C M Y K WEATHER FRI. NOV. 20 C M McHAPPY Y K DAY HIGH 82F LOW 71F TheANY TIME...ANY Tribune PLACE, WE’RE #1 CLOUDS AND SUNSHINE Volume: 105 No.300 FRIDAY, NOVEMBER 20, 2009 BAHAMAS PRICE – 75¢ EDITION (Abaco and Grand Bahama $1.25) C M C M Y K Y K www.tribune242.com THE TRIBUNE FRIDAY, NOVEMBER 20, 2009 SECTION B • [email protected] S ‘Lost opportunity to clarify murky’ approval process By NEIL HARTNELL Tribune Business Editor Attorney says ‘regrettable’ Privy Council ruling failed to address whether Heads of Agreement parties could sue each S THE attorney representing oppo- other, and bring certainty to Bahamas’ development process South Ocean nents of the $500 million Guana Cay & mixed-use resort development yes- Ocean Club project had “high- of Agreement is, and whether a obligations and abandoned the pro- li terday said it was “regrettable” that ghted and focused the need for the Heads of Agreement is binding and ject, the Government “would be able G the Privy Council did not determine overnment” to legislate this lawful - a public expression [of to sue them to enforce these provi- in its ruling whether developers and nation’s development approvals intent] more than a binding docu- sions or not”. pr E the Government could sue each oth- ocesses, bringing clarity to both ment. The newly-named QC added: th er under a Heads of Agreement, is and the rights of affected resi- “Regrettably, the Privy Council “Unfortunately, at the Supreme d describing the case as “a lost oppor- ents. has not clarified the issue of whether Court, the Court of Appeal and the tunity to bring clarity to the murky Responding to the Privy Council’s a developer could sue the Govern- Privy Council, there was a lost ru development process in the ling, which prevented his clients ment to enforce a Heads of Agree- opportunity for bringing clarity to fr Bahamas”. om blocking Discovery Land Com- ment or vice versa.” the development process in the pa Fred Smith QC, the Callenders & ny’s development on the grounds Mr Smith questioned whether, for Bahamas, as murky as it is, without th N Co attorney and partner, said the at the project’s Heads of Agree- instance, if a Heads of Agreement legislation that explains a step-by- four-year legal battle waged by his ment was ‘ultra vires’ or improper, contained provisions for a develop- step approach.” clients, the Save Guana Cay Associ- Mr Smith said: “Regrettably, the er to clear up any environmental I ation, against the Baker’s Bay Golf case does not analyse what a Heads FRED SMITH damage if they failed to meet their SEE page 4B CARS FOR SALE, S South Ocean Bahamas First set foreclosure to foreclosure acquire Cayman firm E U By NEIL HARTNELL holds its stake in the Cayman Tribune Business was told Tribune Business Editor firm through its wholly-owned that according to its 2008 subsidiary, Sagicor Life of the financials, Sagicor General BAHAMAS First, the Cayman Islands. Insurance Company (Cay- b Bahamian general insurer, is D i The d pur d chase price is e also m f an) wr e ote $4 a 6 milli ted on of B poised to expand into the unknown, although insurance gross premiums that year, Caribbean through the acqui- industry sources expressed some 31 per cent of which sition of Sagicor General doubt as to whether Bahama By NEIL HARTNELL s were health premiums. I HELP WANTED * Supreme Court rules against $85m mortgage holder’s Insurance Company (Cay- First would pay book value Tribune Business Editor - Insurance industry sources application because resort did not have Central Bank man), Tribune Business can or match the $15 million in believe Bahamas First, which reveal, in a deal likely to be net shareholder equity that THE six-month receiver- is solely a general insurer, will exchange control permission to repay loan confirmed imminently. Sagicor General Insurance ship for the disputed $867 mil- either sell or spin-off the * Judgment disc Insurance industry sources Company (Cayman) had health portfolio given that lion South Ocean redevelop- harges six-month receivership, sources say it bid defeated confirmed to this newspaper according to its 2008 year ment was discharged by the * Sou -end does not fit its business mod- S thwest New Providence resort’s future remains on yesterday that a Letter of accounts - due to the Supreme Court earlier this fact that el. Some 69 per cent, or $31.74 hold and unce Intent for Bahamas First’s the company ha week, Tribune Business can rtain, as control now back in hands d performed million of its premiums, were purchase of the Caymanian relatively poo exclusively reveal, after a of warring parties not wanting to inves rly in recent on the general side in 2008. t more funds company had been signed, years and judge dismissed an attempt by not been very prof- Still, the Bahamian insur- and that the deal could be itable. one of the property’s investors ance industry has been this announced as early as today. There were also questions economy’s most aggressive to place it in foreclosure. Multiple sources with cut-based hedge fund Plain- That was unconfirmed yes- as to why Bahamas First sector when it comes to over- Justice Stephen Isaacs dis- knowledge of the matter con- field Asset N Management and terday, though. When con- would seek to enter the Cay- seas expansion, and Bahamas missed the foreclosure action firmed events in the Supreme its Seaside Heig hts investment tacted by Tribune Business in man general insurance mar- First follows just several brought by Propco, an invest- Court earlier this week, after vehicle, S which holds the sec- Miami, Ian Fair, Bahamas ket, given that property and weeks behind BA ment vehicle owned by the CCWIPP - through Propco - F Global ond mortgage/debenture over First’s chairman, replied: “It’s casualty, plus auto rates, were Group. I Canadian Commercial Work- attempted to foreclose on the the southwest New Pr ovi- premature for us to make any falling. British American Finan- ers Industry Pension Plan $85 million first dence resort’s real estate. Tha t comment.” This was coupled with the cial’s parent unveiled its (CCWIPP), on the grounds mortgage/debenture it holds is understood to be for a sum It was also unclear whether fact Cayman was viewed as acquisition of British Ameri- that the resort’s immediate on the 375-acre South Ocean in the “high” $50 millions AND REAL ESTATE Bahamas First was acquiring having the highest risk pro- can Insur holding company, New South property. rang ance Company e. 100 per cent of Sagicor Gen- file in the Caribbean, given T Ocean Development Compa- CCWIPP’s foreclosure (Cayman) from the receivers And it was Plainfield’s eral Insurance Company its relatively flat g ny, did not have Central Bank attempt, though, wa eography earlier this month. Boxers enter s opposed attorney, Brian More e QC, (Cayman) share capital, or (storm surge exposure) and Meanw of the Bahamas approval - as by the New South Ocean senior part hile, some 24.2 per ner at McKinney, just the 75 per cent stake held high concentration of a foreign-owned entity - to Development Company’s devel- cent of the remaining Sagicor by its ultimate parent, Sagi- opment (meaning ris repay its loan debt to Propco. financing partner, Connecti- S k) in a EE page 4B cor Life Jamaica. The latter small area. SEE page 5B SEE BUSINESS FRONT R Bahamas ranked 11th out of 12 in ‘attractiveness O to wealthy’ survey By NEIL HARTNELL dency Index (MWRI), Mr Tribune Business Editor Wall said, focused on 11 juris- dictions, but had the Bahamas P THE Bahamas would have been included it would have BAHAMAS BIGGEST ranked 11 out of 12 major placed 11th out of 12, rank- international financial centres ing only ahead of Guernsey. had it been included in a sur- The others rated were among vey designed to measure the this nation’s chief competi- attractiveness of these nations tors: Cayman, Singapore, S to ‘mobile’ high net worth Switzerland, Dubai, Hong individu y als. our search Kong, Isle of Man, Jersey, Stephen Wall, director of London, New York, and the Scorpio Partnership, an Monaco. international wealth manage- Mr Wall said Switzerland’s Hall of Fame ment consultancy, presented ‘all-round appeal’ had placed to the Nassau Conference a it at number one, even though ends here. survey that analysed the fac- it was ranked only fifth for tors influencing high net tax appeal, since its “multi- worth individuals when it faceted” qualities were Life Insurance came to deciding which juris- “attracting a wide range of diction to base themselves in. mobile wealthy”. Switzerland, The Mobile Wealth Resi- he said, ranked at the top for Health Insurance economic and political stabil- ity, legal considerations, prox- imity and convenience, edu- Employee Benefits cation for children and cul- ture/infrastructure. In contrast, the Bahamas Annuities was ranked bottom out of 12 by the MWRI Index when it Mortgages came to economic and politi- cal stability, and employ- $4.17 ment/business opportunities. Investments It was also placed 11th for legal considerations and 10th for sophistication/culture/infra- $4.32 structure. However, Mr Wall said the Bahamas enjoyed “strong positioning” in areas such as A SUBSIDIARY OF SEE PAGE 11 $4.25 tax and immigration, where it was third; availability of quality housing, where it was second; security, where it was call us today at 396-1355 third; and education for chil- SALES OFFICES: NASSAU dren, where it was fifth.