February 25, 2004
 

I would like to respond to the press statement that was made yesterday by the Free National Movement (FNM) which asserted, among other things, that I had violated the Parliamentary Code of Ethics and was engaged in influence peddling as a result of my personal and professional involvement in Island Fresh Dairy Limited, a dairy farm project that is being developed for the island of Abaco.

These charges raise serious questions about my personal, public and professional conduct and cannot go unanswered.

I characterize these charges by the FNM as malicious, misinformed, designed to create political mischief and a feeble attempt to gain cheap political points at my and my Party’s expense.

What were the assertions by the FNM?

1) The FNM suggested that “influence peddling and conflict of interest is rife in the government of Prime Minister Perry Christie.  They also suggested that I have violated the Code of Ethics that governs ethical behaviour in public life.”

To this charge, I would like to clarify my position with respect to Island Fresh Dairy Limited.  I was initially invited in early 2003 to provide professional services to that Company which my Firm incorporated on September 16 2003.

I was initially invited by the Bahamian shareholders in Abaco to become a shareholder in the venture, which invitation I accepted.  The share ownership or capital that would be required of each shareholder was not initially determined as the venture was in its embryonic stages and the capital investment required by the Company would be determined based on the preparation of a business plan, which I set out to prepare.

There were six shareholders, four Bahamians and two Americans.  It was agreed by all of the shareholders that each shareholder would have an equal interest in the Company and that each shareholder would pay his proportionate share of the required invested capital.

My ownership in a Bahamian company does not, in and of itself, constitute a conflict of interest by virtue of my constitutionally appointed Senate position.  Neither does it constitute influence peddling.  I am entitled, like any other Bahamian, to hold shares in any legitimate Bahamian company.
 

2) The FNM’s press release stated that the Prime Minister Christie announced the approval of the Island Fresh Dairy venture at last year’s Party convention.  This is totally false.  During his convention address the Prime Minister indicated that there were many other ventures that were being developed, which would require government approval and which would create significant jobs for the local economy.

The Island Fresh Dairy project was one such project.  What Mr. Christie did say at the convention was:

“Also in Abaco, Island Fresh Dairy Ltd. with its Bahamian and American partners has proposed the establishment of a Dairy Farm and processing plant and distribution facility.  This major farm initiative is projected to positively impact the local economy to an extent not experienced in many a long year.”

For the record, the Island Fresh Dairy project has not, I repeat has not been approved by the Government of The Bahamas.  In fact, the Company has yet to complete its application process in order to even be formally considered by the Government.

This is clearly an erroneous assertion by the FNM who could very easily have confirmed its veracity had they taken the time to contact the appropriate government authorities.  But they were not interest in presenting factual information.  Their objective was to malign and to assassinate the character of the country’s chief executive and one of his duly appointed Senators.

3) The press release stated “the Island Fresh Dairy involves the “grant” to the proposed foreign investors of 3,800 acres of prime agricultural land owned by the government and management and managed by BAIC.….that this high quality crop land with excellent water resources: is to be deeded or leased to foreign investors.”

I would like to state for the record that no land has either been leased or deeded to Island Fresh, any of its shareholders or to me.  The Government of The Bahamas has yet to obtain the completed investment proposal along with an environmental impact assessment on the viability of the land that is supposed to be used for this venture along with other documents.

The FNM continues to make the point that the land will be “given” to foreign investors.  They fail to understand or have perhaps deliberately ignored the fact that the majority of the investors in this venture ARE BAHAMIANS, NOT FOREIGNERS.

There is absolutely nothing wrong with Bahamians and/or foreigners seeking to obtain land from the Government either by deed or lease for a mammoth project of this size.  The total value of this investment, when completed, is projected to be in the region of $85 million and is scheduled to employ 150 Bahamians in Abaco.  This is no different from the concessions that have been sought and obtained for the economic development of the Bahamian economy.

4) In its statement, the FNM alleged that the fees earned by my firm was $108,000.  They are also wrong on that score.   The fees earned by my firm are in the region of $32,000 not the $108,000 that was alleged.   Even if it was $108,000 that is a private matter between me and my client and neither the FNM nor anyone else could determine what level of fees are acceptable for professional services.
 

5) This venture was formally submitted to the Ministry of Financial Services & Investments on November 3, 2003 and is still being considered by that Ministry.  There are ongoing questions that need to be answered in connection with the project.

6) I ceased my equity participation in this venture in December 2003.  When it became evident that the investment was becoming prohibitively expensive for me, I withdrew from the project as an investor.  I understand that the shares that I would have purchased were equally redistributed among the remaining shareholders.

7) The FNM has made another erroneous assertion.  They have suggested that BAIC was a shareholder in this venture.  That is completely erroneous.  BAIC does not now nor has it ever held any shares in the Company.  The proposal that was made to the Government was that BAIC would receive an equity interest in this venture for its contribution of the farmland. In any event, no decision had been taken with respect to BAIC’s equity participation in this venture either as to its de facto participation or as to the quantum of its equity participation.

Had the FNM taken the time to perform a search of the Registrar of Companies, they would have seen that BAIC is not a shareholder in this venture.

8) Yet another erroneous statement made by the FNM was that the investors would only contribute a little more than $1 million in this venture.  That is not so.  It was contemplated that at the end of the day the total investment would be in excess of $55 million, excluding the appraised land value of $30 million.  The total investment was to be in the region of $85 million.

The Island Fresh Dairy project is a very viable project that will help to diversify the Bahamian economy and create 150 jobs for Bahamians in Abaco.  It has most the necessary ingredients for success.

The FNM has not taken the time to verify their facts in connection with this venture.  They have received documents that they have interpreted in a manner that has maligned my professional, public and personal integrity.

I repeat that the FNM has not indicated where the conflict of interest has arisen.  Neither has it proven influence peddling.

It is very clear to me that the FNM is clutching at straws in a desperate effort to put a very negative spin on what is a very worthwhile venture.

I will instruct my lawyers today to determine what legal action can be taken against the Free National Movement for their scurrilous lies, misrepresentations, and caustic innuendos.

This time, the FNM has crossed the line.