The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

An ex-Baha Mar director said yesterday accused the Christie administration of being “too prideful’ to admit its ‘tactical error’ in backing Baha Mar’s liquidation, arguing that the Government is effectively being held hostage for better terms and concessions.

“There is no doubt in my mind that the Government made a tactical error in taking the decision that they have. They have come to find out that the Chinese are more interested in the Chinese than The Bahamas. The reason why the project can’t get started is because the Chinese are constantly negotiating better terms and conditions from the Government. Now that they have sucked them into supporting them in the Chapter 11 process, the government has no choice but to deal with them and they are holding the Government hostage by demanding more concessions. That is why the project isn’t moving. The can go on and on about how something is imminent but you want see anything happening there because the Chinese don’t give a damn.”

Mr D’Aguilar’s comments come on the heels of Economic Impact Report (EIR) which revealed that the government has lost $315m in tax revenue from the beleaguered Baha Mar resort due its opening delays and the court appointed receivership process. Of this figure, the government has lost an estimated $25m in stamp conveyance at a rate of 10 per cent; more than $30m in casino taxes on winnings; $16m in business license fees; $33m in National Insurance Board contributions; $13m in departure tax; $114m in import duty and $81m in occupancy tax/value added tax, among other losses. The report also estimates that $451m in wages and salaries for direct and indirect workers has been lost, as well as a $48m loss in government utility payments and a gross domestic product (GDP) loss of $1.9bn.

D’Aguilar said:”They will live by these consequences. It was a tactical error and the Bahamian people are suffering as a result of that decision. They just need to acknowledge that they made a mistake and let’s try and make it right but they are so prideful. Now they’re stuck dealing with the Chinese and the Chinese don’t care about Bahamians or The Bahamas. They will wait the government out until they get what they want. That is why you will never hear what the agreement is. They know that when that gets out that it’s going to be embarrassing for them.”