Latest / IMI Podcasts / St Lucia Backdates CIP Enterprise Approvals, Sparks Opposition’s Ire
Transcript
- 0:00SPEAKER_00: St.
- 0:00SPEAKER_00: Lucia's Citizenship by Investment Program Board has issued a statement addressing the retroactive approval of two enterprise projects.
- 0:09SPEAKER_00: The announcement follows a government gazette dated September 12, 2024, which approved two projects with a January 12, 2024 commencement date.
- 0:21SPEAKER_00: The Gazette officially sanctioned two approved enterprise projects under Section 11-7 of the Citizenship by Investment Regulations.
- 0:31SPEAKER_00: First, the Caribbean Galaxy Real Estate Limited National Infrastructure Improvement Program.
- 0:37SPEAKER_00: And second, is the BMAX Rock Hall Housing Development Project.
- 0:42SPEAKER_00: This backdating means the government officially recognizes these projects as approved and operational since January, despite their formal gazetting in September.
- 0:52SPEAKER_00: Such a practice could potentially allow the retroactive application of rules or benefits, or some might interpret it as an attempt to legitimize actions or agreements that occurred before official approval.
- 1:07SPEAKER_00: The CIP Board's statement aimed to elucidate the situation, emphasizing that the law requires the Gazette publication to inform the public of approved projects.
- 1:18SPEAKER_00: According to the board, quote, the legal capacity to approve such projects was provided in the Citizenship by Investment Amendment regulations, end quote, published on December 20, 2023.
- 1:33SPEAKER_00: Despite the project's approval and receipt of applications, the board adamantly maintains that it has not granted any approvals for applications, and developers have not received any funds.
- 1:46SPEAKER_00: The Enterprise Agreement, they clarify, requires developers to, quote, finance the projects up front and recover their monies when approvals are given and minimum investments are paid.
- 2:00SPEAKER_00: The board disclosed that the developers are now ready to begin their projects.
- 2:05SPEAKER_00: The housing project awaits final approvals while the developer and the Department of Infrastructure have finalized the memorandum of understanding.
- 2:15SPEAKER_00: In an unexpected revelation, the board divulged that the government never gazetted three projects presented as approved between 2016 and 2021.
- 2:28SPEAKER_00: These include the Range Development, approved as real estate but sold as donation, the DSH project, Alpina Hotel and Alpina Square, and the Galaxy Project.
- 2:41SPEAKER_00: The government had approved all as real estate developments, but never officially promulgated them.
- 2:48SPEAKER_00: The board assured the public that they, quote, will act in accordance with all the legal and statutory requirements and close any gaps that previously existed, end quote.
- 3:00SPEAKER_00: This disclosure emerges against a backdrop of broader concerns surrounding Caribbean CIP practices.
- 3:08SPEAKER_00: In May 2024, MSR Media, helmed by movie producer Philippe Martinez, filed a RICO suit in U.S.
- 3:17SPEAKER_00: federal court against several Caribbean CBI stakeholders, including Caribbean Galaxy, a prominent developer in St.
- 3:24SPEAKER_00: Lucia's CIP, Maclaude Emmanuel, current CEO of the St.
- 3:29SPEAKER_00: Lucia CIU, and Ernest Hilaire, St.
- 3:33SPEAKER_00: Lucia's Deputy Prime Minister.
- 3:35SPEAKER_00: MSR Media claims to possess evidence of misconduct related to CBI programs in St.
- 3:41SPEAKER_00: Lucia, including allegations of kickbacks, fraud, and money laundering.
- 3:47SPEAKER_00: The lawsuit scope has since expanded, potentially ensnaring third parties, allegedly complicit in these illicit practices.
- 3:56SPEAKER_00: St.
- 3:56SPEAKER_00: Lucia's government and Caribbean Galaxy have distanced themselves from Martinez's allegations.
- 4:03SPEAKER_00: The government maintained that it would not be bullied by anyone or company and vowed to defend its position against what it described as false and malicious attacks.
- 4:13SPEAKER_00: Opposition leader Alan Chastenay has decried the backdated approvals as a worrying sham.
- 4:20SPEAKER_00: He expressed concerns regarding governmental transparency and accountability, asserting that the administration cannot seem to follow the law.
- 4:30SPEAKER_00: He cast doubt on the infrastructure program's legitimacy, citing a lack of requisite legislation.
- 4:36SPEAKER_00: He claimed that, quote, we have evidence to show that the local agents have been processing applications for the infrastructure program specifically, end quote.
- 4:47SPEAKER_00: The former Prime Minister also scrutinized the volume of files allocated to Galaxy.
- 4:53SPEAKER_00: According to Chastenay, statements have indicated Galaxy received, quote, 6,000 files allocated for the real estate program, end quote, and an additional 7 million files for the infrastructure program, both of which have reportedly sold out.
- 5:11SPEAKER_00: Challenging the CIP board's stance on historical projects, Chastenet claimed that the Range Project was actually a donation program because the government of St.
- 5:21SPEAKER_00: Lucia was going to lend the money through the donation program.
- 5:25SPEAKER_00: It was never a real estate program.
- 5:28SPEAKER_00: He advocated for enhanced transparency, particularly regarding the infrastructure program's finances, questioning, quote, why is it that they were able to collect 700 million US dollars and only to do$100 million of work?
- 5:45SPEAKER_00: End quote.
- 5:49SPEAKER_00: This episode first appeared as an article by Ahmad Abbas on imidaily.com.
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