The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Grand Bahama Chamber of Commerce’s president yesterday said the Government has to “stop talking nonsense” over the Grand Bahama Port Authority (GBPA).

James Carey told Tribune Business he has heard the Government’s talk about being “ready to sign [off on] the right buyer, or that they are willing to buy it, but is the GBPA willing to sell? Because how do you get someone to sell something that they don’t want to sell?”

Philip Davis KC, the Prime Minister, said ahead of the weekly Cabinet meeting in Eight Mile Rock that the Government is willing to “step to the plate” and acquire the GBPA itself. He added that the Government had informed the existing owners of Freeport’s quasi-governmental authority - the Hayward and St George families - is prepared to acquire the Port and its affiliated assets if no suitable private buyer emerges.

Asked to confirm if the GBPA might be sold, and the Government acquire it, the Prime Minister replied: “If it’s going to be sold, it requires government approval, and we’ll approve any agreement for the sale of the Port Authority once it’s going to align with the benefits we have identified that could be had by Grand Bahamians and The Bahamas in particular.

“And the Government itself is willing to step to the plate to acquire the Port, and we’ve made that known to the families as well.” Mr Davis’ comments reaffirm what multiple sources have been telling Tribune Business for some time, namely that the Government has been speaking to both the St George and Hayward families, and their representatives, about its willingness to acquire the GBPA for months.

Mr Carey, though, said: “We need to stop talking nonsense. The Government doesn’t have any money, but they can find some or they can borrow it.

“I have no idea of how much the GBPA is worth, if it’s worth hundreds of millions or well into the billions. It is also interesting that the Prime Minister said that there were over $1.5bn in investments slated for Grand Bahama already, but it’s the same figure the GBPA talks about too.

“So it’s interesting to note that the Prime Minister didn’t say if these investments were something the Government procured or if it was what the GBPA had secured, so we need to understand that first.”

This newspaper was told the St George estate is united in its willingness to exit, and sell, their 50 percent interest in the GBPA and its Port Group Ltd if the terms and price are right. However, the intentions of the Hayward side are understood to be less clear.

The Sir Jack Hayward 1993 Discretionary Settlement, which is the trust that holds the family’s 50 percent GBPA interest, is currently under the control of Supreme Court-appointed judicial trustees. These are Paul Winder, an expatriate banker with Lyford Cay-based Deltec Bank & Trust, and Mark Richford.

It is understood that the judicial trustees have requested that one of the ‘Big Four’ accounting firms conduct a valuation of the GBPA and Port Group Ltd assets, and their worth, to determine a reasonable purchase price that could stand up to future challenge. More than one source has suggested talks with the Government have focused on a price in the $150m-$175m range for the entire concern.

Other contacts, though, have scoffed at such figures and suggested it was both highly unlikely that the Hayward family will sell or that the Government would buy-out the St Georges and settle for becoming its 50/50 partner. It was also suggested that no formal offer has been forthcoming from the Government yet.

Tribune Business understands, though, that the Government plans to use its financial claims against the GBPA as leverage to squeeze the families if it is unable to achieve a smooth sale. The Davis administration has already invoked sections in the Hawksbill Creek Agreement that stipulate the GBPA must reimburse it if the cost of providing public services in Freeport exceeds the city’s tax revenues.

The dispute may be put into arbitration if the two sides are unable to resolve their differences, with Freeport’s quasi-governmental authority arguing that the Government is incorrectly interpreting this clause to cover multiple public services not contemplated by the original agreement. However, it is thought the Government plans to repeatedly come back to this issue in the belief the families will be unable to pay what is owed.

Mr Davis, when asked yesterday whether the GBPA has paid what the Government claims is due and owing to Bahamian taxpayers, replied: “Well, I’m waiting to hear what they have to say. This is a matter we’ve discussed and they ought to have gotten back to us by the end of October.”

However, he blamed the West Grand Bahama and Bimini by-election, which will be held today, and other events such as the upcoming COP28 climate change conference, for dominating the agenda. “Unfortunately, as you know, things have happened so I’ve not been able to pay any particular attention to it, but after this event tomorrow and early next week we’ll be back at the table to see where they are and what they’re thinking.”