The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Democratic National Alliance’s (DNA) leader yesterday threatened to lead “a peaceful revolt” over the proposed Chinese agricultural deal, arguing that it was merely trying to “appease” Bahamians by promising joint ventures.

Branville McCartney and other opposition politicians reacted furiously to the Christie administration giving permission for the Bahamas’ Beijing embassy to seek out a potential $2.1 billion tie-up that would involve 10,000 acres of Crown Land.

The DNA leader argued that the proposal, which the Government yesterday emphasised was not remotely close to coming before it, or receiving the necessary approvals, would be “to the detriment of the Bahamian people” if it proceeded as is.

Seeking to generate a mood of national indignation, Mr McCartney urged Bahamians to set aside their political differences and unite to oppose an investment policy that he said relegated them to “third class citizens”.

“I want to have a peaceful revolt against this, where we are able to galvanise all right-thinking Bahamians, notwithstanding their political affiliations, to stand up against this,” Mr McCartney told Tribune Business.

“I pray to God that it does not happen, but the odds are that it will, where we will be answering to a communist government in very short order.”

Cabinet ministers, recognising the potential PR and general election damage as a result of the proposed deal’s ‘leaking’, yesterday sought to both backtrack and downplay the issue.

However, given the general distrust of the Government among many Bahamians, particularly non-PLP supporters, that is unlikely to be an easy task especially given the suspicions and uncertainties surrounding the Baha Mar deal.

Many are likely to view the embassy’s ‘floated’ agriculture/fisheries investment proposal as confirmation that the Christie administration is to close to China, and an explanation for why it sided so readily against Baha Mar’s original developer, Sarkis Izmirlian, in his dispute with two Beijing state-controlled entities.

The Bahamian embassy’s proposal, which is seeking to access $2.1 billion in financing from a Beijing government regional fund, appears both unwieldy and to be weighted towards the Chinese’ advantage.

In particular, it acknowledges that the Chinese would provide all the capital, equipment and expertise, seemingly relegating Bahamians to the role of labourers.

As a result, while the companies proposed by the embassy are to be 50/50 owned via Chinese-Bahamian joint ventures, the latter are likely to be passive investors who merely receive dividends. All management and operational control will likely reside with the Chinese.

Mr McCartney said the ‘joint venture’ suggestion was likely an attempt to mollify Bahamian public opinion, especially since fishing is supposedly reserved for Bahamian ownership exclusively under the National Investment Policy.

He also expressed concern that any Bahamians and Bahamian entities involved in the joint ventures would likely be family, friends and political supporters of the governing party.

“The Chinese will have the say, and I have no doubt it will be the friends, family and lovers that will be 50 per cent partners of these so-called companies,” the DNA leader told Tribune Business.

“I think they threw that [joint ventures] in there to try and appease the Bahamian people, when in fact the Government know themselves that the Bahamians and Bahamian entities will really have no say and be collecting on the back end, allowing the Chinese to do this.”

The cumbersome aspect of the embassy’s proposal is that it requires the creation of 100 Bahamian-domiciled joint venture companies, which on average would receive the equivalent of $20.1 million in financing if the deal went ahead.

Assuming that the proposed 10,000 acres of Crown Land is divided equally, each company would receive 100 Crown Land acres, with the option to lease a further 100 each should they meet certain performance benchmarks. As a result, the Bahamian embassy’s proposal involves some 20,000 Crown Land acres.

Mr McCartney, meanwhile, reiterated his fears that if the agricultural deal went through, and especially so swiftly behind Baha Mar, it would give the Chinese government too much leverage over the Bahamas by virtue of it controlling such a large portion of the economy.

He suggested that domination of the Bahamian tourism product, through ownership of Baha Mar and The Pointe/British Colonial Hilton; Hutchison Whampoa’s investments in Freeport, including DevCo’s thousands of acres; monies owed on the roads project and North Abaco port; and now the agricultural proposal meant that China was effectively becoming this nation’s paymaster and lead investor.

“Let me tell you something. The PLP should be dead on arrival when it comes to the next election,” the DNA leader told Tribune Business.

“The Government, with an election coming up, seem to be giving away our industries to the Chinese, and that would be to our detriment. I hope to God I’m wrong on this one.

“This is not good for the Bahamas. The Chinese are getting too much interest, and it seems they are controlling our government. This is a communist country that has such a large stake in our country.