The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Jubilant property owners at Exuma’s controversy-plagued Oceania Heights project are celebrating “a new beginning” after the Government this weekend revoked the residency status of its original developer.

Chris Fleming, head of Oceania’s Homeowners Association, told Tribune Business that the Christie administration had “lifted a large weight” obstructing development progress at the property by placing Canadian Howard Obront on the Immigration ‘stop list’.

He explained that the uncertainty stemming from Mr Obront’s continued presence in the Bahamas had blocked any forward movement towards completing Oceania’s unfinished real estate development.

Fears of an Obront-initiated lawsuit had deterred potential buyers of the community’s unsold lots, Mr Fleming added, depriving the Homeowners Association of an estimated $3 million in sales revenue that could have financed upgrades and infrastructure/amenities build-out.

Mr Fleming was backed by Pedro Rolle, the Exuma Chamber of Commerce’s president, who told Tribune Business that investors in the Bahamas would gain further comfort from knowing the Government would protect them against wrongdoing.

He added that the Oceania’s Homeowners Association had now been “given the impetus to go full steam ahead” and make the improvements that are required.

The Government, in a move that is rarely taken, let alone publicly announced, confirmed over the weekend that it had revoked the permanent residency status of both Mr Obront and his wife, Donna.

In a short statement, the Department of Immigration said: “The Permanent Resident status of Howard Joseph Obront, of Oceania Heights Ltd at Exuma, the Bahamas, and endorsement of his wife, Donna Susan Obront, has been revoked in accordance with section 18 of the Immigration Act.

“Mr Obront has a short time to wind up his affairs in the Bahamas and is to be placed on the ‘stop list’.”

Mr Fleming, who has led the homeowners’ battle against Mr Obront and his fellow developer, Bahamian attorney Anthony Thompson, told Tribune Business that the Government’s action had “vindicated” homeowner complaints about how they and their investments had been treated.

“I never thought we’d see this day come, but we persevered,” Mr Fleming said. “We were delighted when we received this news.

“We’re on the road to having this sorted out. I really think it will help the community of Exuma, move this process forward and, hopefully, put more Bahamians back to work.”

Mr Fleming told this newspaper in late December 2015 how progress in resolving the numerous issues created by the original developer had been “completely stopped” as a result of Mr Obront’s continued presence in the Bahamas.

He added then that the Homeowners Association was unable to finance even the proposed 10-foot easement, and said: “I can’t pay for it because we can’t sell property.

“Realtors in Exuma are saying: ‘Stay away from it [Oceania Heights]. They are telling people: ‘Obront will come back and sue, and you are buying a lawsuit’.”

The Government’s weekend announcement, effectively kicking the Obronts out of the Bahamas, thus removes the major impediment to realising Oceania’s vision as an upscale real estate development.

“Because now it is clear that the Obronts are no longer involved in any way, shape or form at Oceania Heights, this will allow us to go out and market the property,” Mr Fleming explained, “and work with one of the local developers to help give us access to the Queen’s Highway and the beach, via a 10-foot wide easement.

“It’s a large weight lifted, and a new beginning. Justice never happens as swiftly as people like, but in this case justice has been served and we believe we have been vindicated.

“There were some people who doubted us, and didn’t believe the story we were telling, but after it was fully investigated and the action taken by the Government removes the Obronts from the Bahamas, we feel vindicated.”

The Obronts’ residency revocation follows a six-year saga that began in 2010, when Tribune Business exclusively exposed the Oceania Heights debacle, and the potentially devastating consequences for the Bahamas’ - and Exuma’s - reputation as a safe and attractive destination for investment.

Tribune Business previously revealed how numerous Oceania homeowners were unable to obtain title/conveyancing documents to the properties they bought from Messrs Obront and Thompson, meaning they did not have secure and proper title to their investments.

But, to add insult to injury, the Government has been billing many Oceania ‘[purchasers’ for up to 10 years’ back taxes, even though they do not possess secure title to their property.

This newspaper also exposed how the same lot was sold to different buyers on more than one occasion; the hotel and other amenities promised to homeowners were never constructed; and that Mr Thompson failed to disclose he was also a beneficial owner of Oceania Heights when acting for the buyers in their purchases.

The problems seemed to stem from how Oceania’s original developers structured the project as a giant ‘tax avoidance’ scheme, with conveyances never submitted to the Treasury for Stamping and recording.

Apart from the loss of Stamp Duty, the project was also held in Mr Thompson’s name. With Bahamian-owned property in the Family Islands exempt from real property tax, this meant a second tax was also ‘avoided’.

While some may have viewed the Oceania situation as solely involving foreigners, the evidence accumulated by Tribune Business shows it was also a ‘rip off’ of the Bahamian taxpayer and Public Treasury.

Tribune Business previously revealed a letter from Mr Thompson in which he admitted to using $400,000 in funds received from Oceania clients - intended to pay Stamp Duty due on lot purchases at the Exuma-based development - to pay the project’s expenses instead.

Messrs Obront and Thompson have vehemently denied all the allegations against them.

However, Canada, and particularly its High Commissioner for Jamaica and the Bahamas, began pressuring at the diplomatic level for the Oceania mess to be resolved, given that many of its citizens were impacted.

Deputy Prime Minister Philip Davis intervened personally and, after discussions with all parties, secured a ‘solution’ where control and ownership of Oceania Heights was transferred from the original developers to the Homeowners Association.

However, Mr Obront was never a party or signatory to this deal, creating the grounds for several more years of frustration until the weekend’s announcement.

Mr Fleming told Tribune Business that the delays, and lack of progress, had seen around 50 - or about half - of Oceania’s existing purchasers walk away and abandon their investments. Another 17, out of 124 total lots, have never been sold.

“We know how hard this has been,” Mr Fleming said of the Obront residency revocation, “and how important it was for the Government to ensure everyone was given due process.

“It takes time, but it was done the right way by making sure all parties had a voice in the process, and the decision reached in our opinion is a correct one.”

Mr Fleming praised both Mr Davis and Fred Mitchell, minister of foreign affairs and immigration, plus the Royal Bahamas Police Force, for their help.

The Chamber’s Mr Rolle, meanwhile, said the ‘residency revocation’ had been pending “for some time”.

He told Tribune Business: “It is encouraging for those who have invested at Oceania because it gives them some confidence.

“It makes them feel good that they can take a look at their investment, improve it and do something with it. They were of the view that if this action was not taken, the Obronts would have the ability to come and interfere.

“It gives them some level of assurance they can move forward with confidence. It was good news, and well-received by all concerned.”

Mr Rolle said the Oceania situation had been a discussion topic “for a long time” among Exumians and residents, with even those not directly impacted by it raising multiple questions.

“Now we can say something positive,” he added.”I don’t see no negatives at all. I don’t know what the next step [at Oceania] is, but for now things are positive and we will move forward.

“It’s been going on for so long, and is surreal in some respects. It gives us a bit of impetus to go full steam ahead and improve this [Oceania] community. It does have potential.”

Mr Rolle said that while some might dismiss the Obront residency status revocation as a minor affair, it had much wider significance.

“From an investor point of view, it demonstrates that the Government is not ignoring someone who comes in and abuses this nation’s trust,” he told Tribune Business.

“It gives investors the confidence that if they are wronged in any way, action will be taken to correct it.”