This land-for-debt swap story gets more troubling by the day.
And like just about everything else nowadays, it’s connected to our country’s Citizenship by Investment Program.
Let me first respectfully advise you to dismiss the Prime Minister’s boast that he didn’t have to bring the St. Kitts-Nevis-Anguilla National Bank (Vesting of Certain Lands)Bill, 2012, to Parliament.
The truth is that when the IMF people saw the documents which had been used to pledge the Government’s land as collateral against its debt to the Bank, they were displeased, and they called for quick corrective action. So the Prime Minister hustled everybody off to Parliament.
But, notably, the Bill, which was passed into law in one sitting, and without giving the public a chance to discuss it, empowered the Minister of Sustainable Development, that’s him, to vest “all land owned by the Crown to be specified in Order” in the Bank.
Isn’t that too open-ended? For me, the language suggests grave desperation and danger, with us, the people, personally and institutionally, being on the receiving end of both.
The Government’s debt to the Bank is so high, and needs to be paid down so fast, that locals have virtually no chance of getting in on the deal when the lands are sold.
Of course, sound governance would’ve prevented such a high debt. And the money in the SIDF account, which is the people’s money, can and should be used to help pay down the debt, so that the people might not be alienated from their own land.
Even now that can be done, although the situation is extremely delicate. But the people will have to kick Denzil Douglas out of office for that to happen, and if they’re to salvage some of their lands. And time isn’t on their side.
Meanwhile, over the past few months, some Iranians have been sniffing around for large tracts of land in St. Kitts to set up economic citizenship projects.
You may know that a number of Iranians bearing St. Kitts & Nevis passports were questioned at a Canadian airport last year, and red flags began popping up. As a result, the Government issued a ban, effective 30th November 2011, on applications for economic citizenship by Iranians residing in Iran.
Of course, if such persons were to buy or rent homes in some other state, for example, The United Arab Emirates, and qualify as residents under the law of that other state, then even though they maintain a home in Iran, the ban might be made to look a little silly, as the applicants could use their paperwork from that other state. I don’t know if the Dubai arrangement with the strong Iranian ties has been set up with this in mind.
In any event, an Iranian residing outside of Iran, or his or her money, is no less a terrorist or money laundering threat than is an Iranian residing in Iran.
Now notwithstanding last year’s ban, it’s alleged that: (i) applications of Iranians residing in Iran, made after 30th November last year, were accepted; (ii) document dates were doctored; and (iii) sworn statements were given by persons who were supposed to be in St. Kitts on the dates of such statements but who were, in fact, elsewhere.
Not only that, but there are also reports of 10,000 square-foot house lots having been offered for sale to Iranians residing in Iran under the Economic Citizenship program for just over US$200,000.00, although the minimum investment required by law is US$400,000.00.
If these reports are accurate, then something very ugly is going on. And the information and intelligence must be flowing accordingly.
It would come as no surprise, therefore, if the buzz about Iranians looking to buy up large chunks of St. Kitts in this land-for-debt swap between the Government and the National Bank, and to develop these lands to be marketed as part of the Economic Citizenship Program, is creating serious concern in high places internationally.
And while I don’t believe that anyone in St. Kitts & Nevis has a problem with the people of Iran from a human perspective, it’s clear that we can’t ignore that concern. Suppose the Canadians and the European Union discontinue visa-free travel for our citizens. Poof! And suppose the USA makes it more difficult for our citizens to obtain visas. Poof!
But why would Iranians, or any other, investors want to buy up our lands?
There are several reasons. Firstly, one can imagine a good amount of them wanting to move, and move their money, out of a region which continues to seethe with tension. Secondly, they might wish to live in an environment that is less strict in terms of religious and social practices. Thirdly, they might want to remain in Iran or in the area but to have an alternative passport which offers the visa-free travel that we enjoy. Fourthly, the investments might be part of a money laundering or terrorism enterprise. Fifthly, a lot of money can be made.
And made, not just by Iranian investors, but by Kittivisians who might look to be in with them, in one way or another.
And while we’re discussing Iran, bear also in mind that there are countries in Eastern and Central Europe, and elsewhere, heavily influenced by the wrong type of people, which seem to have become areas of great interest for some promoters of our Economic Citizenship Program.
All of which is only adding to the concern to which I referred earlier.
The situation becomes potentially far more troubling when you consider how many passports can be issued from one piece of land or one residential unit.
The applicant can get a passport, as can his or her spouse and dependents. Then the unit can be sold after five years, at which time the new owner can apply, for himself/herself, spouse and other dependents, and the whole process repeats itself. This can go on forever, repeating itself in five-year cycles, with people making good money and with passports being issued left, right and centre.
In addition, if the unit is owned by a company, that company can issue ten (10) redeemable preference shares and the persons who purchase these shares, as well as their spouses and dependents, can get passports.
Then when the preference shares are redeemed five years later, they can be issued again to another ten persons who, along with their spouses and other dependents, can apply for passports.
In addition, the owner of the company which owns the unit and issues the preference shares can sell it, and the new owner can apply for passports for himself/herself, his/her spouse and other dependents. And on and on, ad infinitum.
Quite apart from my concern about the open-endedness of this program, it’s my opinion that the law does not allow for citizenship to be granted by the acquisition of preference shares in a company.
Now, put into the context of the land-for-debt swap, the 1,200 acres referred to in the Bill could yield as many as 5,000 house lots and as many as 200,000 new passports every five years.
Let’s do the math.
5,000 house lots owned by 5,000 companies, each with the ability to issue ten redeemable preference shares, or ten (10) passports, can produce 50,000 passports to applicants. But if the applicant/preference share holder has a spouse and two dependents, then each preference share will carry not one, but four, passports with it. So the 50,000 passports now become 200,000 passports, every five years.
Then what about the children and spouses of these new citizens? They can apply to be registered as citizens also.
All from the sale of just 1,200 acres. And if necessary, the Prime Minister can assign the other 3,500 acres of land that’s been pledged to the Bank, which could generate another 14,000 house lots or an additional 560,000 passports every five years.
That’s a potential total of 760,000 passports every five years. We know it won’t get there, but very high numbers can be reached.
And don’t forget that there are other projects already doing this.
A sad aspect of this approach is that it does not encourage ongoing development, construction and macroeconomic benefits, because one project with just 50 units can produce 2,000 passports every five years if it’s allowed to issue redeemable preference shares. And if it’s not, it can produce 50-200 (maybe more) passports every five years, which would raise the question as to why some projects are allowed to deal in these redeemable preference shares and others not?
While selling St. Kitts & Nevis passports has become a multi-billion dollar business, the people of St. Kitts are losing their land, and being counted down, and out.
Look into the future. What do you see?
I never believed I’d live to see this happening in the country of my birth.
This is betrayal at its worst.
