Wednesday, August 27, 2014
By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Bahamas was yesterday warned to guard against extensive sovereign-controlled investments that could allow other countries to “own us”.
K. Peter Turnquest, the Opposition’s finance spokesman, said widespread investments in the Bahamas by foreign government-controlled entities would ultimately merit “national security considerations” to prevent them from having to much influence on this country’s internal affairs.
He was speaking after it was revealed that China State Construction and Engineering Company (CSCEC), a Chinese state-owned entity, is considering whether to make a formal bid to acquire downtown Nassau’s British Colonial Hilton resort.
If a deal is sealed, it would give Chinese government-owned entities significant influence in the Bahamian economy, given their extensive investments and involvement in other projects.
China State Construction, apart from being the main contractor for the $2.6 billion Baha Mar project, also has a $150 million equity stake in the project. And the Beijing-controlled China Export-Import Bank is Baha Mar’s main debt financier, having provided at least $1.9 billion to the development.
This effectively makes China owner, financier and contractor for the Bahamas’ second mega resort/casino development, which is being counted on to play the lead role in turning around this nation’s moribund economy and high unemployment rate.
Along with China State Construction’s interest in the British Colonial Hilton, the state-owned China Harbour Engineering Company (CHEC) is the contractor for the $39 million Abaco port.
And privately-owned, Hong Kong-based Hutchison Whampoa, is the major investor in Freeport through the Freeport Container Port, Grand Bahama Development Company (DEVCO) and Freeport Harbour Company.
While welcoming foreign direct investment (FDI), Mr Turnquest told Tribune Business that the Bahamas had to be careful about allowing sovereign-controlled ones amassing too much power.
Asked about the implications of China’s growing investments and interest in the Bahamas, the FNM MP for east Grand Bahama said: “I think as a sovereign country we have to be careful about a concentration of investments by any particular nation, and particularly when you’re talking about national investment vehicles.
“We have to be very careful that we don’t find others owning us by having the majority of investments in this country. There has to be national security considerations to that.”
While backing the Bahamas’ desire to attract FDI, Mr Turnquest added: “We need to be smart about this, and make sure no one entity becomes so significant that they affect every aspect of our economy.
“There are private entities interested in what we have to offer, and we have to look wider than easy targets.”
China’s strategy is to find overseas investments to absorb its surplus dollar and foreign currency reserves, plus excess labour. This is also part of a geopolitical and economic strategy designed to complete for worldwide influence against rivals such as the US.
It has been able to drive a hard bargain, ensuring that at Baha Mar, the majority of work, labour and materials are all sourced from China.
As its sovereign-controlled entities expand their interests in the Bahamas, Beijing’s ‘muscle’ will grow when it comes to negotiating further investment deals in the Bahamas.
Comments
Sickened says...
It may not be so bad being owned by the most powerful country in the world. China will be the next super power for 100's of years I suspect so getting into bed with them now may not be such a bad thing. We could certainly use their ideals of long-term planning.
I would certainly prefer to live in, and be a citizen of, a truly independent and prosperous country but unfortunately successive governments have all but forced our people into economic slavery. Thanks Ingraham. Thanks Christie.
Posted 27 August 2014, 2:25 p.m. Suggest removal
Reprecussions says...
I wouldn't want to be own by anyone especially after years of people fighting for freedom from enslavement then fighting for the right to govern. Today people are still fighting for rights and here you speak of not mining being governed by a country that doesn't care about it's own populous. What do you think they would do to a country thousand of miles away with a majority black population?
Posted 27 August 2014, 3:42 p.m. Suggest removal
Thinker says...
Guess what. You are owned by this government that wants you to work even harder so they can take your hard earned money via taxes. If Bahamas was really sovereign, it wouldn't be signing WTO and IMF agreements. We are slaves to the dollar. Voting doesn't make you free when you have no choice over the options of who wins! And when is it that you have seen this recent government doing anything its people have demanded?? Ha ha... Freedom.
Posted 28 August 2014, 6:51 a.m. Suggest removal
GrassRoot says...
you don't want to be owned neither by Chinese (have you heard of Tibet?), the U.S. (worked in a sweatshop in Guam?), Russia, Qatar (feel like being a slave again), nor anybody else. This has nothing to do with Christie or Ingraham, it is short term greed and certainly not long term vision.
Posted 28 August 2014, 12:20 p.m. Suggest removal
John says...
You would swear he was saying something new... this sermon was being preached from the 1980's. It was also the foundation for Pindling's 'Bahaminization' policy, where foreigners had to train Bahamian's for specialized jobs, and/or get them involved (to the tune of at least 10%) in major investments in the country. It was the Ingraham and Christie government that did not see the wisdom or danger in allowing the foreign investor to come into the country unchecked, or selling off all the government corporations in the name of privitisation. "Chil'e we need jobs."
Posted 27 August 2014, 3:16 p.m. Suggest removal
Well_mudda_take_sic says...
They say those new generation Yellow submarines are running circles around the Red White and Blue ones in our Tongue of the Ocean. This, combined with the Russians once again setting up shop in Cuba, says it all when it comes to the good 'ole U S of A losing its global standing. For many years now the Chinese and Russians have been expanding their ever increasing sphere of influence by making new friends. All the while the U.S. has been making new enemies by destabilizing just about any country it decides to trample on by kowtowing to the key players in the military industrial establishment who are keen to profiteer from wars created by U.S. foreign policy run amuck!
Posted 27 August 2014, 4:08 p.m. Suggest removal
Thinker says...
Yes, and here we are allowing the globalization to infiltrate us here whilst we sign unnecessary agreements with the IMF and WTO. Goodbye sovereignty!
Posted 28 August 2014, 6:54 a.m. Suggest removal
GrassRoot says...
you cant live on an island anymore, Thinker.
Posted 28 August 2014, 12:21 p.m. Suggest removal
palmgirl says...
the country already owned its so far in debt who you think is bailing them out, same as USA. You are not in control and you never will be. The government doing all kinds of things which dont reach your ears... China is the worst country to get involved with. They will flood the Bahamas and all the identity will be gone of the Bahamian people. They are sly,greedy and mercilious..and the last thing they care about is the people of the Bahamas.
Posted 28 August 2014, 4:38 p.m. Suggest removal
Abaconian says...
Yep..
Posted 19 October 2016, 11:57 a.m. Suggest removal
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