The Tribune

• Labels recent reforms 'a considerable setback'

• Licence limits may spark pillage by 'bad actors'

• Can accept 50% proceeds if made 'more viable'

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamas-based underwater explorer has voiced fears that recent legal and regulatory reforms moved by the Government are a "serious mistake" and will lead to the return of "loot and scoot" practices involving ship wrecks.

David Concannon, Allen Exploration Group’s spokesperson, told Tribune Business via e-mailed reply that reforms contained in the Antiquities, Monuments and Museums (Amendment) Bill 2023 and its accompanying regulations, which restrict the number of exploration and recovery licences that one entity or individual can hold, could "incentivise bad actors" to resume plundering wrecks with no economic benefits derived by The Bahamas or its people.

Warning that such restrictions would be "a considerable setback", he added that limiting the number of licences issued would likely "choke the process" rather than safeguard The Bahamas' underwater cultural heritage and patrimony or ensure taxpayers received a fair share of any economic proceeds.

Mr Concannon also told this newspaper that Allen Exploration and its principals, Carl and Gigi Allen, have "determined that they can work" with the reduced share of underwater exploration proceeds mandated by the new legislation. The Bill, which has passed through Parliament, also revises the present formula that splits the proceeds from underwater treasure salvaging 75/25 between the explorer and the Government.

The majority of the economic benefits thus went to the explorer, but the reforms that went through Parliament change this so that they are split equally - or 50/50 - with the Government. Mr Concannon, though, said Allen Exploration was hoping there could be other changes to "make it viable to continue operating" such as issuing licences for longer terms to give itself and other bona fide explorers greater financial certainty and the ability to plan.

Asserting that Allen Exploration remains "very interested" in obtaining licences to explore other wrecks and locations in The Bahamas beyond the Nuestra Senora de la Maravillas, the sunken Spanish treasure galleon it is currently salvaging, Mr Concannon disclosed: "We continue to enjoy a strong working relationship with the Government of the Bahamas.

"We have told the Government that we believe imposing limits on the number of licences one entity/individual can hold is a serious mistake. In our opinion, this will only incentivise bad actors to return to the days of 'loot and scoot'. It will not help the Government control how resources are found, recovered, studied or utilised, except by choking the process.

"It will not help the Government train or employ marine archaeologists, conservators, teachers or the myriad of other professionals involved in this type of exploration. And, most importantly, it will not provide resources to the Bahamian government and citizens to pay for other priorities, such as health care and education. We understand that licence limits may become part of the new law but, in our view, it would be a considerable setback for everyone."

The Bahamas, and successive administrations, have long struggled to get to grips with underwater exploration and treasure salvaging within this nation’s territorial waters. Lacking the necessary expertise and resources to conduct proper oversight, together with the required regulatory regime, The Bahamas has allowed many of these sites to be pillaged and ransacked by unauthorised foreign salvors.

This has resulted in many Bahamian artifacts appearing at overseas auctions and sales without this nation receiving a cent in benefits from them. However, Mr Concannon said Allen Exploration is not selling off any artifacts recovered from the Nuestra Senora de la Maravillas recovery, and is instead preserving this nation's underwater cultural heritage by placing them on display in its Grand Bahama-based Bahamas Maritime Museum.

As for the change in the economic split, Mr Concannon told Tribune Business: "Mr and Mrs Allen have determined that they can work with a 50/50 split as long as other aspects of the new law make it viable to continue operating. For example, issuing longer term licences instead of only one-year licences would make it more financially feasible to make long-term commitments like hiring more staff, opening new facilities or searching for culturally significant shipwrecks.

"It is difficult for the explorer to make such long-term – and necessary – commitments when they don’t know if their licence will be renewed in a few months. As for operations and future plans, we will have to wait and see what the new law says and what restrictions it imposes. If they are workable, Allen Exploration will continue. If they are not workable, the company’s work will cease."

Besides now receiving 50 percent of the proceeds from all licensed treasure salvaging in Bahamian waters, the Government will also get “first preference” in selecting its share of the recovered artifacts as well as the right to retain those deemed vital to “natural patrimony”.

Jomo Campbell, minister of state for legal affairs, argued in Parliament when the legislation was debated in mid-May that the Government and Bahamian people have not received their due share of benefits from underwater salvaging and treasure/artifact recovery.

"There have been occasions where valuable booty, treasure, has been found and the Government and the Bahamian people have gained some benefit but not enough benefit in my view," he argued. "Treasure hunters, researchers and the like who come to our country must receive permission from the Government to explore our land and waters in any way.

"Should they find anything of value, these amendments ensure the Bahamian people become equal partners in the proceeds of this exploration." Meanwhile, amendments to the regulations accompanying the Antiquities, Monuments and Museums Act set out the new terms, costs and conditions for obtaining underwater exploration and recovery licences.

Mr Campbell said no person or entity will be able to hold more than two such licences "at any one time", and they will be restricted to a maximum of one 'exploration' licence and one 'recovery' licence. “The minister shall not issue more than two licences per person or entity at any one time," he added.

“Notwithstanding paragraph one, the minister cannot issue more than one exploration licence for a person or entity at any one time, or more than one recovery licence per person or entity at any one time.” Mr Campbell said the reforms also restrict exploration areas to 25 square nautical miles, although this limit can be expanded upon the recommendation of the Antiquities, Monuments and Museums Corporation (AMMC).

“The maximum size of the area for which a recovery licence may be granted shall be limited to the size required to encompass the archaeological remains from which recovery is licensed, which shall be expressed with specific co-ordinates. Every area, which is subject to an exploration licence or recovery licence, shall include at its perimeter a buffer zone of 10 nautical miles," Mr Campbell said.

He added that the cost of an exploration licence would be $100,000 and a recovery licence would be $250,000. This, Mr Campbell said, would "protect underwater cultural assets and ensure that exploration companies have a suitable level of financial resources.”

“Considering the staggering amounts of money that have been associated with the value of treasure buried in our waters, or ships that sank in our waters, it's only fair that any proceeds of treasure discovered be shared with the owners of the property where it was found. That is the Bahamian people," Mr Campbell added.

Tribune Business was previously informed by Bahamians who have worked in, and with, the underwater exploration industry that the 75/25 proceeds split in the sector’s favour is standard practice in Florida and other jurisdictions where it is present so that salvagers can gain sufficient return on investment.

However, the Government will likely retort that itself - and the Bahamian people as tax-paying citizens - deserve a greater share of the rewards from their natural patrimony and historical assets that lie within the country’s territorial waters. It can also argue that the revised legislation creates a better, fairer deal in the Bahamian public’s interest.

This newspaper was also informed that the former Minnis administration was encouraged to push for the same 50/50 proceeds split, and enact the same reforms to the Act, now being pushed through by the Davis administration. However, it signed-off on Allen Exploration’s licence before making such moves, and thus was locked in to the 75/25 arrangement. The sector holds much-needed economic and fiscal potential for The Bahamas should it get it right.