Part 3

Antigua and Barbuda Crisis: Social and Economic Dilemma

By Kwame Nkosi Romeo

"....Barbuda continued without the elementary services received by even the poorest of Antiguan parishes, such as piped water or a resident physician." 

-Antigua and Barbuda, an annotated critical bibliography by Riva Berleant-Schiller and Susan Lowes, with Milton Benjamin 

Antigua

Jean-Paul Dejoria Peace, Love and Happiness (PLH) ultra-rich real estate is aspiring to build 700 villas starting at US$6 million each, encompassing the Coco Point, Cedar Tree Point, and Palmetto Beach Hotel (PBH) on the south coast of Barbuda and PLH rejecting the hard-fought liberties and rights of citizens. 

According to the plan viewed by a confidential source, PLH will make more than $5.2 billion from its investment. Along with that is the PLH's wilful ecological destruction of the Ramsar sites' wetland protection, facing strong opposition, according to the Barbudaful website. There is no good news; PLH is about environmental destruction, financial power, and dominance, and threatening the Barbudan people's survival contrary to the policies of the Inter-American Commission on Human Rights(IACHR):

"... rights of indigenous and tribal peoples that States must respect and protect when they plan to extract subsoil resources or exploit water resources; such rights include the right to a safe and healthy environment, the right to prior consultation, and, in some cases, informed consent, the right to participation in the benefits of the project, and the right of access to justice and reparation." (VIII. INDIGENOUS AND TRIBAL PEOPLES' RIGHTS OVER NATURAL RESOURCES -179)

Above all, the IACHR declaration takes precedence over all others that argue during the massive sand mining exploitation: "The Government has exclusive and legal control of all lands for mining operations."

Exclusive control? This archaic Imperial Power doctrine about government complete control infested neo-liberal minds to enslave the indigenous population by taking away ownership. This injustice is no different from the British denial of Aboriginal land rights—a travesty of justice in Australia and Barbuda. The resilience of the Aboriginal people triumphs, and so will the Barbudan people fight to protect their indigenous rights. (Mabo and Native Title - The end of Terra Nullius, the beginning of Native Title November 17, 2020)

The IMF gave a keen insight into the perpetual neglect of Barbuda and the denial of fundamental human rights to water and sanitation. Water as a fundamental right is clearly outlined in UN Resolution 64/292 ".. to provide safe, clean, accessible and affordable drinking water and sanitation for all."

In April 1979, the IMF urged the ALP government to prioritize Barbuda's essential infrastructural needs, such as water distribution, roads, telephone, and electricity, emphasizing agriculture and tourism. However, the government ignored the IMF recommendations. The World Bank makes public Barbuda's lack of social progress in the World Bank Report No. 2432-CRB April 16, 1979:

"Issues in Barbuda xiii. The government's development strategy in Barbuda will emphasize agriculture and tourism as well as the more basic social infrastructure needs of the island. Improvements are needed in the area of roads, water distribution, telephone, and electricity as a matter of priority."

Sand Mining and Underdevelopment- The Beginning

ALPs' first concern was sand mining interest linked to numerous construction undertakings in trade valuing billions. The ALP's history of environmental destruction began 41 years ago

and is well documented in Antigua and Barbuda: A Legacy of Environmental Degradation, Policy Failure, and Coastal Decline.

A history of aggressive greed and corruption involving Devcon International Corp subsidiary Antigua Masonry Products (AMP) and politicians' enterprises. Antigua Aggregates (AA) and subsidiary SANDCO are controlled by Deputy Prime Minister Lester Bird, two cabinet associates, and David Strickland. SANDCO operated a sand mining company in Barbuda, replacing Red Jacket Mines, but the stakeholders remained the same. Consequences of ecological disaster and groundwater contamination soon emerged with more unsavory ALP plans of robbing Barbuda of resources without compensation.

A New York Times article linked Bird and Strickland to AA and the subsidiary Sandco to a sand mining operation in Barbuda: 

"Sandco, which operated the mine in Barbuda, was the sister company of AA in which Bird had significant personal shareholdings." - New York Times article 'Failed Plans Leaves Llamas Dying in Tropics.' 

The reporter affirms that Strickland: ".......is a partner in a cement company here with Lester Bird, the Deputy Prime Minister, and two other Cabinet ministers." 

Strickland had the unwavering commitment of each partner to mine sand in Barbuda. During this era, Devcon subsidiary Antigua Masonry Products (AMP) was plundering the resources of Bendals and depended on the sand from AA. AMP benefited from the extractive industries of both Palmetto Point Barbuda and Bendals Antigua. Neither the Community of Bendals nor Palmetto Point, from which they extract their revenue, received economic equity, scholarships, jobs, and local enfranchisement. 

For example, for the fiscal year ended December 31, 2003, Devcon's total sales- were US$44,054 million (m); of that amount, complete foreign countries sold US$ 37,355, and the US and its territories US$6,699m. Antigua & Barbuda sales in 2003 - US$14,323 m, representing 38.34% of foreign and 32.51% of total sales. The US and its territories US$6,699 m represent 15.206% of total sales. (DEVCON INTERNATIONAL UNITED STATES SECURITY AND EXCHANGE COMMISSION for the fiscal year ended December 31, 2005)

The effects of corruption undermine youth unemployment: Antigua & Barbuda's rate ranged from 13.1% in 1991 to 19.9% in 2001, thus expanding the unemployment ratio. Antigua and Barbuda's average youth unemployment data from 1993-2003 were well-established at 3.3, higher than the OECS ratio of 2.8. Antigua & Barbuda's ratio was the highest in Latin America and the Caribbean. 

By contrast, the United States Virgin Islands (USVI) government enforces strict requirements on Devcon's subsidiary USVI tax exemption, emphasizing employment and youth training scholarship:

1- Continue to employ a minimum of 160 residents as full-time personnel; 

2- Make an additional expenditure of $1.7 million and 

3- Continue making a combined youth training/training scholarship contribution of $225,000 annually during the extension period. 

Also, residents brought a Civil suit against the Virgin Islands Port Authority (VIPA) for dust pollution emanating from DEVCON's contractual work with VIPA. The residents filed claims with the United States Environmental Protection Agency (USEPA). VIPA settled some of the costs and paid relocation expenses for the residents. 

Not so in Antigua and Barbuda! Bendals and Palmetto Point are the most marginalized areas that suffered decades of environmental abuse under Bird and Devcon's enterprise without reparation. In Devcon US SEC Form 10-K for the fiscal year ended December 31, 1997, it was cheaper manufacturing crushed stones than importing: It is significantly less expensive to manufacture crushed rock at the company's quarries than importing aggregate off-island sources.

Bird and Devcon Trade Dominance - Economic Benefit

Bird and Devcon forged a unified partnership and became a leading force in the construction sector using Barbuda sand for Bird development projects. For example, Pillar Rock's construction connects the Hog John Bay Company (HJBC), owned by Bird. HJBC developed the entire Condominium Property of Pillar Rock.  

The economic benefit and ownership of Pillar Rock are related to Bird and his cronies, as well as multiple hotels and condos in the coastal areas of Antigua and Barbuda, such as Yepton Marina, Marina Bay, and Condos, Hyatt Halcyon, Dry Hill Hotel, Dulcina Hotel were Bird's undertakings between 1979 and 1983. (World Bank Report No. 2432-CRB Current Economic Position and Prospects of Antigua April 16, 1979, pages 42,43)

 

In 1982, Barbuda's scramble began with the ALP government of Bird's covert persuasion of American fugitive Robert Vesco to set up the Sovereign Order of New Aragon's Principality. Anti-corruption activist and Outlet Newspaper editor Tim Hector exposed this underhand dealing of giving away half of Barbuda. Bird canceled this malpolitics; however, he quickly arranged for US and European companies to dump millions of tons of toxic garbage on Barbuda, similar to the millions left in Latin America in the 1960s. The public condemned ALPs' evil plan; Bird squashed that project. Another audacious goal never achieved: a wildlife zoo on Barbuda exclusive for tourists. Next was the 99-year land leases given away into infinity. 

Bird approved the 99-year lease in 1989 comprising 510 acres of Barbuda land to Impresa Guffanti Constructioni Edili SRL, owned by Aldo Pinto, developer of the K-Club 80 rooms resort on 251 acres that opened in 1990. Building the Palmetto Beach Hotel (PBH), 23 oceanfront junior suites, and a villa commenced in 1991 and was completed in 1993 on 10 of the 90 acres. Both developments used the same labor force that built the Royal Antiguan Hotel and Heritage Quay; again, the local economy never benefited. Still, the government approved the leases without any preconditions. 

In addition to subleasing the 90 acres inclusive of the 24-room PBH to Caribbean Clubs International (CCI) Goup Inc subsidiary Beach Properties Barbuda Limited (BPBL) signed on September 18, 2003, and opened in April 2004. CCI renamed PBH -The Beach House. This lease is recorded and registered in the Registry of Deeds of Antigua and Barbuda in Liber C Volume 142 at Folios 1042-1061. John Fuller, one of Antigua and Barbuda's most famous lawyers and a close associate of Bird and the ALP, handled the lease transaction and deposited funds into Blue Island Resort BVI's offshore account.  

Is the Antigua Public Treasury located offshore?

According to CCI US SEC filings, CCI paid $500,000 and financed the remaining $4.5 million (m):

"The total purchase price for the Palmetto Beach Hotel was $5,000,000. Of the purchase price, the company paid $500,000 at the inception of the agreement and financed the remaining purchase price of $4,500,000 through the lease agreement described above. The imputed interest rate on the lease payable is 5.24%."

To be continued..