The Tribune

• Ex-MP’s $10m govt damages remain

• But all adverse BOB findings eliminated

• Bank says ex-minister still owes $30.5m

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Supreme Court judge has reversed her initial draft verdict by ruling there was “no unlawful conspiracy to deliberately injure” an ex-Cabinet minister in the breaching of five multi-million lease deals.

Justice Cheryl Grant-Thompson, in a signed and perfected judgment, found that there was no collusion between BISX-listed Bank of The Bahamas and the government after the latter decided - just after the 2017 general election - not to follow through with its predecessor’s plans to rent space in Leslie Miller’s Summerwinds Plaza property for multiple public sector agencies.

While the revision has little impact for Mr Miller, as Justice Grant-Thompson maintained the $9.846m damages award in his favour for the government’s breach of the lease contracts, Bank of The Bahamas voiced its elation that no adverse findings or statements against it were contained in the new judgment.

The bank, in a statement issued by its attorney, Gail Lockhart-Charles, said it continues to assert that Mr Miller and his companies owe it more than $30.5m after defaulting on loans secured on the Summerwinds Plaza that is located just off Tonique Williams Highway.

Noting that the former MP’s claims against Bank of The Bahamas have yet to be tried before the Supreme Court, Mrs Lockhart-Charles said “there was nothing improper in the circumstances about its refusal to extend further credit to Mr Miller and his companies”. She added that the bank vigorously disputed Mr Miller’s claims against it and planned to mount a strong defence.

Pointing out that Justice Grant-Thompson’s verdict awarding Mr Miller and his companies almost $10m stemmed from his bid for summary judgment against the attorney general and Treasurer of The Bahamas, on the basis that they had provided “no reasonable defence” to his claims, the attorney added that both government defendants are appealing these findings.

However, Bank of The Bahamas and Mrs Lockhart-Charles were primarily focused on the absence of adverse findings against the BISX-listed institution, which marked a radical reversal from the draft verdict that circulated last year.

In that document, Justice Grant-Thompson blasted Bank of The Bahamas and the Government for “acting in bad faith” and working together against Mr Miller, who is now seeking the PLP’s nomination for the Tall Pines constituency in the upcoming election.

The draft verdict said the pair had gone “hand in hand with each other”, with the bank - which is more than 82 percent owned by the Government - knowing that withholding loans to finance upgrades to the Summerwinds Plaza would have left Mr Miller unable to fulfill his lease obligations to the Government.

However, all such language and assertions have been completely stripped from the final, perfected judgment disclosed by Bank of The Bahamas and Mrs Lockhart-Charles. While ruling that the five leases are “valid and binding” on the Government, Justice Grant-Thompson merely added: “I do not accept an unlawful conspiracy to deliberately injure and deprive” Mr Miller.

Mr Miller told Tribune Business he was unaware of the revised verdict when contacted for comment yesterday, and referred this newspaper to his attorney, Damian Gomez QC, the former minister of state for legal affairs, who did not return calls and messages seeking comment before press time last night.

Justice Grant-Thompson, in her revised judgment, affirmed that the PLP-controlled House of Assembly passed a resolution in 2014 permitting Mr Miller and his companies to enter into rental contracts to lease space to government agencies.

Two leasehold agreements had already been entered into for the Summerwinds complex in May and June 2013, but “significant renovations and structural work” were required to make the property ready for the Government agencies.

To finance these works, Mr Miller and his companies sought further advances from Bank of The Bahamas. A $2.5m “upstamping” of the mortgage that the BISX-listed institution held on the Summerwinds complex occurred, but only $185,000 was advanced to the former Cabinet minister and his companies.

“At or about the same time when the Government sought to be extracted from the contractual leases, Bank of The Bahamas also ceased to make any further payments,” Justice Grant-Thompson noted. “The plaintiffs alleged the bank breached the contract to lend them the money previously agreed and required to complete the contemplated renovations and structural work under the leases.”

The former Christie administration had agreed to provide new lease deals in 2016, shortly before it was voted out of office. Justice Grant-Thompson said that while the Government accepted the “veracity” of these arrangements, it did not agree that it had committed to fund the renovations.

Finding that the Government knew renovations were necessary, but which Mr Miller and his companies were unable to finance themselves, she added that the Government lease agreements were likely to be the principal security for the construction works.

The Government cited the Financial Administration and Audit Act as its principal defence, particularly the section that requires companies and individuals seeking to do business with the Government to provide a valid Tax Compliance Certificate (TCC) if the contract’s value is worth $10,000 or more.

It alleged that Mr Miller and his companies had not provided the necessary TCCs, which Justice Grant-Thompson described as “a technical reason to exit the contract” for the five leases. Noting that the Act allows government ministers “discretion” to waive this requirement, she said the Government was using this as an excuse to justify its lease breach.

Given that annual payments under the five leases were to exceed $4.5m, Justice Grant-Thompson said a portion of this could have been withheld to settle any outstanding taxes owed by Mr Miller and his companies.

“The Government had to have known that the plaintiff was ‘asset rich/cash poor’ when they entered into these arrangements whereby an important part of the contractual triangle was the delivery up of properly appointed premises and that Bank of The Bahamas was to provide the funds necessary for the renovations, further bolstered by the anticipated rents,” she ruled.

Justice Grant-Thompson, upholding the original $9.847m award to Mr Miller for breach of contract, said a further hearing will have to be held over the ex-MPs claims for exemplary and aggravated damages due to the harm the case has inflicted on his “national and international reputation and goodwill established over 50 years of exemplary conduct and achievement in many facets of public and private life.”