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Baha Mar claims process: No one guaranteed to be paid

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

THE claims committee responsible for administrating payouts to former employees and creditors of Baha Mar updated its website yesterday with additional information about the claims process, including a warning that no one is guaranteed to be paid.

In the updated Frequently Asked Questions (FAQ) section of the website, claimsspv.net, the committee states: “There is no assurance that you will receive any payment at all. No creditor has any legal entitlement to the funds being administered but the committee. However, the committee has been formed to review claims and offer payments for valid claims at the committee’s absolute discretion. Priority will be given to Bahamian creditors on the basis that the fund has been provided in consideration for concessions and consents from the government which must benefit the Bahamian people.”

James Smith, the former State Minister for Finance who heads the claims committee, said these statements are made to emphasise that payouts are being made on an ex gratia basis, meaning outside any formal court-supervised liquidation process because the money is a gift from the Export-Import Bank of China (EXIM).

The statement is also being made to emphasise that regardless of what one is owed, the amount of money legitimate creditors receive will be determined at the discretion of the claims committee, he explained.

“If you tell me you’re owed $20 and I only get $10 left to give out, then you can’t get the $20,” Mr Smith said. “If you’re not satisfied with that there’s no recourse for you via this payout process. You’d have to seek remedy by some other means.”  

As for the reference to “concessions and consents from the government,” Mr Smith said he could not elaborate since the details are likely to be contained in the Heads of Agreement negotiated by the EXIM Bank and the Christie Administration.

Earlier this week, Mr Smith emphasised that payouts to former employees of Baha Mar will be prioritised over payments to all others.

Former employees, some 2,000 of them, will receive unpaid salaries, severance pay, accrued vacation pay and notice payments due to termination.

Mr Smith also said that creditors who are owed up to half a million dollars will likely be paid in full, whereas the amount of money paid to those owed more than that will depend on how many eligible creditors come forward with claims.

Employees and those owed up to $500,000 account for 90 to 95 per cent of all people and creditors owed money, Mr Smith said.

Comments

Gotoutintime 8 years, 2 months ago

You mean to tell me people are surprised??

paul_vincent_zecchino 8 years, 2 months ago

"I'm shocked. Shocked, I tell you!" - 'Captain Louis Renault' (Claude Rains) "Casablanca", c. 1942

EasternGate 8 years, 2 months ago

Liar, liar, PM pants on fire!

TalRussell 8 years, 2 months ago

Comrades! Until the website, Claimsspv.net, I had always believed it was how the insurance companies over many, many years - past and present - have become the masters of taking advantage of their policy holders by disadvantaging what should be their legal and rightly insurance payouts based on premiums being paid. I guess the insurance companies think its but a gray area that they have every right to use to their own benefits?
I've noticed how it's something that no one, including Bloggers Banker and Economist, have ever commented about?

ohdrap4 8 years, 2 months ago

Yes, that is why at present, i have no life insurance and health insurance. the insurance companies have ants in their pants over NHI.

Car, and house, I cannot avoid.

Remember the govt. payout to clico holders? at the end of the day, it was limited to ten thousand dollars.

i bet you cannot take this payout to super value.

If you ask , why did i only get 10%? Well the reason is sealed in the heads of agreement.

banker 8 years, 2 months ago

I am not a believer in insurance companies. I have legally and contractually mandated insurance (car and house as required for mortgage) but other than that, I do not have life insurance. I have had negative experiences in making an insurance claim when the claim was either denied or my premiums shot up. I do believe that many insurance companies have predatory practices against the consumer.

TalRussell 8 years, 2 months ago

Comrade Banker, I am talking about what I believe to extend beyond the predatory practices - I believe some but not all of the insurance companies acts are nothing short of sinful, unconscionable practices and I will isolated this to the life insurance policies end of the insurance business. If I am right, we could be talking millions and millions of dollars in unconscionable practices? Maybe because its borderline legal, they think - why the hell not if it benefits the company's financial bottom line?

John 8 years, 2 months ago

ECONOMICALLY BAHAMIANS ARE STILL FOOLS!!! Any Bahamian with even a lil bit of common sense should be past mad (livid) when they look at what is going on at Bah Mar and what goes on in this country in general when it comes to foreign investors vs Bahamian investors/businesses. Do you think any of the thousands of Chinese workers left this Bahamas without being paid for their work on the Bah Mar project? Why is it that Bahamians now have to haggle to get their money for work that they have already done, and in the case of CCA for work which that company has already been paid. Just think about it Bah Mar got over $1 BILLION in real property and concessions from this government, Bahamian peoples' money and yet it has yet to make a tangible contribution to this economy and yet they may have (secretly) gotten even more concessions. Bahamian people are in this country losing their businesses, losing their homes, losing their jobs and yes losing their dignity but yet government is squeezing every red penny out of them in the form of taxes while foriegn companies are getting a free pass. Do you know how many generations of Bahamians will not have access and use of the beaches at Bah Mar because of that project? And NO it is not just Bah Mar. look at Freeport: Why is it a ghost town when they have received so many tax breaks and so many concessions over so many years. Why are so many Bahamians in Grand Bahama unemployed? Why didn't those who benefited from all the tax breaks use some of them to stimulate the economy and get the magic going again? Why are they waiting on the government to revive Freeport? That is because they carpet bagged their money and took it out of the country and home. Time for our government to stop being afraid of the investor boogeyman. Stop believing the lie that "if we don't give them everything,and the kitchen sink, they will not invest." Time to start giving Bahamians the opportunity to own a piece of the Bahamian economy...keep the money home.

banker 8 years, 2 months ago

Co-sign and agree entirely. However Bahamians are hamstrung in owning a piece of the Bahamian economy because of the non-convertible currency, they do not have the access to capital required to create the infrastructure of wealth-building.

The banks have billions in excess liquidity and they can't lend it out. The first reason is that very few Bahamians qualify for the loans because of the monolithic socio-economic composition of the so-called middle class, and secondly Bahamian dollars are useless if you want to buy imported goods to build a business.

As long as the money supply is in funny money, Bahamians will always be children of a lesser god when it comes to economic independence. The reason why the dirt hole of foreigners is kissed by the government, is that they have access to foreign capital to build infrastructure.

John 8 years, 2 months ago

you know that is bull$hit right? If The Bahamian government can give away $1billion to one foreign investor and claims to have matched it with other investors like Sun International, Albany Ginn can you do the math and see what is happening to the Bahamian people's money. And when you add up these give-aways over the years can you see why the foreign investor has all the economic power and Bahamians remain mere slaves on this plantation.

banker 8 years, 2 months ago

Umm the Bahamian's people's money is Bahamian dollars. If the government does in fact match money, then it has to match American dollars which is derived from either tourism spending or FDI inflows.

ashley14 8 years, 2 months ago

Your right, I was so surprised when I returned to Freeport after years away, there was nobody there. I talked to people that explained to me what all had happened to the economy in Grand Bahama. It's beautiful there! It was so quiet thou, most people probably wouldn't go back. Once someone decides that it was ok, but I think I could have more fun somewhere else you won't get them back or their friends. Word of mouth is the best or worse advertisement. Thirty years ago we had a blast in Grand Bahamas! Left my heart there! After the hurricane the investors took the money they received and left. I couldn't believe even the World Bizarre hadn't been rebuilt. Everything was just gone, even the residents. They moved just to be able to eat. So Sad!

http://tribune242.com/users/photos/2016…

Well_mudda_take_sic 8 years, 2 months ago

The funds received (to be received?) from the Export-Import Bank of China (EXIM) are being wrongfully characterized by Perry Christie and his facilitator James Smith as an ex-gracia gift when in fact the funds would not have been received (be received?) if it were not for the all of the very significant additional concessions Perry Christie has promised the Bahamas would give EXIM. You can bet the claims committee led by James Smith will be favouring cronies, friends and other political supporters of Christie......like the Maynard-Gibson family. What we Bahamians really need to find out about are the so called "ex gracias gifts" that the Christie family, the Maynard-Gibson family, Baltron "Bagman" Bethel et al. have received from CCA and/or EXIM for the role they played in the nationalization of the Baha Mar Development for the benefit of Christie's new found Chinese friends.

proudloudandfnm 8 years, 2 months ago

Say the money is a gift.

Meanwhile our door mat PM justs sits on his useless ass letting the chinese get away with anything....

concernedcitizen 8 years, 2 months ago

The money is no gift .B/c the company is in winding up under our laws ,the ex gratia , is to get around the court which has to see all unsecured creditors as equal ,meaning if one gets 100% all get !00%.This is not a gift from the Chinese I am willing to bet this payout and any monies to finish Baha mar have been guaranteed by our treasury .If it ever sells China will get theirs and PGC will tell us how we are proud owners of the tourism pie .If it makes a profit it will be funneled through the hotel corp ,,where Baltron Bethel first perfected the art of the skim ..

John 8 years, 2 months ago

If that is so and there is a default do you realize the Chinese flag can be flying over theses shores in a matter of months? And they are already arrogant, the Chinese. When you ride pass the Sheraton downtown they have signs on the fence that encloses the restaurant patio in the Sheraton hotel. It is in Chinese Mandarin with no corresponding English and this is an English speaking nation.

paul_vincent_zecchino 8 years, 2 months ago

Agree, John. Sounds like a takeover. Stiff the contractors, invent reasons to remain closed, deny tourists and staffers their expectancies, ooch into the Sheraton, a symbol of long time Bahamian hospitality, and how very convenient: directly across from the US Embassy.

Nice touch, signs in Mandarin only, no English. Makes quite the statement, doesn't it?

Of course, our chicom 'partners in prosperity' would never ever even dream of spying on Embassy doings, surely not. Tch tch.

concernedcitizen 8 years, 2 months ago

The embassy already bought property to move

paul_vincent_zecchino 8 years, 2 months ago

Thanks for the info, was not previously aware of that.

Franklyn 8 years, 2 months ago

oh what a great legacy, ...right at PGC doorstep.

The FNM, who is hoping to win the next general elections in The Bahamas, to become the next government, has said very little about how they plan to fix this mess. ...considering elections are just a few months away. CCA should not be allowed to continue any development in The Bahamas until contractors are settled "whole". In good faith contractor continued to provide service to CCA's Baha Mar's project (without pay for months) only due to the promise of being paid. So any attempt to back-out of their promise should not be allowed to stand.

I call on CCA (and the Government of the People's Republic of China) to do the honorable thing.

paul_vincent_zecchino 8 years, 2 months ago

And now another phase of the chicom design become visible.

Didn't a fellow commenter here a few months ago post their findings the result of exhaustive research? Didn't their research demonstrate a pattern of the chicoms doing this to several other countries for the possible purpose of siphoning out cash and placing them at disadvantage?

The longer this carny shill continues, doesn't it seem to be a tactic of asymmetrical warfare?

"Use capitalism to build communism to destroy the West." - official state policy of the Peoples' Republic of China

concernedcitizen 8 years, 2 months ago

Certain Bahamians got very nice multi million dollar units over looking central park in New York ...Chinese money long

Socrates 8 years, 2 months ago

well this is what happens when you dont let the law take its natural course. you cant demand, insist or pursue any action just hope the boys will do you a favour and drop a few crumbs.. we have lost our pride and dignity.

MonkeeDoo 8 years, 2 months ago

Concernedcitizen: Was Paul Major one of the beneficiaries ? I hear he is up there a lot. Partucularly in the gay bars ?

banker 8 years, 2 months ago

I can hardly wait. Three more days until EXIM deposits the money to pay the contractors. PM Crisco Butt said so, and I believe every word that he says. He said a couple of weeks, in mid-September, the Bahamian contractors will be paid. We all know that every word that emanates from his buccal alimentary canal orifice is God's truth -- Right????

TalRussell 8 years, 2 months ago

Comrade Banker, the same unused sock I never got to stuff down Kanaval's Paul Major's mouth each time he foolishly opened it to promise but never delivered on anything about Kanaval's economy boosting or its auditing processes, I have it at my quick ready to shove down that James Smith's likewise mouth dominated with wild promises with not a damn red penny on deposit in The Bahamaland to payout to a single Baha Mar employee or creditor. And, get this even if the money does come it will have more Chinese restrictive before payout conditions attached than white got's on rice?
In fact James ain't yet got around to opening the necessary bank account to begin receiving the fantasy funds being promised out of China. Good God Almighty, Comrades Pindling & Milo must be turning in their graves with each new headline of vain pie in the sky money payout promises, promises.
And, yet the PLP Cabinet keeps promising that Baha Mar will be opened for the 2017 tourist season? No, no the Cable Beach white elphant will NOT be opening as projected, if ever.

banker 8 years, 2 months ago

There was a real odious two-bit American hotel reporter/freelancer for a minor publication (Trump supporter at that) who was posting here. He said a lot of crap, but one of the things that he said was that we would never see the opening of Baha Mar. I am convinced that is the case now.

Not only does Baha Mar need finishing, but being vacant for so long, it needs a remediation of the existing work -- not to mention cleaning out all of the rooms with rice poop in them. That alone may be the health hazard that condemns the place. And then we have the dock ....

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