Despite Grand Bahama Port Authority Honourary Chair-man Sir Jack Hayward’s disclosure Wednesday of an agreement to sell his shares in the company and Port Group Limited, one local attorney says it is a “flam.”
In fact, government has yet to give its approval and State Minister of Finance Zhivargo Laing said yesterday it is a non-issue as they know nothing about a sale.
“All of that, to me, is speculation. We don’t have anything before us to consider and so we don’t know what the deal is. So it won’t be useful to go there. We just really don’t know,” he told The Freeport News when questioned what government’s next move would be now that Sir Jack had said his shares are already sold.
Sir Jack, in an exclusive interview with this daily on Wednesday, said he and his trustees signed the deal last Friday to turn over the shares he owns to an unnamed investor group.
But according to Minister Laing, government approval must be given for such a transaction.
When questioned whether that purported deal could be voided by government on learning that it has occurred, Minister Laing said he did not wish to get “caught up” with (addressing) that (issue).
“That isn’t a question for me to answer right now,” he said. “This much is true, investing in The Bahamas requires the consent of the government.”
When pressed on whether government will seek to investigate the new purported investors, the minister said that no investigation is necessary as there is nothing before government.
“If something is before us then we do what is standard in these circumstances,” he said.
The Hayward family owns 50 percent and Sir Jack’s late partner Edward St. George owns the other 50 percent which is being managed by the St. George’s Estate.
Sir Jack produced on Wednesday a letter to Prime Minister Hubert Ingraham dated December 14, 2009, in which he officially informed the prime minister of the “good news” of the signing.
However, Sir Jack was uncertain as to whether the nation’s chief was in receipt of the letter before leaving for Denmark to attend the United Nations Climate Change Con-ference on the same day.
While Sir Jack is of the belief that Prime Minister Ingraham was made aware of the signing last Saturday by South Abaco MP Edison Key who was “instrumental” in bringing the new investors to Grand Bahama, he revealed that he has yet to get a response from the prime minister.
The group, Sir Jack said, is impressed with the present management of the GBPA and PGL and do not want to disturb that management when they take over.
And, he assured, that due diligence was done on the group which invests, promotes, seeks out industry and tourist-related operations.
Before leaving for Denmark, the prime minister revealed at a press conference that the government would not be renewing the work permit of GBPA executive chairman Hannes Babak.
Questioned what the future holds for Babak if his permit is not renewed, Sir Jack confirmed reports that Babak might have to operate out of the Caymans.
“The holding company, IDC is a Cayman Island company, so I’m sure he’ll be welcomed in the Caymans,” Sir Jack said.
Over the last three years, the Haywards and St. Georges have been locked in a legal battle over ownership with the Haywards claiming they actually own 75 percent of the assets.
But according to Sir Jack, the St. George Estate is aware of who the new owners of his shares are and they are “very much in agreement.”
For now, he said he hopes government will keep its promise in helping Freeport recover and do their best to support the GBPA in its en-deavours to restore Freeport.
“A lot of this has been caused by successive governments’ procrastination of the Oasis hotel, but that’s past history and I just hope the government is going to keep its promise in helping to develop Freeport and let it prosper and not interfere and sabotage our efforts,” he said.
Speaking as a Bahamian citizen, long-time resident, licensee and employer of Freeport, Attorney Fred Smith called the move by Sir Jack “a flam.”
“Jack and Babak are just flamming Freeport again. Just like the prime minister said I’m flamming the people in the Wilson City case, this is nothing more than a flam, just like the Flemings were a flam,” he said, referring to the last group the Haywards announced would be taking over their shares.
“I am shocked at the arrogance displayed by Sir Jack in making this announcement of a purchaser of his shares. The Port Authority is not an elected representative body. It is a company that is owned by two families and they have an ethical and moral responsibility to behave sensibly and rationally in the administration of the Port Authority’s affairs,” Smith said.
Smith insisted that Sir Jack has an obligation in trying to sell his shares to get approval as the Hawksbill Creek Agree-ment provides that there will be no change in beneficial ownership without government approval.
Smith also charged that it was irresponsible of Sir Jack to have signed an agreement with the group and that it shows a lack of bonafide on the part of the prospective group whom he said came in the still of the night without introducing themselves to the Bahamas government and signed an agreement.