Baha Mar development on Cable Beach
Baha Mar receiver-manager and Deloitte Managing Partner Raymond Winder said "just wait and see" in regard to when the Export-Import Bank of China (CEXIM) will deposit the promised funds to settle the Bahamian employees' claims and pay the claims of Bahamian creditors that were involved in the Baha Mar saga.
And, Shadow Minister of State for Finance Peter Turnquest asked, "Why is the government making all of these grand announcements when they don't even have the funds in the bank as yet?"
Over the weekend, the government announced that a committee of five was established to manage the claims of Bahamians and other creditors of the Baha Mar group of companies. The members of the committee are former Minister of State for Finance James Smith, Grant Lyon (liquidation claims advisor to the government), Yanping Mo (representative of the CEXIM Bank), Norbert Chan (representative of Deloitte) and Executive Vice President of China Construction America (CCA) Tiger Wu.
In a press statement, the administration said, "The government hopes that Bahamian employee claims will be settled no later than September 30, 2016 and that all other claims will be dealt with on or before December 31, 2016."
In that statement, the government asserted that the claims would be paid out of funds "made available" by CEXIM Bank, but in the same statement, the government pointed out that the CEXIM Bank would place the funds on deposit in The Bahamas "shortly".
The ambiguities in the statement reflect the confusion and skepticism that have greeted the government's announcement that it recently signed a heads of terms agreement with CEXIM Bank to complete the $3.5 Baha Mar resort and sell it to a world-class hotel and casino operator.
Guardian Business spoke with Winder yesterday about how and when the funds would be placed on account, and where.
His response: "Just wait and see."
Winder added that he could not comment on when exactly those funds would be deposited.
More questions than answers
Meanwhile, Turnquest questioned the arrangement and asserted that the recent dealings with Baha Mar have left more questions than answers.
Given the make-up of the committee, Turnquest asked: "Are these the appropriate people to arbitrate claims when [CCA] would have left these people high and dry? What is required for these claims to be paid? If there is a dispute, how is it going to be handled?"
Under the deal, Prime Minister Perry Christie said "many of the same people and companies who were previously contracted will be re-engaged to complete the project".
Christie added that the Bahamian government and Bahamian utility companies, such as Bahamas Power and Light (BPL), would receive payment for some of their outstanding claims against the Baha Mar companies.
However Turnquest said, "This is just phase one and there is a bigger phase to come and that is the opening of the hotel, and I think that is a very significant task before the country.
"I would say that it seems that they rushed to make that announcement on the day that Moody's announced its downgrade when obviously details of the final arrangement have not been finalized, nor have the funds to meet the commitment that have been preliminarily been agreed to be deposited in The Bahamas," Turnquest added.
The prime minister said the casino and casino hotel, the convention center and its hotel, and the golf course would open before the end of the 2016-2017 winter season.
Xian Smith, Guardian Business Reporter
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