In a rare public rebuke, former Prime Minister Hubert Ingraham yesterday shot down allegations by Sir Franklyn Wilson that “bad public policy” by his administration in the late 1990s was the reason the Cotton Bay Resort in South Eleuthera failed to proceed.
On Monday, the Davis administration signed an amended heads of agreement with Cotton Bay Holdings for the development of the $200 million resort – which is expected to create 500 jobs.
Sir Franklyn, who owns the Jack’s Bay development in South Eleuthera, told The Tribune that the owners of Cotton Bay were ready to go but “bad public policy and governance, this is what derailed this thing in 1996 and 1997 and, in my humble opinion, triggered the recession Eleuthera has not come out of”.
But Ingraham, who oversaw the first HOA between Cotton Bay’s owner Dr. Carlos Sarmiento Angulo and the government in 1996, fired back.
Ingraham explained that Sarmiento, with the approval of his government, purchased the former Cotton Bay property from Sir Franklyn.
“He subsequently converted the old Keizer residence into his private family retreat in Eleuthera and commenced plans to redevelop the old Cotton Bay resort and golf club,” he said in a statement.
“Those plans to renovate, upgrade, and expand the Cotton Bay Resort have disappointedly not moved forward during the past 25 not due to any action on the part of FNM governments.
“I was surprised therefore to read, and I take exception to, reports that Sir Franklyn Wilson spewed misguided accusations that my government’s bad public policy in the late 1990s were largely to blame for lack of action on this project.
“I have long expressed frustration with slow progress in invigorating the South Eleuthera economy which was a goal of every government led by me. Contrary to Mr. Wilson’s allegations, FNM governments have consistently acted to marry their interests in providing increased economic and employment opportunities and hence better living conditions for ordinary Bahamians with those of attracting desirable investors to our country.
“With specific regard to South Eleuthera, my government, in an effort to facilitate Dr. Sarmiento’s redevelopment plan for the Cotton Bay property, acquired and redeveloped the Rock Sound Airport, much to the chagrin of its owners from the Franklyn Wilson Group. Thereafter, a new airport terminal was constructed. And we put in place plans to expand and increase electricity and water supplies to accommodate the development and to provide services to residents of South Eleuthera.
“In office, the FNM always sought to protect the interests of all – public and private. Where conflict between the two arose we always came down on the side of public interests as opposed to personal private interest.
“So, we did not approve Cotton Bay Holdings Ltd.’s application to buy substantial additional land from the Franklyn Wilson group prior to the commencement of development on the large acreage already owned by the company for the expressed purpose of touristic and upscale residential development.
“We were satisfied that additional land was not required for the size development proposed and further, we did not agree that foreign entities or persons should be approved by the government to purchase large tracts of vacant land without specific approved development plans.
“At all times Dr. Sarmiento, with whom I met at his invitation at his office and at his home in Bogota, Colombia, was fully aware and accepted that the government that I led would not approve further purchases of large acreage of land in South Eleuthera by him until and unless he progressed the agreed development.
“From the point of view of Sir Franklyn, this may be called bad public policy. From my point of view, it is the exact opposite.”
Ingraham said that Sarmiento “has always come to the table to negotiate his agreements for development in The Bahamas with FNM administrations”.
“It suggests that Dr. Sarmiento is satisfied that FNM administrations would deal with him fairly and transparently,” he said.
The former prime minister said it is instructive that the development did not proceed under either of the two last PLP governments.
“The outcomes of general elections in 2012 and 2021 resulted in two of the Sarmiento Groups’ agreements, approved by FNM governments, being signed by PLP administrations,” he said.
“Notably, that meant to bring the Four Season’s Hotel chain to South Eleuthera in 2015 was agreed during my third term in office as I announced ahead of the 2012 general elections.
“At the time of the general election details concerning road deviations, zoning and land use changes were being discussed with the developers as well as processes for dealing with construction permits, work permits, supply of power, water and communications and custom duties exemptions under the Hotels Encouragement Act.
“That project, while signed by the Christie administration, did not move forward as anticipated.
“Similarly, it appears that the negotiation of the agreement now signed by the Davis administration was negotiated by the last FNM administration.
“I wish the development great success and look forward to its beneficial impact on the people and economy of South Eleuthera.”
In his comments to The Tribune, Sir Franklyn said, “The way they treated Sarmiento, the father, there was no explanation for it. It was terrible public policy.
“Those people were ready and willing to go, but bad public policy, bad public policy and governance, this is what derailed this thing in 1996 and 1997 and, in my humble opinion, triggered the recession Eleuthera has not come out of.
