Identifier
Created
Classification
Origin
07BRIDGETOWN615
2007-05-16 20:56:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Bridgetown
Cable title:  

ST. KITTS: GOVERNMENT EXPROPRIATION LEAVES AMCITS

Tags:  EINV CASC PGOV KIDE SC XL 
pdf how-to read a cable
VZCZCXRO7712
PP RUEHGR
DE RUEHWN #0615/01 1362056
ZNR UUUUU ZZH
P 162056Z MAY 07
FM AMEMBASSY BRIDGETOWN
TO RUEHC/SECSTATE WASHDC PRIORITY 4734
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEHCV/AMEMBASSY CARACAS 1723
RUCPDOC/DEPT OF COMMERCE WASHDC
RUMIAAA/HQ USSOUTHCOM J2 MIAMI FL
RUMIAAA/HQ USSOUTHCOM J5 MIAMI FL
RUEHCV/USDAO CARACAS VE
UNCLAS SECTION 01 OF 02 BRIDGETOWN 000615 

SIPDIS

SENSITIVE
SIPDIS

STATE FOR WHA/CAR
STATE FOR EEB/CBA AND EEB/IFD/OIA
STATE FOR L/CID AND L/WHA
STATE FOR CA/OCS/ACS/WHA
SOUTHCOM ALSO FOR POLAD

E.O. 12958: N/A
TAGS: EINV CASC PGOV KIDE SC XL
SUBJECT: ST. KITTS: GOVERNMENT EXPROPRIATION LEAVES AMCITS
IN THE DARK


UNCLAS SECTION 01 OF 02 BRIDGETOWN 000615

SIPDIS

SENSITIVE
SIPDIS

STATE FOR WHA/CAR
STATE FOR EEB/CBA AND EEB/IFD/OIA
STATE FOR L/CID AND L/WHA
STATE FOR CA/OCS/ACS/WHA
SOUTHCOM ALSO FOR POLAD

E.O. 12958: N/A
TAGS: EINV CASC PGOV KIDE SC XL
SUBJECT: ST. KITTS: GOVERNMENT EXPROPRIATION LEAVES AMCITS
IN THE DARK



1. (SBU) SUMMARY: Embassy Bridgetown continues to assist
Amcit property owners in the expropriation case involving the
government of St. Kitts and Nevis (GOSKN) and the Angelus
resort. The GOSKN has mishandled the case by providing poor
information to the owners and delaying the resolution of the
Amcit owners' claims. While seeking to attract investment
from large resort operators, GOSKN may have undermined its
image among smaller investors, who may be equally important
to the island's economic future.

--------------
Background
--------------


2. (SBU) In November 2006, the Embassy received a series of
complaints from eight Amcits who owned condominiums at the
Angelus Resort and Spa, a 108-unit combination hotel and
condominium complex on St. Kitts' Frigate Bay. (NOTE: Post
received complaints from eight Amcits, but it is possible
that there are additional Amcit owners that have not
contacted Post. END NOTE.) Initially, property owners
requested advice to protect their investments. Post advised
them to seek local legal counsel, but some responded that
attorneys in St. Kitts were not interested in taking their
cases. The office of Congressman Dave Camp (MI-04) expressed
interest in the case via e-mail on February 6, to which Post
responded.


3. (SBU) The GOSKN expropriated the Angelus resort in
September 2006 through a resolution of the National Assembly.
In his announcement of the action, Prime Minister Denzil
Douglas justified the takeover by saying that the management
of the resort found itself unable to meet its commitment to
the GOSKN with respect to development of the property or its
ability to satisfy its creditors and service providers. The
GOSKN's intent, Douglas stated, was to sell the property to a
corporation which would develop a five-star hotel on the
site. It is rumored that the Marriott Corporation, which
owns the 573-room St. Kitts Marriott Resort and Royal Beach

Casino located directly across the street from the Angelus
complex, discussed the purchase of the property with the
GOSKN.

--------------
Power Turned Off
--------------


4. (SBU) In December 2006, the Amcit owners contacted Post a
second time. Many of the tenants were students at the Ross
University's School of Veterinary Medicine. (NOTE: Ross
University, part of the DeVry group of universities, is an
American university with a campus in St. Kitts. END NOTE.)
Post learned from the owners that electricity had been turned
off at the Angelus resort because the resort's management
failed to pay the electricity bill. Break-ins occurred at
the Angelus during the black out, raising concern about the
tenants' safety. Post contacted GOSKN Attorney General
Dennis Merchant and convinced him that the situation posed a
threat to the safety of the Amcit residents and others.
Merchant arranged for the lights to be turned back on until
the tenants could relocate and also to allow those who wanted
to remain at the Angelus to do so temporarily. Merchant
detailed additional police officers to the Angelus, and Ross
University stepped up its security patrols on the premises as
well.

--------------
Inland Revenue Becomes Point of Contact
--------------


5. (SBU) In February 2007, the Attorney General's Office
designated the Comptroller of Inland Revenue, Beverly
Williams, as the point of contact for the Angelus property
owners. Post provided the Comptroller's contact information
to the owners, along with a list of attorneys. According to
Williams, Inland Revenue has collected information from the
owners about their property titles and value. However, Post
continues to receive complaints from the property owners
about the lack of information regarding the GOSKN

BRIDGETOWN 00000615 002 OF 002


compensation plans. Some have stated that the Comptroller is
unwilling to speak with them.


6. (SBU) After a number of unproductive phone calls and
e-mails to the Attorney General's Office, the Consul General
finally spoke on April 23 with Williams, the Comptroller of
Inland Revenue. Williams said that her office has been
conducting a survey of the property in order to arrive at a
"fair market value" for each unit. She added that the survey
was nearly complete. Once the survey is finalized, Williams
plans to inform the owners of the price the GOSKN is prepared
to offer as compensation for the expropriation of their
condominiums. As of May 15, the property owners had heard
nothing from Williams.

--------------
COMMENT
--------------


7. (SBU) The actions of the GOSKN in the Angelus
expropriation case demonstrate that the GOSKN is making large
hotel investments a priority in its tourism sector
development strategy, even if it is at the expense of smaller
investors. For the past two years, St. Kitts has posted
significant economic growth, mostly as a result of
large-scale tourism investments, with the Marriott being the
island's flagship hotel development. The GOSKN may view the
expropriation of Angelus as a small price to pay for its
ambitious development goals.
OURISMAN