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Bahamian Politics Last Updated: Feb 13, 2017 - 1:45:37 AM


DNA Leader: Baha Mar’s new chapter
By Branville McCartney, DNA Leader
Jun 30, 2015 - 2:45:04 AM

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After three separate delays, public wrangling with the lead contractor and a rumor mill, which has spawned weeks of media and public speculation and uncertainty, the future of the 3.5 billion dollar Baha Mar property has been revealed. The highly touted developed tapped by this Christie administration as the savior of the country’s economy has found itself floundering amid rough economic seas of its own as hotel developer Sarkis Izmirlian announced plans to file for voluntary bankruptcy.

According to published reports, the company’s board of directors has determined that the Chapter 11 filing is the best path to provide the company with a viable capital structure to complete the project citing the financial consequences of the repeated delays by the general contractor, and the resulting loss of revenue as major factors in that decision.

The announcement though disturbing confirms the many rumors about the projects viability and further exposes the Christie cabinet as fundamentally dishonest. Following the initial delays PM Perry Christie, the country’s chief executive officer dismissed concerns about the reported financial troubles facing the property and instead continued to publicly tout the economic impact that the property would eventually have on the country. His confidence in the property’s viability would later turn to outright ignorance about the future of development. Then according to Mr. Christie he received what he said was encouraging news about the development even going so far as to suspend the budget debate. Could this have been the news Mr. Christie seemed so jubilant about?

The Democratic National Alliance finds it difficult to believe that the PM, who by his own admission has been intimately involved in the property’s ongoing development, was not also intimately aware of the financial troubles that now beset the company. That said, his decision not to honestly communicate those facts to the public is both callous and insensitive.

Even as employees of the company – many of them skilled workers – were reassigned to do menial tasks such as cleanups at the property and later in various communities with Urban renewal, the PM remained silent. Even as the lives of those workers remained unsettled the PM as well as the Minister of Tourism Obie Wilchcombe continued to sidestep questions about the project rather than come clean with the public about the severity of the challenges facing the company. Doing so would have allowed the two thousand employees – many of whom left full time positions elsewhere – to make an informed decision about continuing to wait it out as a member of the BAHANATION or to search for other employment opportunities.

Over the next 30 days the hotel’s developers will make application to the local Supreme Court to have its Chapter 11 undertaking approved. Commendably, the company is reportedly making arrangements to ensure that its primary financial obligation: PAYROLL – to the tune of some 30 million dollars over the next month – is met.

While Baha Mar’s Chapter 11 filing has serious direct implications for its employees, it will also have far-reaching and long-term economic implications for this government’s plans for projected economic growth. The DNA has long advised against putting all of the country’s hopes of economic growth in the hands of any one foreign direct investment.

As it did with the botched Ginn Development in West Grand Bahama, this Christie led government based its entire job creation strategy on the developer’s ability to open this resort. After putting all of its proverbial eggs in one basket the government was then confronted with the decision to COME CLEAN about its missteps or LIE: in true PLP fashion, this administration chose the latter. Now as a result, the Bahamas is primed to face the economic backlash from international ratings agencies such as the IMF, Moody’s, and Standard and Poor’s who have all undoubtedly been closely monitoring the Baha Mar situation and by extension the country’s economic standing as well.

While no one could have foreseen or foreshadowed the challenges that led to these current circumstances, the failure of the property to open within its specified time frame has caused significant embarrassment to the entire nation. Moving forward all involved parties must do the honorable thing and present all of the relevant facts to the public. Bahamians must no longer be kept in the dark on matters of national importance; instead this administration must work towards an honest and collaborative relationship with the property’s developer and encourage transparent and open dialogue now and into the future.

Branville McCartney

DNA Leader



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