“I cannot see how the government can justify taking funds from the Sugar Industry Diversification Fund to essentially give to a FOREIGN investor as opposed to a local investor or a cooperative of former Sugar Workers, to assist in the development of a project in St.Kitts,” says PAM Deputy Political Leader .
Opposition People’s Action Movement MP Hon. Eugene Hamilton is taking strong objection to the recent revelation that moneys from the much shrouded and sometimes controversial SIDF Sugar Industry Diversification Fund , is being used to help assist an investors in the development of the recent launched Kittitian Hill Resort Project. The revelation was made during the launch ceremony of the 400 acre, $200 million project The opposition MP was clear and emphatic about his opposition and objection to the funds of the SIDF being used to assist any foreign developer.
“I must raise and express my strong objection to the funds of the SIDF being used to assist the investor in the development of this Kittitian Hill project,” said PAM Deputy Political Leader Eugene Hamilton. “This fund was set up for the benefit of the former Sugar Workers and was used to solicit money on behalf of the sugar workers. Therefore I find it insulting and downright scandalous and nothing short of corrupt for the government to take moneys from that fund to assist a foreign investor to develop a local project. What is wrong with forming a cooperative with ex Sugar Workers and providing that same money to that cooperative to team up with other local investors like TDC, Horsfords, C & C, to develop a truly local project. Thus the development will be owned and managed by locals with local workers. So the Sugar Workers will be more than employees, they will be owners. They would have a vested stake in the development. It is alarming to me that a so called investor comes to this country to invest and has to use the money of our people, our money, to fulfill the investment and buy 400 acres of OUR lands,” Hamilton lamented
Former Labour Parlimentarian and Minister of Tourism G.A. Dwyer Astaphan expressed similar concerns about the use of the SIDF moneys to help or assist foreign investors .
In an article entitled the “Butcher of Basseterre” the former Constituency#2 representative stated “I’m told that a hefty sum from the Sugar Industry Diversification Foundation (SIDF), in a move that I’m not sure is permitted by the Foundations Act, was recently loaned to a private, foreign developer. I’m all for providing incentives and other support. But if an investor is so broke that he needs to borrow money from the Government, worse yet this broke Government, then I see a red flag. And all the more so because the SIDF money is to be used directly for the people of this country, not for someone coming here with starry ideas and empty pockets. If he isn’t bankable in the financial market, then how can he be bankable with the Government?”
In early 2009 the executive secretary of the fund Mr. Micheal Martin stated that as at December 2007 the Fund had an asset base of over $17 million. However others have suggested that the amount in the fund is well over US$40 million or EC$100 million.
The SIDF is funded by monies collected from the sale of St. Kitts Nevis passports. St.Kitts-Nevis along with Dominica are the only two countries in the world where you can legally purchase a second passport. Through “economic citizenship” programmes.
In 1984, the previous PAM Government introduced a “citizen by investment programme” through which a person could invest US$250,000.00 or more by investing in the purchase of property-condos or houses or investing in business in our Federation. This created jobs for our people and in the event that there was some problem with the individual the Government could seize the property. And thereby one did not automatically have the right to vote.
Hamilton highlighted the hypocrisy of the labour party regarding the programme and outlined how the programme has detoriated
Hamilton stated “The Labour Party lambasted the then Rt. Hon. Dr. Kennedy Simmond led PAM Government for introducing the programme. The Labour Spokesman in their edition of Wednesday, February 24, 1984 headline was “Government presents law to sell St. Kitts Nevis citizenship and to shut out scrutiny by the courts. The editorial stated that “Citizenship is one of the most important features of nationhood. It is not a matter to be dealt with in secretively without the knowledge of the public”.The editorial continued, “The person does not have to set foot in St. Kitts Nevis. The politicians in the cabinet can peddle St. Kitts Nevis passports all over the world as they wish - to criminals, drug pushers, murders, thieves, traitors provided they have a few dollars to give the Government.”
The present Labour administration decided in 2006 to add a new dimension to this programme which they harshly criticized the former PAM administration for. A Foundation for the Sugar Industry Diversification Foundation was specially formed . According to Mr. Hamilton the Fund was formed under the pretext of “assisting in the welfare of the Sugar Workers”.
The change the government made to the “economic citizenship” programme was that foreigners making a contribution of US$200,000.00 – US$400,000.00 could now purchase a St. Kitts Nevis passport without having to buy property or provide jobs for citizens as is required under the PAM initiated “economic citizenship” programme.
“It is amazing to me that this foreign investor could have access to a fund which was established in the name of sugar workers. It would seem to me that this government seems more interested accommodating and assisting forigners over locals and more importantly sugar workers who could have easily formed a cooperative , encouraged and facilitated by the government and funded by the SIDF to establish and construct their own project the they would own and benefit directly from,” Hamilton opined.
