The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Grand Bahama Port Authority (GBPA) yesterday praised the Prime Minister for soothing the fears of multiple licensees and investors "alarmed by recent unsettling commentary" from Fred Mitchell.

Freeport's quasi-governmental authority, in a statement responding to Tribune Business inquiries, did not name the "members of the Davis administration" who it was referring to but there can be little doubt it was the minister of foreign affairs since he has been its most vociferous public critic.

Picking up on Philip Davis KC's assertion that he has "no disputes" with the GBPA and its shareholders, despite recent reports that his administration intends to launch arbitration proceedings over monies the Authority allegedly owes to cover the costs of providing public services in Freeport, the statement agreed that "all hands will be needed on deck" to maximise the city's potential.

Calling for collaboration, rather than arbitration, the GBPA conceded Freeport's situation remains "delicate" despite the $1.7bn worth of investments said to be in "the pipeline" as it urged the Davis administration to heed calls for both sides to co-operate for the city's greater good and unlock "the spirit of true partnership".

Seemingly offering an olive branch following Mr Davis's comments at last week's Bahamas Business Outlook conference, where he said "I have no disputes with them" when asked about relations with the GBPA, the Authority said: "We welcome Prime Minister Philip Davis KC’s confirmation that he has no dispute with the Grand Bahama Port Authority.

"His comments will help ease the concerns of residents, licensees and investors, many of whom have become alarmed by recent unsettling commentary from members of Mr Davis’ administration in the public domain."

The GBPA statement likely did not name Mr Mitchell because it is keen to avoid prolonging any public row with him or the Government. However, there can be no doubt who it is referring to, with Mr Mitchell in recent publicly-disseminated social media voice notes continuing to attack the GBPA over whether it has fulfilled its mandated governance and development responsibilities for Freeport.

In particular, he challenged the GBPA and its shareholders, the Hayward and St George families, to confirm whether they received $60m from selling land to Carnival for its Celebration Key cruise port and, if they did, whether these proceeds were used to reinvest in Freeport's development.

Well-placed sources confirmed to this newspaper that, while the land in question was sold by GBPA's affiliate, Port Group Ltd, the $60m figure far exceeded the actual sales price received which was said to be between one-quarter and one-third of that sum at most. And it was also suggested that the monies were invested in Freeport's infrastructure upkeep such as bridge and road repairs.

Mr Mitchell, though, also took the opportunity to blast Michael Pintard, the Opposition's leader, from coming to the GBPA's defence. "I've been advised that Michael Pintard, leader of the Opposition, is still running interference for the GBPA," he slammed in one voice note.

"The FNM keeps running the line that the Government and the Port should be talking about the future of Grand Bahama, and that the issues between the Port and the Government are causing a loss of investor confidence. This is simply false. What has caused a loss of confidence, if there is indeed a loss of confidence, is the inability or unwillingness of the GBPA to fulfill its mandate under the Hawksbill Creek Agreement they signed in 1955.

"Instead of promoting the city, there has been a steady retreat by them. The most obvious - abandoning the airport and abandoning the Grand Lucayan." While the GBPA and its owners did indeed walk away from the airport, transferring it to the Government for $1 and paying the workforce's severance, the quasi-governmental authority and its shareholders have never owned the hotel.

Then, alluding to uncorroborated suggestions that the GBPA received $60m from selling the land now used by Carnival for its cruise port, Mr Mitchell challenged them to "say whether this is true and, if it is true, how much was reinvested in the city and how much was paid to themselves as dividends".

Returning to Mr Pintard, the foreign affairs minister added: "The leader of the Opposition should stop trying to protect these people and their gross dereliction of duty, and get the GBPA to fulfill its obligations or get out of the way and let those that can do so."

Mr Mitchell resumed his attack on Mr Pintard and the GBPA in a subsequent voice note as he sought to "debunk" the Opposition leader's concerns that the Government was using the planned arbitration move as leverage, and a squeeze play, to accomplish a "hostile takeover" of Freeport's quasi-governmental regulator.

"Michael Pintard clearly does not understand what a hostile takeover is," the Cabinet minister said. "The Bahamas government does not use nationalisation as an instrument of public policy. We are really sort of shocked as to why the leader of the Opposition keeps choosing to come to the rescue of the GBPA, running interference.

"We both agree, FNM and PLP, that what pertains now in Freeport is unacceptable but Michael Pintard would have us do nothing." Mr Mitchell then laid out a conspiracy theory involving the FNM and GBPA, and alleged that the latter was preventing small contractors from doing work for the Government in Freeport because it was demanding outstanding licence fees be paid.

"How does this help Freeport?" asked Mr Mitchell. "It hurts Freeport, and it is inconsistent with the role of promoter of the city. That's the problem." He reiterated that the Government is not abandoning its demands for compensation from the GBPA to cover the cost of providing public services in Freeport over and above tax revenues generated by the city, and insisted again this was not "a hostile takeover".

The GBPA, though, in yesterday's statement urged Mr Mitchell and the Government to embrace the approach called for by his former Cabinet colleague, Leslie Miller, who said he believes the Government must work “hand-in- hand” with the Authority in a “harmonious relationship” for the benefit of the Bahamian people.

"It has always been our view that close co-operation between Government and the Port Authority, in the spirit of true partnership, is vital to boosting investor confidence and unlocking the island’s tremendous potential," the GBPA said.

"Grand Bahama’s economy and community have suffered tremendously over the past two decades – from the impact of Hurricanes Frances, Jeanne and Matthew, to the utter devastation wrought by Hurricane Dorian and economic crisis of the pandemic, which came hard on its heels.

"Thankfully, and through the hard work of many stakeholders, today we are seeing the beginnings of a turnaround with more than $1.7bn of new investment in the pipeline. The situation remains delicate, however, and all hands will be needed on deck if we are to realise the brightest possible future for Freeport and Grand Bahama."

The GBPA continued: "The Government and the Port Authority absolutely must operate 'in tandem' – to use another of Mr Miller’s phrases – if we are to unlock the amazing possibilities lying dormant in the nation’s second city.

"The Port Authority shares Prime Minister Davis’ commitment to getting Grand Bahama 'on the right track'. We look forward to working closely with his administration in the best interests of the people of Grand Bahama.

"The intention, the desire and the will of all those responsible for GBPA is the same as that of Government – to fulfill the huge and undeniable potential of our island. As we have said before, our door is always open."

Mr Mitchell previously said the Government has withdrawn its offer to acquire the GBPA and its affiliates in favour of launching arbitration action in a bid to claim what has been suggested as $150m allegedly owed to the Public Treasury in Freeport.

However, it remains unclear as to what is the Government’s ultimate goal and end game. While arbitration could be designed to squeeze the two families, and force them to sell to the Government on more favourable terms given the latter’s belief they would be unable to pay the $150m if a decision goes against them, such proceedings will take years to resolve especially if there is an appeals process.

Some sources are already questioning if arbitration is a face-saving move by the Government, and a signal that it no longer has a private sector buyer waiting in the background to acquire Port Group Ltd’s assets such as the 50 percent equity stakes in Freeport Harbour Company and Grand Bahama Development Company (DevCO).