The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

BAHAMAS Electricity Corporation (BEC) executive chairman Leslie Miller said yesterday that he knows "nothing" about the company seeking to build a $600 million waste-to-energy plant and ultimately sell power to the corporation.

"I know nothing about Stellar," Mr Miller said bluntly outside the House of Assembly yesterday when questioned by Tribune Business. His response raises yet more questions surrounding a controversial Letter of Intent (LOI) for the project being proposed by Stellar Energy.

Urban Renewal’s co-chair on Tuesday denied that he or his law firm were representing Stellar Energy over its controversial waste-to-energy plant, despite the company’s website listing them as its attorneys. Algernon Allen, a former contender for the Free National Movement (FNM) leadership and ex-Cabinet minister, told Tribune Business the company was not registered with his office. Mr Allen, who heads the Allen, Allen & Co law firm based in Dowdeswell Street, said: “It is not registered with me, it’s not. I’m not the attorneys for Stellar Energy.” Despite his statement, Stellar Energy, on its website stellarenergyltd.com, lists Allen, Allen & Co as ‘lawyers’ under the heading of its “professional partners”. The company’s banking ‘partner’ is named as Royal Bank of Canada and its Bahamian head office. Mr Allen seemed surprised that Stellar had listed his firm as the company’s attorney, after Tribune Business contacted him and pointed out the website content.

Yesterday Judy Whitehead, the managing partner of Graham Thompson & Co, confirmed that her firm was not acting for Stellar, a day after Mr Allen had directed Tribune Business to make enquiries with the company as he believed they were acting for Stellar.

Free National Movement (FNM) Chairman Darron Cash yesterday called for the resignation of Parliamentary Secretary in the Ministry of Works Renward Wells. In a statement Mr Cash said: "By signing the letter of intent Mr Wells has committed the Government of the Bahamas. The FNM expects that once Stellar Energy received the commitment from the Government, the Letter of Intent would have been used to secure necessary funding for the project. Now, by repudiating the Letter of Intent and seeking to walk away from the secret arrangement, the Christie Government will likely be exposing the Bahamian people to a lawsuit and expensive financial repercussions. We submit to the Deputy Prime Minister that that possibility is nothing to be dismissed lightly."

Independent research by Tribune Business using the Companies Registry confirmed there are at least three interlinked entities, all bearing the name Stellar, that appear to be part of the waste-to-energy plan. One was incorporated on June 30, 2014, just days before the company and its principal, Dr Fabrizio Zanaboni, signed the controversial Letter of Intent (LOI) that has caused Renward Wells, parliamentary secretary in the Ministry of Works, so much trouble. All three entities were incorporated by Sterling (Bahamas), a financial and corporate services provider located at Saffrey Square in the heart of downtown Nassau. Stellar Energy Ltd, which lists Dr Zanaboni as a director, was the first to be incorporated on January 12, 2009. This is likely the parent company, and Dr Zanaboni was listed as a director three days later.

Then, confirming the FNM claims, Stellar Waste-to-Energy Bahamas Ltd was incorporated on February 25, 2014. This firm, which was the one that signed the LOI with the Government, is likely to be a special purpose vehicle formed specifically for pursuing the $600 million project at the New Providence landfill. Finally, an entity called Stellar Energy Investments Waste-to-Energy Bahamas Ltd was formed on June 30, 2014, although its role is unclear. It may be a vehicle to raise financing for the project.

Dr Zanaboni, in a November 21 interview with Tribune Business, said he and Stellar had been having discussions on their proposal with the “highest levels” of government. This, he added, included Prime Minister Perry Christie and the Energy Task Force, which was headed by Mr Wells, over a 14-15 month period. Dr Zanaboni also told Tribune Business in a recent e-mail that Stellar was one of the initial 13 bidders to submit proposals for BEC. Stellar Energy’s plans were first brought to the fore last November when Tribune Business reported exclusively that the company was offering to build and operate a plasma waste-to-energy plant at the New Providence landfill, creating 400-500 full-time jobs in the process. Dr Zanaboni at the time said Stellar Energy’s integrated solution offered the Bahamas far greater benefits than proposals which were then being considered by the Government.