Blame game over stalled Ritz-Carlton project

Political opponents of the Stephen King administration say St Lucia could end up losing control of 500 acres of land after the collapse of an agreement for the construction of a luxury hotel on the island.

The St Lucian government, however, says the land is not at risk.

In a weekend statement, the opposition St Lucia Labour Party (SLP) said the receiver for the collapsed German bank, Kaupthing Singer and Friedlander Limited, was trying to sell several hundred acres of prime local lands that it held as security for a US$23 million loan, in respect of the failed Ritz-Carlton hotel project on the island's south-west coast.

SLP leader Dr Kenny Anthony said St Lucia would also not be compensated as a result of the sale of the lands.

"This was because the United Workers Party government had abandoned the SLP government's previous plans to sell the land to the developers for cash, and decided instead to contribute the land in exchange for preference shares in the hotel," said Anthony.

Not at risk

He said that since the SLP disclosure, Tourism Minister Allen Chastanet and Foreign Affairs Minister Rufus Bousquet "have come out publicly claiming that the land is not at risk".

But: "These denials notwithstanding, the St Lucia Labour Party understands that the bank's receivers have been left with no choice but to proceed with their claim against the security of approximately 500 acres of St Lucian land," Anthony said.

Chastanet confirmed that the bank had gone into receivership, but denied the land was in jeopardy.

The minister said that the receivers were in discussions with the the Stephenson King government and the developers towards resolving the matter.

"Ritz-Carlton borrowed money from the German bank for five projects including the one in St Lucia, and since Singer and Friedlander Limited had a US$23 million approval loan to the Ritz, the hotel company borrowed US$11 million for the St Lucia project," said Chastanet.

"The bank then went into receivership and the loan has been put in with the receivers, who are now trying to get as much back out of the loan as possible. So what we owed is US$11 million and Ritz-Carlton is now working with new financiers, and they have agreed to pay back the receivers the US$11 million."

At no time, said Chastanet, was the land in jeopardy.

- CMC