The Tribune

Prime Minister Philip Davis has downplayed concerns about the potential impact of the $1.9 billion judgment against China Construction America (CCA) in favour of Sarkis Izmirlian on hotel operations and jobs at British Colonial and Margaritaville Beach Resort.

Speaking at the soft opening of the Nassau Village Community Centre, Davis assured the public that there is no immediate threat to hotel operations or employment as a result of the New York State Supreme Court ruling.

"Well, that's the judicial process in the United States," Mr Davis said. 

"I appreciate the American laws as much I do the Bahamian law. But if that was happening here in The Bahamas, it is a discretion to be exercised by the judge, which apparently was exercised in favor of Izmirlian. I don't, at this time, see any threat to, I call it, the Bahamian assets. The hotels are operating."

Mr Davis said: "We got what we want, we got hotels open, we got them operating, and we have thousands of Bahamians working in these hotels, and I don't think that the operations here could or would be affected by what's going on the United States at this time."

He continued: "The hotels are here, the rooms are here. They'll be operating here. All that can happen is a change in ownership. Doesn't mean that the hotel is going to close or jobs will be lost, right? And in those instances, the government has, will have a duty in the public interest to ensure that jobs are protected. We're not going to get involved in the private dispute between those persons, whenever it's going to impact what I call public, public issues and public security in jobs or otherwise, that's when, in the public interest."

The ruling allows Izmirlian to enforce the $1.642 billion damages award, raising questions about whether assets might be liquidated to satisfy the judgment. Addressing these concerns, Davis clarified that liquidation would likely mean changes in ownership rather than closure or job losses. “In those instances, the government will have a duty in the public interest to ensure that jobs are protected,” he stated, reiterating the government's commitment to safeguarding public interests if necessary.

CCA has announced its intent to appeal, maintaining that the decision overlooks evidence of mismanagement during Baha Mar’s development. Meanwhile, the Bahamian government continues to monitor the situation to ensure economic stability and employment security.

In a statement to The Tribune on Friday, a spokesperson for the co-defendants, said: “This ruling has no bearing on the merits of our case and will not deter us from seeking to have the trial court’s error-ridden decision overturned on appeal. 

The statement continued: "As we intend to show, the lower court failed to apply well established principles of New York law and disregarded clear evidence that BML Properties grossly mismanaged the Baha Mar project and then drove it into a wrongful, secret bankruptcy to eliminate its obligations to other stakeholders, including the government and people of The Bahamas.”