The approval of two enterprise projects retroactively has been addressed in a statement released by the Citizenship by Investment Program (CIP) Board of St. Lucia. The statement comes after two projects were approved by the government and scheduled to begin on January 12, 2024, in a government gazette dated September 12, 2024.
By Citizenship by Investment Regulations Section 11(7), the gazette formally approved the following two “Approved Enterprise Projects”:
- Caribbean Galaxy Real Estate Limited: The Program for National Infrastructure Improvement
- Rock Hall Housing Initiative by Bemax LLC
Despite their initial gazetting in September, the government now officially recognizes these projects as approved and operating since January due to backdating.
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This could open the door to laws or benefits being applied retroactively, or it could be seen by some as an attempt to justify agreements or actions that took place before formal approval.
To clarify the situation, the CIP Board released a statement in which it emphasized that the publication of the gazette is required by law to notify the public of authorized projects.
The Citizenship by Investment (Amendment) Regulations, which were released on December 20, 2023, gave the Board the legal authority to approve such initiatives, according to the Board.
The Board vehemently insists that it has not approved any applications and that developers have not received any funding, even despite the projects’ approval and receipt of applications.
The enterprise agreement stipulates that developers must “finance the projects upfront and recover their money once approvals are granted and minimum investments are made.”
The Board revealed that the developers are prepared to start working on their ideas. The Department of Infrastructure and the developer have completed the Memorandum of Understanding (MoU), and the Housing Project is awaiting final clearances.
The Board revealed, perhaps unexpectedly, that three projects reported as approved between 2016 and 2021 were never gazetted by the government.
The DSH Project (Alpina Hotel and Alpina Square), the Galaxy Project, and the Range Development (authorized as real estate but sold as a bequest) are a few examples. Although all had received government approval as real estate ventures, they were never formally issued.
Public confidence was given by the Board, which promised to “act by all the legal and statutory requirements and close any gaps that previously existed.”
Concerns about Caribbean CIP procedures are generally widespread, which is why this notification is made. The Caribbean CBI’s key players, such as Ernest Hilaire, the deputy prime minister of St. Lucia, McClaude Emmanuel, the current CEO of the CIU, and Caribbean Galaxy, a well-known developer in the island nation’s CIP, were the targets of a RICO lawsuit brought in May 2024 by MSR Media, led by film producer Philippe Martinez.
According to MSR Media, there is evidence of fraud, money laundering, and kickbacks connected to CBI projects in St Lucia. Since then, the lawsuit’s purportedly complicit third parties may have been included in its broader scope.
The governments of St. Lucia and Caribbean Galaxy have refrained from commenting on Martinez’s accusations. Reiterating that it will “not be bullied by anyone or company,” the government promised to uphold its position in the face of “false and malicious attacks.”
“A worrying sham”
Allen Chastanet, the leader of the opposition, called the backdated approvals a “worrying sham.” He claimed that the administration “cannot seem to follow the law,” voicing worries about accountability and openness in government.
Citing a lack of necessary legislation, he questioned the legitimacy of the infrastructure initiative. He said We have proof that local agents have been handling applications specifically for the infrastructure program.
The erstwhile prime minister also examined the amount of files assigned to Galaxy.
Statements have been stated that Galaxy was given “6000 files allocated for the real estate program” and an additional “7000 thousand files for the infrastructure program,” both of which are said to have sold out, according to Chastanet.
Chastanet asserted that the Range project constituted a donation program since the Government of Saint Lucia intended to lend the funds through it, so contesting the CIP Board’s position on historical projects. A real estate program was never what it was.
He asked, “Why did they collect $700 million but only completed $100 million of work?” requesting greater financial transparency for the program.
