The Tribune

THE company at the centre of the Renward Wells Letter of Intent (LOI) controversy has closed its Bahamas office, with its local chief executive stepping down from his post.

Jean-Paul (JP) Michielsen said he will be leaving his position with Stellar Waste-to-Energy Bahamas, as well as departing his role as chief operating officer for the wider group, a position he has held since May 2014.

Mr Michielsen said in a statement: "It has been made clear to us here locally that Stellar Energy is not in a position financially to sustain local operations.

"You can't keep working without getting paid, something we have been doing locally for quite some time now, or under the promise of getting paid. One day you draw the line. I drew the line; we all have our obligations towards our families, so time to move on". He added that Stellar's Bahamas office has been closed down.

Tribune Business understands that Mr Michielsen's departure was sparked by differences of opinion with Stellar's chairman, Dr Fabrizio Zanaboni, over the future direction of the business.

Stellar's Bahamas closure comes after it failed to make the Request for Proposal (RFP) round on the ongoing New Providence landfill management tender, despite being one of 18 bidders to submit Expressions of Interest (EOI). The waste-to-energy advocate hit the media headlines in 2014 when it became embroiled in the controversy that saw Renward Wells, now-minister of agriculture and marine resources, removed as parliamentary secretary in the Ministry of Works under the then-Christie administration. Mr Wells was accused of exceeding his authority, and acting without government approval, by signing a Letter of Intent (LOI) with Stellar for its proposed $600 million waste-to-energy plant at the New Providence landfill.

Stellar subsequently filed a $727.364 million damages claim against Mr Wells, the Ministry of Works and Attorney General's Office in the Supreme Court. It sought declarations that the Government both "honour" the LOI contract and not award a waste-to-energy deal to any other company until damages are paid, on the grounds that it was the victim of fraudulent and/or negligent misrepresentation.

It is unclear what impact Stellar's Bahamas closure will have on this legal action. Also named as defendants in the action were former Cabinet minister, Algernon Allen, and Frank Forbes, the businessman/accountant heading Sigma Holdings, who were alleged to have been acting as "facilitators" for the project on the Government's behalf.