The Tribune

• Attorney says GBPA, licensees already ‘Bahamianised’

• Says PM and Mitchell ‘striking fear into Freeport’s heart’

• Calls on Gov’t to ‘come public’ with amount GBPA owes

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A PROMINENT Freeport attorney yesterday accused the Government of employing “a ruse” and “deception” by seeking to “nationalise” the Grand Bahama Port Authority (GBPA) under the guise of Bahamianisation.

Kirk Antoni, the Cafferata & Company partner, emphasising to Tribune Business that these were his personal views, argued the Prime Minister and Fred Mitchell, minister of foreign affairs, are “striking fear into the heart of Freeport” by threatening to launch arbitration proceedings against its quasi-governmental authority over monies allegedly owed to the Government.

And, while Mr Mitchell described one of the Government’s goals as being to “fully Bahamianise the city”, he suggested this was merely cover for the state to take “ownership and control” of Freeport given that the majority of the GBPA’s 3,000-3,500 licensees - as well as its current owners - are Bahamians.

Mr Antoni, who is among those leading efforts to organise the licensees in a bid to safeguard their rights amid the Government’s battle with the GBPA, told this newspaper that should the former succeed it would likely “put their cronies in Place at the Port and give them all the contracts” at the expense of existing Freeport businesses and residents - a move he suggested would “signal the death” of the city.

Describing himself as a “61-year resident who has his life’s worth invested in the city”, he said it appeared as if the Government has “abandoned their threat to take over” the GBPA and the assets held through its affiliate, Port Group Ltd, in favour of initiating arbitration action over monies allegedly owed for the provision of public services in Freeport.

However, he told Tribune Business: “My personal feeling is this stance is a ruse, a deception. What this current government wants to do is nationalise, not Bahamianise, Freeport by taking state ownership and control.

“Then they want to put their cronies in place at the Port and give them all the contracts to develop Freeport to the detriment of us Free- porters who have invested our life’s worth in the city. If they succeed it will signal the death of Freeport and The Bahamas by extension.

“They talk about ‘Bahamianising’ the GBPA, but the owners are already Bahamian. The Haywards have been in The Bahamas since the mid-1950s and the vast majority of all licensees are Bahamian” apart from the likes of the major industrials and other large investors

Mr Antoni’s comments hint at the fears some licensees and Port area residents harbour over the Government’s motivations for attacking the GBPA, rather than working to resolve the two sides’ differences and move the city forward constructively, while also seeking the exit of its principals, the Hayward and St George families, by either buying them out itself or finding private investors to do the job.

Mr Mitchell earlier this week said the Government has now “withdrawn” its offer to acquire the GBPA and its affiliated assets, but it is unclear whether it has totally abandoned these ambitions in favour of launching arbitration proceedings to gain a multi-million reimbursement for the Public Treasury.

While some sources suggested the Government has “capitulated”, it is more likely that the arbitration move will be used to exert pressure on the GBPA’s two shareholder families to sell and exit at a potentially lower price than otherwise might have been obtained.

Mr Antoni agreed, saying: “They’re [the Government] trying to lower the price, leverage themselves, so someone can come in and buy out the families. I can’t speak for the families, but I think the St George family wants out but the Hayward family wants to stay.”

Tribune Business revealed in late November 2023 that the Government planned to use its financial claims against the GBPA as leverage to squeeze the families if it was unable to achieve a smooth sale. The Davis administration had 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.

This newspaper said then that the dispute may be put into arbitration if the two sides are unable to resolve their differences, with the Government believing that the Hayward and St George families will be unable to pay what is allegedly owed if proceedings go in their favour, thus giving it leverage to potentially force a sale on favourable terms.

Mr Antoni, though, voiced scepticism over the merits of the Government’s compensation claim and challenged it to publicly reveal the details including the total amount purportedly owed by the GBPA. Asserting that he had checked with all previous ministers of finance, he added: “This is the first invoice ever produced by the Government.

“I’ve seen where even the honourable prime minister says they’re putting together the invoice. I would urge the Government to come public with those details.” The Cafferata & Co partner also branded Mr Mitchell’s assertion that the Government has been “carrying” Freeport financially for years as “a lot of rubbish”.

Referring to the 9 percent decline in Freeport and Grand Bahama’s economic output, as cited by the Prime Minister in the 2023-2024 Budget debate, Mr Antoni said this was attributable to multiple factors including hurricanes such as Dorian, Matthew, Irma, Frances and Jeanne; the fall-out from the COVID pandemic “and, just as important, the lack of timely government approvals for investment in Freeport”.

“Now, what Mr Mitchell and Mr Davis are doing is striking fear into the heart of Freeport instead of creating avenues to expedite foreign direct investment to the island,” he added. “What is the strategy with Grand Bahama International Airport, which is under government control? What is the strategy with the Grand Lucayan, which is under government control?

“It’s very easy to say they’re coming, but Christmas is coming, too. Which is coming first? My feeling is that until the Government comes clean with the people, Freeport will not take them seriously. All these announced investment projects are geared towards 2026, and we know what is happening in 2026 [a likely general election].”

Mr Antoni also voiced concern that insufficient Bahamians are equipped with the necessary skills to benefit from projects such as Grand Bahama Shipyard’s $600m investment, suggest- ing that development will require an expatriate work- force several hundred strong.

“There’s about $1.75bn of investments in the pipeline, but the Government needs

to get out of the way and let Freeport develop,” he added. “They’ve got their fingers in everything. We don’t need a $200m airport; we need a $30m-$40m airport, get pre- clearance back and have planes coming in and out.

“If what I have been told is true about how Manchester Airport Group has been treated it would the hairs on the back of your neck stand on end.” Manchester Air- port Group is the UK-based operator for the consortium that won the bid to redevelop Grand Bahama International Airport, and other sources yesterday questioned how it has been treated by the Government although no details were provided.

However, Mr Antoni hinted at the dilemma facing those who oppose the Government’s attempted GBPA and Freeport takeover by acknowledging that “the management has not performed” at Freeport’s quasi-governmental authority. “We need world-class management and investors in Freeport,” he added.

Many observers believe that, in recent decades, the GBPA has failed to live up to its governance and development responsibilities as mandated by the Hawksbill Creek Agreement, Freeport’s founding treaty, or attract sufficient high-quality investors to grow its economy. While they believe reform, including a change in ownership, is needed they just do not want the Government involved.

The opposite view, though, is that a privately-run and governed area has no place in a modern Bahamas and is now past its sell-by date. They believe that the only way for Freeport to enjoy growth similar to the rest of The Bahamas is for it to be reintegrated with the rest of the country by the Government regaining the governance and regulatory authority.