Dellis Cay developer Dr. Cem Kinay says a red notice has been issued for him to be brought back to the Turks and Caicos Islands.
In a press release sent to The SUN from Istanbul, Turkey, said: “After 35 years of successful tourism and real estate investment experience, I have encountered a new experience today. I learned that a Red Bulletin is issued for me to be taken back to Turks and Caicos Islands. I have been fighting my political and legal struggle with the Turks and Caicos Islands Government since 3 years.”
In March this year, the Special Investigation and Prosecution Team (SIPT) confirmed that an international arrest warrant has been issued for former Premier of the Turks and Caicos Islands, Michael Misick in connection with allegations of corruption and money laundering.
Back then, the Helen Garlick-led Special Investigation and Prosecution Team (SIPT) said they obtained the arrest warrant and a “Red Notice” which was authorized by the International Criminal Police Organisation (Interpol). However, they have not issued any such notice to the media regarding Dr. Kinay, who is known to be wanted for questioning in relation to allegations of bribery allegedly involving Misick.
Dr. Kinay did not elaborate on the circumstances surrounding his red bulletin, but he stressed that he is being victimised.
He stated: “My companies have invested in Mandarin Oriental Dellis Cay and Joe Grant Cay projects since 2005 until August 2009. We were the largest investor of TCI history. The total investment was going to be around $ 1 billion. I believed that the unique nature of my development would contribute to the cultural development of the islanders who embraced me with much interest. However, ex Premier Michael Misick’s deteriorating relations with England, the political conflict between England and Turks and Caicos Islands and the alleged corruption resulted in the intervention of the British government to the island. Misick was dismissed, Parliament abolished, and constitution was suspended. Our investments came to a complete halt. I lost all I have to the funding banks.”
He added: “The perfectly legal political donation scheme that existed in the islands for many years was turned into a corruption scandal. To prove Misick is guilty, we were chosen as targets. I am a victim of politics, and I am innocent. I did not receive any benefits for any of my political donations. I will continue my defense in the international level.”
Interpol requests are normally issued for the arrest of wanted persons with a view to extradition. An Interpol Red Notice is the closest instrument to an international arrest warrant in use today. Interpol does not have the authority to issue arrest warrants in the formal sense of the word, as this is the domain of the sovereign member states.
An Interpol notice or international notice is issued by Interpol to share information between its members. There are seven types, six of which are known by their colour codes: red, blue, green, yellow, black, and orange. INTERPOL will only issue notices if it is satisfied that all the conditions for processing the information have been fulfilled.
Dr Kinay practiced medicine at the General Hospital of Vienna in Austria. He received his PhD from the University of Vienna Medical School in 1984. He is a Turkish and Austrian Citizen, Belonger of Turks and Caicos Islands. In 1987, Magister Oguz Serim, his other Austrian citizen partner, and Dr Kinay set up a tour operator by the name of Gulet Touristik, the largest tour operator in Austria. In 1990, they founded the Magic Life Group. Magic Life owned and managed luxury properties in Turkey, Greece, Tunisia, Spain, Egypt and Bulgaria. In 1997,they established a further tour operator, Gulet Touropa Touristik. In 2004, they sold Magic Life and Gulet Touristik to the German tour operator TUI AG, one of the world’s largest tour operators.
Dr Kinay is widely recognized for his contributions to the travel industry, In 1996 he was lauded as Austria’s “Tourism Manager of the Year” and in 1997, as “Man of the Year” and Finally on 2007, he has been honored with “State Medal Of Austria”.
After 35 years of successfull tourism and real estate investment experience, I have encountered a new experience today. I learned that a Red Bulletin is issued for me to be taken back to Turks and Caicos Islands. I have been figting my political and legalstruggle with the Turks and Caicos Islands Government since 3 years.
My companies have invested in Mandarin Oriental Dellis Cay and Joe Grant Cay projects since 2005 until August 2009. We were the largest investor of TCI history. The total investment was going to be around $ 1 billion. I beleived that the unique nature of my development would contribute to the cultural development of the islanders who haveembraced me with much interest. However, ex Premier Michael Missick’s detoriating relations with England, the political conflict between England and Turks and Caicos Islands and the alleged corruption resulted in the intervention of the British government to the island. Missick was dismissed, parliement abolished, and constitution wassuspended. Our investments came to a complete halt. I lost all I have to the funding banks.
The perfectly legal political donation scheme that existed in the islands for many years was turned into a corruption scandal. To prove Missick is guilty, we were chosen as targets. I am a victim of politics, and I am innocent. I did not receive any benefits for any of my political donations. I will continue my defense in the international level.
Background
Dr Kinay practiced medicine at the General Hospital of Vienna in Austria. He received his PhD from the University of Vienna Medical School in 1984. He is a Turkish and Austrian Citizen, Belonger of Turks and Caicos Islands. In 1987, Magister Oguz Serim, his other Austrian citizen partner, and Dr Kinay set up a tour operator by the name of Gulet Touristik, the largest tour operator in Austria. In 1990, They founded the Magic Life Group. Magic Life owned and managed luxury properties in Turkey, Greece, Tunisia, Spain, Egypt and Bulgaria. In 1997,they established a further tour operator, Gulet Touropa Touristik. In 2004, they sold Magic Life and Gulet Touristik to the German tour operator TUI AG, one of the world’s largest tour operators.
Dr Kinay is widely recognized for his contributions to the travel industry, In 1996 he was lauded as Austria’s “Tourism Manager of the Year” and in 1997, as “Man of the Year” and Finally on 2007, he has been honored with “State Medal Of Austria”.
Yaklaşık 35 yıldır Türkiye ve dünyada turizm sektörünün en saygın yatırımcılarından birisi olarak devam etmekte olan iş yaşamımda bugün yeni bir deneyim daha yaşadım.
İngiltere ve Turks and Caicos hükümetleri tarafından hakkımda bir Kırmızı Bülten çıkarıldığını haber aldım. Yaklaşık 3 yıldır sürdürdüğüm siyasi-hukuki mücadeleyi kazanacağımdan emin olmakla birlikte, gelinen noktayı kamuoyu ile paylaşmayı da bir borç biliyorum.
Türkiye’nin ekonomik kapasitesini dünyanın her yerine yayması gerektiğine inanan bir işadamı olarak 2005 yılında önce Karayiplerin bir adası olan Turks and Caicos Adalarında yaklaşık 1 milyar dolarlık bir emlak ve turizm yatırımına giriştim. Adanın güzelliğine, ekonomisine, kültürel gelişimine büyük katkı yapacak olan projemizi ada halkı ve yönetimi de büyük bir sevgi ve ilgiyle kucakladı. Ancak Ada yönetiminin ve başbakan Michael Missick’in adanın bağlı olduğu İngiltere yönetimiyle siyasi ihtilafa düşmesi, siyasi istikrarın bozulmasına ve 2009 yılında İngiliz hükümetinin adaya müdahalesine yol açtı. Yolsuzlukla suçlanan Missick görevden alındı ve anayasa askıya alındı.
Bu süreçte Turks and Caicos adalarında yatırım yapan onlarca işadamı da başbakan Missick ile bağlantıları olduğu ve yolsuzluğa karıştıkları iddiası ile suçlandılar. Ancak suçlananlar hep yabancı yatırımcılar oldu. Başbakan Missick’in rüşvetçi olduğunu ispat etmenin yolu, özellikle hedef seçilen yabancı yatırımcıların rüşvet verdiğini kanıtlamaktı. Ben de bu siyasi mücadelenin günah keçilerinden birisi olarak seçildim ve yıllar sürecek bir hukuk mücadelesinin içerisine itildim. Gerçekten “”masum ve haklı olduğum” için, “masum ve haklı olduğumu” kanıtlayacağımdan eminim. Bugüne kadar bu konuda açılan ve tamamlanan bütün davalarda olduğu gibi bundan da beraat edeceğim. Siyasi bir davaya karşı yürüttüğüm hukuki mücadelemi ise uluslararası platformların tümünde sürdüreceğim.
Hem Türkiye’nin büyüyen gücüne paralel olarak dünyanın her yerinde iş geliştiren Türk işadamlarını bu tür riskler konusunda uyarmak ve hukuki süreçler konusunda hazırlıklı olunması gerektiğine dikkati çekmek hem de küresel bir güce dönüşen Türkiye’nin tüm dünyada bayrağımızı dalgalandıran işadamlarından birisi olarak ilgililerin desteğine ihtiyaç duyduğumuzu belirtmek için bu kısa açıklamayı kamuoyunun bilgisine saygılarımla sunuyorum.
Dr. Cem Kınay
Geçmiş
Birlesik Ingiltere Kralligi na dahil Turks ve Caicos Adaları’nda yer alan Dellis Cay bir doğa harikasıdır. Parrot Cay’in yanında yer alan adaya Providenciales’den deniz yoluyla 20 dakikada ulasmak mümkündür. Dellis Cay, Haziran 2005’te özel bir şahıstan satın alınmıştır. Adada dünyanın önde gelen mimarlarının eşsiz tasarımlarından oluşan lüks bir yerleşim kompleksi planlandı.. Proje tamamlandığında, adada Mandarin Oriental otelinin çevresinde yer alan ve otelin hizmet vereceği lüks villalar ve residenceler olacaktı. Projenin inşaat çalışmalarına, Haziran 2008’de başlanmıştı ve planlanan, projenin ilk bolumunun Ekim 2010 da tamamlanması şeklindeydi.
Dr. Kinay, son otuz yıldır ,vizyon sahibi,saygıdeğer bir uluslararası iş adamı olarak haklı bir üne kavuşmuştur. Magic Life Grubu’nun kurucusu olan Dr. Kınay, 2006 yılında layık görüldüğü “Avusturya Devleti Onur Payesi ve Madalyası” da dahil olmak üzere yüksek ahlaki ilkelerini, dahası iş dünyasındaki zekasını ve yetkinliğini tanıyan pek çok ödül almıştır.
Attorney General Huw Shepheard and the Special Investigation and Prosecution Team (SIPT) have dropped criminal charges against multi-millionaire Jak Civre, the developer of Seven Stars. “I have agreed to discontinue the criminal proceedings against Varet Jak Civre.
I took this decision having considered the public interest, primarily because of Mr Civre’s age and state of health” Shepheard said in a press release. He added: “In turn, Mr Civre has agreed not to resist the SIPTs application for a civil recovery order, by which he will pay the Civil Recovery Authority the sum of $4.7million, plus $250,000 costs. I consider this to be a proper and proportionate outcome of the case against him. The prosecution of those persons who are suspected of serious crime and charged with offences as a result of the SIPT’s investigation will continue. The Crown will also continue vigorously and wherever possible to recover assets that are the proceeds of wrongdoing.”
Commenting on the case being dropped, Civre said: ”
“I have been under for investigation for almost two years now. While I have always maintained myinnocence of any
crime whatsoever, the strain of that investigation has had a severe effect upon both my
health and the well being of my family. After careful consideration, I have therefore decided to agree toenter into a civil
recovery order to avoid any further lengthy and contested proceedings. It is a huge
relief to me that that this case is now over.”
On November 10, 2011, Civre was charged with bribery contrary to common law. Civre, who was represented by Conrad Griffith QC, appeared before the then Chief Magistrate Joan Joyner, who is now a Supreme Court judge, and was granted $34 million bail and ordered to report to the SIPT on a monthly basis. He was allowed to keep his travel documents.
Sir Robin Auld, who conducted a Commission of Inquiry in 2008-2009, concluded that the payment by Jak Civre, the developer of the Seven Stars Resort, to the Hon Floyd Hall of $150,000 on 8th February 2007, the day before the election, purportedly as a campaign donation, but which the Hon Floyd Hall paid into the business account of his company, Paradigm was a possibly corrupt payment.
Civre, a Belonger and long time resident of TCI, is the President and CEO of Sodalco Development Company Ltd, which bought the 22-acre former Allegro Resort property and spearheaded the seven-storey Seven Stars development. According to the Seven Stars website, since 1968 Jak developed one of the most well recognized corporate conglomerates in Italy.
Additionally he has a long history of successful entrepreneurial ventures to his credit throughout Europe and the United States. He is considered one of the top experts in Marketing Science in Italy, the website stated. In 2002 the entire corporate conglomerate founded by Civre was sold to a private equity financial group allowing Jak to fully concentrate on his real estate holdings in the Turks & Caicos Islands.
The purchase of the Seven Stars site marked one of the largest single real estate acquisitions in the Turks & Caicos Islands. The property has since been sold.
Posted July 5th 2012
I understand that Sotheby’s has been instructed to act for the Government, and has placed the 200 acres parcel 30101/25 of Joe Grant Cay on the market for sale at US$9.95 million. The parcel was recovered last year for the government following a claim by the Civil Recovery Team against my companies. I appealed the decision. The Appeal Court will decide later this year whether the Court’s decision was just and fair, as it was not.
The people of Turks and Caicos Islands must know that according to the Court documents submitted by the Attorney General:
on 7 November 2006, Mr Shaban Hoza, Government’s own valuation officer, reported a freehold value of this land for commercial use to be $230,000 per acre, but advised that the Government (or the Crown) could negotiate a price of up to $330,000 per acre. Those figures produce a valuation of between US$46 million and US$66 million for this 200 Acres land for commercial use ;
on 10 June 2008, this time Mr Hoza has produced a valuation of US$50 million for this 200 acres land for commercial use .
The Attorney General has quoted these valuations to build the Government’s case against our companies. The Court on the other hand, disregarded the Government appointed BCQS Limited’s US$3.2 million valuation for this 200 acres land for commercial use which was the basis for our purchase of Joe Grant Cay through our companies back in June 2008.
Now they are attempting to sell it at US$9.95 million.
The Government owes to TCI people, to declare the true value of the 200 acres of Joe Grant Cay, is it worth USD 50 million? US$250 million ? Or US$3.2 million that BCQS, a reputable Caribbean commercial firm has reported when they worked for the Government to confirm what must be the fair market price of this 200 acres?
If US$50 million is true, somebody is going to benefit US$40 million of Turks and Caicos People’s money.
If US$3.2 million is true, the Government should give us back our land,, that it claimed we bought at undervalue at the absence of a Development Agreement, in the midst of Worldwide economic crisis.
In any case, The Government must immediately stop the illegal sale of the 200 acres of Joe Grant Cay. This land is still the subject of an upcoming appeal between our companies and TCIG.
I appeal His Hon. Governor Richi Todd to suspend the sale of 200 acres of Joe Grant Cay. I also appeal to Sotheby’s Turks and Caicos Islands to immediately stop the sale of this land, which is still in dispute. I appeal to Temple Trust, to wait the results of the upcoming appeal.
Joe Grant Cay is a remote uninhabited cay located in a remote section of the archipelago between Middle Caicos and Easy Caicos, accessible only by sea. This Cay has no dock, no road, no electricity, no water neither any form of other infrastructure. The cay is composed mainly of consolidated rock with the ocean frontages consisting of either sand or “iron shore”. The elevation is low and the shallow water depths at some parts of the island for do not allow visitors to access other areas.
In 2008, We took a huge risk when we decided to invest into this property encouraged by his Hon. Governor Tauwahare, and ex Chief Minister Michael Missick.
I condemn the statements of certain people who claim that Joe Grant Cay will pay off TCI’s US$ 260 million debt to the UK. The best 200 acres of beach front parcel of Joe Grant Cay is up for sale US$9.95 million and it is unlikely that it will meet any buyer, unless the Government promise a preferential Development Agreement never seen before, with huge subsidies. Perhaps a preferential Development Agreement is already on the table, and the lucky buyer is already known. We will see what will come up behind the decision to sell this land so swiftly, without waiting the result of the appeal.
Dellis Cay and Joe Grant Cay Development Agreements:
Whether the Government has on the offer a preferential Development Agreement to the new buyer of Joe Grant Cay’s 200 acres, our Development Agreements had nothing unusual in them.
My companies have invested in Mandarin Oriental Dellis Cay and Joe Grant Cay projects since 2005 until August 2009. We were the largest investor of TCI history.
We have bought Dellis Cay at the time of His Hon. Tauwhare in June 2005 for USD 18 million from Mrs Dini Zingone. This deal was the largest private deal in TCI. I signed Dellis Cay’s development agreement dated July 2005 with Hon. Governor Tauwhare.
Further, on June 2008, we bought 200 acres of Joe Grant Cay island after 1,5 years of negotiations directly with the Attorney General, at the prices and terms determined by third parties appointed by His Hon. Tauwhare. On November 2008, our companies signed a Development Agreement for Joe Grant Cay after 2 years of intense negotiations, with the Attorney General. The signature on the Joe Grant Cay Development Agreement belongs to His Hon. Governor Wetherell.
Both Hon. Governors, have executed all Cabinet resolutions for Dellis Cay and Joe Grant Cay throughout their respective terms. I read in the press speculations about the Development Agreements of these projects. I have taken the decision to immediately publish in public both the former Development Agreement executed for Dellis Cay with Mrs. Zingone Dini before me, and the current Development Agreement for Dellis Cay signed by Hon Governor Tauwhare on July 2005.
I will also publish to public the Sale & Purchase Agreement signed by His Hon. Governor Tauwhare for Joe Grant Cay on June 2008, and the Development Agreement signed by His Hon. Gov. Whetherel for Joe Grant Cay on November 2008.
I am all for transparency. Therefore, I invite His Hon. Governor Richi Todd who is currently in office, to disclose all Development Agreements signed by TCI Government for the past 20 years. At the end of the day, these Development Agreements are negotiated and provided to the Investors for the benefit of both the Investors as well as the TCI people. TCI people have a right to know what is going on in these agreements. Why to keep them secret? Why let people speculate? Publish them and show to the people of Turks and Caicos Islands, who got what?
There is not a single developer who did not make a perfectly legal donation to the political parties in the TCI, but I am picked as a victim with a select few other to pay a deer price. I hope one day, all developers will disclose their development agreements and their donations to the political parties. Only then, the TCI people will see the truth.
The Responsibility of the his Hon. Governors
On July 18th 2009, His Hon. Governor Whetherell published the Commission of Inquiry’s Final Report which provided access to the unredacted text that contained our good companies name, ruining our reputation, and causing the banks to pull funding. Later on, His Hon. Governor brought into force the Order in Council suspending parts of the Turks and Caicos Islands constitution. The House of Assembly was dissolved and Members’ seats were vacated. The constitutional right to trial by jury was suspended. Shortly after in October 2009, a receiver was appointed to our project Dellis Cay by TTUTC.
Since then, I am exposed to numerous claims, in breach of my human rights. I am really sorry that two principal players between 2005- 2009 are not in the TCI today. They are the ex Hon. Governors Tauwhare and Whetherel
It is my strong belief that these Hon Governors have caused major damage not only to my companies but also to the TCI people. They have ruined the properties and lives of many people, by abusing their responsibilities.
Governor Tauwhare and Governor Whetherel represented the principal office ruling TCI, and they must be accountable for both good and bad things that happened in the TCI. They have chaired every Cabinet meeting along with the Attorney General. They have executed each and every resolution in the TCI. If the Courts one day, prove there has been “widespread” corruption at TCI, the Governors must surely be hold accountable as well.
I am very pleased that the elections are now proposed and finally we see the possibility to return to democracy after 3 years of interruption. I believe that TCI people deserve democracy and hope that both PDM and PNP will fulfil their responsibility in this respect.
DR.CEM KINAY
ONE VICTIM OF POLITICS IN TURKS AND CAICOS ISLANDS
The Interim Administration continues to try to have its cake and eat it as well as to operate in a very non-transparent way. When you take into consideration the premise on which they took over the country from the duly elected local representatives, the actions so far have not been to show you how best to get the job done, but how best to carry on the process by which cronyism is the hallmark of the day and picking winners of your own choosing is the best was in which to do business.
The British Government, FOC, DFID, SIPT and the Civil Recovery team declared that the original sale of land by the TCI government to Platinum was a corrupt transaction and as such should be recovered and redound to the benefit of the people of the Turks and Caicos Islands. Steps were taken through the Court system to have the land returned to the Crown and the court agreed that the land should be returned. No sooner than this exercise was completed (Platinum seem not to take an interest in appealing the court’s decision), there seems to be a concerted effort being made to now ensure that the Turks and Caicos Islands’ people do not benefit effective from the return of that land.
The first part of the deception and deceit started with the decision to sell the land to satisfy a mortgage that had been placed on the property by Temple as a result of Platinum borrowing some $2M and using the property as collateral. My understanding of the legal system is that if a leaf of the fig tree is tainted, then the whole tree is tainted. As it relates to this particular transaction, if it was corrupt for Platinum to obtain the land in the first instance, then any subsequent transaction had to be corrupt also.
So why was there a rush on behalf of the Interim Administration to satisfy Temple Mortgage? There can be one inference to be drawn and that is that someone in the Administration or very close to the Administration had something to be gained by the sale of the land by the government to satisfy the debt to Temple!
According to all previous pronouncements by the Interim Administration, all of the land that had been reacquired as a result of some fraudulent activity would be kept in the land bank for future generations to benefit from. So what is the real rush to dispose of this land at this time? Something smells fishy here.
Now in the proper scheme of things, if the Interim Administration had a real reason to dispose of the land for the benefit of the people of the Turks and Caicos Islands, the first thing it should have done was to specifically say so. Following on from that, it should have issued a Request for Proposals. If as they like to claim they are operating in an open and transparent manner, and they want to get the best value for money, that is what would have happen. But they have decided to pick winners from “their side of the ledger”. What is that called? Is it Insider trading? Or is it nepotism? I thought those were the common faults and flaws identified by Sir Robin Auld as being part of the systemic weakness and corruption in the previous political administration that had to be rooted out. But like Courtney Missick likes to say, corruption has only changed its colour, from black to white!
Now let us look at the local firm that got to market and sell the 200 acres of land on Joe Grant Cay. It is Sotheby’s and its local affiliate is Connolly-Zahm! Is it just coincidental that one of the principals of Connolly-Zahm if Mrs. Josephine Connolly, the wife of Advisory Council member Joseph (Joe) Connolly? As Ernie Clarke likes to say “I have the documents”. I will definitely like to see the documents showing that there is no nexus at all!
The old Finance and Audit Ordinance and Financial Instructions, followed by the now brand new Public Finance Management Ordinance, all speak to a transparent process with respect to the procurement of services by government.
As I have indicated before, there should have been a tendering process set up and the firm with the best proposal selected to carry out the work. The worst case scenario would have been to short-list say six of the local real estate firm that have international connections and ask them to submit proposals, I could live with that. I would have thought that that would have given me some piece of mind that I would have been getting value for money.
What I still cannot fathom is how the governor fixed his mouth to call the initial land transaction of Joe Grant cay corrupt and it had to be returned to the people, but no sooner was that done, he is out there secretly trying to sell that asset. Something untoward must be afoot here. I just cannot for the life of me understand the amount of double standard that is being used by this Interim Administration, save to say that a concerted effort is being made dispose of everything of value that belong to us, in a manner that they feel and say that it is in our best interest so to do.
I have never seen so many thing done in my best interest, that am totally opposed to as is happening with these bumbling idiots at the helm. As time progresses, everyone is seeing that the Emperor has on no clothes and is operating in a clueless manner.
How the Interim Administration hopes to be able to get away with such blatant disregards for the rules that they say they came here specifically to enforce and demonstrate the ethics of doing things in the proper manner?
However, what they have and are demonstrating to us is that what we were doing was child’s play and they are certainly showing us how bad business should operate. That does not give us faith and comfort in these operators. That is why on the streets there is now total skepticism as to the real reason the intervention took place.
We must by now be in a position to determine for ourselves that what is currently being done to us is neither right nor fair! The reset button has now been pushed by the setting of the date for elections. We should all go out and get registered so that we can send a clear and unambiguous message to the Interim Administration that business as usual will not be the order of the day. Joe Grant Cay has not been sold as yet and it is not too late to restart the process on a proper footing.
There cannot be a rush as there is a surplus budget proposed, so the money from the sale is not critical to our financial position except that the Interim Administration is hell bent of getting from under the loan guarantee as quickly as possible and to hell with whatever adverse consequence to the Turks and Caicos Islands people!
They are a lot of discussions regarding recovery of Joe Grant first through SIPT in Turks and Caicos Islands 6 months ago and now the statement of Governor Todd,that through recovery of Joe Grant they will cover the UK Loan about 200,0 MIO USD???
Nobody would like to wait the court decisions.
Is it possible to cover the SIPT costs and fundings through recovery of Joe Grant?Is it true or is it only a story to get the people of TCI calm about the costs and fundings of SIPT?
Or is it an international Scandal?
This Cay is one of the less known cays, and its story came up to the attention of the TCIlanders because of bribe allegations in Turks and Caicos. Dr Kinay, What is Joe Grant Cay?
Joe Grant’s Cay is a beautiful but remote, uninhabited 712 acres cay located in a remote section of the archipelago between Middle Caicos and Easy Caicos. It is accessible only by sea. The last time I took a boat to visit it, it took me 2 hours from Providenciales to get there. This Cay has no dock, no road, no electricity, no water neither any form of other infrastructure. It is inhabited like East Caicos. The cay is composed mainly of consolidated rock with the ocean frontages consisting of either sand or “iron shore”. The elevation is low and the shallow water depths at some parts of the island for do not allow visitors to access other areas. These difficulties do not discourage us, as at the end, when properly developed, this Cay is a beauty.
We have bought 200 Acres of this island on June 20, 2008 from the Crown through a transfer of title executed by the former Governor., Hon Richard Tauwaree and 5 months later on November 7, 2008, the former Governor, Hon. Whetherell has executed a Development Agreement with us for the development of the whole island.
What was the role of you in this project?
When I first came to Turks and Caicos Islands in 2005, I had already my development company O Property Collection in Austria. This company is where I, and my partner Oguz Serim offer our development advice to projects. O Property Collection has, from the first days of this project, ,is acting as “developer” bringing its expertise, in construction, sales, marketing. The center of any development is people. Community is very important. My company’s vision is to create design driven projects. God has already placed a beautiful design for Dellis Cay and Joe Grant Cay, it is now up to us, with respect, to treat these beauties with the best architecture and standards there is.
What do you want to develop on this island Joe Grant?
We wanted to develop the island with an environmentally friendly small Hotel and then Homes in the natural surroundings. We have retained top environmental engineers from Florida, and we started immediately the process of Environment Impact Assessment. We designed our project with a high-class architect from italy, and have signed a brand and management Indent with a very famous brand. The most important consideration though is that this will be a low density and green development.
When you first heard of Joe Grant Cay? How did you get involved?
I first got interested in Joe Grant Cay In December 2006 when I was informed that negotiations with some developers for a proposed project on Joe Grant’s Cay had run into difficulties and I was asked whether I could be interested to take this development further. The Government already had a price for sale on the Cay, US$5 million according to a formal offer that the former Government had placed before the previous developers in November 2006. My initial views for the Cay was that it was a remote location, no infrastructure and it involved Crown Land, and that meant the need of a Belonger Partner. I was not familiar with this process as my first investment Dellis Cay, is a private transaction and does not involve any Crown Land.
Did you know any of the previous developers?
I understand from the discussions in the past years that there were a number of developers who wanted to take this Cay prior to my involvement in early 2007. I do not know and have never done any business with the gentleman named at the discussions at the Commission of Inquiry,. whether in relation to Joe Grant’s Cay or otherwise.
Who is you local/belonger partner by Joe Grant?
I was already heavily engaged in our Dellis Cay project, and having regard to the Crown land policy (of which I was then aware), I thought it sensible to have a belonger partner in the development. In that respect, a company called Oceanic Development Ltd owned by Don Gardiner became my partner. I respected Don very much whom I already knew socially. As you may recall he was the President of the Turks and Caicos Islands Tourism Board. I understood that Don was involved in the development prospects of Joe Grant Cay with the previous developers so he was very familiar with it. We have executed a Joint Venture Agreement with Don’s company in January 2007, and became partners in a company called Caicos Platinum Ltd, a company that was the recipient of the first formal offer of US$5 million from the Government back in November 2006.
When did you buy Joe Grant Cay?
See, that has never happened. We did not buy Joe Grant Cay. We bought the freehold of the 200 acres of Joe Grant Cay, and the rest (512 acres) is provided to us by a Conditional Purchase Lease through a development Agreement. I am not sure whether you followed it, but this island was first offered at US$5 million to Caicos Platinum Ltd, when that company was owned by previous developers. Then, 200 Acres of it (approximately 30%) was offered to us at $2 million in early June 2008, by the decision of Cabinet, led by His Excellency the Governor Richard Tauwaree. At the specific instance of the Government (and with some reluctance on our part given the risk to which we were thus being exposed in advance of the conclusion of a development agreement), we were asked to close the purchase of the 200 acres hotel parcel on an urgent basis, apparently because of very low cash flow issues at Government level. Having agreed to do so, the Governor again changed its mind, obtained a new valuation by a third-party QS and informed us on June 19th, 2008 that the price of the hotel parcel had been increased to $3.2 million. We paid that price for 200 Acres and bought a portion of Joe Grant Cay on June 20th, 2008 on de day of Groundbreaking ceremonies of Dellis Cay.Governor Hon. Tauwaree came in the afternoon to this ceremonies,was very happy,that Joe Grant deal was finally closed after 1,5 years of negotiations.He congratulated me on the day,the funds of the transaction was in the account of government.
What about the Development Agreement?
You know, it took us almost 2 years from the first discussions, but 5 months after our acquisition of the 200 Acre parcel, in November 2008 to get a Development Agreement. I am not sure whether you re know but The Governor executes all major agreements on behalf of the Government. So, Governor HE Gordon Wetherell, and our CEO, Director, Michel Neutelings have met for the execution of the Development Agreement.
Dr, Is there anything special in the Agreement?
All development agreements in Turks and Caicos Islands, usually have more or less the same provisions. However, we have an additional obligation on our part to pay 15% on the gross amount on the sale of villa lots in the development to the Crown. I am not privy to all development agreements in TCI but I am not personally aware of any other development agreement which contains an obligation of that nature. From the standpoint of the public, it is clear that if my partners and I make a major investment on Joe Grant’s Cay such that the price which a buyer might pay for a villa lot is greatly enhanced, the Government receives a corresponding benefit without any of the business risks undertaken by the developer. Joe Grant Cay was going to be a new source of income for the TCI Government and TCI islanders. This remote and inhabited island was going to be the home for a new hospitality project providing new jobs and opportunities for everyone. I would imagine that most of the ex Middle Caicos residents would returned to their home from their present endeavors in Providenciales. In summary, this project had a very important social aspect. I have on many occasions discussed these aspects with both Honorable Governors Tauwahare and Whetherel.
There were discussions about the valuation? What you have to say on it?
Look, I am a developer, a businessmen. I got interested in this deal as the 712 Acres was available at US$5 million to a number of developers who apparently did not perform. I wanted to buy at this price. At the end, I have negotiated more than 18 months to get 30% of this cay at US$3.2 million. I took a significant risk by paying that price and closing that purchase without having a signed development agreement with TCIG, with no guarantee that we could carry out our development plan or acquire the rest of the Cay. I trusted to Governor Hon.Tauwahare and later on to Governor Hon.Whetherel.
Now coming to the valuations, I understand from the Inquiry that under the leadership of the HE Governor Tauwaree himself, the Cabinet has sought a number of conflicting valuations both from their own valuation department and from a private commercial appraiser on June 2008. They have as the Cabinet, together with HE the Governor, have decided to take the valuation of the commercial appraiser as it reflected the market value.
Now, the question is why did they not picked the high value but the low value?
My answer is that the valuation of the land is obviously a matter for the Crown and for experts in that field. That is why I have hired some of the leading experts in this field to assist me. What they say is simple: the Valuation officer has attempted to value this property by direct comparison to couple at Ambergris Cay, and sale listings from marketing brochures (and not actual transactions) at North Caicos Marina and Middle Caicos. I am told that those comparable do not come near being appropriate for the purposes of valuing Joe Grant Cay.
At Ambergris Cay, for example, lot sizes of between 0.32 – 1.85 acres each are compared to our project of 700 acres. In addition, Ambergris Cay forms part of an established luxury brand, and considerable expenditure has been undertaken on the extensive infrastructure. I do not know if you know but Ambergis Cay has all its utilities underground, electricity and water, It is the only island in this country which has an underground sewer system. Everything is self-generated on the island, water making, the treatment of the sewer system. It has even an uncompleted marina that is not completed but obviously a port facility) including the inclusion of the biggest private runway (6,000 feet) in the Caribbean. Overall Ambergis Cay it is a self-sufficient island that has all of the amenities and can function, unlike North and Middle Caicos which has to have power on the sea cable from Providenciales. North Caicos Yacht Club is also a developed property, so no parallels to undeveloped land neither. We also understand that the value r has used “sales brochure prices” in 2008. The Middle Caicos comparative is based on a sales listing as well, which was withdrawn from the market after 22 months listing period and not sold.
Now, that is what experts say. These will all come out soon. Now if you ask me what I personally think. To me, the real valuation is what I paid. Our company paid US$18 million to Dellis Cay, a 500 acres island, of which 200 Acre is private land. Dellis Cay is only 20 minutes from Leeward Highway, it had PPC Electricity cable in it, for plenty of electricity, and it is next to world-renowned Parrot Cay. I think that we have paid for the 200 Acres at Joe Grant Cay reflects the fair market price at its present state and that is “undeveloped” land at a remote location for commercial use. That is what it is.
Later on, we have asked both local and international professional valuation firms to conduct a fgull analysis and report an official valuation of this island. All these reports have confirmed the value that we have paid to Joe Grant Cay’s 200 acres and the lease agreements that we have entered with the TCI Government. In any case, after the World Economical Crisis starting in November 2008 and onwards land values have significantly eroded all around the world and especially the Caribbean.
But Dr Kinay what is the benefit of this Project to the TCIslanders? What do they get?
Look,the government did not simply sell a piece of land, they entered into a development agreement for the development of that land. If I can not develop it on time, and spend the money that the Government wants me to spend on it, than they will get back. It is in the Agreement. It is ours as long as we spend money on it. You know how much? My Development Agreement says I need to spend US$120 million on this cay in a fixed period of time. We estimated that the construction will take 2 years and create at least 150 new local jobs. Once the island is fully operational it will require at least 70 locals to manage it. As I have already mentioned, in addition to the purchase price of the land of the hotel site, we will pay 15% of our Villa sales on the 300 Acre Villa Lots and this goes straight to the Government’s budget. Not to mention, the usual development agreement obligations such as the Annual Scholarship payments, duties, work permit fees, the rents paid under the leases, stamp duty benefits accruing to TCIG arising out of sales in the development and the boost to the tourism economy of TCI.
Dr Kinay, you lost a court case concerning Joe Grant Cay June 2011? What will happen now?
I received the Turks and Caicos Islands Court’s judgment in June 2011 concerning Joe Grant Cay. I also received TCIG’s Press Release from July 2011. The judgement is grossly unfair and Joe Grant Cay development companies are currently appealing it. I could not afford lawyers as Turks and Caicos Islands Courts have frozen all my worldwide assets not allowing me to spend any funds towards my right to defend myself and my companies. Looking at the Judgment, in essence, His Hon. Justice G W Martin has concluded in connection with the political donation of $500,000 made by Dellis Cay’s parent company Turks Development LP (the Court states the donation was from ‘Dr Kinay’) to Michael Misick on 9 January 2007, the Judge found (paragraph 33) “there to be a very strong probability that the money was paid as a bribe in order to ensure that the Defendant companies obtained the benefit of the proposed development” disregarding the facts that the Defendant companies did not even exist at that time, and that the donation was made by Turks Development LP, a company developing Dellis Cay, not related in any way to Joe Grant Cay . His Hon Judge further observed (paragraph 41): “I emphasise that this judgment should not be treated as a conclusive finding that any individual has acted corruptly. Nobody should be declared corrupt if he has not had the opportunity to defend himself at trial, and that has not happened in this case.’ These statements did not make the Judgment just and fair, the basic principle of law.
On the matter of Joe Grant Cay’s valuation, His Hon Justice completely ignored the Government’s valuation report obtained from BCQS, an independent commercial appraiser who valued 200 acres of Joe Grant Cay, at USD 3.2 million for commercial use, exactly the amount of money asked by the Government in June 2008, which the development companies have paid in full. His Hon Judge ruled (Para 36, The Judgement) ‘When instructing BCQS to give an alternative valuation, McAllister Hanchell did not tell them of the proposed development, so that their valuation made no allowance for the intended use of the land.’. The Learned Chief Justice has failed to recognize that BCQS valuation report specifically stated on Page 7 Item 3.5 ‘It is assumed that planning permission is available for the subdivision of the land for residential plots or for a commercial use.’ By ignoring BCQS’s clear statement specifying that Joe Grant Cay valuation report is prepared for “commercial use”, The Hon. Chief Justice presented an unbalanced approach for the benefit of the Plaintiff. The Court’s omission of BCQS’s written representations in their valuation report is not something that I can live with and we will be pursuing the reasons for this material error.
First, the Commission of Inquiry’s publication of unredacted Final Report despite the TCI Supreme Court’s Order not to publish the unredacted Final Report cost Dellis Cay its business and caused the funders to pull their finances, now Joe Grant Cay Development companies are striped of their rightfully obtained assets.
It is clear to me that there is a set political agenda which is geared to restructure the political landscape at the Turks and Caicos Islands and we are chosen as the main victims.
I repeat categorically that I reject all accusations, and state that we are innocent
For those who doubt that the Development of Joe Grant Cay is not innocent, I have only one question:
Had the alleged privileges, favors or better conditions been present in the acquisition of 200 acres of this island, or in the Development Agreement, why both Hon. Governor Tauwhare, and the present Hon. Governor Whetherell would have executed these on behalf of the Crown?
Both Hon Governors are experienced public officials, with history of making land transactions, and executing Development Agreements on behalf of the Crown. Why did they approve these transactions if the preferential treatment was all over the documents that they have signed?
All these contracts, and 200 acres land sale were approved by the Attorney General, TCI Invest, Ministers, the Premier, and executed by 2 Hon. Governors. The Government and both Hon. Governors had 2 years to conduct due diligence. Do you really believe that they were all ‘deceived’? and did not know what they were selling? That is the real question the Turks and Caicos Public must ask.
I have faith in the law, and I will look for justice until I find it.
What are your long-term goals in Turks and Caicos Islands?
Now a new Governor is appointed as you know.His Excellency Hon.Todd is a very positive person and has a new approach for TCI.I will explain him following:
I did not come to Turks and Caicos Islands, to do few projects and go back to anywhere. I will stay and work here for many years. When Dellis Cay and Joe Grant Cay will one time open, my children, together with the young generation of Turks and Caicos Islands, will be proud of having these developments, in remote locations and will have fun.TCI er will be proud about it too.
It is also not right,to tell TCI Islander,the government recovered Joe Grant.It is not true.We have still our appeal open and when we will again lose because of the pressure of Attorney General,SIPT,TCI Government etc,we will go to the international courts for this injustice.
PROVIDENCIALES, Turks and Caicos Islands — In a wide-ranging series of parliamentary questions and answers in the House of Commons last week, Britain’s minister with responsibility for the Overseas Territories, Henry Bellingham, said that, although good progress has been made towards achieving the required milestones before elections can take place in the Turks and Caicos Islands, there is still much to be done.
Foreign Office minister with responsibility for the Overseas Territories, Henry Bellingham
Responding to questions from Andrew Rosindell MP, Bellingham said that new ordinances on the electoral process and the regulation of political parties are being prepared.
Rosindell also asked what future funding from the public purse will be provided to the Turks and Caicos Islands Special Investigation Prosecution Team.
“The British government will consider carefully any requests for further assistance,” Bellingham responded.
When asked about the total spending to date, Bellingham said that, in financial year 2010-11, the Foreign and Commonwealth Office (FCO) made a discretionary grant of £6.6 million (US$10.7 million) to reimburse the Turks and Caicos Islands government for some of the exceptional costs of the criminal investigation, including the work of the Special Investigation and Prosecution Team, and related civil recovery and police work.
“In financial year 2011-12 the Turks and Caicos Islands government report that expenditure for the Special Investigation and Prosecution team was US$7.6 million. This represents over 4% of expenditure and a significant funding challenge for the Turks and Caicos Islands government. The Turks and Caicos Islands government has introduced a range of new taxes and cut overall expenditure significantly in order to address its structural deficit and put it on course for a sustainable fiscal surplus in financial year 2012-13,” he continued.
As separately reported, Britain has now agreed to make a further grant of £3.8 million (US$6.1 million) in financial year 2011-12 to reimburse the Turks and Caicos Islands government for a proportion of the costs associated with the continuing criminal investigation and associated prosecutions.
“The Secretary of State also approved an additional £745,000 (US$1.2 million) contribution to the cost of setting up a suitable courtroom for the trials which will be held as a result of the investigation,” Bellingham disclosed.
In addition to these grants, the British government spent approximately £86,000 (US$139,000) on costs in the UK relating to the Special Investigation and Prosecution Team in financial year 2011-12, he added.
Rosindell went on to ask if the FCO will publish a list of assets reclaimed by the Turks and Caicos Islands special investigation and prosecution team to date.
“Confiscation of the proceeds of crime can only occur post conviction. The special investigation and prosecution team carefully considers the need to restrain assets where there is evidence of a risk of dissipation. To date this has only been deemed necessary in the case of the former Premier, Michael Misick.
“It is also possible in appropriate circumstances to settle an investigation into suspected criminal conduct by agreeing a civil recovery order. This has been done with one suspect, who has paid the sum of US$1.25 million,” Bellingham responded.
In addition, Bellingham said, the separate civil recovery team has made in excess of 40 separate recoveries of money and/or land. The monetary element is more than $12 million including payments already made, judgments obtained and still to be collected and agreements to pay. More than 900 acres of land have also so far been returned to the Crown as a result of the civil recovery team’s work. The value of the land recovered so far is many tens of millions of dollars. Many other cases are underway and, by the end of the programme, the team expects to have recovered land worth hundreds of millions of dollars for the people of the TCI as well as significant further amounts of cash or other assets.
