The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Government “cannot be held hostage” over the $3.5 billion Baha Mar project, a leading accountant yesterday saying it had to be involved in upcoming mediation talks to protect the Bahamian people’s interests.

Raymond Winder, Deloitte & Touche (Bahamas) managing partner, told Tribune Business that none of the parties to the dispute had “a greater interest than the Bahamian people” in seeing the mega resort property opened.

For that reason, the Christie administration had to be involved in the talks between Baha Mar (the Izmirlian family), the China Export-Import Bank and China Construction America as the three key parties bid to resolve their deep-rooted differences over the project’s completion.

As for bringing in an outside mediator, Mr Winder added that while an international arbitrator might provide “some support”, the Government could not escape its responsibilities on the Bahamian people’s behalf.

The Deloitte & Touche (Bahamas) accountant, though, called for the Government to insert mediation/arbitration clauses in all future Heads of Agreement with international investors as a means of resolving any commercial disputes.

This, Mr Winder said, would help avoid expensive litigation in the courts, and he backed the Christie government’s bid to retrieve Crown Land previously granted to Baha Mar as a way to increase its negotiating leverage.

“The Government cannot be held hostage by not having this project move forward,” Mr Winder told Tribune Business. “The Government has significant interest, and the interests of the Bahamian people need to be protected. Those who have the greatest interest in ensuring that project is moving are the Bahamian people.”

The economic impact could be devastating for the Bahamas if the Baha Mar project remains at an indefinite impasse, affecting almost every person in this nation as a result of losing several thousand jobs and the multi-million dollar debts owed to hundreds of local companies.

For this reason alone, Mr Winder said the Government had little choice but to act as mediator/broker, and attempt to get the warring factions back around the table to hammer out a resolution.

He emphasised that the Government’s interests were different from those of Baha Mar and the China Export-Import Bank, its priorities being increased employment and to expand the economy.

“The players have to determine if they’re going to play and participate,” Mr Winder told Tribune Business. “The Government, with the various provisions and legislation it has at its disposal, has the ability to make such a situation better.

“I cannot imagine a scenario where a project like that does not have arbitration, and the Government is not a major part of it.

“The last thing we need is for that project to be sitting there and not doing anything.”

While it was “plausible” to bring in an international arbitrator to oversee the Baha Mar arbitration, Mr Winder said it was unlikely they would be able to bring much to the table in comparison to the Government.

“The Government, at the end of the day, cannot renege on the fact that it needs to get things moving,” the Deloitte & Touche (Bahamas) managing partner told Tribune Business.

“They cannot get out of it. They’ve got to be there, and need to have a say.”

Still, Mr Winder said the Bahamas had to better embrace arbitration and alternative dispute resolution (ADR) as a means of resolving business disputes.

“The Baha Mar issue points to how we, as a country, when we enter these investor agreements, we need to have provisions and a process or mediation or arbitration in dealing with these issues, so we can avoid going through the courts and consuming time,” he told Tribune Business.

Mr Winder said the Government’s ability to “claw back” Crown Land previously granted to Baha Mar was a “key factor” in strengthening its position in the upcoming negotiations.

“I’m happy the Government took the step to act on that provision,” he added. “It puts the Government in a better negotiating position relative to making this project go ahead.

“In my assessment, this project will go forward. I cannot say whether all the existing players will be there on the go forward.

“It may take some time to work out, and the timing may vary depending on the different roads they have to travel, but rest assured this project will go forward.

“The players may change. The Government, and rightfully so, cannot put itself in a position to protect the players.”