Britain insists on imposition of VAT in Turks and Caicos
Published on January 17, 2013
By Caribbean News Now contributor
PROVIDENCIALES, Turks and Caicos Islands — In a letter on Monday to Dr Rufus Ewing, premier of the Turks and Caicos Islands (TCI), Mark Simmonds, Britain’s minister for the Overseas Territories rejected a request for a delay in the imposition of value added tax (VAT) in the TCI and confirmed that the new tax will take effect as planned on April 1, absent a credible alternative.
Following the election of the Progressive National Party (PNP) as the new government last November, Ewing and his finance minister Washington Misick have been seeking a delay of six months in the implementation of the tax.
However, according to Simmonds, a delay in the implementation of VAT would present significant risks.
Britain’s minister for the Overseas Territories, Mark Simmonds
“A delay at this stage would risk undermining the credibility of the government’s commitment to VAT particularly with those businesses that have invested in preparation. And I am not convinced that delay would make it easier for you to find and commit to the introduction of a credible alternative. I fear that a property or income tax would be likely to attract opposition at least as strong as VAT,” he said.
Simmonds went on to say that any such delay would be unlikely to diminish the opposition of those businesses who will have to pay tax for the first time or open their books or lose some of the benefits of what he described as “excessive concessions” granted by previous administrations.
He also pointed out that delaying the implementation of VAT would require the government to cut public spending further than would otherwise be necessary.
“I think you have a choice between pressing ahead with the introduction of VAT from 1 April or making a clear commitment to introducing a credible alternative to VAT such as property or income tax. I should be clear that I believe that, at this stage, the best option for Turks and Caicos is to press ahead with implementation of VAT,” Simmonds said.
Tinkering with the current disparate and unsatisfactory mix of taxes would not address the underlying weakness and unfairness of these and would not offer a credible alternative to VAT, he added.
According to SImmonds, the previous elected PNP government had already decided that VAT had significant advantages over property and income taxes but, nevertheless, invited Ewing to submit a new fiscal and strategic policy statement by the end of January.
“While you are finalising this I expect preparations for VAT implementation to continue at full speed, including investment in planned new IT, so that it can take effect on 1 April,” Simmonds added.
However, Simmonds’ claim that the previous PNP government had endorsed VAT was disputed in a subsequent statement by then finance minister, Floyd Hall.
“That statement is completely false. While it is the case that the former PNP had agreed to explore the option of selecting one of four taxation models being imposed on us by advocates for the Organization for Economic Corporation and Development (OECD), the European Union, IMF and the FCO to obtain compliance with international tax standards in our financial services industry and to achieve revenue sustainability, it was never the case where VAT was selected as a done deal for implementation in the Turks and Caicos Islands by our PNP administration,” Hall said.
The new tax was signed into law during the term of the previous interim administration run by Britain following the suspension of elected ministerial government in the TCI in 2009 as a result of widespread and systemic government corruption during the PNP’s previous term in office from 2003 to 2009.
Unrestrained government spending during those years brought the TCI to the verge of bankruptcy, necessitating a $260 million loan guaranteed by Britain and other measures to enable the territory to balance its budget.
According to the former chief financial officer Hugh McGarel Groves, VAT will be necessary for as long as Britain’s loan guarantee remains in force.
At a press conference on Tuesday, finance minister Washington Misick spoke out again against VAT.
“This is being forced down our throats,” he said. “They are committed to VAT having bought a half-million dollar software program to deal with VAT… this shows that the VAT tax is a issue of their egos making them act.”
While saying initially that he could not reveal the alternative methods of taxation to VAT that his government is considering, Misick then proceeded to reveal them on Tuesday, namely, taxes to be assessed on condominium owners who rent their properties to non owners; a 1 percent increase in the hospitality tax from 11 to 12 percent; a restoration of the higher rate of stamp duty; and a tax on water sports activity by tourists in the TCI, both in Provo and Grand Turk.
Misick estimates this will raise between $15 and $16 million per year and grow the economy of the country.
However, according to some local observers, such measures may increase government revenue but is more likely to be counterproductive to the economy.
Opposition leader Sharlene Cartwright Robinson said in a Tuesday afternoon television appearance that the opposition Peoples Democratic Movement (PDM) continues its position that it also does not favour VAT.
Robinson was not in favour of alternate taxes, however.
“We simply need to police the collection of existing taxes,” she said.
By Floyd Hall – Former Minister of Finance
Published in SUN TCI
It is most gratifying to see that the two political parties and the business community have finally gotten together to unify around a common cause in the best interest of the people of the Turks & Caicos Islands.
Sadly though, it seems as if it has taken the British Governor and the FCO stepping on the toes of some people or some groups directly before they could appreciate the gross injustice that has been meted out on this beautiful country before unified action is taken. Having said that, it is a good thing that we have achieved some modicum of cohesion, even if this may only be for the benefit of some business owners’ personal self-interest.
However, I wish to address a point that is dear to me and my former colleagues in that the former PNP administration is being misrepresented by Neil Smith in the Governor’s Office as it relates to his comments on VAT.
In Mr. Smith’s statement to the press on 15 January 2013 addressing the implementation of VAT, he stated that the former PNP Government was in support of VAT. That statement is completely false.
While it is the case that the former PNP had agreed to explore the option of selecting one of four taxation models being imposed on us by advocates for the Organization for Economic Corporation and Development (OECD), the European Union, IMF and the FCO to obtain compliance with international tax standards in our Financial Services Industry and to achieve revenue sustainability, it was never the case where VAT was selected as a done deal for implementation in the Turks & Caicos Islands by our PNP administration.
For Neil Smith to suggest that the noble intentions by our government to search for sustainable revenue streams for our country as an endorsement of VAT is grossly misleading and is typical of how the Governor’s Office has been conducting the affairs of this country for the last three years.
It was in my budget address of 2007 when I first informed the people of the Turks & Caicos Islands about comprehensive revenue reform for our country. A direct quote from that address follows:
“While recent revenue growth has been positive, it is concentrated in a few areas. We need to lessen our dependence on import duties as global tariffs reduction become more commonplace. If we do not do likewise, our competitiveness in attracting foreign investment could be eroded. The current tax regime also needs to be widened if we are to raise the necessary revenue on a sustainable basis to implement our plans. We also need to have a tax regime, which incentivizes positive behaviours and penalizes negative ones. Mr. Speaker, these objectives can be achieved through the introduction of alternative broad based taxes that are elastic, and the introduction of user charges where they can serve to defray costs. The time to act is now – we plan to consider all options.
In this regard, Mr. Speaker, I led a delegation to the Bahamas last week to discuss their revenue regime and strategies, and develop technical cooperation and exchanges in this area. We have already held discussions with the Caribbean Area Regional Technical Assistance Centre (CARTAC) concerning technical assistance to prepare a Tax Policy Study for consideration by government. This study would look at our economic structures, tax regime and recommend reforms to increase revenue yield on a sustainable basis. We are committed to this worthy task. I look forward to keeping this Honourable House and the nation informed of activities in this area.”
I later made a follow up reference to broadening our revenue base in the 2008 budget but never did I offer support for VAT or any other comprehensive tax mechanism. Unfortunately the study referenced to in the 2007 address never materialized as the country was hit by two successive hurricanes in 2008 causing extensive damage throughout the country and the global financial collapse that immediately followed in 2009 made the exercise untenable.
Our administration back in 2007 was asked to consider four different models: income tax, property tax, sales tax and VAT.
Preliminary indications from the business sector at the time suggested that the real estate and hotel industries had no appetite at all for income tax or property tax. It was believed that the real estate market was just getting its legs firmly established and that any form of taxes on income or property would be a serious deterrent to investment and would derail the real estate sector. The sales tax and VAT likewise had vociferous opposition to them albeit less so than the others but never was there any decision nor was there any canvassing of support for one tax over the other by the former PNP administration.
To the best of my knowledge, the deliberate promotion of VAT was only done when the hand-picked members of the Advisory Council and Consultative Forum ill-advisedly passed legislation implementing VAT, Trials With-out Jury, and Hearsay Evidence legislation. My recollection at the time was that there was a public outcry against all three pieces of legislation. The radio talk shows vented the opposition of the people to these Bills and so did the print and televised media.
Ironically some of the very same people who were a part of these hand-picked bodies gave credibility to the same pieces of legislation that they are now vehemently against. Similarly, the very same Governor’s office who seeks to castigate and vilify the former PNP administration at every opportunity it gets now seeks to use this same administration to fortify its promotion of VAT.
There is a popular saying that I believe resonates universally which states “you cannot have your cake and eat it too”. I think this saying applies aptly to the Governor’s Office promotion of VAT as well as those who now oppose it and gave validity to its imminent implementation. I know some will be quick to say that they opposed those pieces of legislation when they sat on those bodies. To that I will use the other popular maxim which states “the devil is in the details”.
However, I believe that the entire country is relieved that the voices that seem to matter are speaking out in unison regardless of the channels that may have brought them to this central point. To that I say thank you to all and sundry as I do wish you success in this worthy undertaking to begin the New Year.
Readers may remember that late last year at the 2nd sitting of the House of Assembly, the Premier made a Ministerial Statement in Parliament. The following is an excerpt from that statement:
Mr. Speaker, as Premier, I am responsible for the conduct of business in all ministries, along with the holders of the ministerial portfolios, so I will not go deep into the business of those ministries. Mr. Speaker, I assumed responsibility for Investment and Trade as I saw the need to boost inward invest in this country. Mr. Speaker, I must state clearly that the Inward Investment Unit cannot function maximally under the Deputy Governor’s Office and with the current structure. Therefore Mr. Speaker, it is my Government’s intention to transfer the Investment Unit to the Ministry of Finance and the development of a new statutory body with similar functions to TCInvest to replace the Investment Unit in short order. I will allow the Hon. Minister of Finance to expound on this further.
Mr. Speaker, during the period of the Interim Administration, the Spokesperson for the Governor’s Office was also in charge of the TCIG’s Press Office. Mr. Speaker, after we were elected as the Government, there is a clear reluctance to relinquish control of the Press Office, which is still under the Deputy Governor’s Office. Mr. Speaker, come January morning the TCIG’s Press Office will be transferred to the office of the Premier with increased staffing and no interference. End
In response to that section of the Ministerial statement, it was brought to my attention that the Deputy Governor said that the Premier is a Minister without portfolio and cannot make such decisions and as a result the press office and the Investment Unit will be staying where they are. The Investment unit is operated from the Deputy Governor’s Office and the governor is refusing to relinquish control of the government’s press office.
The letter from the Deputy Attorney General Rhondalee Braithwaite informing investors that the Premier has no authority to deal with any investment in the TCI confirms that the Governor , the Deputy Governor and British Officials have no respect for the Premier or his office or for the will of the voters of the TCI. Rhondalee had to get permission from someone high up in the former interim regime in order to write such a letter.
The Press Secretary Zadie Neufville who is a Jamaican refused to take any instructions from the Premier and does not speak to him. Imagine an expat paid by our tax dollars disrespecting our elected Premier.
The governor and the Deputy Governor has created an atmosphere where expat civil servants will soon show the Honourable Premier their Middle Finger.
The Governor’s Parrot oops press Secretary Neil Smith still follows the elected government around even though he is not wanted and the government press secretary Zadie Neufville only take instructions from Neil Smith.
To add insult to injury the Governor and the Deputy Governor are demanding that the Premier must get approval from them first before he can hold a press conference and they want to know before hand what he is going to say. This is disrespect to the highest. When is it going to stop????
Turks and Caicos deputy governor responds to attacks by premier
Published on January 17, 2013
By Caribbean News Now contributor
PROVIDENCIALES, Turks and Caicos Islands — The deputy governor of the Turks and Caicos Islands, Anya Williams, has written personally to the premier, Dr Rufus Ewing, in response to comments he made in public meetings and reported in the media this week.
Williams began her letter sent on Tuesday by reminding the premier of his role in collective Cabinet responsibility for decision making, which she pointed out was the correct forum for raising issues and resolving problems.
The spat has arisen following Ewing’s claim that the Deputy Governor’s Office is attempting to retain control of government funds and was using such control in turn to control ministers.
However, Williams, denied that her office has any interest in retaining control of government funds, or was using them to control ministers
She reminded the premier that she and the TCI public sector has sought to support him and ministers at all times.
Her letter made clear that the TCI government is free to determine government structures, and to put in place arrangements to have a function moved to another ministerial portfolio, bearing in mind the structures and responsibilities that have been set out in the constitution.
Williams’ letter also reminded the premier of the pre-election briefings given to all would be Assembly members and political parties where they were informed how government would work, regardless of who came to office, and that no candidate or party expressed any concerns at that time.
Similarly, all candidates were informed that the priority for any incoming government two thirds of the way through the financial year (November) should be on the estimating and approval process for financial year 2013/14, which would already be significantly delayed from its original timetable of October, due to the need to consult newly elected ministers on the development of a new fiscal and strategic policy statement and on new budget priorities going forward.
Her letter further reminded the premier that Cabinet agreed to this. She explained that if ministers wished to change the existing 2012/13 budget they are at liberty to do so but this must be done by proper legal process via the House of Assembly and that this had to be done in addition to the complex drafting and approval process for the new financial year.
In relation to Assembly members’ and ministers’ pay and conditions, Williams’ letter also reminded the premier that it is the Integrity Commission Code of Conduct and Report on Remuneration that sets out ministers’ entitlements to pay, travel and all other arrangements, not the Office of the Deputy Governor, which is charged with abiding by them.
If the premier or ministers are unhappy with the levels of pay or arrangements for allowances or the class of ministerial travel provisions set out in the Integrity Commission Report, and with the government’s current travel policy, this also should be taken up in Cabinet and set out to the House of Assembly and the Integrity Commission, Williams said.
With regard to re-establishing and staffing the Office of the Premier, the deputy governor said she has had several discussions with the premier in this regard and awaits a submission from his office. Similarly, the premier’s desire to set up a press office has not been budgeted and will require a business case and supplementary funding this year or be dealt with in the new budget for 2013/14. Any such arrangement must also be consistent with legislation and the Integrity Commission Code of Conduct.
“My letter sought to reassure the Honourable Premier that my office and I stand ready to assist wherever necessary in helping fulfil the Government’s mandate,” said Williams. “Although it is not my preferred way of doing business as there are serious other issues of national importance that are at hand, such has been the breadth and depth of the unmerited and inaccurate comments circulated this week, that I feel compelled me to respond.”
Progressive National Party (PNP) leader Dr Rufus Ewing (L) and Peoples Democratic Movement (PDM) leader Oswald Skippings
A change in the positions of the two TCI political parties vis a vis Britain is being seen as the fallout from an invitation issued to the two party leaders to attend the summer Olympics in London. The invitation was also scheduled to include meetings with British Department of State and Foreign and Commonwealth Office (FCO) officials.
The leaders of the Progressive National Party (PNP), who have been advocating their position of taking the TCI independent of Britain, have now welcomed the offer of an all expenses paid trip to attend the world event.
However, PNP leader Dr Rufus Ewing is not taking his deputy leader, attorney Carlos Simons QC, with him, deciding instead to be accompanied by Royal Robinson, a former member of the Misick-led PNP government.
The Peoples Democratic Movement (PDM), led by Oswald Skippings, decided to decline the invitation to attend the Olympics.
In a television interview, Skippings said that he did not receive the itinerary on time to make the decision to attend. He was scheduled to be accompanied by his deputy and former member of the Consultative Forum, Sharlene Cartwright Robinson.
However, Governor Ric Todd has denied that the PDM was issued the travel itinerary late and released a summary of the correspondence between the Governor’s Office and the PDM officials. Nevertheless, the PDM maintains this is not true. During the Skippings interview, the party leader said that he did not feel the meetings with British officials would be productive because they would be distracted by the Olympic events.
After taking over as PDM leader recently, Skippings was asked if he agreed with Britain’s suspension of the constitution and of the elected government. Skippings responded, “We had no choice and if we had to make that decision again, we would do the same thing.”
It was former leader of the PDM, Floyd Seymour, who sent evidence of widespread corruption to Britain’s Foreign Affairs Committee (FAC) in late 2007. This evidence, used by the FAC, forced the FCO to call a Commission of Inquiry, which resulted in the imposition of direct rule by Britain in August 2009.
After Seymour stepped aside and returned to private life, new PDM leader Douglas Parnell led several missions to London, where they met with FCO officials, members of the House of Commons and House of Lords, officials of the Westminster Foundation, as well as other persons and entities interested in the TCI and regional issues. Parnell has now followed Seymour into private life, not contending for any party position at the June convention in Grand Turk.
Former PDM leader and former Chief Minister Derek Taylor, who lost to Skippings at last month’s convention, reported he was working with members of the interim government.
Two days before leaving for London, PNP leader Ewing said he was looking forward to meeting with the British officials. “Even if we agree to disagree this will be productive,” he said.
The PDM, under none of their leaders, has ever favoured independence and has expressed disappointment that the special investigation and prosecution team (SIPT) has not moved swiftly enough. The party has, however, favoured earlier elections and a return to democratic rather than direct rule.
Supporters of both parties now report disagreements with their respective leader’s positions on the London trip.
I understand that Sotheby’s has been instructed to act for the Government, and has placed the 200 acres parcel 30101/25 of Joe Grant Cay on the market for sale at US$9.95 million. The parcel was recovered last year for the government following a claim by the Civil Recovery Team against my companies. I appealed the decision. The Appeal Court will decide later this year whether the Court’s decision was just and fair, as it was not.
The people of Turks and Caicos Islands must know that according to the Court documents submitted by the Attorney General:
on 7 November 2006, Mr Shaban Hoza, Government’s own valuation officer, reported a freehold value of this land for commercial use to be $230,000 per acre, but advised that the Government (or the Crown) could negotiate a price of up to $330,000 per acre. Those figures produce a valuation of between US$46 million and US$66 million for this 200 Acres land for commercial use ;
on 10 June 2008, this time Mr Hoza has produced a valuation of US$50 million for this 200 acres land for commercial use .
The Attorney General has quoted these valuations to build the Government’s case against our companies. The Court on the other hand, disregarded the Government appointed BCQS Limited’s US$3.2 million valuation for this 200 acres land for commercial use which was the basis for our purchase of Joe Grant Cay through our companies back in June 2008.
Now they are attempting to sell it at US$9.95 million.
The Government owes to TCI people, to declare the true value of the 200 acres of Joe Grant Cay, is it worth USD 50 million? US$250 million ? Or US$3.2 million that BCQS, a reputable Caribbean commercial firm has reported when they worked for the Government to confirm what must be the fair market price of this 200 acres?
If US$50 million is true, somebody is going to benefit US$40 million of Turks and Caicos People’s money.
If US$3.2 million is true, the Government should give us back our land,, that it claimed we bought at undervalue at the absence of a Development Agreement, in the midst of Worldwide economic crisis.
In any case, The Government must immediately stop the illegal sale of the 200 acres of Joe Grant Cay. This land is still the subject of an upcoming appeal between our companies and TCIG.
I appeal His Hon. Governor Richi Todd to suspend the sale of 200 acres of Joe Grant Cay. I also appeal to Sotheby’s Turks and Caicos Islands to immediately stop the sale of this land, which is still in dispute. I appeal to Temple Trust, to wait the results of the upcoming appeal.
Joe Grant Cay is a remote uninhabited cay located in a remote section of the archipelago between Middle Caicos and Easy Caicos, accessible only by sea. This Cay has no dock, no road, no electricity, no water neither any form of other infrastructure. The cay is composed mainly of consolidated rock with the ocean frontages consisting of either sand or “iron shore”. The elevation is low and the shallow water depths at some parts of the island for do not allow visitors to access other areas.
In 2008, We took a huge risk when we decided to invest into this property encouraged by his Hon. Governor Tauwahare, and ex Chief Minister Michael Missick.
I condemn the statements of certain people who claim that Joe Grant Cay will pay off TCI’s US$ 260 million debt to the UK. The best 200 acres of beach front parcel of Joe Grant Cay is up for sale US$9.95 million and it is unlikely that it will meet any buyer, unless the Government promise a preferential Development Agreement never seen before, with huge subsidies. Perhaps a preferential Development Agreement is already on the table, and the lucky buyer is already known. We will see what will come up behind the decision to sell this land so swiftly, without waiting the result of the appeal.
Dellis Cay and Joe Grant Cay Development Agreements:
Whether the Government has on the offer a preferential Development Agreement to the new buyer of Joe Grant Cay’s 200 acres, our Development Agreements had nothing unusual in them.
My companies have invested in Mandarin Oriental Dellis Cay and Joe Grant Cay projects since 2005 until August 2009. We were the largest investor of TCI history.
We have bought Dellis Cay at the time of His Hon. Tauwhare in June 2005 for USD 18 million from Mrs Dini Zingone. This deal was the largest private deal in TCI. I signed Dellis Cay’s development agreement dated July 2005 with Hon. Governor Tauwhare.
Further, on June 2008, we bought 200 acres of Joe Grant Cay island after 1,5 years of negotiations directly with the Attorney General, at the prices and terms determined by third parties appointed by His Hon. Tauwhare. On November 2008, our companies signed a Development Agreement for Joe Grant Cay after 2 years of intense negotiations, with the Attorney General. The signature on the Joe Grant Cay Development Agreement belongs to His Hon. Governor Wetherell.
Both Hon. Governors, have executed all Cabinet resolutions for Dellis Cay and Joe Grant Cay throughout their respective terms. I read in the press speculations about the Development Agreements of these projects. I have taken the decision to immediately publish in public both the former Development Agreement executed for Dellis Cay with Mrs. Zingone Dini before me, and the current Development Agreement for Dellis Cay signed by Hon Governor Tauwhare on July 2005.
I will also publish to public the Sale & Purchase Agreement signed by His Hon. Governor Tauwhare for Joe Grant Cay on June 2008, and the Development Agreement signed by His Hon. Gov. Whetherel for Joe Grant Cay on November 2008.
I am all for transparency. Therefore, I invite His Hon. Governor Richi Todd who is currently in office, to disclose all Development Agreements signed by TCI Government for the past 20 years. At the end of the day, these Development Agreements are negotiated and provided to the Investors for the benefit of both the Investors as well as the TCI people. TCI people have a right to know what is going on in these agreements. Why to keep them secret? Why let people speculate? Publish them and show to the people of Turks and Caicos Islands, who got what?
There is not a single developer who did not make a perfectly legal donation to the political parties in the TCI, but I am picked as a victim with a select few other to pay a deer price. I hope one day, all developers will disclose their development agreements and their donations to the political parties. Only then, the TCI people will see the truth.
The Responsibility of the his Hon. Governors
On July 18th 2009, His Hon. Governor Whetherell published the Commission of Inquiry’s Final Report which provided access to the unredacted text that contained our good companies name, ruining our reputation, and causing the banks to pull funding. Later on, His Hon. Governor brought into force the Order in Council suspending parts of the Turks and Caicos Islands constitution. The House of Assembly was dissolved and Members’ seats were vacated. The constitutional right to trial by jury was suspended. Shortly after in October 2009, a receiver was appointed to our project Dellis Cay by TTUTC.
Since then, I am exposed to numerous claims, in breach of my human rights. I am really sorry that two principal players between 2005- 2009 are not in the TCI today. They are the ex Hon. Governors Tauwhare and Whetherel
It is my strong belief that these Hon Governors have caused major damage not only to my companies but also to the TCI people. They have ruined the properties and lives of many people, by abusing their responsibilities.
Governor Tauwhare and Governor Whetherel represented the principal office ruling TCI, and they must be accountable for both good and bad things that happened in the TCI. They have chaired every Cabinet meeting along with the Attorney General. They have executed each and every resolution in the TCI. If the Courts one day, prove there has been “widespread” corruption at TCI, the Governors must surely be hold accountable as well.
I am very pleased that the elections are now proposed and finally we see the possibility to return to democracy after 3 years of interruption. I believe that TCI people deserve democracy and hope that both PDM and PNP will fulfil their responsibility in this respect.
DR.CEM KINAY
ONE VICTIM OF POLITICS IN TURKS AND CAICOS ISLANDS
NEWLY elected leader of the Progressive National Party (PNP), Dr. Rufus Ewing, contends that the Turks and Caicos Islands (TCI) is ready for independence.
Ewing, speaking at a press briefing at the PNP Headquarters on Wednesday, noted that the party has taken a resolution to support the move towards independence.
He made it clear that the PNP is pro-independence and going forward any moves the party makes will take into consideration an independent TCI.
The PNP Leader acknowledged that there are a few things that can be improved on before the step towards independence is taken.
According to him, the people need to be educated on the pros and cons of independence.
However, he reiterated that the TCI has long been ready to assert itself independent of the United Kingdom.
Ewing stated that before any decision is taken the views of the people have be taken into consideration, adding that the new PNP will move towards an approach that seeks to increasingly involve the people of the TCI in decision-making.
When asked about a possible timeframe for the attainment of independence, the PNP Leader noted that because this is something that needs to be approached strategically, setting a timeframe would be premature, particularly considering that the return to democratic rule has not been confirmed to happen this year.
Ewing said in going forward, independence has to be planned and strategically implemented in stages to achieve the vision leaders have for the TCI.
He maintains that independence is not to be rushed.
In a prior interview in April, Ewing made it clear that independence is ultimately up to the people, adding that developmental milestones that are advanced by an elected government will indicate the country’s readiness for independence.
“My duty is to prepare the people for that day,” he said then.
10 YEARS AWAY
Former PNP Leader and retired politician Daniel Malcolm addressed the issue of independence in an interview with the Weekly News in the latter part of March.
He contends that the TCI is too young for independence, but noted that achieving a measure of self-determination is a move in the right direction.
“We are at least 10 years away from being ready for Independence…we must develop our country and our people so that when we move to Independence we will do so from a position of strength,” he said.
However, Malcolm, like Ewing, stressed that TCI must prepare for that eventuality down the road.
“Self-determination is where the government and the people of TCI, and other territories like us, make advances toward greater political, social and cultural determination or say within the framework of their own situation,” he posited.
The former PNP Leader was recently been invited to join the Special Committee of experts with regard to the implementation of the Declaration on the Granting of Independence of Colonial Countries and Peoples.
This endeavour is supported by the Decolonization Unit of the Department of Political Affairs, which is part of the United Nations (UN) Secretariat, via monitoring the implementation of the Declaration, hearing statements from the non-self governing territories, organizing an annual regional seminar and making recommendations regarding the dissemination of information on the decolonization process.
Governor Ric Todd in addressing the issue of independence in the past has said unequivocally that the United Kingdom would grant independence to the TCI, if that were the choice made by the TC people. (Vanessa Narine)
published in TCI Weekly News on 12th of June 2012
PROVIDENCIALES, Turks and Caicos Islands — Britain’s minister with responsibility for the Overseas Territories, Henry Bellingham, arrived in the Turks and Caicos Islands (TCI) on Monday, on a previously unannounced visit, accompanying Governor Ric Todd on his return from a five-day trip to the UK to consult on the progress towards the “milestones” previously set down by Bellingham.
These milestones must be completed or clearly on the road to completion before Britain will agree to elections being resumed in the TCI to return a democratically chosen government to replace the current interim administration by Britain following the imposition of direct rule in 2009.
Hopes are high locally that the purpose of the surprise visit by Bellingham will address this issue of elections.
One of the issues relating to the election is voter registration, which is moving much more slowly than expected.
In the last election of February 2007, almost 7,000 people turned out to cast their votes. As of this week, only approximately half of this number has registered, with a registration deadline at the end of June.
In addition to the 7,000, it is estimated that approximately 2,000 more TC Islanders have come of age and are therefore qualified to vote. It is, however, not known how many of the past voters may now be excluded under the new registration qualifications.
Another problem being reported is the slowness in the issue of the required birth certificates. The presentation of an original birth certificate must accompany each voter registration.
One Providenciales resident, who is a former candidate for public office, has made several visits to the government offices in Provo attempting to expedite his birth certificate, which he applied for six weeks ago. While the interim government has since reduced the cost of the certificates from $40 to $20, this prospective voter had already paid his $40.
Another factor affecting the election is the current status of the political parties. The Progressive National Party (PNP) has had its senior executive gutted as a result of criminal charges brought against its former leader, five former ministers and one backbench member, who are scheduled in court next month to answer various allegations of bribery, corruption, money laundering and related charges.
However, the PNP now appears to be ahead of the other main party, the Peoples Democratic Movement (PDM), in setting up its new executive in anticipation of resumed elections.
While former chief minister Derek Taylor was elected to lead the PDM in November last year, it now appears he may not survive a strong challenge by another former chief minister, Oswald Skippings. Sources within the party, most media commentators and other local observers believe that, due to Taylor’s recent inactivity, he must be replaced. It also appears that, if Skippings is successful, this could signal a change in other elected and appointed party executives.
They are a lot of discussions regarding recovery of Joe Grant first through SIPT in Turks and Caicos Islands 6 months ago and now the statement of Governor Todd,that through recovery of Joe Grant they will cover the UK Loan about 200,0 MIO USD???
Nobody would like to wait the court decisions.
Is it possible to cover the SIPT costs and fundings through recovery of Joe Grant?Is it true or is it only a story to get the people of TCI calm about the costs and fundings of SIPT?
Or is it an international Scandal?
This Cay is one of the less known cays, and its story came up to the attention of the TCIlanders because of bribe allegations in Turks and Caicos. Dr Kinay, What is Joe Grant Cay?
Joe Grant’s Cay is a beautiful but remote, uninhabited 712 acres cay located in a remote section of the archipelago between Middle Caicos and Easy Caicos. It is accessible only by sea. The last time I took a boat to visit it, it took me 2 hours from Providenciales to get there. This Cay has no dock, no road, no electricity, no water neither any form of other infrastructure. It is inhabited like East Caicos. The cay is composed mainly of consolidated rock with the ocean frontages consisting of either sand or “iron shore”. The elevation is low and the shallow water depths at some parts of the island for do not allow visitors to access other areas. These difficulties do not discourage us, as at the end, when properly developed, this Cay is a beauty.
We have bought 200 Acres of this island on June 20, 2008 from the Crown through a transfer of title executed by the former Governor., Hon Richard Tauwaree and 5 months later on November 7, 2008, the former Governor, Hon. Whetherell has executed a Development Agreement with us for the development of the whole island.
What was the role of you in this project?
When I first came to Turks and Caicos Islands in 2005, I had already my development company O Property Collection in Austria. This company is where I, and my partner Oguz Serim offer our development advice to projects. O Property Collection has, from the first days of this project, ,is acting as “developer” bringing its expertise, in construction, sales, marketing. The center of any development is people. Community is very important. My company’s vision is to create design driven projects. God has already placed a beautiful design for Dellis Cay and Joe Grant Cay, it is now up to us, with respect, to treat these beauties with the best architecture and standards there is.
What do you want to develop on this island Joe Grant?
We wanted to develop the island with an environmentally friendly small Hotel and then Homes in the natural surroundings. We have retained top environmental engineers from Florida, and we started immediately the process of Environment Impact Assessment. We designed our project with a high-class architect from italy, and have signed a brand and management Indent with a very famous brand. The most important consideration though is that this will be a low density and green development.
When you first heard of Joe Grant Cay? How did you get involved?
I first got interested in Joe Grant Cay In December 2006 when I was informed that negotiations with some developers for a proposed project on Joe Grant’s Cay had run into difficulties and I was asked whether I could be interested to take this development further. The Government already had a price for sale on the Cay, US$5 million according to a formal offer that the former Government had placed before the previous developers in November 2006. My initial views for the Cay was that it was a remote location, no infrastructure and it involved Crown Land, and that meant the need of a Belonger Partner. I was not familiar with this process as my first investment Dellis Cay, is a private transaction and does not involve any Crown Land.
Did you know any of the previous developers?
I understand from the discussions in the past years that there were a number of developers who wanted to take this Cay prior to my involvement in early 2007. I do not know and have never done any business with the gentleman named at the discussions at the Commission of Inquiry,. whether in relation to Joe Grant’s Cay or otherwise.
Who is you local/belonger partner by Joe Grant?
I was already heavily engaged in our Dellis Cay project, and having regard to the Crown land policy (of which I was then aware), I thought it sensible to have a belonger partner in the development. In that respect, a company called Oceanic Development Ltd owned by Don Gardiner became my partner. I respected Don very much whom I already knew socially. As you may recall he was the President of the Turks and Caicos Islands Tourism Board. I understood that Don was involved in the development prospects of Joe Grant Cay with the previous developers so he was very familiar with it. We have executed a Joint Venture Agreement with Don’s company in January 2007, and became partners in a company called Caicos Platinum Ltd, a company that was the recipient of the first formal offer of US$5 million from the Government back in November 2006.
When did you buy Joe Grant Cay?
See, that has never happened. We did not buy Joe Grant Cay. We bought the freehold of the 200 acres of Joe Grant Cay, and the rest (512 acres) is provided to us by a Conditional Purchase Lease through a development Agreement. I am not sure whether you followed it, but this island was first offered at US$5 million to Caicos Platinum Ltd, when that company was owned by previous developers. Then, 200 Acres of it (approximately 30%) was offered to us at $2 million in early June 2008, by the decision of Cabinet, led by His Excellency the Governor Richard Tauwaree. At the specific instance of the Government (and with some reluctance on our part given the risk to which we were thus being exposed in advance of the conclusion of a development agreement), we were asked to close the purchase of the 200 acres hotel parcel on an urgent basis, apparently because of very low cash flow issues at Government level. Having agreed to do so, the Governor again changed its mind, obtained a new valuation by a third-party QS and informed us on June 19th, 2008 that the price of the hotel parcel had been increased to $3.2 million. We paid that price for 200 Acres and bought a portion of Joe Grant Cay on June 20th, 2008 on de day of Groundbreaking ceremonies of Dellis Cay.Governor Hon. Tauwaree came in the afternoon to this ceremonies,was very happy,that Joe Grant deal was finally closed after 1,5 years of negotiations.He congratulated me on the day,the funds of the transaction was in the account of government.
What about the Development Agreement?
You know, it took us almost 2 years from the first discussions, but 5 months after our acquisition of the 200 Acre parcel, in November 2008 to get a Development Agreement. I am not sure whether you re know but The Governor executes all major agreements on behalf of the Government. So, Governor HE Gordon Wetherell, and our CEO, Director, Michel Neutelings have met for the execution of the Development Agreement.
Dr, Is there anything special in the Agreement?
All development agreements in Turks and Caicos Islands, usually have more or less the same provisions. However, we have an additional obligation on our part to pay 15% on the gross amount on the sale of villa lots in the development to the Crown. I am not privy to all development agreements in TCI but I am not personally aware of any other development agreement which contains an obligation of that nature. From the standpoint of the public, it is clear that if my partners and I make a major investment on Joe Grant’s Cay such that the price which a buyer might pay for a villa lot is greatly enhanced, the Government receives a corresponding benefit without any of the business risks undertaken by the developer. Joe Grant Cay was going to be a new source of income for the TCI Government and TCI islanders. This remote and inhabited island was going to be the home for a new hospitality project providing new jobs and opportunities for everyone. I would imagine that most of the ex Middle Caicos residents would returned to their home from their present endeavors in Providenciales. In summary, this project had a very important social aspect. I have on many occasions discussed these aspects with both Honorable Governors Tauwahare and Whetherel.
There were discussions about the valuation? What you have to say on it?
Look, I am a developer, a businessmen. I got interested in this deal as the 712 Acres was available at US$5 million to a number of developers who apparently did not perform. I wanted to buy at this price. At the end, I have negotiated more than 18 months to get 30% of this cay at US$3.2 million. I took a significant risk by paying that price and closing that purchase without having a signed development agreement with TCIG, with no guarantee that we could carry out our development plan or acquire the rest of the Cay. I trusted to Governor Hon.Tauwahare and later on to Governor Hon.Whetherel.
Now coming to the valuations, I understand from the Inquiry that under the leadership of the HE Governor Tauwaree himself, the Cabinet has sought a number of conflicting valuations both from their own valuation department and from a private commercial appraiser on June 2008. They have as the Cabinet, together with HE the Governor, have decided to take the valuation of the commercial appraiser as it reflected the market value.
Now, the question is why did they not picked the high value but the low value?
My answer is that the valuation of the land is obviously a matter for the Crown and for experts in that field. That is why I have hired some of the leading experts in this field to assist me. What they say is simple: the Valuation officer has attempted to value this property by direct comparison to couple at Ambergris Cay, and sale listings from marketing brochures (and not actual transactions) at North Caicos Marina and Middle Caicos. I am told that those comparable do not come near being appropriate for the purposes of valuing Joe Grant Cay.
At Ambergris Cay, for example, lot sizes of between 0.32 – 1.85 acres each are compared to our project of 700 acres. In addition, Ambergris Cay forms part of an established luxury brand, and considerable expenditure has been undertaken on the extensive infrastructure. I do not know if you know but Ambergis Cay has all its utilities underground, electricity and water, It is the only island in this country which has an underground sewer system. Everything is self-generated on the island, water making, the treatment of the sewer system. It has even an uncompleted marina that is not completed but obviously a port facility) including the inclusion of the biggest private runway (6,000 feet) in the Caribbean. Overall Ambergis Cay it is a self-sufficient island that has all of the amenities and can function, unlike North and Middle Caicos which has to have power on the sea cable from Providenciales. North Caicos Yacht Club is also a developed property, so no parallels to undeveloped land neither. We also understand that the value r has used “sales brochure prices” in 2008. The Middle Caicos comparative is based on a sales listing as well, which was withdrawn from the market after 22 months listing period and not sold.
Now, that is what experts say. These will all come out soon. Now if you ask me what I personally think. To me, the real valuation is what I paid. Our company paid US$18 million to Dellis Cay, a 500 acres island, of which 200 Acre is private land. Dellis Cay is only 20 minutes from Leeward Highway, it had PPC Electricity cable in it, for plenty of electricity, and it is next to world-renowned Parrot Cay. I think that we have paid for the 200 Acres at Joe Grant Cay reflects the fair market price at its present state and that is “undeveloped” land at a remote location for commercial use. That is what it is.
Later on, we have asked both local and international professional valuation firms to conduct a fgull analysis and report an official valuation of this island. All these reports have confirmed the value that we have paid to Joe Grant Cay’s 200 acres and the lease agreements that we have entered with the TCI Government. In any case, after the World Economical Crisis starting in November 2008 and onwards land values have significantly eroded all around the world and especially the Caribbean.
But Dr Kinay what is the benefit of this Project to the TCIslanders? What do they get?
Look,the government did not simply sell a piece of land, they entered into a development agreement for the development of that land. If I can not develop it on time, and spend the money that the Government wants me to spend on it, than they will get back. It is in the Agreement. It is ours as long as we spend money on it. You know how much? My Development Agreement says I need to spend US$120 million on this cay in a fixed period of time. We estimated that the construction will take 2 years and create at least 150 new local jobs. Once the island is fully operational it will require at least 70 locals to manage it. As I have already mentioned, in addition to the purchase price of the land of the hotel site, we will pay 15% of our Villa sales on the 300 Acre Villa Lots and this goes straight to the Government’s budget. Not to mention, the usual development agreement obligations such as the Annual Scholarship payments, duties, work permit fees, the rents paid under the leases, stamp duty benefits accruing to TCIG arising out of sales in the development and the boost to the tourism economy of TCI.
Dr Kinay, you lost a court case concerning Joe Grant Cay June 2011? What will happen now?
I received the Turks and Caicos Islands Court’s judgment in June 2011 concerning Joe Grant Cay. I also received TCIG’s Press Release from July 2011. The judgement is grossly unfair and Joe Grant Cay development companies are currently appealing it. I could not afford lawyers as Turks and Caicos Islands Courts have frozen all my worldwide assets not allowing me to spend any funds towards my right to defend myself and my companies. Looking at the Judgment, in essence, His Hon. Justice G W Martin has concluded in connection with the political donation of $500,000 made by Dellis Cay’s parent company Turks Development LP (the Court states the donation was from ‘Dr Kinay’) to Michael Misick on 9 January 2007, the Judge found (paragraph 33) “there to be a very strong probability that the money was paid as a bribe in order to ensure that the Defendant companies obtained the benefit of the proposed development” disregarding the facts that the Defendant companies did not even exist at that time, and that the donation was made by Turks Development LP, a company developing Dellis Cay, not related in any way to Joe Grant Cay . His Hon Judge further observed (paragraph 41): “I emphasise that this judgment should not be treated as a conclusive finding that any individual has acted corruptly. Nobody should be declared corrupt if he has not had the opportunity to defend himself at trial, and that has not happened in this case.’ These statements did not make the Judgment just and fair, the basic principle of law.
On the matter of Joe Grant Cay’s valuation, His Hon Justice completely ignored the Government’s valuation report obtained from BCQS, an independent commercial appraiser who valued 200 acres of Joe Grant Cay, at USD 3.2 million for commercial use, exactly the amount of money asked by the Government in June 2008, which the development companies have paid in full. His Hon Judge ruled (Para 36, The Judgement) ‘When instructing BCQS to give an alternative valuation, McAllister Hanchell did not tell them of the proposed development, so that their valuation made no allowance for the intended use of the land.’. The Learned Chief Justice has failed to recognize that BCQS valuation report specifically stated on Page 7 Item 3.5 ‘It is assumed that planning permission is available for the subdivision of the land for residential plots or for a commercial use.’ By ignoring BCQS’s clear statement specifying that Joe Grant Cay valuation report is prepared for “commercial use”, The Hon. Chief Justice presented an unbalanced approach for the benefit of the Plaintiff. The Court’s omission of BCQS’s written representations in their valuation report is not something that I can live with and we will be pursuing the reasons for this material error.
First, the Commission of Inquiry’s publication of unredacted Final Report despite the TCI Supreme Court’s Order not to publish the unredacted Final Report cost Dellis Cay its business and caused the funders to pull their finances, now Joe Grant Cay Development companies are striped of their rightfully obtained assets.
It is clear to me that there is a set political agenda which is geared to restructure the political landscape at the Turks and Caicos Islands and we are chosen as the main victims.
I repeat categorically that I reject all accusations, and state that we are innocent
For those who doubt that the Development of Joe Grant Cay is not innocent, I have only one question:
Had the alleged privileges, favors or better conditions been present in the acquisition of 200 acres of this island, or in the Development Agreement, why both Hon. Governor Tauwhare, and the present Hon. Governor Whetherell would have executed these on behalf of the Crown?
Both Hon Governors are experienced public officials, with history of making land transactions, and executing Development Agreements on behalf of the Crown. Why did they approve these transactions if the preferential treatment was all over the documents that they have signed?
All these contracts, and 200 acres land sale were approved by the Attorney General, TCI Invest, Ministers, the Premier, and executed by 2 Hon. Governors. The Government and both Hon. Governors had 2 years to conduct due diligence. Do you really believe that they were all ‘deceived’? and did not know what they were selling? That is the real question the Turks and Caicos Public must ask.
I have faith in the law, and I will look for justice until I find it.
What are your long-term goals in Turks and Caicos Islands?
Now a new Governor is appointed as you know.His Excellency Hon.Todd is a very positive person and has a new approach for TCI.I will explain him following:
I did not come to Turks and Caicos Islands, to do few projects and go back to anywhere. I will stay and work here for many years. When Dellis Cay and Joe Grant Cay will one time open, my children, together with the young generation of Turks and Caicos Islands, will be proud of having these developments, in remote locations and will have fun.TCI er will be proud about it too.
It is also not right,to tell TCI Islander,the government recovered Joe Grant.It is not true.We have still our appeal open and when we will again lose because of the pressure of Attorney General,SIPT,TCI Government etc,we will go to the international courts for this injustice.
Progressive National Party (PNP) leader Dr Rufus Ewing (L) and Peoples Democratic Movement (PDM) leader Oswald Skippings
