The Tribune

WAS THE government’s real objective the protection of the Bahamas’ sovereignty, or to be rid of Baha Mar’s CEO Sarkis izmirlian?

For some time, it has been openly talked by many Bahamians – and as time passes the talk gets louder – that the appeal to our nationalism has been an excuse to see the end of the youngest and one of the most ambitious of our investors.

Foreign Affairs Minister Fred Mitchell, rather than keeping his undiplomatic lips sealed, got into the Baha Mar argument by criticising former deputy prime minister Brent Symonette for suggesting that government’s comments about Mr Izmirlian were not only inappropriate, but sent the wrong message to foreign investors. Mr Mitchell reminded Mr Symonette, that if previous ministers of immigration, such as Carl Francis, Arthur Hanna or Loftus Roker were faced with Mr Izmirlian in their day, “he would not have lasted the next day within the borders of The Bahamas”.

We thought that when Mr Christie led the PLP into the 2002 election he had assured Bahamians that he was introducing a “new” PLP.

Unfortunately, he forgot to leave Mr Mitchell behind among the set with whom he obviously would have been more comfortable.

Government has objected to Baha Mar filing for bankruptcy protection under chapter 11 in Delaware’s Bankruptcy Court. This would give protection not only to the $3.5bn resort, but to its investors, creditors, and employees, while the company recouped, completed the resort and started to do business.

According to Mr Christie, the government cannot allow the US bankruptcy orders to stand, because it would place the Bahamas’ reputation in jeopardy.

“Consequently and in addition, the attorney general is challenging Baha Mar’s application to the Supreme Court of the Bahamas to recognise and accept the jurisdiction of the Delaware court in the Bahamas,” Mr Christie said in a national address last week.

“This is not just a matter of national sovereignty. There should be a Bahamian solution to this Bahamian issue and that majority of the key parties in this matter recognise and support that position,” he told his listeners.

Justice Ian Winder, who is presiding over Baha Mar’s application to have the Delaware court’s ruling ratified in the Bahamas, gave the major stakeholders until today to try to come to some agreement before a decision has to be made.

In the meantime, the Christie’s government has announced that it will petition the court to wind up the company for government to appoint its own local “neutral” liquidators.

Baha Mar sees the government’s move as nationalisation — government seizing private assets. Mr Christie has dismissed this as “nonsense”.

It does not matter what Mr Christie might call it, nationalisation is how foreign investors will see it. In our opinion this is the worst move that the Christie government could have made — and no amount of bluffing will eliminate what is now being said on the streets by Bahamians.

We do not know who these independent Bahamian liquidators are that Mr Christie plans to appoint under government supervision, but already word of mouth is asking questions about those who are already moving for the liquidation.

For weeks, there has been talk of at least two investors — supposedly close to certain members of government or one of their advisers — who have been circling the wagons to position themselves for the moment the ax falls on the resort. They’ll be the first for the choice pickings, according to many Bahamians who claim to be on the inside track.

The bad blood between the prime minister and Mr Izmirlian goes back to January 26, 2006, when Mr Izmirlian, anxious to get the deal signed with Caesars and Starwood told the prime minister: “If we cannot achieve the early February (2006) time frame for accomplishing the above, I will have to inform Harrah’s and Starwood that despite my best efforts these past three odd years, the Government of The Bahamas has failed me. I certainly do not want to be known as the developer (and I’m certain you don’t want to be known as the Prime Minister) that lost Caesars and Starwood. Today, more than ever before, I need your unambiguous support, Mr Prime Minister.”

Mr Izmirlian’s desperate cry fell on deaf ears. It was obvious that the Christie government wanted no deal signed with Baha Mar until after the 2007 election. This was one election the PLP was confident of winning. However, they lost the election and Baha Mar missed the final signing date.

Unfortunately, the investment climate changed, the financial markets collapsed and the unsigned contract remained – unsigned. Harrah pulled out. The only bright spot in the whole dismal picture was that Mr Hubert Ingraham won that election and saved large tracts of Bahamian land, which in today’s situation would, in liquidation, have gone to Beijing.

Left with no backers, Mr Izmirlian still determined to give birth to his dream, was thrown into the arms of the Chinese, who were the only willing money lenders at the time.

Mr Izmirlian is now, once again, desperately trying to rescue his dream from total collapse.

After a brief meeting with Mr Izmirlian — shortly before China State Construction put down tools and jumped ship — we got the impression of an earnest young man, who many years ago fell in love with The Bahamas, especially its people. He had a dream and in that dream he wanted to train as many young Bahamians as possible to participate. Not only participate, but to excel.

Mr Izmirlian is not a politician. He speaks his mind and he speaks it honestly. At that short meeting, it was obvious that he does not know how to deal under the table, something that has been honed to perfection in The Bahamas. If we had more persons like him in the Bahamas, this would be a better country in which to do business.

As we were leaving one of his staff escorted us out. We got to chatting. The staff member told us of someone who had just put a proposal to Mr Izmirlian, a proposal that would have only benefitted himself and his small clique — but mainly himself. We hasten to add that it was no one connected to government.

We were told that Mr Izmirlian immediately dismissed it. He had plans to open the project for the participation of as many Bahamians as possible. It was not to be controlled by a chosen few.

His ideas were admirable, but in this “all for me baby” society, we knew he faced many problems.