Chinese did request citizenship grants

Mon, May 30th 2016, 12:25 PM

Prime Minister Perry Christie has acknowledged to National Review that the Chinese did request economic citizenship grants as a part of negotiations to get Baha Mar completed, and said he would have to "look to be sure" whether they also made specific requests for VAT exemptions.

"We're going to publish everything with respect to this matter, and I think during the course of [the budget] debate I will make it a point to do so," said Christie when questioned about recent rumors in relation to this matter.

"[EXIM] Bank wrote me a letter with attachments. Governments do not negotiate with financing agencies. Governments negotiate with owners.

"So a heads of agreement will be with the owner of a property, and so we have to wait for the owner to be identified.

"I'm told it's a normal thing for them to request this (economic citizenship) because some countries in the south actually engage in economic citizenship."

Asked specifically whether the Chinese actually made the request, the prime minister said, "Yes."

"The bank indicated that this would be an object of interest to them and I'm told that... you know, they always do that.

"But we have a very simple position in our case. We don't negotiate citizenship, even in financial services, we don't do it."

Popular talk show host Steve McKinney recently reported on his Peace 107.5FM show 'Hard Copy' that the Chinese were demanding 500 citizenship approvals, a 30-year exemption from casino license payments and a 30-year break from value added tax (VAT) and from any other taxes.

While Christie acknowledged the citizenship request was made, he said he was not sure how many citizenship grants the Chinese requested.

We did not ask Christie specifically about the report that the Chinese asked to be exempted from paying casino taxes, but we did ask him about the claim regarding VAT.

"I would have to look at it to be assured," the prime minister told National Review.

"I am told, for example, whatever Steve McKinney was saying was not accurate and so he was saying some things that did not appear to be in there, but I'll find out."

It will be interesting to see whether Christie does deliver on his pledge to outline specifically what the Chinese requested.

But he was dismissive of those requests, saying, "It's neither here nor there. That's a matter that was dealt with very quickly by the attorney general in China, and clearly what the government's position is on these matters.

"We are tied to the concessions that we gave Atlantis. We are guided by those, and Sarkis Izmirlian (the Baha Mar developer) got certain concessions and the question really is whenever... I don't know who the new owner will be.

"They said they've short listed people. The receiver-managers say they will let us know by the end of the month.

"My interest is in finishing the building and I didn't want to wait until the process of a new owner comes about, and so I am hoping therefore that as a result of the letter I laid on the floor of the House (last Wednesday), people are in the process of mobilizing now as we speak to finish the building.

"And I'm looking forward to Standard & Poor's, who downgraded us because of it, being able now to move to another level in view of the fact that there will be certainty as to completion."

Getting Baha Mar back on track would be good for The Bahamas. It would also be good for Christie and his party, which needs some success stories to point to as they get ready for campaign season.

But Christie would be deluding himself if he believes that his recent announcement on Baha Mar in the House of Assembly brought comfort to Bahamians listening in for an update on the crisis, which has dragged on now for many months.

While the prime minister remains optimistic, and while he apparently sees an end in sight to the debacle, not many people share his feelings in this regard.

His announcement last week did not amount to much.

The letter Christie tabled in Parliament was a joint statement by the Export-Import Bank of China (EXIM), China StateConstruction Engineering Corporation (CSCEC) and the government of The Bahamas.

It said the parties came to an arrangement for a "framework for putting in place the financing required for completion of the project, and for CSCEC's indirect subsidiary, CCA Bahamas, to remobilize and restart construction to finish the project as expeditiously as possible".

But there is no deal in place to complete and open Baha Mar. There are no timelines, and no other specifics. There is an appearance of some movement, but it is nothing to celebrate. There is not yet anything concrete.

Baha Mar's creditors, its former employees and the Bahamian people in general have nothing to hang their hat on; the announcement did not bring any comfort.

Why PLP MPs were mindlessly banging on their tables as Christie read the letter in the House is anyone's guess.

The PLP pushes optics more than it delivers substance.

Candia Dames, Guardian Managing Editor

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