The following is a press release sent to The Anguillian by the Anguilla Government for publication.

THE SECRETARIAT
THE VALLEY
Anguilla

MARCH 21, 2007

MR. FRIEDLAND’S OPEN LETTER TO THE PEOPLE OF ANGUILLA

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 or lease 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. The Government has not given an official commitment or authorized the grant of an official commitment to either Mr. Friedland or 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 conditions to 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.

| Printer-friendly page | Send this article to a friend |

World News