The Tribune

By  NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Opposition’s deputy leader has warned against “taking any comfort” from a multi-billion dollar Hong Kong-based conglomerate’s confirmation that it is seeking to acquire Baha Mar, adding: “We need to know the details behind it first”.

K P Turnquest also expressed concern at the level of leverage the Chinese government could obtain over the Bahamas, given the close links that Chow Tai Fook Enterprises (CTFE) and its principals, the Cheng family, maintain with Beijing.

“In terms of the concentration of ownership, a group with state connections is a concern,” Mr Turnquest said. “We cannot allow ourselves to be vulnerable to any state or any entity because it does have implications for our local domestic policy.

“On paper this group seems to be a very versatile and dynamic group that may be good for the Baha Mar project, but we are going to look very closely to see what exactly are the deals behind it and what’s in it for the Bahamian people.”

Apart from CTFE’s prospective Baha Mar acquisition, a Chinese state-owned company, China Construction America (CCA), is also the owner of the British Colonial Hilton and The Pointe, the two properties that are the ‘anchors’ for downtown Nassau and Bay Street.

Then there are Hutchison Whampoa’s investments in Grand Bahama, via the Freeport Container Port, the Grand Lucayan, Freeport Harbour Company and the Grand Bahama International Airport, plus the China Harbour and Engineering Company (CHEC’s) involvment in building Abaco’s $39 million port.

Should CTFE and the Cheng family close the purchase of Baha Mar from the China Export-Import Bank’s special purpose vehicle (SPV), Perfect Luck Holdings, then Chinese state-owned and private companies will own a significant portion of the Bahamas’ hotel plant and GDP.

As a result, some observers fear that Beijing will be able to exploit this ‘economic weight’ to further its geo-political aims and exert pressure on whoever the Government is in Nassau.

 “They say that they will hire as many Bahamians as possible, but what does that mean; one, 10, 100? Until we know the details behind, we can’t really take comfort in this development,” Mr Turnquest said of CTFE.

“At the end of the day all we do know is that there is a buyer negotiating offshore, so all that talk about sovereignty goes out of the window. These are two Chinese entities working out this deal. Until this cake is baked it would be unwise for us to take our eyes off the ball.”

CTFE, which has interests in the property development, hotel, casino, transportation, jewellery, port and telecommunications industries, said last week it had “entered into negotiations” to acquire Baha Mar.

It added that it had submitted the necessary permit and approval applications to the Bahamian Government for the acquisition of Perfect Luck Holdings.

The Rosewood hotel brand, which had withdrawn from the Baha Mar project, but is owned by Chow Tai Fook Enterprises, is now in line to return to the Cable Beach project, CTFE said in a statement.

It added that the Hong Kong-based conglomerate was also in talks with the two other resort brands, Hyatt and SLS Hotels, in a bid to ensure they remain committed to the project.