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Friday 15 February 2019
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Editorial

Who pulled out, Govt or Sandals?

I AM SPEAKING: Prime Minister Dr Keith Rowley during his three-hour plus “conversations” 
with journlists last Thursday at the Diplomatic Centre in St Ann’s where he spoke extensively 
on the Sandals pullout. PHOTO BY ROGER JACOB
I AM SPEAKING: Prime Minister Dr Keith Rowley during his three-hour plus “conversations” with journlists last Thursday at the Diplomatic Centre in St Ann’s where he spoke extensively on the Sandals pullout. PHOTO BY ROGER JACOB

AIYEGORO OME Guest editorial

AT THE time I penned this, it would have been before Prime Minister Dr Rowley engaged with the media for over three hours last Thursday at the Diplomatic Centre in St Ann’s. Despite this “conversation” he had with journalists, I feel that we may never know if the TT government was honest about the background to the Sandals pullout.

From a press conference prior to Rowley’s “conversations”, we know that mega-minister Mr Stuart Young and Sandals CEO Mr Gebhard Rainier blamed negative publicity which Young further attributed to “a handful of people, some with agendas and some with personal agendas.”

But supposing, the real reason is that the government on its own volition and not Sandals, decided to withdraw from the deal following revelations in the October 2018 Memorandum of Understanding (MOU) between the Government and Sandals Resorts?

Let us remember that Afra Raymond had to dig out the MOU via the Freedom of Information Act, following a ruling from the London-based Privy Council. Remember also that immediately prior to the Young/Rainier press conference there was a closed-door meeting between Rowley, Young, Rainier and Sandals deputy chairman Adam Stewart at the Prime Minister’s residence. What was the real agenda at this meeting?

Raymond was reported to have said in a January 15, newspaper article, “When the MOU was finally revealed, after my lawsuit, the terms were shown to be lawful with the state making all the capital investment; no guarantees or quotas as to jobs, suppliers or services; government agreeing to promptly provide as many work permits; transfer pricing was being facilitated via this agreement and Sandals was placing no capital at risk. None. It was really Tobago love.”

Prior to that, there was a December 10, 2018 article headlined “Sandals or laced up boots” written by Mr Reginald Dumas, former diplomat and head of the Public Service.

Dumas in that article, wrote: “the privileges accorded Sandals almost suggest that a new state is being created within the State of TT. For instance, the government is to “extend applicable benefits…to be negotiated and agreed between the parties to ‘associated’ and/or ‘affiliated’ companies of Sandals and also to named non-resident consultants, contractors (etc) engaged by Sandals for all or any purposes relating to the operation, expansion…and maintenance of the resorts…Is transfer mispricing thereby facilitated?”

“Also, Sandals will have the option to extend the terms (of agreements entered into with the Government) for…15 years (beyond) the initial 25…” I see no such option for the Government. Is there one? And if Sandals changes status from Management Company to ‘owner of the freehold to the (hotels)’, it will enjoy ‘incentives and tax reliefs…no less favourable than those granted (in the MoU).’ No ifs, no buts.”

If I am right the statements made about the withdrawal fall within the mindset of the current administration which treats any criticism of it as “unpatriotic”, another way of rebuking the public for being “farse and outta place”, when the public was just, “minding their own business.” In other words, the PNM is taking up the directive of the first Prime Minster and party founder, the late Dr Eric Williams who said words to the effect, “when I speak, let no dog bark.” This government takes no responsibility for what has happened with the Sandals fiasco and we as a nation are none the wiser.

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