The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Government is also “a victim” in the dispute raging at the controversial Oceania Heights development, one homeowner telling a Cabinet Minister that the situation is “jeopardising the Bahamas reputation as a stable country and investment destination”.

Chris Bain, in a January 15, 2013, letter that was e-mailed to Khaalis Rolle, minister of state for investments, via his assistant, questioned the Government’s seeming inaction over Oceania Heights despite allegations that it had lost out on more than $880,000 in Stamp Duty on real estate sales there.

Expressing disappointment that Mr Rolle would be unable to attend the meeting between the developers, Canadian citizen Howard Obront and Bahamian attorney Anthony Thompson, and the homeowners, which has been arranged for Nassau on January 25, Mr Bain nevertheless said his involvement “underscores the seriousness” with which the Bahamian government is taking the situation.

Warning that the Oceania Heights dispute “refuses to go away”, Mr Bain said it had “the potential to cost the Bahamas dearly”.

He questioned why it was not being dealt with “expeditiously”, alleging that 20 Canadian homeowners and an equal number of Americans were in the group opposing the developers.

In his letter, Mr Bain accused the developers of “sustaining and inflaming this conflict, causing its profile to escalate in the Bahamas and internationally.

“They are jeopardising the reputation of the Bahamas as a stable country and an investment destination,” he wrote.

“Given that the international credit rating agency, Moody’s, recently downgraded the Bahamas’ credit rating (the third downgrade in as many years), it would appear that the Bahamas can ill-afford to see its reputation continue to decline, especially with regard to how it treats foreign investors.

“The Bahamas appears to be increasingly discredited by foreign governments and media, just when it needs all the credit it can get.”

Messrs Obront and Thompson have frequently denied all the allegations that have been made against them.

The main complaints of Oceania Heights homeowners are that they have been unable to obtain title/conveyancing documents to the properties they have bought; there are questions whether more than $880,000 in Stamp Tax they paid has been passed on to the Treasury; Mr Thompson failed to disclose he was also a beneficial owner of Oceania Heights when acting for the buyers in their purchases; the same lots have been sold to different buyers; and the hotel and other promised amenities have not been constructed.

In his letter, Mr Bain alleged that since most of the Oceania Heights homeowners had not obtained title documents to their properties, Mr Thompson was effectively holding their conveyances in trust and should therefore be responsible for all real property taxes owing.

“The Bahamas government is owed Stamp Duty which has been paid by many of us. So, the Government is a victim in this matter, and the Government has the authority to stop being a victim and to impose the rule of law,” Mr Bain told Mr Rolle.

“Resolving this matter is in the interest of the Bahamas - not just for the Stamp Duty owing, but for its international reputation vis a vis foreign investors, on which rests a substantial portion of the Bahamian economy.”

• Former minister of state for finance, Zhivargo Laing, last night called upon the Public Accounts Committee to investigate suggestions the Government may need to borrow another $100-$150 million this fiscal year.

Suggesting that this resulted from either poor Budget planning or increased spending on the Christie administration’s part, Mr Laing dismissed suggestions that the Princess Margaret Hospital’s Critical Care Block might be responsible for increased borrowing requirements.

He pointed out that the $60 million construction was already financed by a Royal; Bank of Canada loan, which was already being serviced and guaranteed by the Government. This meant it was already included in the Government’s finances.

To equip the Critical Care Block, Mr Laing said the Ingraham administration had intended to finance this through NIB’s Medical Infrastructure Fund, rather than further burden Bahamian taxpayers.

“Members of the Public Accounts Committee should immediately demand a detailed accounting by the Government of the items requiring additional funding of up to $200 million,” Mr Laing said.

“It should also require the Government to give account for the total sum of money expended to date on hiring new employees, inclusive of the salaries of those employees; an itemized listing of all contracts signed since the May 7th, 2012, elections and the cost of those contracts; a cash disbursement schedule for all major projects being undertaken by the Government, such as the Critical Care Block; the extent of travel by members of the Government since May 7, 2012, and the cost of that travel; a detailed listing of all new vehicles acquired since May 7, 2012 and the cost of those vehicles; the difference in cost to operate the current Cabinet compared to the last Cabinet; the cost of the Urban Renewal Programme in the pushing down of bushes and houses; and the cost of hiring a consultant on the National Lottery who did not give a report.”