By SANCHESKA BROWN
Tribune Staff Reporter
sbrown@tribunemedia.net
THE bitter war of words between Baha Mar and its general contractor continued yesterday with resort executives calling China Construction America’s (CCA) offer to invest $100 million in the stalled project a “sham”.
With the parties no closer to a deal, the resort said CCA’s offer was a panicked and defensive bid that distorted an early position in negotiations.
The resort released a statement which said: “CCA should be concerned. No matter how CCA tries to spin it and no matter how often it tries to deflect from its lack of responsibility, it cannot cover up the sad pattern of its failing to perform properly at Baha Mar and other important projects in the Bahamas as well.”
The resort insisted that the contractor was “unco-operative in working toward a consensual resolution”.
In Beijing, negotiations have reportedly got off to a rocky start with the resort refusing to meet with all parties on Sunday until it receives a counter-offer to the proposal put forward by CCA.
In a message seen by The Tribune, resort president Tom Dunlap wrote to stakeholders: “We are increasingly disturbed by a course of conduct during the last two weeks of mediations and negotiations; conduct which rewards CSCEC[China State Construction and Engineering Corporation] and CCA for its inflexibility while disregarding Baha Mar’s efforts and concessions through these negotiations.
“Moreover, there have been complaints that Baha Mar has been represented in the varied negotiations by persons with little to no “executive authority” while each of its President and President of Asia-Pacific have been negotiating around the clock for three weeks in China while, conversely, CCA/CSCEC have been often represented only by personnel from CSCEC who serially insist varied “Board-level approvals” are required regarding any further concessions.
Mr Dunlap added: “Put differently, Baha Mar is being characterised as the recalcitrant party whilst the facts reflect otherwise, and we are no longer minded to participate in such an unbalanced, unfair process absent greater respect shown the developer.”
On Sunday night, CCA Bahamas Ltd said they offered to invest an additional $100m in Baha Mar Ltd with a guarantee of $175m to the China Export Import Bank (China Exim Bank) in connection with China Exim’s Bank’s new $200m loan facilty.
CCA, the resort’s general contractor, also said the resort can be completed and opened in time for the winter season if a swift resolution to the current impasse is reached.
CCA’s offer comes on the heels of Baha Mar developer Sarkis Izmirlian’s proposal to the Export Import Bank of China, to cut CCA out of negotiations and use Bahamian contractors to complete the $3.5 billion project.
The resort’s press statement yesterday read: “It is interesting that when a very viable proposal is put forward by Baha Mar Ltd. to the Export-Import Bank of China - a proposal which provides for a significant equity infusion by the Izmirlian family to complete and open Baha Mar and would utilize Bahamian contractors and a Bahamian workforce to properly finish the work at Baha Mar that CCA failed to do - CCA issues a highly defensive and apparently panicky press release.”
“CCA failed to complete Baha Mar repeatedly on the timetables it set, its work has been called into question, it walked off the job, its failure to perform caused Baha Mar to have to seek Chapter 11 protection, and it has been uncooperative in working toward a consensual resolution.”
Baha Mar’s proposal to EXIM Bank president Liu Liange was sent on Thursday, a day before the government’s announcement that Attorney General Allyson Maynard Gibson would lead a delegation back to Beijing to resume negotiations between all three parties.
In the letter sent to the China Import Export Bank, Mr Izmirlian accused CCA of holding the resort “hostage” and insisted that the only way to successfully complete the project was to end discussions with the general contractor and enter into a 50-50 agreement with the bank to fund the $400m needed to finish construction and open the resort.
Last week, CCA warned that it had a “firm, binding contract” to serve as the construction manager/general contractor for the project, adding that it was a conditional term of the $2.5 billion senior bond issued by China EXIM Bank that could not be declared void by any of the parties.
Mr Izmirlian rejected CCA’s claim that it cannot be removed from the project, pointing to provisions that allow the resort to hire replacement contractors to perform the work it “fails or neglects” – and bill them for the costs.
This is the second time the delegation will join representatives of Baha Mar, China Construction and China Export Import Bank in Beijing.
Following the earlier visit, Mrs Maynard-Gibson filed a winding-up petition in the Supreme Court after those negotiations reached a stalemate.
Prime Minister Perry Christie has said that the government will continue with its petition to restructure the project under the authority of a provisional liquidator and the supervision of the Supreme Court, if no agreement is met in China.
Baha Mar, the government, CCA and China Export-Import Bank will be back in the Supreme Court for a hearing on the petition on Friday.
Comments
TalRussell 8 years, 9 months ago
PM, why waste your AG's time to deal with izmilarlin, excepting to have the AG file to put an end this affront upon the nation's elected government.
banker 8 years, 9 months ago
Because there is civilised rule of law elsewhere, but not in Christie's corrupt government.
asiseeit 8 years, 9 months ago
The government of The Bahamas is the affront to the Nation. They have been destroying our nation for the last 3 years, enough!
banker 8 years, 9 months ago
Just to re-iterate a previous posting that I made.
Listening to the Obama speech in Africa today. It sounded like he was talking to the Bahamas. Here are some quotes:
Obama actually called out China --
and that is a lesson that Christie doesn't understand, or any of those corrupt PLP for that matter.
Christie's government is rife with corruption, from Gray, Shame, to Allyson -- chock a block full
It was the PLP who campaigned against the equality referendum years ago, and they have done nothing after 3 years in power again.
ThisIsOurs 8 years, 9 months ago
Interesting. I wonder if the FBI has reported to him already
Well_mudda_take_sic 8 years, 9 months ago
Re-posted from an earlier related article: The DOJ with the help of the FBI and NSA are likely investigating highly confidential assertions made by a whistle-blower and backed by evidence that CCA should be charged with criminal wrong doing under the Foreign Corrupt Practices Act. The following summary of this particular Act is posted on the DOJ website: "The Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. §§ 78dd-1, et seq. ("FCPA"), was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. Specifically, the anti-bribery provisions of the FCPA prohibit the willful use of the mails or any means of instrumentality of interstate commerce corruptly in furtherance of any offer, payment, promise to pay, or authorization of the payment of money or anything of value to any person, while knowing that all or a portion of such money or thing of value will be offered, given or promised, directly or indirectly, to a foreign official to influence the foreign official in his or her official capacity, induce the foreign official to do or omit to do an act in violation of his or her lawful duty, or to secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person."
Reality_Check 8 years, 9 months ago
WHOA!! This would explain a lot of things and be a real game changer! Ever since the Chapter 11 bankruptcy protection filing by Baha Mar, many of us have been scratching our heads wondering why on earth has the Christie-led PLP government been so eager to blindly align itself with the interests of CCA in the ongoing dispute....to the extent of initiating actions clearly detrimental to the resolution of the dispute and possibly fatal to the completion of the project. Ruffin's recent appearance on the scene is akin to a big vulture having been invited by his former attorney (Christie) to feast on what Christie believes will become a feeding frenzy on a juicy carcass as a result of the harmful actions taken by the Bahamian government against the interests of Baha Mar and the Izmirlian family. And just think for a moment, Edward Snowden has already released irrefutable evidence that the U.S. government (NSA) has a record of every voice and email communication that was ever transmitted to or from any party in or outside of the Bahamas and every party within the Bahamas during the past decade.
TalRussell 8 years, 9 months ago
Comrade Reality-Check, your posts reek of not 'caring' to know what is true. May I suggest you rush out buy yourself a bigger red shovel, cuz there's danger present of all that dirt falling back into hole and covering you up. Just you remember, it's much easier shovel out of a hole, if its not covered with bullshit.
Well_mudda_take_sic 8 years, 9 months ago
You must be unaware of the DOJ's recent targeting and round up of corrupt FIFA/CONCACAF officials that occurred recently in Europe and the Caribbean thanks in large part to info gathered by the FBI and NSA. I'm sure Jeffrey Webb and others like him did not think their phone calls and emails were being monitored either, but low and behold!
TalRussell 8 years, 9 months ago
Comrade, stop talking crazy - and what role does the PM Bahamaland. have play in any of this?
Reality_Check 8 years, 9 months ago
The boogeyman is coming for you Tal.....make sure you learn to sleep with one eye open and never sleep in the same place twice ;-) BOO!
TalRussell 8 years, 9 months ago
Comrade Reality-Check, ha, ha. I thinks you're confusing me with Freeport's 'Mr.Ten Percent' under Pindling, well known far and wide for his many kickbacks. I am told that politician ended up sleeping (hiding out) for while at a friends funeral home. Like I keep saying, i don't make this stuff up, I just ain't afraid talk it.
banker 8 years, 9 months ago
I once went a fancy charity function at the British Colonial Hilton. I wandered around and introduced myself as I am wont to do. I saw this gentleman, obviously and American, standing alone, so I went up and introduced myself. After the initial pleasantries, we really hit it off. He asked me what I did for a living and I told him that I was a banker. He told me that he was bureau chief for the FBI at the American embassy. I gave him one of my business cards. He took it and pull out his wallet and inserted it in an inner compartment. I looked at him in askance, and he said "I'm keeping this. I might have to serve you with a subpoena one of these days". All this to say, is that what goes on here is not unnoticed.
TalRussell 8 years, 9 months ago
You see Comrade Banker, they can collect info on anyone. Now you knows you're inside FBI's data base people keeps they's eyes on, for life. Why i don't print business cards.
Stapedius 8 years, 9 months ago
Loose lips sink ships. Both of these parties just keep running on and on. It's one thing to blame our government but it appears as though critics lay none of the responsibility of the contractor or developer. They are both f#$@in stupid. Constantly in the media running on with nonsense. Just shut up get in the conference room and solve the problems. These are the same people who say they wanted to keep things out of the media. Yet they are responding to everything. Again, just keep your traps shut and deal with the issue.
ThisIsOurs 8 years, 9 months ago
It should be "easy" for a structural engineer to check the quality of the work vs what was paid for...they were nice enough to leave all the evidence..
TalRussell 8 years, 9 months ago
Comrade ThisIsOurs, where were you and all the other reds, when I was asking this exact question as far back as 2013? Seems there may have never been structural or any other inspectors on site, or they failed, or were unwilling to do their jobs?
Stapedius 8 years, 9 months ago
@This Ours. You know what gets me is that people have been laying the blame on CCA which I believe in large part is warranted. They are the general contractors so it is to be expected. But many have been talking about western standards etc. But as I recall there were several US and British engineering firms who were consultants and actively onsite during the building of this project. So all this time these folks didn't sound the alarm? I mean these were huge international firms like Mace out of the UK. So it isn't just CCA. All of these suckers came to Nassau to live well for a few years. They drove around in company cars, rented nice villas on the cable beach strip and were living the good life. When shit started to hit the fan they were gone.
banker 8 years, 9 months ago
Easy money!
ThisIsOurs 8 years, 9 months ago
Yep, all three sides failed on this one. And they're all now playing the same public relations game to absolve themselves.
But I do put a greater percentage of the blame on the government. The other two sides were acting in their own interest so they could be as selfish and as crooked as they liked. The government on the other hand is/was being paid to look out for us and they simply didn't ... They brought the people here, and they let them do whatever they wanted.
PKMShack 8 years, 9 months ago
Guess HAI was right when he said open this hotel in phases like Atlantis did. Papa was right again.
TalRussell 8 years, 9 months ago
Comrade Izmirlian is now saying that he wants everything completed, before going ahead with the opening of Baha Mar. yet, previously Bah Mar had issued a 2014/15 statement that read; - "As customary of a resort this size, we will open each resort element when it’s ready to deliver on that promise,” the statement continued. “Baha Mar will be a 'paced opening.' We will be holding preview days for all of the hotels during April, and we expect all of our hotels to be opened by our grand opening festivities in May." - I have ask, why can't a Baha Mar 97% completed - not have its announced 'paced opening?' Do you any idea, how much money is 97% of a 3.5 BILLION Dollar project? It's way more than enough to have started earning cash flow, from live bodies, beds and gamblers.
sheeprunner12 8 years, 9 months ago
Agreed ..................... open the hotels for business one at a time ..... and then have your big party for the opening of the final hotel ...... this whole situation smells rather stink
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