BASSETERRE, St. Kitts - In an effort to dispel rumours of hood-winking and lack of transparency, the recently-appointed Chief Executive Officer of the Sugar Industry Diversification Foundation (SIDF), Terrence Crossman, has made the accounts and other pertinent information of this institution available for public knowledge and scrutiny.
Speaking with SKNVibes in an exclusive interview, Crossman explained the aim of the launch and what SIDF means to the people of the twin-island Federation of St. Kitts and Nevis.
“The launching of the website is aimed at creating greater awareness and understanding of the investments that the Sugar Industry Diversification Foundation has so far made in St. Kitts and Nevis.
“SIDF was established in 2006 under the Foundation Act of 2003. This foundation comprises an independent Board of Councillors whose job is to ensure that the entity continues to support the government in its aim of transitioning from sugar to non-sugar and seeking to identify alternative industries in which we can invest to grow the economy.”
Crossman declared that consideration was given to some of the alternatives, which is evidenced in a number of programmes that the foundation is already supporting, but there are other schools of thought in some quarters.
“We recognise that there are other schools of thought and that is why we will be having the launch on Wednesday (May 30). We are having the function in order to bring former leaders from the Federation together to provide input as to where they think the economy should be headed and where the country and the Federation, as a whole, should be headed.”
Hidden Funds
Addressing the perception of many individuals in the Federation that finance collected over the years by the SIDF is being hidden from the public, the CEO dismissed it as wild rumours and explained where it could be found.
“The funds have never been hidden. From the inception, the funds have always been properly managed through an Escrow Account that is managed by Price WaterhouseCoopers at the Bank of Nova Scotia in St. Kitts. And the monies that have been sent on to the SIDF have all been properly accounted for, and we have provided through our website the listings of all the accounts from 2007 to 2010. However, the auditors are presently finalising the 2011 accounts which should be available shortly.”
He noted that with the exception of the 2011, some EC$264M has been the SIDF’s intake from the year it was established.
Funded Projects
Since its establishment in 2006, SIDF has funded many projects, which Crossman indicated could be found on their website.
“We have funded many projects but I can highlight a few. We are presently providing funding for the Capisterre Farm which is a project in the St. Paul’s area, and the objective of that project is to provide food security for the Federation by 2015. It is 113 acres and we want to be self-sufficient in food by that time.
“The other is the Kittitian Hill Project with a five-star luxury resort and a high-end residential development also in the St. Paul’s area, which will be the first five-star resort for St. Kitts. There is already one on Nevis and that is the Four Seasons.
“The construction of this resort has provided much needed employment for many people who were displaced as a result of the closing of the sugar industry, and upon completion more of our people will be employed. Close to 40-plus units have already been built and the model that we used down there is small local contractors, as opposed to bringing in a general contractor and not have any benefit for the locals.”
In response to awarding contracts for the construction of funded projects, the CEO stressed that the SIDF has divorced itself from this process.
“The foundation itself does not get involved in that type of decision-making process although Belmont Resort Limited is 90 percent owned by the foundation. Yes, there is some opportunity for that and we do not select contractors, but we want to spread the wealth around. My last count was that there were over 20 local contractors working on that project and each of them has about five or six persons working with them.”
Disbursement of Funds
Unlike the belief of many, funds from the SIDF can only be disbursed by and on approval of the Board of Counsellors.
“The Board of Councillors ultimately is the body that makes that decision. With the operationalisation of the SIDF, the methodology, the mechanism will be different because the Board will set very broad parameters as to how the money should be invested or used, based on the input of other stakeholders, and then the office of the foundation will go ahead and carry out the mandate.”
Government’s influence on Funds Disbursement
Crossman has passionately denied the government’s involvement in funds disbursed by the SIDF and reiterated that although the government is a stakeholder, the Board of Counsellors is the body that makes such decisions.
“I will reiterate that the Board of Councillors is an independent body, and clearly we operate in a particular climate which the government is a stakeholder and from time to time there are discussions with regard to projects.
“Those projects would have been evidenced through the funds that we have provided to the extent that there is the perception that there is heavy government influence. Certainly that’s not something that I can fix, but I think the public will see from accessing information we’ve provided for every single project that’s been funded has been in order of products of national priority without regard to sector, because we have gone across various sectors and people would appreciate objectively that these interventions were necessary and timely when we provided them.”
What is the Citizenship-by-Investment Programme?
The CEO noted that the Citizenship-by-Investment Programme is one of the oldest programmes in the world, noting that it actually started in 1984 but has gone through some changes.
He stated that the regulations regarding citizenship-by-investment in the Federation are contained in Part II, Section 3 (5) of the Citizenship Act, 1984, and the St. Christopher and Nevis Citizenship by Investment Regulations, 2011.
“These provisions,” he added, “allow the government to operate a programme under which citizenship is granted to persons who qualify under the straightforward criteria set by the government.”
“Also,” he noted, “it had been mainly set out simply as a donation and then the Real Estate component was added and in 2006 the SIDF component was also added as an option.”
Requirements for Citizenship
“Anyone who is interested in becoming a citizen of St. Kitts and Nevis could contact one of the service providers from a list that we have on our website. The provider would then educate that person as to the various options available.
The SIDF is one of three options that are presently available.
One being an approved project by Cabinet, in that the person can apply for the project they want to invest in and Cabinet will approve it. The Real Estate option is a well-known one, where a person can invest a minimum of US$400 000 and apply for citizenship. They may choose from a number of projects such as the Kittitian Hill Project, Silver Reef and the Ocean’s Edge Project.
“In addition, the contribution to this Foundation is another option. Contribution to this option is US$250 000 and this makes one eligible for citizenship.
“Those are the options and once the determination is made, the person then must pay the due diligence fees. Those fees are paid to the Citizenship-by-Investment Unit Office, which we are not, and that actually goes to ensuring that background checks are done and the person does not have a criminal record, etc.”
Crossman explained that once that determination is made and approval in principle is granted, at that point monies are paid and this is based on what option for Citizenship-by-Investment the applicant makes.
“If the applicant chooses the SIDF as their option, then the monies are placed in an Escrow Account at Scotia Bank. And once the person is granted the Naturalisation Certificate, the monies are then disbursed to us. At the end of every month we would see a list of the approved persons with a cheque that will correspond with the amount that the persons paid, and from that we deduct the government’s fees,” he added.
He further explained that after applying through a service provider, the application is then taken to the Citizenship-by-Investment Unit Office in Central Street, Basseterre and background checks would be made by the Financial Intelligence Office.
“The Prime Minister will then sign the document which will return to the Citizenship-by-Investment Unit Office. Unlike the other two options, the only time we at the SIDF are aware that a person has applied for citizenship is when we get the report after the applicant has been approved and had received their Naturalisation Certificate,” Crossman said.
The CEO is adamant that the SIDF is only aware of the applicants who were approved under the Foundation and is not involved in the other two options.
The office of the SIDF is located at the Sands Complex in Basseterre and today (May 30), at the launch of the entity’s website at the St. Kitts Marriott Resort, a number of political leaders, including Prime Minister the Rt. Hon. Dr. Denzil Douglas, and representatives of the private and public sectors will be present.
Among the subject areas scheduled for discussion in which funds were and are to be disbursed are Diversification and Food Security, Educational services, Tourism and Hospitality and Recreation, Alternative Energy, and Sports and Culture.
To access the SIDF website, kindly visit http://www.sknsidf.org/
