AG tried to block web shop operations, affidavit alleges

Tue, Apr 2nd 2013, 11:47 AM

The Office of the Attorney General sought to block the continued operations of web shops despite an order from Senior Supreme Court Justice Jon Isaacs in January to prevent a shutdown of the businesses, alleges an affidavit filed recently.
The affidavit filed by attorney Claude Hanna of Munroe & Associates said a group of web shop bosses faced significant delays in trying to get business licenses renewed and some owners have still not yet received licenses.
Hanna said the government, through the Business Licence and Evaluation Section of the Ministry of Finance has sought to adversely affect the business of the web shop owners by delaying licenses.
He said this was an attempt to circumvent the conservatory order issued by Justice Isaacs for the businesses to remain in operation pending the outcome of a substantive court challenge.
The owners filed court action after a majority of people who voted in a referendum voted against the regularization and taxation of web shops and the establishment of a national lottery. They contend that their businesses are operating legally.
Justice Isaacs granted the order the morning after Prime Minister Perry Christie ordered an end to web shop gaming.
Hanna said that in the past, the process of issuing licenses involved submitting an application, paying the required fees and the Business Licence Unit would issue the license in a matter of days.
The longest period of delay in the past has been a week, according to the affidavit.
The affidavit said that this year the web shop owners and or their agents were informed by "servants of the Business Licence Unit" that the Office of the Attorney General (the defendant) has advised the Ministry of Finance to put a halt to licenses being issued to web cafes.
According to Hanna, the matter had to be addressed by Chief Finance and Revenue Officer Joseph Mullings, who circulated a minute paper on March 15, 2013 to all staff about the issuance and renewal of business licenses to web shops.
A copy of the minute paper was filed in court.
It said, "Effective immediately, you can issue new and renewal business licenses to web shops. The only license description will be Internet cafe and Internet related services."
According to the affidavit, the process of getting licenses has been "riddled with hurdles".
The affidavit said Pete Deveaux of Percy Web Cafe reported that after submitting the business license application, paying fees in full and satisfying all other requirements, his company was told by Mullings that he could not issue the license because they were awaiting written confirmation from the Office of the Attorney General.
"It was only after insistent calling that [Deveaux] received the business license on March 27," the affidavit said, adding that some of the other plaintiffs also received licenses last week.
"This has represented a delay that in most cases has been at least three to four times the usual delay in the process."
The affidavit said Whatfall and Asue Draw were still awaiting licenses.
It said, "The plaintiffs (web shop owners) have a history of being fully compliant with all laws and regulations governing their businesses."

POLITICAL SUPPORT

The affidavit also said that during the general election campaign and during the referendum campaign members of the Free National Movement (FNM) and their bloggers suggested the web shop owners supported only the Progressive Liberal Party (PLP).
"I am advised by the plaintiffs that it was thereby being suggested that this was done because the PLP had committed to support the plaintiffs," the affidavit said.
"Indeed, much was made during the referendum campaign that the PLP government had a horse in the referendum race."
But the web shop owners have advised that this perception is incorrect, according to the affidavit.
"I am advised that the plaintiffs supported both the PLP and FNM as they always have done," Hanna said.
"If this is disputed they are able to disclose the persons and events together with the amounts that they supported."
The affidavit said the web shop owners met with the government after the general election but are unwilling to disclose the exact contents of these meetings unless it is deemed necessary to do so.
Hanna also said in the affidavit that the need to terminate staff would cause a loss to the plaintiffs "far beyond the financial costs associated with their terminations".
"I am advised by the plaintiffs that they care about the welfare of their employees to the point that they are mentally affected by the prospect of having to terminate persons with whom they have worked closely over the years."
The web shop owners and their attorneys have made an application to have the conservatory order issued by Justice Isaacs extended.
The attorney general is seeking to have that order discharged.
Chief Justice Sir Michael Barnett will today hear arguments from both sides.
Wayne Munroe represents Percy Web Cafe, Island Luck, FML Group of Companies, Asue Draw, Whatfall and Chances.
Former Attorney General Alfred Sears and Jeff Lloyd represent Paradise Games.

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