The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A WEB shop operator yesterday alleged that his suppliers and employees fear “their commercial interests will be harmed” if the Government shuts his business down, disclosing that the company pays $36,000 per month in rent to various landlords and $21,000 to Cable Bahamas for Internet services.

Kevin Knowles, president and director of Paradise Games, in an affidavit filed with then Supreme Court yesterday, alleged that since 2010 the Ministry of Finance was fully aware of “all aspects” of the web caf� industry in the Bahamas, and continued to issue Business Licenses for those establishments.

This, Mr Knowles alleged, made Paradise Games a “legitimate business”. The company is seeking a Supreme Court injunction to prevent the Government shutting down or interfering with its business, and a declaration that the Lotteries & Gaming Act does not prohibit its operations.

The web shop operator is also seeking a declaration that it “had a legitimate expectation that legislation would be passed to regulate and tax the web caf� industry”, and that the Prime Minister’s call for the industry to close was unconstitutional on the grounds that the ‘referendum’ was really an opinion poll, with the results non-binding on the Government.

And, finally, Paradise Games is also seeking a declaration that “the general prohibition contained in the Lotteries & Gaming Act preventing citizens and permanent residents from obtaining gaming licenses and in participating in gaming” is unconstitutional.

In his affidavit, Mr Knowles, alleged that Paradise Games, which was incorporated in March 2012, was in good standing, employed 160 persons and made contributions to the National Insurance Board (NIB).

He said the company Games was licensed by the Ministry of Finance to provide Internet caf� services, web caf� service and a restaurant and bar. Paradise Games has a total of 26 licensed web caf� establishments; 16 in Nassau, three in Freeport, three in Abaco, one in Andros, one in Exuma, one in Long Island and one in San Salvador, according to the affidavit.

And Mr Knowles alleged that a letter certified by the Business License Division on June 12, 2012, stated that Paradise Games was in compliance with the Business License Act 2010 through March 31, 2013.

“Paradise has monthly commitments with several trade creditors; Cable Bahamas in the amount of $21,763 monthly for the provision of Internet services, electricity and leasehold commitments to various landlords in New Providence and the Family Islands in the amount of $36,080 monthly,” the affidavit alleged.

Mr Knowles’ claimed the Ministry of Finance had met with web caf� operators in 2010, and was fully aware of all aspects of their operations. He added that former Prime Minister Hubert Ingraham had stated in Parliament in February 2008 that he was giving consideration to regulating and taxing the web caf� industry.

“Pursuant to the aforesaid public announcement by the former Prime Minister, I am advised by my industry colleagues, and verily believe, that a number of operators from the web caf� industry met during 2010 with officials of the Ministry of Finance and provided them with information about the operations of the web caf� industry in the Bahamas,” Mr Knowles alleged.

“It was the common understanding in the web cafe industry that as a result of those meetings and the co-operation of the web cafe industry in providing information about the industry to the said Ministry, police raids on web caf�s were suspended and that legislation would be passed to regulate and tax the web cafe industry.

“Therefore, since 2010, the Ministry of Finance was fully aware of all aspects of the web cafe industry in the Bahamas and continued to issue license for web cafes in the Bahamas. Since 2010 there was a common understanding in the industry, and the expectation that laws would be passed to regulate and tax the web caf� industry in the Bahamas.”

The Minister of National Security, the Minster of Tourism, the Commissioner of Police, the Minster of Finance and the Attorney General are all listed as defendants in an action filed by Sears & Co on behalf of Paradise Games.