WikiLeaks: Perry Christie had deep concerns about the Petrocaribe agreement with Venezuela while he was prime minister...and his worries about certain moves then Minister of Trade and Industry Leslie Miller was making, allegedly without Cabinet approval

Christie hit out at Miller

U.S. Cables reveal sharp Cabinet division over Petrocaribe in 2005

BY CANDIA DAMES
NG News Editor
thenassauguardian
candia@nasguard.com



Cables obtained by The Nassau Guardian through the whistleblower WikiLeaks reveal deep concerns Perry Christie had about the Petrocaribe agreement with Venezuela while he was prime minister, and his worries about certain moves then Minister of Trade and Industry Leslie Miller was making, allegedly without Cabinet approval.

In fact, the cables reveal that the Christie Cabinet was “sharply divided” on Petrocaribe, a program under which countries purchase oil from Venezuela on conditions of preferential treatment.

One cable claims Christie made a direct negative comment relative to Miller as a minister.

“Some ministers, the PM continued, were brought into the Cabinet because of their qualifications; others, like Minister Miller, were included in an effort, at times unsuccessful, to keep an eye on what they’re doing,” said the cable, which was classified by then U.S. Ambassador to The Bahamas John Rood.

The cable said that at a private meeting Rood had with Christie in July 2005, the then prime minister discussed several energy matters as well as his political future.

“The PM indicated that he has concerns about the Petrocaribe agreement signed on behalf of The Bahamas on June 29 by Trade and Industry Minister Leslie Miller,” the cable said.

“He stated that Minister Miller ‘got way out in front of the Cabinet’ on the issue and suggested that Cabinet’s eventual consideration of the Petrocaribe agreement would not be favorable.

“...The PM recalled that there were no disruptions to local fuel supplies during [the 2004] busy hurricane season.

“He doubted that government, given its poor record running hotels, airlines, and utilities, would be able to do as well as the international oil companies had done. The PM confided that the Trinidadian government had expressed to him its displeasure that Minister Miller signed the Petrocaribe agreement.”

In another cable penned about a month earlier, a U.S. Embassy official wrote that Christie had up to that point remained silent on the issue but “has shown no inclination to embark on the type of sweeping project that Minister Miller envisions”.

“On the other hand, Christie has also shown no inclination to silence a minister whose more outrageous comments regularly make for embarrassing headlines,” the June 2005 cable said.

“Minister Miller is an erratic figure within the Christie Cabinet and his frequent dramatic pronouncements on issues ranging from Petrocaribe, to hurricane relief funding, to liquefied natural gas projects are taken with a large grain of salt.

“His recent comments on high gasoline prices have focused less on Venezuela and more on decreasing the fixed markups that local gasoline importers and retailers are permitted to charge,” the cable said.

The American diplomat observed: “The Bahamas is sufficiently interested in possibly lowering its energy bill to keep sending Minister Miller to Petrocaribe meetings, but it has little in common politically with President [Hugo] Chavez.

“The one possible exception is Cuba, with which The Bahamas shares a pragmatic working relationship based on migrant issues and other people-to-people matters such as tourism and medical training and treatment.”

That same cable reveals that a high level government official had privately expressed concern that a “loose cannon” like Miller would be representing The Bahamas at an upcoming meeting between CARICOM and Chavez.

The Bahamian official suggested to the Americans that rather than request Miller to speak out, “it might be better for both countries (The Bahamas and the United States) if he stayed in the background and made no other substantive comment.”

MILLER’S RESPONSE

According to that cable, Miller called a U.S. Embassy official to discuss his trip.

Responding to the official’s urging that the best long-term solution to the energy situation would be a market-based solution within the context of a stable, democratic political system, Miller said that in petroleum, economics and politics are always mixed, the diplomat recorded.

“He called on the United States to itself construct new oil refineries in the U.S. to relieve supply shortages,” the cable said.

“Miller then went on to describe himself as a ‘nationalist’ saying that he understood why ‘dirt poor people in Ecuador, Bolivia, and Argentina’ were upset with oil companies.

“When [the embassy official] cautioned against concluding an agreement with an unstable government whose president had a penchant for tearing up and re-writing contracts, Miller responded by declaring that paying royalties from extracted natural resources of ‘one percent’ was ‘ridiculous and unfair’.”

The embassy official, according to the cable, told Miller that investment required stability, transparency, and predictability and that all of these were in short supply in Chavez’s Venezuela.

In another cable, the Americans wrote that Miller had returned from Venezuela “waving the Petrocaribe agreement and declaring cheap gas prices in our time.”

Miller was quoted as saying, “What we got from the Venezuelans is a dream come true. This is an extraordinary agreement, one that I have been behind for the past two and a half years.”

But the Americans wrote: “Reducing the price of gas in The Bahamas without reducing either wholesaler or dealer profit margins or the government tax has long been one of Leslie Miller’s signature theme projects.

“His past predictions of cheap gas in our time have gone unfulfilled while he has lurched from political gaffe to political gaffe. The local oil companies have long been suspicious of his maneuverings and have challenged his proposals both publicly and privately.

“His permanent secretary, the senior civil servant in his ministry, has long given up trying to explain to him the economics of the oil business in general and in The Bahamas in particular.”

The diplomat said the lack of consultation with the local oil companies suggested that any real changes to The Bahamas’ energy market “remains a distant dream”.

In the comment section of the cable, the American diplomat wrote: “Local reaction to Petrocaribe has been skeptical ever since its signing.

“Minister Miller’s actions have been criticized in terms of process (not having Cabinet’s authorization) and on substance (creating another inefficient government entity, relying on a single source of supply, and endorsing Venezuela’s political agenda).”

The cable said that while Miller was pushing Petrocaribe, Christie indicated to the ambassador that he intended to walk away from the agreement.

Miller has said he will not ever accept a cabinet appointment again. He has already been ratified by the PLP to run again in Blue Hills, a seat he lost to attorney Sidney Collie in 2007.

The July 2005 cable also revealed that Christie, at the time, was unsure as to whether he would be able to lead the Progressive Liberal Party (PLP) into the 2007 general election, as he was still recovering from a mild stroke.

“The PM stated that he has already begun internal discussions on the timing of the next elections, which he must call no later than May 2007,” the cable said.

“He believed he would know by his party’s annual convention in November whether or not he is strong enough to lead the party into elections for another five-year term. If he is fit enough to run, the PM is confident that no one will be able to defeat him.”

Christie was strong enough to lead his party into the election. However, his party was defeated.

When the Free National Movement (FNM) came to office in 2007, it made it clear that The Bahamas government was not interested in the oil alliance with Venezuela.

In a May 2007 cable, a U.S. Embassy official wrote, “We do not expect any warming of relations between Caracas and Nassau.

“Indeed we expect the FNM government to be a stronger partner of the Untied States in addressing Venezuela-related issues.”

Not long after, Minister of State for Public Utilities Phenton Neymour confirmed that Petrocaribe was not, and would not be, a priority for the new Bahamian government.

An embassy official later wrote that Prime Minister Hubert Ingraham called the Petrocaribe accord a “stupid proposal”.

The Americans noted: “The Bahamas has a wholly privatized oil distribution system that is incompatible with Petrocaribe. Further, both FNM and PLP senior leadership are leery about being beholden to Venezuela.”

Jun 07, 2011

thenassauguardian

Bahamian Voters Call for Answers and Updates on Issues of National Importance in The Bahamas

Even Supporters of The Ruling Progressive Liberal Party - PLP are Also Conceding that The PLP Government of Prime Minister, Perry Christie has to Do More to Improve its PR

Bahamas: Voters Want Answers 

 

 

By Candia Dames

Nassau, The Bahamas

25 August 2005

 

Many Bahamians are anxious to hear from Prime Minister Perry Christie on a number of issues of concern, including the much discussed Petrocaribe oil deal, the liquefied natural gas proposals, the decision to remove Sir Stafford Sands from the $10 bill, and the government’s progress in establishing a national health insurance scheme.

But his illness, which struck back in May, coupled with the traditionally slow summer period means that the Prime Minister has been off the front pages for weeks.

In January 2004, Mr. Christie started what he promised would be a quarterly ‘meet the press’ event where reporters could pose questions to him on a variety of issues.  But it was an initiative that was short lived.  In fact, nearly six quarters have passed without the event taking place again.

Mr. Christie also has made no national addresses for the year.

The Prime Minister had promised after returning to work nearly two months after his slight stroke that he would hold a press conference soon to address a number of issues of national importance that arose during his illness.  But that too has not happened as yet.

There are other issues that some people want an update on.  For instance, after much talk about the redevelopment of Bay Street, the transformation has still not started, leaving some merchants asking why.

Speaking about the planned downtown overhaul at his party’s last convention in November 2003, the Prime Minister said, "We have to change and we have to do so without delay."

But that was nearly two years ago.

At that same convention, he also announced that work on the Heads of Agreement for the $2.5 billion Ginn investment project for West Grand Bahama was being finalized.

"I have assured the Ginn group that my government is committed to bringing the project on line as speedily as possible," Prime Minister Christie said at the time.  "We have therefore agreed to complete a Heads of Agreement as quickly as possible so that this project can be underway early in the New Year."

But the New Year of 2004 came and left, but there has still not been any Ginn deal sealed.

The need for better public relations on such matters is something some Bahamians pointed to on Wednesday.

PLP’s are also conceding that the government has to do more to improve its PR.

 

Only recently PLP Chairman Raynard Rigby said that it’s a shortcoming the government needs to address.

For Bahamians waiting to hear from the Prime Minister, the concerns are varied.

"I would like to see [the Prime Minister] report on the Petrocaribe oil deal because I am not getting sufficient information from [Minister of Trade and Industry] Leslie Miller," said Jacob Rolle, a teacher at Central Andros High School who was on Bay Street on Wednesday.

"Another point is I am very apprehensive about the dealing with the president of Venezuela and his connection with Cuba.  I don’t think the U.S. would like us to be involved with those two dictators so we have to be very careful how we move ahead with friendly relations with those two countries."

Ricardo Mackey, who also teaches at the Central Andros High School, said rising oil prices continue to be a major concern and he too would like to hear what the Prime Minister has to say about Venezuela’s plan to sell fuel to the region at significantly lower costs.

"Right now there’s a concern about gas prices in Nassau…something needs to be done about that because gas only goes up in the Family Islands, it never goes down whereas gas fluctuates in New Providence," Mr. Mackey said.

He added that civil servants also want to hear specifics from the Prime Minister on planned salary increases given that the cost of living continues to increase.

"I think we need to find out what’s going on," he said.

If he could hear from the Prime Minister, Mr. Mackey said he would also like him to report on the status of the national health insurance scheme, something that was a part of the PLP’s platform when it was elected to office in 2002.

"I think it would be good if we have this kind of medical plan," the Andros schoolteacher added.

Darnell Finlayson, a straw vendor, has something closer to home on her mind.  She said that she would like the Prime Minister to speak directly to straw vendors about when a new straw market will be built on Bay Street.

The old market was destroyed by fire in September 2001, nearly four years ago.

"We need our straw market back because [the makeshift one] is in a bad condition," Ms. Finlayson said as the rain poured around her.

"The floors are flooding.  The tourists can’t walk inside.  They’re getting all wet.  It needs to be in a better position for the tourists.

Four years is enough time to build our market and I don’t know why we don’t have our market back, but Prime Minister, we really need a market back for our guests."

Across the street, Anthony Gibson, a manager at Diamonds International, said he too would like to hear from the Prime Minister as it relates to a timetable for a new straw market.

"I know there have been many promises made to the [vendors].  I have been in [the market] and I have seen the conditions these people have worked under.  Right now, this is the rainy season, only God one knows how they make it in there," Mr. Gibson said.

Mr. Gibson also raised the issue of Petrocaribe.

"What I really think we need to look at right now is this gas situation," he said.  "What I think is that we need to go full force ahead and get this thing on the run."

Allan Whyley, a retired Bahamian, also has Petrocaribe on his mind.  He said that it’s one issue he too would like to hear the Prime Minister speak about.

"The Petrocaribe accord has been so politicized.  To comment on it intelligently, you have to know more about it and we don’t have that," Mr. Whyley said.

He also noted that the Prime Minister earlier in the year announced that the government would have approved one of the liquefied natural gas projects before the end of January.  But that never happened.

Mr. Whyley said Bahamians want to know from the government what it intends to do about the proposals on the table.  He hopes that the Christie Administration rejects them.

"I really don’t want the government to approve LNG," he said. "I think [Mr. Christie] needs to make a statement about LNG.  These are issues that need to be addressed, but there are more immediate things happening with the small man that need to address. The government needs to say exactly what is reserved for Bahamians in this economy because I see foreigners coming in here and doing everything."

Lionel Carey, who said he was one of the chairmen of the former Vanguard party, said he like many Bahamians would like to hear an update on LNG.

"In the U.S. if they don’t want that in their own country, I think that’s a lesson for us.  We have tourism and we have to be sensitive about anything that could affect it in a negative way," said Mr. Carey, who now works in the Ministry of Housing.

Mr. Whyley, meanwhile, said that the immigration issue is also one that many people are concerned about.

"That’s something that really needs to be addressed seriously," he noted.  "What is happening?  Don’t the people deserve to be brought up to date?"

But not everyone thinks the Prime Minister is being too quiet on issues of national importance.

Mark Symonette, a law student, said various Ministers have been doing a good job at reporting on what has been going on in their individual portfolios.

"There are a number of issues that are outstanding," Mr. Symonette said.  "But I feel that the Prime Minister is doing an excellent job given the economic and social climate that we are in.  I think we must remember that the Ministers of the government are appointed to handle their portfolios and I think they are doing an excellent job also.

"They are reporting on their particular portfolios so I don’t see a need for the Prime Minister to get involved in every issue."

While a guest on the Love 97 Programme "Jones and Company" nearly two weeks ago, former Deputy Prime Minister Sir Clement Maynard said that the government appeared to be falling down in reporting to the public on what it is doing.

It’s something he indicated needed to be addressed.