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ANGUILLA'S
GOVERNMENT RESPONDS TO MR. FRIEDLAND’S OPEN LETTER TO THE
PEOPLE OF ANGUILLA - CAP JULUCA BATTLE CONTINUES |
Press Release - Government of Anguilla.
March 22, 2006: A paid advertisement entitled “Open
Letter to the People of Anguilla from Mr. Dion Friedland,
Owner of Cap Juluca” appeared in the March 15 issue of The
Daily Herald and in the March 16 issue of The Anguillian.
Statements made therein misrepresent the Government’s role
and are extremely dismissive, belittling and insulting
particularly to the Government but also to the people of
Anguilla. Government is extremely disappointed at the tone
of the letter and at its implications that the Government is
powerless and that Mr. Friedland and he alone has all the
power to determine how and to whom Cap Juluca should be sold
or divested. This release is therefore made to correct the
misrepresentations regarding the Government’s role and legal
authority.
Mr. Friedland’s statements convey the impression that the
sale of Cap Juluca to the Gencom/Goldman Sachs Partnership
has taken place, that Government approval of the sale must
be granted and that the Government’s due diligence process
is a mere formality, which must lead to the approval of
Gencom/Goldman Sachs. The Open Letter also implies that the
Government has no legal authority to reject the Gencom/Goldman
Sachs Partnership and that given his rights as owner, he
alone has the power to determine who will buy Cap Juluca in
the final analysis. Mr. Friedland also states that it is a
misconception to believe that Government can forfeit or
compulsorily acquire Cap Juluca.
The legal process for the sale of any real property
consisting of land and improvements thereon to a foreign
investor/purchaser is governed by the Alien Land Holding
Regulation Act. No sale can be effected unless and until the
Anguilla Government approves an application from the
intended buyer for the grant of an Alien Land Holding
License. The Government is under no obligation to approve
any application from any intended buyer. It does not matter
that the proposed buyer may have a signed purchase agreement
with the seller. As at the date of this press release, the
Government has not approved the grant of an Alien Land
Holding License to Gencom/Goldman Sachs. Nor has the
Government given an official commitment nor authorized the
grant of an official commitment to Mr. Friedland nor Gencom/Goldman
Sachs that it will approve an application from Gencom/Goldman
Sachs for an Alien Land Holding License to purchase Cap
Juluca. The Government is under no compulsion to approve the
proposed sale of Cap Juluca to Gencom/Goldman Sachs.
The due diligence process undertaken by the Government in
making a determination whether or not to approve an Alien
Land Holding License for any foreign buyer of land is not a
mere formality. It is an administrative procedure that
enables the Government to carefully consider many factors
and to apply its policy guidelines and policy objectives in
assessing each application and decide whether to approve or
reject an application.
The Government has established a number of conditions and
criteria that must be met by a prospective foreign buyer of
Cap Juluca and to which they must commit in order to obtain
approval for the grant of an Alien land Holding License.
They represent its vision for Cap Juluca. Any new lease
arrangement must include the requirements that:
i) Mr. Friedland must fully divests his ownership interest
in Cap Juluca;
ii) The new owners of Cap Juluca must include at least 25%
shareholding by Anguillians;
iii) The Cove Pond and the Cove Bay dunes must be
surrendered to the Government for the development of a
national park;
iv) The moratorium on construction of new projects and
additions to existing projects by foreign investors must be
observed;
v) Maintenance of the Cap Juluca brand; and
vi) The maximum number of additional rooms will be 200
rooms.
All of the above have been officially communicated to all
perspective purchasers of Cap Juluca including the Gencom/Goldman
Sachs Partnership who have yet to meet these conditions.
The Government of Anguilla is under an obligation to
consider the best interest of the people of Anguilla
particularly in dealing with issues and business operations
that are of major national significance, such as Cap Juluca.
It is well established law that governments can take action
in the public interest to intervene in situations where
great damage is being done or may be done to the public
interest and to compulsorily acquire property including
businesses to protect and advance the public interest. The
House of Assembly representative of all the people of
Anguilla has called on the Government by way of a resolution
to explore all legal options including compulsory
acquisition. The Government is acting on this resolution and
is actively exploring all of its options.
Mr. Friedland’s letter gives the impression that the
Government has made a commitment to him and to Gencom/Goldman
Sachs that it will enable them to finalize their agreement
for the sale of Cap Juluca and its purchase by Gencom/Goldman
Sachs in the near future. No such commitment has been given
to them. The Government is continuing to consider its
options.
Government recognizes the need to achieve a just resolution
of the Cap Juluca issue as soon as possible in the interest
of the 400 odd Anguillian and Caribbean Management and
operations employees, as well as in the interest of
Anguilla’s tourism industry, the economy as a whole, the
environment and the interest of future generations.
The Government will do what is right, not what is convenient
or easy, what maximizes the development of Anguilla
economically, socially and environmentally, not what is an
easy fix but in the long run is destructive.
Government is committed to ensuring the renewal and
blossoming of the Cap Juluca brand as a unique Anguillian
contribution to tourism in Anguilla, the Caribbean and the
World.
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