A former Cabinet minister said that China Construction America (CCA) should look to settle with developer Sarkis Izmirlian’s company BML Properties, following a recent $1.6 billion ruling in the Supreme Court of the State of New York in BML’s favor, because by appealing the case and prolonging it, CCA is incurring interest in the tens of millions.
Dionisio D’Aguilar, former minister of tourism and aviation under the Dr. Hubert Minnis administration, told reporters he is shocked that CCA, the US business unit of China State Construction Engineering Corporation, is seeking to appeal a New York court ruling that it defrauded BML Properties and breached an investment agreement. He said it’s in the best interest of Izmirilian and CCA to focus on a settlement.
D’Aguilar said: “It’s odd to me that CCA would seek to appeal this ruling. They’ve gone to the New York State Supreme Court twice and been shot down. The judge tried to get both parties to settle before he made his ruling. The interest on the $1.643 billion ruling is clipping up at nine percent per year. That’s about $150 million a year.
“So, let’s assume that you appeal, and it takes about two years, that’s another $300 million. Now you’re up to $2 billion, and your experience at the Supreme Court in New York has not been successful thus far. So, I would think that both parties should get in a room and haggle out a settlement and bring this to a conclusion, and everybody move on.”
“The judges ruled quite convincingly that CCA was fraudulent in its activity and didn’t act in the best interests of the company, and unfortunately, ended up taking the property from Mr. Izmirilian, even though, according to the judge, he operated honorably and did what he was supposed to do. So, I think CCA and its parent should seek to settle this, bring it to a conclusion.”
Whether or not this unsightly affair with Izmirilian and CCA over the Baha Mar property would sour investors against doing business in The Bahamas remains to be seen, D’Aguilar said.
“You always start off an investment relationship like it’s a good marriage, but you have to plan for the divorce, because there may be a divorce, and when you see how our government acted in that divorce, it doesn’t give you comfort. So, from that perspective, if I’m looking at multiple jurisdictions, and I’m looking at what happened here on a large investment and how the government, seemingly it’s been found out, sided with the wrong party, the party that’s been found guilty of not living up to its contract and acting fraudulently, that does cause a level of discomfort if you’re looking at potentially investing in The Bahamas. So obviously, every investor will look at each investment differently and come to their own conclusions, but it may cause some to pause.”
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Publish date : 2024-11-03 23:29:00
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