The Tribune

On June 23 - a week after Fort Charlotte MP Dr Andre Rollins launched a blistering attack in the House on government’s handling of the $3.5 billion Baha Mar resort, accusing the Chinese bank and construction company of “deceiving” Bahamians over the stalled development to protect their own financial interests - PLP national chairman Bradley Roberts decided to dip his own oar into the cauldron of discord.

Firstly, Mr Roberts made it clear that the developer, Sarkis Izmirlian, who had invested almost $1 billion in the Baha Mar project, had “decided not to participate in the bidding process” to repossess the property. Mr Roberts pointed out that Mr Izmirlian’s “chapter in the life of Baha Mar has come to an end.”.

Sarkis Izmirlian was the young deveoper who, in 2005, had formed his company and purchased three aging hotels on Cable Beach, from US investor Phil Ruffin, at the instigation of Prime Minister Christie, who, when in private practice, was Ruffin’s lawyer.

However, Mr Roberts in his June 23 press release did not suggest any reason for Mr Izmirlian’s apparent lack of interest in trying to save a $3.5 billion enterprise in which he had already invested almost a billion dollars.

In May, Mr Izmirlian wrote to the receivers, Deloitte & Touche, just as the deadline had expired for all bids to be in that it made “no sense” for him to enter the process. He accused the receivers of playing “rope a dope” with him. He criticised the sales process as being “opaque” and “surreptitious”, which could undermine his “legal rights” and that of his bid vehicle, BMD Holdings. Mr Izmirlian and BMD Holdings said they were sticking by their existing offer, first made in January, direct to China Export-Import Bank, Baha Mar’s secured creditor.

If accepted, Mr Izmirlian and BMD Holdings would have made both China Export-Import Bank, Baha Mar’s secured creditor, and its unsecured Bahamian creditors, “whole”. Mr Izmirlian accused the receivers, Deloitte & Touche (Bahamas), managing partner Raymond Winder and his two Hong Kong-based counterparts, of refusing to even entertain his offer. Mr Izmirlian’s offer was made directly to the Chinese Bank, his former partner.

There was much truth in what Dr Rollins had to say in the House about the failed resort, but what seemed to leave most members unhinged - especially Mr Roberts - was Dr Rollins’ final challenge to the legislators.

“The FNM,” he declared, “must state publicly to those now negotiating with this lame duck government that when the FNM becomes the government after the next elections, we shall reserve the right to void any and all agreements deemed to be contrary to the sovereign interest of the Commonwealth of the Bahamas.”

We don’t know why this statement should have shocked anyone - particularly on the government benches. Wasn’t it their own Paul Lawrence Adderley, who had the distinction of being the country’s first and longest serving Bahamian attorney general (17 years), who abused Sol Kerzner, not only from the floor of the House, but in a lengthy letter - filling three columns in The Tribune. Mr Adderley, who died at 84 in September, 2012, accused Mr Kerzner of “hoodwinking” Prime Minister Hubert Ingraham into granting him favourable concessions to induce him to purchase Merv Griffin’s failing Paradise Island Resort, now the Atlantis Paradise Island Casino and Resort.

He also accused Sir Sol of lining his own pockets and those of his family and shareholders at the expense of the Bahamian people. “So”, he told Sir Sol after a long tirade of accusations against the investor - who was really saving this country’s scorched bacon - of dishonest double-dealing. “You will inderstand why we think the Prime Minister erred to be so generous with you. Indeed his generosity verges on indecency,” Mr Adderley wrote.

What Mr Adderley ignored - but, of course it was typical Adderley - was that his government, which Mr Ingraham had soundly defeated at the polls in 1992, had left the country bankrupt, unemployment at an all time high, and an international reputation as a “nation for sale” thanks to the flourishing drug trade. Even the late prime minister Pindling ruefully admitted on defeat that his party had lost touch with the people.

“Sun International’s investment is helping to reinvigorate our hotel sector,” said Prime Minister Ingraham at the time. “Hotel occupancy is up, hotel room rates are up and room revenues are up on Paradise Island, in Cable Beach and in Freeport.” This was true. It was thanks to the faith of the late “Butch” Kerzner and the investment of his father, Sol, that the Bahamas was reintroduced to the international stage and regained its top position in tourism.

Mr Adderley’s letter was a disgraceful tirade, which ended with a threat. Wrote Mr Adderley:

“However, you could gamble and take your chances on a new PLP government, whether in 1997 or 2002, not renegotiating, believe me that is real risky business for your shareholders’ millions of dollars. Besides, by 2002 at the latest you will just begin to make real millions. So I hope that you see that this is a bad option to insist on holding my Prime Minister (Hubert Ingraham) to this bad agreement.

“Renegotiate now! That is your only hope. However, that presents some problems for you too. Don’t expect the Prime Minister to invite you to renegotiate he would lose too much face …”

And so the letter went on for another column. It was as though a man, known for his arrogance, had now taken leave of his senses.

Possibly shocked by seeing such nonsensical drivel in cold print, some of his political colleagues must have started a whispering campaign that they had no knowledge of the letter. However, not to be left out in the cold by himself, Mr Adderley caught them all by their fleeing shirt tails, took to the airwaves and announced: “The PLP is a democracy, the PLP is not a one man organisation. No one person has any right to do this (write the Kerzner letter). I assure you that this letter and virtually all its contents were discussed by all the leadership of the Progressive Liberal Party - all the leadership.”

However, we agree with Dr Rollins that so much is being hidden and whisphered behind the scenes in this Baha Mar transaction that Bahamians are entitled to know what is going on in their country - after all it is innocent Bahamians who are suffering.

We agree with the commentator to one of the Baha Mar articles that breach of contract is bad enough, but for a legitimate developer to be unceremoniously forced out of his own investment - as has been Sarkis Izmirlian - there are going to be serious repercussions. Who, for example, is going to invest in this country in the future?