land is resort development and nobody else in the current environment can finance such a project.
And even though a large portion of the $2.5 billion will return to China in the form of interest, wages and materials purchases, this is still a major foreign investment for the Bahamas that will help to stimulate the economy in the short term and drive tourism growth in the longer term.
Conflict of Interest
According to the Institute of Auditors, conflict of interest is when someone in a position of trust has a competing professional or personal interest that makes it difficult to fulfil his or her duties impartially, or that creates an appearance of impropriety.
But exactly what does that mean in the Bahamas? Well, the short answer is...very little.
The Bahamas is a small place, which makes it difficult for any of us to avoid apparent conflicts. And they happen all the time, at every level, in both the public and private sectors. There are very few explicit rules, and even where rules exist, there are no real sanctions.
In the political realm, the old United Bahamian Party oligarchs have been described as "the poster boys for conflict of interest and corruption." Back before the days when cabinet ministers earned official salaries, UBP politicos routinely represented companies doing business with the government and awarded themselves contracts as a matter of right.
Things were so bad that prior to the 1967 general election the UBP itself had issued a code of ethics requiring ministers to withdraw from any case in which they had a private interest.
But that didn't stop politicians like Sir Stafford Sands from acting as paid agents for Freeport gambling interests, as documented by the 1967 Commission of Inquiry.
Sands (who was finance and tourism minister at the time) received over $1.8 million in consultancy fees from the Grand Bahama Port Authority between 1962 and 1966. The Port also gave hundreds of thousands of dollars in political contributions to the UBP.
When the Progressive Liberal Party came to power in 1967 it promised to change all that.
The Pindling administration issued a new code of ethics that prohibited ministers from accepting substantial gifts from persons doing business with the government.
Fast forward 15 years and the Bahamas was in the throes of a criminal takeover by South American drug cartels.
The Colombian flag was raised over Norman's Cay in George Smith's Exuma constituency by the notorious gangster Carlos Lehder, who drove ordinary visitors away at gunpoint and orchestrated hourly cocaine flights to the US.
The 1984 Commission of Inquiry found that Smith had accepted gifts and hospitality from Lehder, who is now serving a long sentence in an American jail. In fact, one parliamentarian said at the time that "Pindling and his crew make the Bay Street Boys look like schoolchildren."
The 1993 inquiries into Bahamasair and the Hotel Corporation were initiated by the first Free National Movement government. They documented decades of gross mismanagement, conflict of interest, and official corruption under the PLP. In response, the FNM promised a government in the sunshine that would be fully accountable to the people.
In the years since there have been many accusations of conflict of interest featuring politicians of both major parties, but none of them have matched the scale and sheer brazenness of those earlier controversies.
For example, during the second FNM administration Brent Symonette resigned as chairman of the Airport Authority after it became known that a company in which he had a minor interest had been contracted to do paving work at the airport. Charges were made against Tommy Turnquest for allowing an air conditioning contractor to pay for his leader-elect victory party. And Dion Foulkes was accused of awarding contracts for school repairs without a public tender.
When the PLP was re-elected in 2002, Perry Christie made a lot of noise about integrity in public life, and issued another code of ethics for ministers that basically re-stated existing guidelines. But his promised law codifying rules on conflict of interest never came before parliament.
Controversies
And so the controversies continued. Leslie Miller and other PLP officials were accused of renting buildings to the government they served, a common practice.
Minister of Local Government V. Alfred Gray was accused of remaining active in his law firm, which was representing one party in a local government dispute. Neville Wisdom faced charges of impropriety in awarding contracts for Junkanoo bleachers.
PLP Minister Bradley Roberts and then chairman of the Water & Sewerage Corporation Don Demeritte were accused of leading a conspiracy that would have bilked Bahamians of millions of dollars. According to testimony in an industrial tribunal, the chairman instructed the corporation's general manager to call off the bidding process for a reverse osmosis plant at Arawak Cay, and start negotiations with a firm whose principal was Jerome Fitzgerald, a PLP senator. This matter is still before the court.
The most sensational case of conflict of interest during the PLP's last term involved Shane Gibson's relationship with expired American sex symbol Anna Nicole Smith.
Gibson resigned from the cabinet in February 2007 after The Tribune published embarrassing photos of him on a bed with Smith at her Eastern Road home, although both were fully clothed.
Gibson insisted he did not have a sexual relationship with Smith and denied doing her any favours.
At the time, the "attack" on Shane was characterised by a fellow PLP minister as "the successful manipulation of misinformation by people whose stock in trade is nastiness and sleaze."
Well, now we have something that trumps all of that potted history.
A minister who takes advantage of a private helicopter flight in order to attend two official meetings on two different islands over two consecutive days - the evening premiere of a conservation film on Abaco, and a meeting with visiting American experts in the Exuma Cays the next morning.
"I would not have been able to do either with regular flights, or even make the previously agreed times by boat," Environment Minister Earl Deveaux told me. "It is difficult, if not impossible, to discharge this job, with the required oversight, if we are not able to use the facilities of the principals."
For George Smith's information, the Aga Khan is not a criminal - unlike Carlos Lehder. He is as desirable an investor as Sarkis Izmirlian. His Swiss-registered Development Network runs a variety of multi-billion-dollar humanitarian programmes in 25 countries around the world. And the Aga Khan Health Services is one of the most comprehensive, private, not-for-profit healthcare systems in the developing world.
Before we jump to conclusions, perhaps we should ask what are the actual regulations that apply to official conflict of interest in the Bahamas these days.
The answer to that question is contained in the manual of cabinet procedure, which states that a minister "must not, except as may be permitted under the rules applicable to his office, accept any gift, hospitality or concessional travel offered in connection with the discharge of his duties."
On my reading, accepting a trip for a personal benefit rather than for a public duty would likely be considered a breach of this rule.
Yet incumbents of both major parties have accepted personal hospitality from big investors or foreign governments fairly routinely over the years, and usually without any controversy.
The real elephant in the room in this context is the financing of political parties by big investors and corporate interests.
There are no rules at all in this regard, and everything is done behind closed doors.
I have it on good authority that each of the 82 main party candidates in the 2007 general election received an average of $30,000 in campaign funds. Added to that are general party expenses for advertising, printing, logistics, travel, and give-aways.
Clearly, Bahamian elections cost millions of dollars. Where do you think that money comes from?
So should we be concerned about a free helicopter ride to a business meeting? You be the judge.
What do you think?
Send comments to
larry@tribunemedia.net
Or visit www.bahamapundit.com
September 22, 2010
tribune242
By LARRY SMITH
DEBATE on the government's resolution to approve the Baha Mar development was scheduled to begin today in Parliament - five years after the initial deal was concluded in 2005. But the debate was postponed until the project's principals can come to terms with the Bank of Nova Scotia on outstanding debt.
It's been a long road - although not quite as long as the 13-year BTC sell-off - and conditions in 2005 were vastly different from what they are today. Back then, the credit boom underway in the US had a marked spillover effect on the Bahamas, with major developments planned around the country.
But most of these projects collapsed in the wake of the Great Recession that swept the world in 2008. The Baha Mar project was kept ticking over, even when the original joint venture partners withdrew. It was the brainchild of a Lyford Cay resident named Sarkis Izmirlian, whose grandfather left Armenia in the final years of the Ottoman Empire.
Sarkis' father, Dikran, made his fortune by cornering the world peanut trade. And the family became property developers in Britain, where one of their companies owns the 13-acre site on which London's City Hall is located. While Dikran lives in Switzerland, Sarkis manages the family's assets from the Bahamas.
He is said to be an astute developer who conceived the grandiose Baha Mar project partly to make a name for himself. But the project has been able to survive only because the Chinese are investing their huge currency reserves in support of their strategic interests. According to China's Commerce Ministry, some 800,000 Chinese are now working on energy, infrastructure and housing projects around the world.
Without clear evidence, we should discount the allegations that have been made about the use of Chinese convicts as workers on these projects. But we do think it makes sense for our government to seek a broad political consensus for the project in view of the large foreign labour component.
The 1,000-acre Baha Mar project is owned by the Izmirlian family, with the Chinese Export-Import Bank providing $2.5 billion in financing over 20 years and the China State Construction & Engineering Co as principal contractor.
Challenges
It was unclear at this writing whether the Bank of Nova Scotia, which financed the Izmirlian's earlier acquisition of Cable Beach hotels, would become an equity investor. But it is fair to ask how Baha Mar expects to repay a $2.5 billion loan from China when it has already encountered challenges servicing the current $200 million loan to Scotiabank.
Still, it is the view of most observers that Cable Beach needs to be redeveloped for the country's tourism industry to remain competitive, and whether the land used for collateral is conveyed on a long-term lease or as freehold is beside the point.
The optimum use for that land is resort development and nobody else in the current environment can finance such a project.
And even though a large portion of the $2.5 billion will return to China in the form of interest, wages and materials purchases, this is still a major foreign investment for the Bahamas that will help to stimulate the economy in the short term and drive tourism growth in the longer term.
Conflict of Interest
According to the Institute of Auditors, conflict of interest is when someone in a position of trust has a competing professional or personal interest that makes it difficult to fulfil his or her duties impartially, or that creates an appearance of impropriety.
But exactly what does that mean in the Bahamas? Well, the short answer is...very little.
The Bahamas is a small place, which makes it difficult for any of us to avoid apparent conflicts. And they happen all the time, at every level, in both the public and private sectors. There are very few explicit rules, and even where rules exist, there are no real sanctions.
In the political realm, the old United Bahamian Party oligarchs have been described as "the poster boys for conflict of interest and corruption." Back before the days when cabinet ministers earned official salaries, UBP politicos routinely represented companies doing business with the government and awarded themselves contracts as a matter of right.
Things were so bad that prior to the 1967 general election the UBP itself had issued a code of ethics requiring ministers to withdraw from any case in which they had a private interest.
But that didn't stop politicians like Sir Stafford Sands from acting as paid agents for Freeport gambling interests, as documented by the 1967 Commission of Inquiry.
Sands (who was finance and tourism minister at the time) received over $1.8 million in consultancy fees from the Grand Bahama Port Authority between 1962 and 1966. The Port also gave hundreds of thousands of dollars in political contributions to the UBP.
When the Progressive Liberal Party came to power in 1967 it promised to change all that.
The Pindling administration issued a new code of ethics that prohibited ministers from accepting substantial gifts from persons doing business with the government.
Fast forward 15 years and the Bahamas was in the throes of a criminal takeover by South American drug cartels.
The Colombian flag was raised over Norman's Cay in George Smith's Exuma constituency by the notorious gangster Carlos Lehder, who drove ordinary visitors away at gunpoint and orchestrated hourly cocaine flights to the US.
The 1984 Commission of Inquiry found that Smith had accepted gifts and hospitality from Lehder, who is now serving a long sentence in an American jail. In fact, one parliamentarian said at the time that "Pindling and his crew make the Bay Street Boys look like schoolchildren."
The 1993 inquiries into Bahamasair and the Hotel Corporation were initiated by the first Free National Movement government. They documented decades of gross mismanagement, conflict of interest, and official corruption under the PLP. In response, the FNM promised a government in the sunshine that would be fully accountable to the people.
In the years since there have been many accusations of conflict of interest featuring politicians of both major parties, but none of them have matched the scale and sheer brazenness of those earlier controversies.
For example, during the second FNM administration Brent Symonette resigned as chairman of the Airport Authority after it became known that a company in which he had a minor interest had been contracted to do paving work at the airport. Charges were made against Tommy Turnquest for allowing an air conditioning contractor to pay for his leader-elect victory party. And Dion Foulkes was accused of awarding contracts for school repairs without a public tender.
When the PLP was re-elected in 2002, Perry Christie made a lot of noise about integrity in public life, and issued another code of ethics for ministers that basically re-stated existing guidelines. But his promised law codifying rules on conflict of interest never came before parliament.
Controversies
And so the controversies continued. Leslie Miller and other PLP officials were accused of renting buildings to the government they served, a common practice.
Minister of Local Government V. Alfred Gray was accused of remaining active in his law firm, which was representing one party in a local government dispute. Neville Wisdom faced charges of impropriety in awarding contracts for Junkanoo bleachers.
PLP Minister Bradley Roberts and then chairman of the Water & Sewerage Corporation Don Demeritte were accused of leading a conspiracy that would have bilked Bahamians of millions of dollars. According to testimony in an industrial tribunal, the chairman instructed the corporation's general manager to call off the bidding process for a reverse osmosis plant at Arawak Cay, and start negotiations with a firm whose principal was Jerome Fitzgerald, a PLP senator. This matter is still before the court.
The most sensational case of conflict of interest during the PLP's last term involved Shane Gibson's relationship with expired American sex symbol Anna Nicole Smith.
Gibson resigned from the cabinet in February 2007 after The Tribune published embarrassing photos of him on a bed with Smith at her Eastern Road home, although both were fully clothed.
Gibson insisted he did not have a sexual relationship with Smith and denied doing her any favours.
At the time, the "attack" on Shane was characterised by a fellow PLP minister as "the successful manipulation of misinformation by people whose stock in trade is nastiness and sleaze."
Well, now we have something that trumps all of that potted history.
A minister who takes advantage of a private helicopter flight in order to attend two official meetings on two different islands over two consecutive days - the evening premiere of a conservation film on Abaco, and a meeting with visiting American experts in the Exuma Cays the next morning.
"I would not have been able to do either with regular flights, or even make the previously agreed times by boat," Environment Minister Earl Deveaux told me. "It is difficult, if not impossible, to discharge this job, with the required oversight, if we are not able to use the facilities of the principals."
For George Smith's information, the Aga Khan is not a criminal - unlike Carlos Lehder. He is as desirable an investor as Sarkis Izmirlian. His Swiss-registered Development Network runs a variety of multi-billion-dollar humanitarian programmes in 25 countries around the world. And the Aga Khan Health Services is one of the most comprehensive, private, not-for-profit healthcare systems in the developing world.
Before we jump to conclusions, perhaps we should ask what are the actual regulations that apply to official conflict of interest in the Bahamas these days.
The answer to that question is contained in the manual of cabinet procedure, which states that a minister "must not, except as may be permitted under the rules applicable to his office, accept any gift, hospitality or concessional travel offered in connection with the discharge of his duties."
On my reading, accepting a trip for a personal benefit rather than for a public duty would likely be considered a breach of this rule.
Yet incumbents of both major parties have accepted personal hospitality from big investors or foreign governments fairly routinely over the years, and usually without any controversy.
The real elephant in the room in this context is the financing of political parties by big investors and corporate interests.
There are no rules at all in this regard, and everything is done behind closed doors.
I have it on good authority that each of the 82 main party candidates in the 2007 general election received an average of $30,000 in campaign funds. Added to that are general party expenses for advertising, printing, logistics, travel, and give-aways.
Clearly, Bahamian elections cost millions of dollars. Where do you think that money comes from?
So should we be concerned about a free helicopter ride to a business meeting? You be the judge.
What do you think?
Send comments to
larry@tribunemedia.net
Or visit www.bahamapundit.com
September 22, 2010
tribune242
Environment Minister Earl Deveaux did not admit guilt by resignation
Deveaux did not admit guilt by resignation
tribune242 editorial
THE LATEST scuttlebut making the rounds of the political rumour mill is that by offering his resignation to Prime Minister Hubert Ingraham, Environment Minister Earl Deveaux admitted he was wrong to accept the invitation of Prince Karim Aga Khan to fly in his helicopter to the prince's private island in the Exumas. According to rumour mongers it is an admission by the Minister that the helicopter ride compromised his ability to make an objective decision on the Prince's application for permission to develop his island in the Exuma Land and Sea Park.
Those persons spreading the rumour are either completely ignorant of the Westminster system of parliamentary government, or they are maliciously exploiting the ignorance of the Bahamian people.
There are many reasons why ministers resign from Cabinet. We had an incident as recently as March when Branville McCartney resigned as Minister of State for Immigration. Mr McCartney said at the time that in the forefront of all his issues and emotions was his "feelings of stagnation and the inability to fully utilise" his "political potential at this time."
"We are facing tough times," he said, "but I confidently believe that the nation has been mobilized by Mr Ingraham and the FNM and rallied for a great national effort. I have learned why this Prime Minister and Leader of the FNM is the most successful leader of our party. And it is because of this that I say, I have no sympathy with and will give no credence or comfort to those who would want to use this resignation to undermine his leadership of the FNM and/or The Commonwealth of The Bahamas."
That was one reason for a resignation.
One must remember that when a member is elected to parliament, he is elected by the people. However, when he is made a Cabinet minister it is a position given by the prime minister -- a position that can be taken away at will for a number of reasons. Should anything arise in that ministry that could embarrass the prime minister or his government, then it is the action of a gentleman to go back to the prime minister and offer to resign. It is then up to the prime minister to accept or reject the offer.
In offering his resignation, Mr Deveaux did not admit that he had sold his integrity for a helicopter ride, he just did what was expected of him in the ancient tradition of the Westminster system. Unfortunately there are not many gentlemen left among us today.
This was the same tradition followed by the late Sir Kendal Isaacs when he relinquished the leadership of the FNM after he had led the party to defeat in the 1987 election. However, Opposition leader Perry Christie did not step down as party leader when he lost the government in 2007 to the FNM. He was not duty bound to do so and he chose not to follow tradition.
In the case of Mr Deveaux, Prime Minister Ingraham could hardly punish him for a practice that has been widely used over the years in all administrations when an investor wanted a minister to inspect a project for which he needed permission. It was customary for the investor to provide the transport, which is what the Aga Khan did in the case of Mr Deveaux.
And the Prime Minister certainly could not frown on Mr Deveaux after this practice had been turned into widespread abuse under the PLP government with investors -- with issues before cabinet and various government departments -- even making their aircraft available to fly PLP candidates around the islands during the 2007 election.
We know that the PLP are hungry for political bones to chew on, but it's time to drop this one -- it's going nowhere.
September 23, 2010
tribune242 editorial
tribune242 editorial
THE LATEST scuttlebut making the rounds of the political rumour mill is that by offering his resignation to Prime Minister Hubert Ingraham, Environment Minister Earl Deveaux admitted he was wrong to accept the invitation of Prince Karim Aga Khan to fly in his helicopter to the prince's private island in the Exumas. According to rumour mongers it is an admission by the Minister that the helicopter ride compromised his ability to make an objective decision on the Prince's application for permission to develop his island in the Exuma Land and Sea Park.
Those persons spreading the rumour are either completely ignorant of the Westminster system of parliamentary government, or they are maliciously exploiting the ignorance of the Bahamian people.
There are many reasons why ministers resign from Cabinet. We had an incident as recently as March when Branville McCartney resigned as Minister of State for Immigration. Mr McCartney said at the time that in the forefront of all his issues and emotions was his "feelings of stagnation and the inability to fully utilise" his "political potential at this time."
"We are facing tough times," he said, "but I confidently believe that the nation has been mobilized by Mr Ingraham and the FNM and rallied for a great national effort. I have learned why this Prime Minister and Leader of the FNM is the most successful leader of our party. And it is because of this that I say, I have no sympathy with and will give no credence or comfort to those who would want to use this resignation to undermine his leadership of the FNM and/or The Commonwealth of The Bahamas."
That was one reason for a resignation.
One must remember that when a member is elected to parliament, he is elected by the people. However, when he is made a Cabinet minister it is a position given by the prime minister -- a position that can be taken away at will for a number of reasons. Should anything arise in that ministry that could embarrass the prime minister or his government, then it is the action of a gentleman to go back to the prime minister and offer to resign. It is then up to the prime minister to accept or reject the offer.
In offering his resignation, Mr Deveaux did not admit that he had sold his integrity for a helicopter ride, he just did what was expected of him in the ancient tradition of the Westminster system. Unfortunately there are not many gentlemen left among us today.
This was the same tradition followed by the late Sir Kendal Isaacs when he relinquished the leadership of the FNM after he had led the party to defeat in the 1987 election. However, Opposition leader Perry Christie did not step down as party leader when he lost the government in 2007 to the FNM. He was not duty bound to do so and he chose not to follow tradition.
In the case of Mr Deveaux, Prime Minister Ingraham could hardly punish him for a practice that has been widely used over the years in all administrations when an investor wanted a minister to inspect a project for which he needed permission. It was customary for the investor to provide the transport, which is what the Aga Khan did in the case of Mr Deveaux.
And the Prime Minister certainly could not frown on Mr Deveaux after this practice had been turned into widespread abuse under the PLP government with investors -- with issues before cabinet and various government departments -- even making their aircraft available to fly PLP candidates around the islands during the 2007 election.
We know that the PLP are hungry for political bones to chew on, but it's time to drop this one -- it's going nowhere.
September 23, 2010
tribune242 editorial
Earl Deveaux's poor judgment
Poor judgement by Minister Deveaux
thenassauguardian editorial
In the end, it is a leader's judgment that matters more than just about any other quality. This is as true for a business executive as it is for a Cabinet minister. This week, the Minister of the Environment's poor judgment was on full display in a number of areas.
This included Minister Earl Deveaux's acceptance of hospitality from various developers. It also included his disclosure of a private conversation with the prime minister.
Cabinet ministers of both parties have accepted hospitality from private sector interests, including air transportation. Accepting hospitality is not in itself unethical, though at times appearances do make an enormous difference. It depends on the nature and degree of the hospitality, and if there are accompanying quid pro quos.
As the opposition continues to discuss recent matters related to the minister, it may want to review its own record. The opposition generally needs to keep the government accountable. But, those with their own questionable practices in dealing with private sector interests should spare us their hypocrisy and grandstanding.
The matter of allowing for development in the Exuma Land and Sea Park is a separate policy matter of which Bahamians should be rightly concerned. On this front the environment minister should be asked some pressing questions.
Still, there is no evidence that Minister Deveaux did anything unethical in terms of any quid pro quos with developers in exchange for favorable review of various outstanding applications on this or other matters.
But, the cavalier manner in which the minister shrugged off the hospitality of various developers in terms of helicopter and airplane rides is stunning. This is not just bad public relations. It suggests a mindset. It is a demonstration of very poor judgment.
This is especially so for someone who is supposed to be a seasoned Cabinet minister. In his sensitive portfolio as environment minister he must be beyond reproach, and must be seen to be beyond reproach.
His statement that he was inclined to approve a developer's application before it was sent to the Bahamas National Trust for review is another example of spectacularly poor judgement. He should not have commented prior to such a review.
The minister has also embarrassed a number of developers who must question his unrestrained public comments. Compounding that lack of restraint, the minister then went on radio later in the week to discuss a private conversation he had with the prime minister in terms of his future as a minister.
Private conversations between a Cabinet member and a president or prime minister must remain private for all sorts of reasons. This includes the trust between that individual and their leader, as well as public trust regarding the conduct of confidential matters.
Minister Deveaux's lack of judgement should be a lesson to both those in opposition and in the government who have or will serve as Cabinet ministers. Considered judgment, common sense and restraint are at the heart of what it means to be a good leader.
9/17/2010
thenassauguardian
thenassauguardian editorial
In the end, it is a leader's judgment that matters more than just about any other quality. This is as true for a business executive as it is for a Cabinet minister. This week, the Minister of the Environment's poor judgment was on full display in a number of areas.
This included Minister Earl Deveaux's acceptance of hospitality from various developers. It also included his disclosure of a private conversation with the prime minister.
Cabinet ministers of both parties have accepted hospitality from private sector interests, including air transportation. Accepting hospitality is not in itself unethical, though at times appearances do make an enormous difference. It depends on the nature and degree of the hospitality, and if there are accompanying quid pro quos.
As the opposition continues to discuss recent matters related to the minister, it may want to review its own record. The opposition generally needs to keep the government accountable. But, those with their own questionable practices in dealing with private sector interests should spare us their hypocrisy and grandstanding.
The matter of allowing for development in the Exuma Land and Sea Park is a separate policy matter of which Bahamians should be rightly concerned. On this front the environment minister should be asked some pressing questions.
Still, there is no evidence that Minister Deveaux did anything unethical in terms of any quid pro quos with developers in exchange for favorable review of various outstanding applications on this or other matters.
But, the cavalier manner in which the minister shrugged off the hospitality of various developers in terms of helicopter and airplane rides is stunning. This is not just bad public relations. It suggests a mindset. It is a demonstration of very poor judgment.
This is especially so for someone who is supposed to be a seasoned Cabinet minister. In his sensitive portfolio as environment minister he must be beyond reproach, and must be seen to be beyond reproach.
His statement that he was inclined to approve a developer's application before it was sent to the Bahamas National Trust for review is another example of spectacularly poor judgement. He should not have commented prior to such a review.
The minister has also embarrassed a number of developers who must question his unrestrained public comments. Compounding that lack of restraint, the minister then went on radio later in the week to discuss a private conversation he had with the prime minister in terms of his future as a minister.
Private conversations between a Cabinet member and a president or prime minister must remain private for all sorts of reasons. This includes the trust between that individual and their leader, as well as public trust regarding the conduct of confidential matters.
Minister Deveaux's lack of judgement should be a lesson to both those in opposition and in the government who have or will serve as Cabinet ministers. Considered judgment, common sense and restraint are at the heart of what it means to be a good leader.
9/17/2010
thenassauguardian
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