Reader poll
Has the government's recent announcements on Baha Mar made you more positive about the resort's future?
- Yes, I'm more positive about Baha Mar's future.
- No, I am not more positive about Baha Mar's future.
258 total votes.
By RASHAD ROLLE
Tribune Staff Reporter
rrolle@tribunemedia.net
PRIME Minister Perry Christie gave his most extensive defense yet of the sealing of Baha Mar documents in the Supreme Court yesterday, telling parliamentarians such a process was standard and that global businesses cannot be expected to conduct their “sensitive negotiations” in the media.
He told the House of Assembly that the documents were sealed at the request of the Export-Import Bank of China (CEXIM). On the controversial issue of concessions, he said China Construction America (CCA) will be given the same concessions by his government that were given under the Hotel Encouragement Act by the former Ingraham administration.
He said advisers have instructed him that so long as the documents are sealed, he should refrain from revealing details about the deal struck between the government and CEXIM.
“Much has been made of the fact that the arrangements are currently under seal in the Supreme Court of the Bahamas,” he said in the House of Assembly.
“The application to have the documents sealed was made by the China Export-Import Bank. This kind of seal is standard, especially in transactions of this complexity, scale and international market-sensitivity. Remember, the bank already has billions of dollars invested in the project.”
The Christie administration has been criticised for announcing that a Baha Mar deal has been struck without being prepared to give details about the agreement.
Mr Christie’s comments yesterday were therefore a call for Bahamians to “trust him.”
“Putting the documents under seal enables the bank to finalise these sensitive negotiations with the normal business confidences that one would expect,” he said.
“Despite the wishes of some, it is simply unrealistic to expect global businesses to conduct their negotiations in the media.
“This is not unprecedented as I have said, very normal. The court approved the sealing of the documents to help the parties secure the best outcome for the property, and the court will lift the seal if and when it deems it right.”
Mr Christie also addressed another source of controversy: the concessions given to the foreign parties connected to the Baha Mar deal.
To this, he said: “My advisors instructed me to be cautious about what I say given the court order. I can say that CCA was given Hotel Encouragement Act concessions (for construction) by the FNM and will be given the same concessions to complete the construction by my government.”
It was unclear, from Mr Christie’s statements, whether these concessions are a continuation of what was previously offered to CCA by the former Ingraham administration or in addition to the previous concessions.
Under the Hotel Encouragement Act, investors are eligible to receive an exemption from customs duties on all materials necessary for the “construction, equipping, furnishing and completing” of a hotel for a specified time period.
Investors are also eligible to receive a 10-year exemption from payment of real property taxes with a minimum taxation per bedroom of $20.00 beginning in the 11th year until a 20-year period occurs from the date that the hotel opens.
Investors are further eligible for a 20-year exemption from direct taxation on hotel earnings.
Moreover, under the law, investors are eligible to admit, for the purposes of work, personnel and special workmen during the construction period and during the operation of the hotel, so long as 75 per cent of the total number of people employed are Bahamians.
The Hotel Encouragement Act also allows the government to offer other concessions as it deems fit.
The subject of concessions has become topical at a time when the National Development Plan (NDP) is urging the government to be more circumspect in how it offers such inducements to investors.
Concerns have been expressed by leading stakeholders like Gowon Bowe, chairman of the Bahamas Chamber of Commerce, that past heads of agreements featured deals that did not maximise the country’s earning potential.
The deal struck between the government and the relevant parties on Baha Mar could therefore be an early test of the government’s ability to adhere to the NDP.
“I have no doubt that history and the Bahamian people will judge us kindly,” Mr Christie said yesterday.
During his nearly half-hour communication, he did not discuss the process of selecting a buyer for Baha Mar, except to say it is being negotiated by CEXIM.
“We have made it clear that (the) casino, convention centre and their respective hotels must be operated by world class specialists who must either have equity in the project or make significant capital contributions to the project,” he said.
Yesterday, FNM Leader Dr Hubert Minnis said until the court documents are unsealed, Bahamians are left to wonder what the prime minister is hiding.
“This entire debacle would be over if he just released the full set of documents to his secret deal since he claims he is not hiding anything,” Dr Minnis said in a statement. “Until such time as the prime minister and the PLP government release them, the FNM will continue to be the voice of the people and demand accountability from this government.”
Comments
Economist 8 years, 3 months ago
“The application to have the documents sealed was made by the China Export-Import Bank. This kind of seal is standard, especially in transactions of this complexity, scale and international market-sensitivity. Remember, the bank already has billions of dollars invested in the project.”
This is not a private transaction. This is one that involves the government of The Bahamas and is a quasi-public transaction. The government made sure that its presents was felt. If it were private the government would not have been in the courts at all.
That is why it should not be sealed.
Emac 8 years, 3 months ago
Boy lkalikl you get the most outstanding prize for having your comments removed from this forum. One can see how much you love the F%$&ing PLP and the F%^$ING PLP LITE. LOL
GrassRoot 8 years, 3 months ago
of course the Chinese bank has an interest to seal the record. Its managers don't want to hang in a public square in China in a few years. That does not mean sealing the records is in the interest of the People of the Bahamas. And as said, a project that is supposed to generate a decent portion of the Bahamian GDP is of public interest. And the acting of the elected leaders is of public interest as well.
Alex_Charles 8 years, 3 months ago
hang in a public square? You think of the Chinese as barbaric! They atleast have the decency to give people death by firing squad with no possibility to appeal the case.
TalRussell 8 years, 3 months ago
Comrades! You're knowing The PM greatly values the thoughts of the public on all matters, if you could pickup the telephone to call to personally speak with the Rt. Honourable Prime Minister/Minister of Finance, what would you want to say to the PM about his perception of secrecy versus that of the publics surrounding the sealing of the 'newest" round taxpayers funded concessions promised for re kick starting the stalled and bankrupted Baha Mar projects, with the Chinese government, bank and construction company? But first, as a God-fearing Bahamalander, you must promise to be respectful of the office of the PM and keep your language nastiness free of them dirtee words.
http://tribune242.com/users/photos/2016…
themessenger 8 years, 3 months ago
Well, one thing for sure, ain no doubt now about who does run tings roun here. As Hubbigity was fond of saying "Who is In charge?" Obviously CEXIM................
SP 8 years, 3 months ago
............................ PM Perry Gladstone Christie's Fate Is "Sealed" ..................................
After four years of rapid successive failures, blunders and depth-less asinine stupidity, Perry Gladstone Christie has surpassed Hubert Alexander Ingraham as the undisputed, worst, most distrusted & hated individual as prime minister!
Christie has totally lost the trust of the electorate, and depleted all political currency long, long, time ago. He could bring 10 more Baha Mar's before 2017 election and he will still not regain the electorates trust and lose by a massive landslide.
In PM Christie's desperation to save his own skin, he is now left grabbing at last straws with Baha Mar in a vain attempt to win back some support. This too is another asinine miscalculation that subsequently will be added to his laundry list of failures.
Contrary to popular belief Bahamians do not quickly forget injustices by politicians. They simply truly believe that "time is longer than rope" and are patient enough to wait peacefully and civilly until the next election to express their displeasure.
Honestman 8 years, 3 months ago
There is clearly no buyer on the horizon at this point. What we do have is a secret deal between the PLP government and the Chinese EXIM Bank (read Chinese government) to kick start construction. This deal affects the livelihood of every Bahamian citizen and resident. THERE IS NO REASON FOR THE DETAILS TO BE KEPT SECRET. This is typical PLP. All their shady transactions are done in the dark and you have to prize information out of them like trying to get a bone out of the jaws of a determined dog. And then our beloved Emperor (encouraged and supported by his Baha Mar mouthpieces Fitzgerald and Miller) has the audacity to be peeved because the people don't trust him!!!
TalRussell 8 years, 3 months ago
Comrades! Is our PM of today and tomorrows not to be treated with the same dignity as Jamaica's PM?
A respectful return on the a whole new set of taxpayers concessions outlays promised to re kick start Cable Beach's Baha Mar projects, would be a guarantee in writing that the Chinese government, its bank and their construction company, will pay for and construct a new House of Assembly & Senate Chambers parliamentary complex, along with an official prime minister's and leader of the official opposition party's residences.
http://tribune242.com/users/photos/2016…
Well_mudda_take_sic 8 years, 3 months ago
Placing the agreement (additional concession documents) under seal of our court is a classic example of Christie putting the interests of a foreign government (Chinese owned enterprises) and his elitists political friends and business cronies ahead of the interests of the Bahamian people. Christie a/k/a Vomit, Allyson Maynard-Gibson a/k/a the Wicked Witch of the West and Baltron Bethel a/k/a the Bag Man clearly don't give two hoots about the sovereignty of the Bahamas when it comes to wrongfully hiding their shenanigans and dastardly deeds from the eyes of the Bahamian public. They (Vomit, the Wicked Witch of the West and the Bag Man) had the audacity to cause the nationalization of Baha Mar for the benefit of the Chinese because of their concerns about the sovereignty of the Bahamas. But now they throw those sovereignty concerns out the window simply because they do not wish for the Bahamian people and voting electorate to know the very foolish and most unwise deals they have cut with the Chinese whereby they have thrown out the baby with the bath water and the kitchen sink too in an effort to save their faces and their own political hides, all the while further enriching themselves and their cronies! This is the very height of gross political corruption on the part of lamed brain Christie and his equally corrupt and pin headed cronies like the Wicked Witch and the Bag Man. Baha Mar received extremely generous concessions from the Bahamian people on day one of the development and now it appears the Chinese have extorted even more generous additional concessions from Christie as a result of his political vulnerability and willingness to corruptly rob the Bahamian people for the benefit of the Chinese, himself and his crooked cronies. We, the Bahamian people, have every constitutional right to know what additional concessions the Chinese have managed to extort from Christie, period!
concernedcitizen 8 years, 3 months ago
Its not hard to figure out ,,we the Bahamian people through our treasury have guaranteed the loan on the next billion to be dumped into Baha mar ..It it ever sells we will get whatever is left after China gets their money or an equity stake ..After the election Perry will announce how we the Bahamian people own a piece of the tourism pie .If qualified people are not brought in to run it and left alone to do so ,it will be another Ambassador Beach hotel .Run by political cronies and friends and propped up the treasury .It will lose money hand over foot ,tarnish our tourism product and be sold for pennies on the dollar ..
SP 8 years, 3 months ago
Sounds Like Another BOB!
banker 8 years, 3 months ago
Let me get this straight. Under the hotel encouragement act, up to 25% of the workers can be permit holders? It says that 75% of the workers must be Bahamian.
I don't know how many Atlantis employs now, but at one point, it was close to 9,500. Let's assume 8,000. 25% of 8,000 is 2,000. Does Atlantis hold 2000 work permits? I doubt it.
Will Baha Mar hold the maximum number of work permits -- you can bet on it.
The funny part is that Prime Minister Crisco Butt is onto Baha Mar like white on rice, and I wonder if ever, that it was a viable project in the first place?? Dunno!
Suppose that it did open on time? Would it turn a profit? Would all of the brand hotels have stayed open after a year or two of punishing losses? There seems to be the mindset that if you build it, they will come. What if that were not true? What if our tourism product is finally toast -- a relic of a bygone era where a tropical beach and a daiquiri was all you needed to lure tourists. We cater to old fogies. Millennials use AirBnB and want an Instagram vacation.
Belize took a long hard look at its tourism product, and is in the middle of a massive rebranding that is working to attract millennials and make their vacations suitable for Instagram. Here, take a look for yourselves: https://www.fastcocreate.com/3063284/fo…
Even if Bahama Mar opens, will it be able to compete with Swim with the Dolphins at Atlantis or Marina Village?
Even if all of Crisco Butt's dreams, schemes, hopes and lies come true about the Chinese finishing it and selling it, it still may not be much of an economic boon unless the place brims with tourists. Crisco Butt thinks that he is the saviour of Baha Mar with the Chinese, but he will soon learn that he can't wok on water.
TalRussell 8 years, 3 months ago
Comrade Banker of all the bloggers you shouldn't be falling hook line and sinker for that which for the time being must remain hidden as to what is to be officially announced as the true intentions of this PLP cabinet? This has lots more to do with internal politics than the Chinese or some buyer of Baha Mar.
I have my doubts if even the Chinese government knows the inner, true intentions planned for Baha Mar by this government. Maybe only but a select handful cabinet ministers, knows of the true Baha Mar intent?
The only question is, will they make it an 2017 General Election campaign issue or not?
I will tell you one who does know it all, The Hon. Michael Halkitis, State Minister Finance. Follow his trail and you will knows what I done thinks 99.1% is going to happen with Baha Mar...the PLP Cabinet's final solution?
banker 8 years, 3 months ago
Oh for phocques sakes . It makes sense now! Does that mean that the Government of the day plans to buy Baha Mar and run it like the Hotel Corporation tried to do with hotels? Baltron Bethel is the new/old hotel master of the Bahamas?
It makes sense as to the secrecy. Crisco Butt and Company are planning to buy it with taxpayers' money and run it themselves. They couldn't run a resort anymore than a Chinaman could back a car out of the driveway. They will buy a hotel full of rooms with rice poop on the carpet, doorways so short that you hit your head on them, and bridges on the property so low, that firetrucks cannot pass!
Fer crying out loud. My Gawd that is the plan! Brilliant Tal for figuring that out.
It's gotta be stopped. This government can run a nose if they had a cold. They will enrich their cronies and bleed the country dry.
The Chinese have gotta go from this country. The only benefit of having the Chinese here, is that there is a new sound that the potcakes from the street make -- a sizzling sound.
concernedcitizen 8 years, 3 months ago
Read my comment Banker , I figured that long ago .After the election we will get told how we now own a piece of the tourism pie ..As you said the new thing is home away ,,airbnb ,,even Cuba is booming w/ casa to rent ..
banker 8 years, 3 months ago
I missed it when you said it. It flew right over my head!
ThisIsOurs 8 years, 3 months ago
"The Hotel Encouragement Act also allows the government to offer other concessions as it deems fit."
"he said China Construction America (CCA) will be given the same concessions by his government that were given under the Hotel Encouragement Act by the former Ingraham administration."
But the act basically gives the government leeway to do anything, "as it deems fit"
sealice 8 years, 3 months ago
so this fucker will do what the chingrets tell him to do but he won't do what Bahamians are asking him to do. Whom do you work for sir, the people of the Bahamas or the commies from China? D
banker 8 years, 3 months ago
exactly. He is supposed to be working for Bahamians. He is an agent of the Chinese. And not a secret agent either. Do you remember how he dressed up for Junkanoo as a Chinese emperor?
proudloudandfnm 8 years, 3 months ago
I wonder how much shares Perry got from the Chinese?
Ping had ownership in Carnival. Arrison still reeling from that boinkin....
PLP crooked now... muddos.....
Honestman 8 years, 3 months ago
You need to put that in a song but watch your back, lol.
Sign in to comment
OpenID