BASSETERRE, St. Kitts – IN light of the advent of the Sugar Industry Diversification Fund (SIDF), many individuals have been calling on representatives of the government to account for the finances accrued by this entity.
Among those individuals is Alicia Powell of Mattingley, who wrote a letter to the Minister of State with Responsibility for Education, Youth Affairs, Labour Social Security, Information and Technology, Senator Nigel Carty, requesting answers to a number of questions including, “In what Bank or Financial Institutions are these monies deposited or invested?”
Headlined “More questions than answers” and dated February 23, 2009, Powell quoted one of 15 reasons former Minister of National Security the Hon. Dwyer Astaphan made in a press release on January 28, 2009 why he believes that Dr. Douglas needs to resign as Prime Minister of the Federation and Leader of the St. Kitts-Nevis Labour Party.
She said, “Number 13 reason reads, quote, ‘His decisions have created serious conflict of interest situations. For example, the financial adviser is also his chief focal point in recruiting investors, in raising finance, and at the same time this person uses a government office with staff therein and represents as a partner a company [sic] which has been given a five-year global exclusive contract to provide investors into the Sugar industry Development Fund program, which sells citizenships for US$200,000 and from which thy [sic] Company gets US$20,000 for each citizenship sold. The same person is also a member of the Cable TV Board, the UDC Board, and is a relative of Dr. Douglas.’
“This statement captured my attention! It raised several questions that I felt I needed answers to. As a citizen born in St. Kitts and having lived all my life in St. Kitts, I feel that I am entitled to the answers to my questions,” she added.
Powell indicated that she surfed the internet regarding the SIDF and “I subsequently questioned you, Mr. Carty on the ‘Inside The News’ program on WINN FM on Saturday 14th February 2009 about the $40 million dollars in the SIDF. You indicated then, that some of the funds had been used for the “YES” program”.
Powell noted that the Prime Minister advised at the launching of the YES Programme that it was funded by monies from Venezuela. She pointed out that in an interview on WINN FM on Tuesday, February 17, the Chairman of the SIDF stated that no request was received by their Board for funding the YES Programme.
“On Monday 16th February 2009, I raised further questions on Voices on WINN FM regarding the SIDF. This appeared to have prompted an interview between Mr. Clive Bacchus of WINN FM and two of the Board Members of SIDF Mr. Terrence Crossman, Chairman and Mr. Michael Martin owner of Caribbean Financial Associates INC. corporate secretary to the board. The interview left me with even more questions unanswered!
“I once again questioned you on the ‘Inside The News’ program on Saturday 24th February 2009. In response to my questions you stated that ‘had the questions been posed in a way that I could answer directly I would have been able to give you an answer on certain questions which were asked’. I am therefore putting my questions to you in writing to ensure clarity of my questions with the hope that you will give me the necessary answers,” Powell said.
Quoting from the SIDF’s website, Powell wrote that it “is managed by an independent Board composed of highly respected individuals of St. Kitts & Nevis”.
The following are the list of questions asked of Senator Carty by Powell:
- Which member of the Board of the SIDF represents Nevis?
A CUOPM release of February 20th 2009 stated that Mr. Michael Martin said quote “Private sector representatives include Caribbean Financial Associates Inc; Terrence Crossman and Attorney Hesketh Benjamin.
2. Did the Chamber of Industry of Industry and Commerce or any other Private Sector Body appoint or nominate Lawyer Hesketh Benjamin, Mr. Terrence Crossman, or Caribbean Financial Associates Inc. to represent the Private Sector on the S.I.D.F?
SIDF website states “The Foundation has its own organization separate from the Government”.
3. Why have three Government Permanent Secretaries including the Chief Secretary and Cabinet Secretary been appointed to the Board of the SIDF?
SIDF Press Release, for immediate release - 10 October 2006 states “The National Bank Trust (St. Kitts-Nevis-Anguilla) Ltd. is the Founder and Secretary of the Sugar Industry Diversification Foundation. The National Bank Trust will also carry out the day to day administrative functions in relation to the Foundation”.
4. Who authorized the change of the secretary of the Foundation from The National Trust (St. Kitts - Nevis-Anguilla) to Caribbean Financial Associates Inc a privately owned business? Was the public invited to apply for this position?
5. Would there be some irregularity in Caribbean Financial Associates Inc owned by Mr. Michael Martin in performing this role bearing in mind that Mr. Martin was the former General Manager of National Trust (St. Kitts) Ltd?
The Secretary of SIDF indicated during the interview that approximately 100 applications at a minimum of US$200,000.00 had been approved “and growing”.
6. How many citizenship by investment applications have been approved and how much money has been collected for the SIDF to date?
7. In what Bank or Financial Institutions are these monies deposited or invested?
The citizenship applications require a minimum of US$200,000.00 each and the Prime Minister at his last press conference stated that there was “about forty million dollars....not less than ($40,000,000.00) in the fund”.
8. Can we understand that there is about forty million US dollars equivalent to about one hundred and eight million EC dollars (EC$108,000,000.00) in the SIDF to date?
The Chairman stated that the unpublished accounts as at the end of 2007 disclosed that there was “seventeen million EC dollars (EC$17,000,000.00) in the account”.
9. Is there some discrepancy regarding the amount and the currency of the Fund?
SIDF website states “The international firm Henley & Partners has been mandated to advise and assist the Government of St. Kitts and Nevis in managing the Citizenship-by-Investment component of the Sugar Industry Diversification Foundation”.
The Henley website records Mr. Wendel Lawrence as a Partner. Mr. Lawrence is a Financial Consultant to the Government of St. Kitts and Nevis.
10. Can there be a perception of a conflict of interest with Mr. Lawrence’s dual positions?
Powell’s letter also said, “In the interest of transparency and accountability regarding this multimillion dollar Foundation that was created to quote the Prime Minister ‘to take care of the welfare of the displaced sugar workers, and to accelerate the transformation of the country’s economy’. I sincerely look forward to receiving the answers to my above questions.”
She further quoted the Prime Minister as saying, “We invite you to browse the site and find out more about the Foundation and its activities.”
From this backdrop, Powell concluded that she does not think it is unwarranted for her to request answers to the questions she asked.
