The best price may not be the best pick

EDITOR, The Tribune.

According to the Bahamian press, as well as the Prime Minister and Mr Winder himself, Sarkis Izmirlian’s offer to buy back Baha Mar seems to be unbeatable.

But there is a Gorilla in the room.

Mr Izmirlian has a condition that can hardly be attractive to the Chinese Exim Bank, regardless of their loan being paid in full. The Gorilla is that CCA Bahamas, a “cousin company” be removed as the contractor to finish this project.

In other words for the Chinese Government-owned Exim bank to be made whole, another Chinese Government-owned company would be removed from completing the project. Traditionally Chinese would rather lose money than loosing “face”.

Then there is the disturbing speculation that the owner of the Pointe in Nassau, CCA Bahamas is one of the parties interested in “taking over” Baha Mar.  

CCA America may be a world-wide contractor but it has a past record that is hardly commendable as a responsible contractor, not to mention as a resort operator.

Blacklisted by the World Bank for numerous projects infected with the same virus that brought down Baha Mar, CCA is hardly qualified to be an operator of Baha Mar.

Regardless of how the (surely opaque) financial agreements might be arranged between two Chinese government owned companies, the future financial health of this country is extremely dependent on Baha Mar being a success as a resort. Getting the best price for the project is not necessarily in the best interests of this country.

Rather, it is getting the best price from the most competent operator of this resort.

The liquidators should have a duty to not only get the best price for this mega resort which is so big that the failure of Baha Mar as a business would surely have an unknowable disastrously negative affect on the financial future of The Bahamas, but they should also have an interest in picking an investor that can fire up this financial engine in the best interests of the Bahamas.

CURTIS CAMPAIGNE

Nassau,

May 1, 2016.

Comments

Franklyn says...

***

***CCA Bahamas (“Pay When Paid” Clauses) for Bahamas Subcontractors***

***

CCA Bahamas should pay Bahamian contractors as was promised, many companies fell for the promise line: that "regardless: you will be paid for your work" I was told by senior CCA officials that the company (CCA Bahamas) did not have a money issue so payments would be make if we stayed on (at the Baha Mar Site) when it was becoming clear that something was not right at BahaMar.

...I do understand that some companies did receive payments (those companies that were called on to work on the POINTE project) ...they got paid off for work done at Bahamar. I do agree that CCA Bahamas is playing a game with Bahamian Subcontractors and using the BahaMar issue (or the “Pay When Paid” Clauses) as a cover not to pay its bills here in the Bahamas - and they know that this government would not pressure them to do so.

Paying Bahamian Contractors should be a condition to continue projects in the Bahamas – but we are Bahamians and we should always sit second fiddle to foreign investors. My company which was one of the last remaining companies to stay on at Baha Mar, before the Chapter 11 bankruptcy protection in a US Bankruptcy Court was announced, still has outstandings with CCA dating back to March 2015.

**the big question and a point of clarification on the whole issue:**

(1) CCA Bahamas, the contractor for the former Baha Mar Hotel project, who hired (or have signed contractual agreements) with Bahamian subcontractor and owe them somewhere in the area of $75 million for work requested and performed at the Baha Mar site.

(2) CCA position is (they are not paying Bahamian subs until they are paid what they are owed by the former Baha Mar owners, but the former owner is on record that they own CCA Bahamas no monies.

(3) Bahamian subcontractors are of the belief that any sale of the former Baha Mar hotel project would include settlements owed to them by CCA Bahamas - ...but this maybe an oversight on behalf of the Bahamian Subcontractors.

(4) CCA Bahamas want to deflect its responsibility by saying because of the Baha Mar impasse it is not obliged to honor its contractual responsibilities to pay Bahamian Sub Contractors. But this is not the true case, CCA Bahamas is being selective in who is paid for personal advantage where it is expedient.

(5) Bahamian contractors are collectively owed around $74 million for work done on Baha Mar. New York federal courts maybe the resolve for Bahamian Subcontractors ...if a class action were to be organized.

Part 1

Posted 4 May 2016, 12:15 a.m. Suggest removal

Franklyn says...

**Part 2:**

The US company alleged: “CCA has breached the sub-contract by... failing, neglecting and refusing to fully pay CDI for the work; directing CDI to perform the Change Order Work at an agreed-upon price and then refusing to pay for it; alleging that certain final inspections are necessary for final payment and then refusing to conduct inspections; asserting false, perpetual reasons for not paying; approving invoices and then failing to pay them in full; paying approved invoice amounts in one month and then taking back monies previously paid by reducing percent complete values on subsequent invoices.”

It claimed that despite receiving the invoices three days later, and raising no dispute or protest over the sum claimed, CCA “has failed, refused and neglected to pay the balance of the account”.

Demanding that a 1 per cent interest penalty be added to the unpaid balance, Controlled Demolition alleged that CCA (Bahamas) would be “unjustly enriched” if it retained the benefits of its work without compensation being paid.

One subcontractor of CCA Bahamas that worked at the Baha Mar site and did not get paid for work done is seeking to collect on a $750,000 plus debt owed by CCA Bahamas for work done nearly six years ago.

CCA had moved to compel CDI to arbitrate the dispute, but U.S. District Judge John G. Koeltl denied that motion. In addition, Judge Koeltl ordered that the case be settled, and on April 27, the case was assigned to Magistrate Judge Kevin Nathaniel Fox for settlement.

Bahamian sub contractors (of CCA Bahamas) are collectively owed around $74 million for work done on Baha Mar. And New York federal courts maybe the resolve for Bahamian Subcontractors ...if a class action were to be organized.

*** contact: ( bahamaspti@gmail.com ) for more information on the CCA Bahamas/ Bahamian Subcontractors Class action**

Posted 4 May 2016, 12:18 a.m. Suggest removal

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