The discussion surrounding what has been termed the Baha Mar story continues as the fate of the mega resort hangs in the balance. The comments by the various contributors to the debate have been enlightening, intriguing, disappointing, unexpected and disingenuous all at once. There is no doubt that this matter is of the utmost importance and priority not just to the government but also to numerous stakeholders and the Bahamian people; hence, while any misinformation cannot be justified, we can understand the underlying anxiety motivating the utterances.

In the midst of the discourse, we ought to pause to consider the peculiar case that is Baha Mar and the complications that come with one of the biggest investments in the Caribbean region in decades. The uniqueness of this case cannot be downplayed or ignored as we are poised to set a precedent that promises to define the future of foreign direct investment not just in The Bahamas, but in the world at large. This piece explores some of these complexities that makes every move and decision pivotal to our commonwealth and the global village in which we exist.

International dimensions and laws

The benefits of globalization are often highlighted as it is touted as one of the most important milestones in the history of human existence. However, we cannot accept the advantages without embracing the challenges that a small global village presents in the bigger scheme of things.

In the case of Baha Mar, we have a mega resort which is being developed in The Bahamas within the Caribbean region owned by a company with a complex ownership structure. The ownership structure of Baha Mar includes companies registered in the US which is situated in North America with ultimate beneficial ownership including at a minimum an individual from Armenia which is located on the southeastern edge of Europe, and at the gateway to the Middle East and Asia.

The main construction company responsible for the project has as its ultimate owner the government of the People’s Republic of China (PRC). The main financier, banker and creditor is a Chinese bank owned also by the PRC.

Moving forward to the recent legal actions taken, the state of Delaware in the US, the United Kingdom and The Bahamas are all jurisdictions in which separate actions have been initiated. It is apparent without going any further that this is not a typical or routine case with respect to which local precedents are readily available. While The Bahamas is the main jurisdiction and it has been reported that the Heads of Agreement is governed by our laws, the full ramifications from an international law perspective are yet to be seen.

Government intervention

In the midst of the pandemonium and resulting uncertainty that the Baha Mar saga has created, the government has stepped in in an effort to bring resolution to the matter. This is not surprising as no one can deny the magnitude of the project and its importance to the economy of The Bahamas. While there are valid arguments against placing so much emphasis on a single project as it relates to the recovery of our economy, the reality is that there is so much hinging on the completion and opening of this resort.

The government’s decision to pay the salaries of employees of Baha Mar for two consecutive months to ensure that they are not used as pawns in the negotiation is groundbreaking. This has also attracted much criticism and praise by opponents and proponents of this action seeing that Baha Mar is a private entity.

The subsequent decision to seek the winding up of Baha Mar and provisional liquidation is also unconventional. This is unique not only because of the initiator but also based on the grounds upon which the winding up action is based. It has been stated that Baha Mar owes the government and government agencies several million dollars; hence, the filing has been undertaken by the government, as a creditor.

There is no doubt that this is a strategic move by the government in seeking to protect the interest of Bahamians and ensure that the resort is opened as soon as possible. However, it is equally important how this action is viewed by potential investors and the international community.

Uncharted territory

As the days go by, all of the various aspects of the story called Baha Mar point to case law and legal precedent in the making. The best solution outside of a prolonged and contentious legal process should be sought if at all possible at this stage. However, it is important that we accept the fact that we have not had to deal with a situation that is this complex and with such far-reaching consequences for our economy and country as a whole.

In the absence of an equivalent reference or similar experiences from which we can draw, it would be prudent for all those involved to tread carefully and the government consider with much caution its actions going forward.

We must admit that there are few or no Bahamian experts on the special situation facing Baha Mar and The Bahamas. There will no doubt be missteps but all parties must be honest and mature enough to admit any errors in judgment and seek to correct the same. While each stakeholder is seeking to protect their own interests, somewhere in the middle lies an optimum solution which may not be totally satisfying but can be workable.

Sacrifices and level heads are required to prevent a bad situation from getting worse and provide for a timely resolution in the near future. All parties must be willing to bury the hatchet in the interest of the majority.

Moreover, it is apparent that trust must be rebuilt while all parties involved must resist the temptation to play this matter out in the press and in the court of public opinion. However, it goes without saying that the Bahamian people must be kept informed on key matters. Hence, the relevant parties must sit constructively at the table to iron out their differences and get the development back on track.

A soft answer

In the final analysis, we must not forget that the world is watching and as a result we must conduct ourselves with decorum and respect. The biblical saying as recorded by Paul the Apostle in his letter to the Church in Colossae is instructive in this regard, “Let your speech be always with grace, seasoned with salt, that ye may know how you ought to answer each person”, while King Solomon in Proverbs said a soft answer turneth away wrath. The verse ends, “but grievous words stir up anger”.

• Arinthia S. Komolafe is an attorney-at-law. Comments on this article can be directed to a.s.komolafe510@gmail.com.