The Tribune

By TANYA SMITH-CARTWRIGHT

tsmith-cartwright@tribunemedia.net

FORMER Prime Minister Hubert Ingraham has taken exception to remarks made by a local philanthropist and businessman who said an investor was prevented from doing business in The Bahamas because of “terrible public policy” during Mr Ingraham’s tenure.

Sir Franklyn Wilson went on record with his remarks just after the Davis administration signed a revised Heads of Agreement with Colombian billionaire, Dr Luis Carlos Sarmiento and his Cotton Bay Holdings.

In this new HoA, Cotton Bay Holdings will partner with the Ritz Carlton Reserve brand in a $200m project in South Eleuthera.

This agreement will lead to the employment of some 300 people during construction and 200 people during operation.

Even though there was a HoA signed with Cotton Bay Holdings in 1997 when Mr Ingraham was Prime Minister, the project never came to full fruition.

 Sir Franklyn said the Sarmientos were treated horribly at the time and that they are not to blame for the deal not going through as it was “bad public policy and governance” which eventually triggered a recession in Eleuthera.

 Mr Ingraham, in a statement yesterday, expressed displeasure at Sir Franklyn’s remarks, calling them “misguided accusations”.

 “I was surprised therefore to read, and I take exception to, reports that Sir Franklyn Wilson spewed misguided accusations that my government’s ‘bad public policy’ in the late 1990s were largely to blame for lack of action on this project,” said the former Prime Minister.

“I have long expressed frustration with slow progress in invigorating the South Eleuthera economy which was a goal of every government led by me.

 “Contrary to Mr Wilson’s allegations, FNM governments have consistently acted to marry their interests in providing increased economic and employment opportunities and hence better living conditions for ordinary Bahamians with those of attracting desirable investors to our country.”

 Even though displeased about Sir Franklyn’s remarks, Mr Ingraham said he was happy to see a third Heads of Agreement between the government and Cotton Bay Holdings signed.

 Mr Ingraham refuted Mr Wilson’s claim of bad policy under his watch saying what he practised at the time was the “complete opposite”.

 “At all times Dr Sarmiento, with whom I met at his invitation, at his office and at his home in Bogota, Colombia was fully aware and accepted that the government that I led would not approve further purchases of large acreage of land in South Eleuthera by him until and unless he progressed the agreed development,” Mr Ingraham’s statement continued.

 “From the point of view of Sir Franklyn, this may be called bad public policy. From my point of view, it is the exact opposite. Those who celebrate the signature of yesterday’s agreement may wish to consider that Dr Sarmiento has always come to the table to negotiate his agreements for development in The Bahamas with FNM administrations.

 “It suggests that Dr Sarmiento is satisfied that FNM administrations would deal with him fairly and transparently.”

 Dr Sarmiento, said to be an established businessman with investments in construction, banking and telecommunications, was approved by the Ingraham administration to purchase the former Cotton Bay property from the Franklyn Wilson Group.

 He subsequently converted the old Keizer residence into his private family retreat in Eleuthera and commenced plans to redevelop the old Cotton Bay Resort and Golf Club.

 “Those plans to renovate, upgrade and expand the Cotton Bay Resort have disappointedly not moved forward during the past 25 years not due to any action on the part of FNM governments,” Mr Ingraham continued.

 “And, it is instructive that the proposed development did not proceed under either of the last two PLP administrations (2002-2007 and 2012-2017). The outcomes of general elections in 2012 and 2021 resulted in two of the Sarmiento Groups’ agreements, approved by FNM governments, being signed by PLP administrations.”

 Specifically addressing South Eleuthera, Mr Ingraham said his administration, in an effort to facilitate Dr Sarmiento’s redevelopment plan for the Cotton Bay property, acquired and redeveloped the Rock Sound Airport much to the chagrin of its owners from the Franklyn Wilson Group.

 “Thereafter a new airport terminal was constructed,” he said. “And we put in place plans to expand and increase electricity and water supplies to accommodate the development and to provide services to residents of South Eleuthera.

 “In office the FNM always sought to protect the interests of all – public and private. Where conflict between the two arose we always came down on the side of public interests as opposed to personal private interest.

 “So, we did not approve Cotton Bay Holdings Ltd’s application to buy substantial additional land from the Franklyn Wilson group prior to the commencement of development on the large acreage already owned by the company for the expressed purpose of touristic and upscale residential development.”

 He said his administration was satisfied that additional land was not required for the size of development proposed and further, did not agree that foreign entities or persons should be approved by the government to purchase large tracts of vacant land without specific approved development plans.

 Mr Ingraham said: “I was pleased 25 years ago in 1996, as head of the government, to have caused to be approved and signed the first Heads of Agreement between the government and Dr Carlos Sarmiento, a frequent visitor and subsequently second homeowner in Eleuthera.

 “Notably, that meant to bring the Four Seasons hotel chain to South Eleuthera in 2015 was agreed during my third term in office as I announced ahead of the 2012 general elections.

 “At the time of the general election details concerning road deviations, zoning and land use changes were being discussed with the developers as well as processes for dealing with construction permits, work permits, supply of power, water and communications and custom duties exemptions under the Hotels Encouragement Act.”

 He said that the project, while signed by the Christie administration, did not move forward as anticipated.

 “Similarly, it appears that the negotiation of the agreement now signed by the Davis administration was negotiated by the last FNM administration.

 “I wish the development great success and look forward to its beneficial impact on the people and economy of South Eleuthera,” Mr Ingraham said.