Minister admits soliciting Sarkis

Fri, Apr 21st 2017, 01:55 AM

Minister of Education Jerome Fitzgerald yesterday admitted to contacting then Baha Mar developer Sarkis Izmirlian to "seek his assistance" in advancing "some work" with the resort on behalf of his father, the founder of Bahamas Cargo & Logistics.
In a series of emails between Fitzgerald and Izmirlian dating back to 2013, which were revealed by The Tribune yesterday, Fitzgerald lobbied Izmirlian for brokerage, trucking and limousine contracts, telling Izmirlian the matter required his "personal intervention".
Fitzgerald wrote that his father's medical bills were $20,000 per month, and expressed concern that "we have not heard anything yet".
He also requested Izmirlian provide a recommendation to approach the other hotel brands.
In a statement yesterday, Fitzgerald maintained that he has no contracts with Baha Mar, now owned by Chow Tai Fook Enterprises (CTFE), or any of Baha Mar's affiliates, and said he does not own shares in Bahamas Cargo & Logistics.
"Nothing in today's Tribune contradicts that," Fitzgerald asserted.
"Sarkis Izmirlian and I have communicated on any number of matters over the past eight years, either in person or by email.
"Prior to my father's illness he had engaged in discussions with Baha Mar to get some work.
"After my father's illness I wrote to Sarkis to follow up on those discussions and seek his assistance.
"Nothing came of it and that remains the case today.
"When Mr. Izmirlian filed for bankruptcy in a U.S. court, the Bahamian government moved quickly and decisively to bring the matter home to protect the interests of Bahamian employees and contractors."
An email from Fitzgerald to Izmirlian, dated July 2013, read: "I pray you and your family are well. Just a note to say two things.
"Firstly, my dad is now back home from hospital in Florida and doing well.
"He still requires 24-hour care by trained nurses, which is costing $15,000 per month and meds, another $5,000.
"Secondly, I really need to know when we can expect to begin work for the brokerage and trucking of the furniture, fixtures and fittings.
"Also, if the other hotel brands are doing their own hotels, then I would like their contact person and number and a recommendation from you.
"I know all of this should begin to happen soon and I am a little concerned that we have not heard anything yet.
"Sarkis, this is one of those matters which will require your personal intervention.
"I will be eternally grateful."
Izmirlian replied on the same day.
"I hope your father is doing better," he wrote.
"I will follow up on the other matter as you should have heard by now.
"All the best, Regards, SDI."
The Tribune also revealed other emails from Fitzgerald on the matter.
An email to Izmirlian, dated April 13, 2014, said in part: "Unfortunately despite all efforts by you and promises to me by Daniel Liu that we would receive the brokerage and trucking work, we have not apart from a one time deal to move 40 containers. I do not know why, I am disappointed but I have accepted it and moved on."
Baha Mar will begin its phased opening today with a soft launch.
In June 2015, Izmirlian filed for Chapter 11 bankruptcy in Delaware.
The government moved to block the bankruptcy proceedings and put the project into liquidation.
After all the related cases to the bankruptcy proceedings were dismissed, Fitzgerald was made the lead negotiator for Baha Mar's sale.
In December 2016, Prime Minister Perry Christie announced the sale of the resort to CTFE, a Hong Kong-based conglomerate.
Parliament dissolved this month without the government ever tabling the agreement to complete the project. It remains under seal of the Supreme Court.
The Nassau Guardian revealed weeks ago that the government traded tax concessions to facilitate the $100 million in payouts to former employees and Bahamian creditors.
There was also no agreement tabled related to the sale.

Emboldened
Fitzgerald's actions appear to be a breach of the Manual of Cabinet and Ministry Procedure.
Article 40(b) of the procedural code states that a minister must not "solicit or accept any benefit, advantage or promise of future advantage whether for himself, his immediate family or any business concern or trust with which he is associated from persons who are in, or seek to be in, any contractual or special relationship with government".
But the prime minister was silent on the matter yesterday.
When the media attempted to question Fitzgerald following his nomination at C. I. Gibson Senior High School yesterday morning, he refused to answer.
Asked to respond, Fitzgerald said, "I am going to have a press statement on that later, so I will respond to that later."
When asked to respond to criticisms that he should not have nominated yesterday, the minister said, "I will respond to that later today. Any other questions? Once I respond, you will be able to judge from that."
Minutes before nominating, Fitzgerald danced and celebrated with dozens of PLP supporters and a small Junkanoo procession.
Parading his support, Fitzgerald shouted, "PLP."
The crowd of approximately 50 supporters echoed, "All day, all the way."
Speaking to Nomination Day, Fitzgerald said, "It's a big day. It has been long-awaited and everything is in order. Now, we are gearing up for the final couple of weeks. And so, as you can see the team is ready.
"We are excited. We are motivated and we are going to march through the finish line.
"God willing victory will be ours."

Denial
On Tuesday, Fitzgerald and Attorney General Allyson Maynard-Gibson refuted allegations made by The Punch tabloid that they have deals with the Chinese owners of Baha Mar.
Maynard-Gibson was also heavily involved in the negotiations to sell the resort.
In August 2015, it was revealed that her two daughters and her husband had interests in Baha Mar.
However, the attorney general denied having a conflict of interest, insisting the prime minister was fully aware of her family's interest in the Cable Beach resort.
Maynard-Gibson said on Tuesday that she was not "benefitting from anything at all in relation to the negotiations that we worked so hard as a government, for the Bahamian people, in relation to the Baha Mar transactions".
Fitzgerald made a similar statement.
He suggested that people are "trying to get some personal attacks based on information that is not cogent and so forth, but at the end of the day, that's fine".
In his statement yesterday, Fitzgerald said, "Tomorrow is a big day for our country.
"The opening of Baha Mar is bringing thousands of jobs for Bahamians, will strengthen our economy, and will raise our nation's profile internationally.
"I'm very proud of the role the government played in saving the resort from bankruptcy and getting it [in] the hands of a world-class operator with successful properties across the Caribbean and the world."

Click here to read more at The Nassau Guardian

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