The Tribune

By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

DEBATE on a resolution for a $35m loan to complete the government's Grand Lucayan purchase in Grand Bahama was delayed yesterday after the Official Opposition refused consent insisting they did not receive the needed documents to properly debate the acquisition.

Bamboo Town MP Renward Wells suggested outside of the House of Assembly that the Opposition's refusal to cooperate could be a "delaying tactic", telling reporters all of the issues affecting the hotel were not new.

Mr Wells, who is leader of government business in the House, suggested this could also be a move to empower some minority members as the Opposition Progressive Liberal Party heads into convention in November.

Nonetheless, Mr Wells said debate would begin today at 10am and the government will pass the resolution despite whatever "fireworks" the opposition is expected to bring.

When he spoke on the issue outside Parliament yesterday, Mr Davis told reporters initially he "readily provided" the needed consent, but on the premise the requested documents and material were provided. However he said up to Tuesday morning none had been provided.

It is unclear how this delay will affect the government's timeline for completing the deal.

Mr Wells said: "We had spoken with the opposition from Tuesday of last week signalling to them that we intended to come and debate this resolution.

"All of the issues of the hotel are not new. The media has been reporting every jot and twiddle over the past month from the moment we mentioned it. The prime minister has been down there. So all of the issues regarding what we are seeking to do in purchasing the hotel is already there.

"The opposition said we ain't gonna debate unless you give us the sales agreement. But they knew all of the issues that are contained within that sales agreement and for us it is just simply a delaying tactic.

He continued: "We understand that the Progressive Liberal Party will be going into a convention very soon and so we understand this is state craft but at the end of the day we are going to come tomorrow and we're going to debate the resolution. We're gonna pass it. The government is on a timeline. We're going to purchase that hotel in the interest of the Bahamian people, in the interest of the people of Grand Bahama and in the interest of the larger economy."

Asked whether the Opposition had been provided with all of the requested documents outside of the sales agreement, Mr Wells did not say. Among other things the opposition requested an appraisal and copies of any municipal leans on the property.

"I think we provided them with all that they would need to be able to have an intelligent informed debate for the Bahamian people, we've given them it and so now they have an opportunity where they can go assess it and tomorrow we'll come back and there will be the fireworks that is necessary in this kind of debate and situation."

For his part, Mr Davis said immediately there are troubling elements about the deal.

"Last week Tuesday I was called by the Leader of Government Business Renward Wells, the member for Bamboo Town who indicated that they would wish the opposition to consent to debate the resolution for the acquisition of the Lucayan properties.

"Reason why he required my consent is because notice is required to be able to debate a resolution. You can't just bring it today and debate it today. So he required my consent.

"I readily provided that consent on the premise that they would give us the material from which we would be enabled to discuss the debate intelligently and he promised to send that to me. Eventually we received the resolution.

"The resolution said the agreement of sale was attached but it was not attached

"It said the guarantee form was attached (and) that was attached. We then indicated to them that the crucial document here was missing from the resolution, even though the resolution speaks to it being attached and we would like to have that document, so that we can see what the deal is.

"Up to yesterday we did not receive it. So I wrote to the prime minister requesting that information with other information that would have informed the debate and to make known publicly some of those processes that one would have expected to have happened in a transaction such as this.

"We still had not heard anything and so today when they asked whether we could proceed I said I don't know how you could proceed because you never provided us with the information."

According to the resolution tabled in the House of Assembly yesterday the sales purchase agreement stipulates a deposit of $10m which was already paid upon the execution of the agreement.

An additional sum of $20m is due and to be paid upon the completion date of the agreement.

The balance of the purchase price, $35m be secured by a first demand legal mortgage over the properties payable by 7 tranches of bond of $5m each issued by the purchasers in favour of the vendors with interest thereon payable quarterly at the rate of four per cent per year.

Each tranche must mature in consecutive six month periods after the completion date with the first tranche maturing on the expiry of six months following the date of completion and guaranteed by the government.