Caribbean & Central America - April 2013 (ISSN 1741-4458)

* OIL CONTROVERSIES IN BAHAMAS AND BELIZE. On 16 April, Belize’s Supreme Court declared null and void offshore oil drilling contracts awarded by the government between 2004 and 2007. The challenge to the contracts was launched by groups campaigning against offshore drilling in Belize. The court’s view was that the government had failed to properly assess the environmental impact of the proposed drilling. The court also held that the contracts had been awarded to companies that did not have the requisite expertise to avoid environmental damage. Public opinion appears to be strongly against offshore drilling, fearing the damage that could be done to Belize’s coral reef and its tourism industry as a result of an oil spill.

            Meanwhile, in The Bahamas, Prime Minister Perry Christie is under pressure for reneging on his pre-election promise to hold a referendum on the question of oil drilling. Last May, the Progressive Liberal Party (PLP) leader told a rally: “Bahamians, we aren’t the FNM [Free National Movement]. We actually care about what you want. And there will not be oil drilling in The Bahamas unless you want it – we are on the record in favour of a national referendum.” Even at that time, however, it was suspected that there was some cynicism in this promise as it came after revelations that Christie was a paid consultant of Bahamas Petroleum Company (BPC). Now, the government has announced the award of an exploration licence to BPC and a postponement of any plan to hold a referendum until end-2014 or early 2015 (see sidebar).

* MORE ECONOMIC CONTRACTION FOR BARBADOS. The Barbados economy contracted by 0.4% year-on-year in the first three months of 2013, and the Central Bank has said that it expects the economy to remain flat for the whole year. However, on 9 April, it added that recently increased capacity in the tourism industry, together with current investment plans, should provide a “foundation for growth” in 2014 and beyond. The bank called for more investment in specialist areas such as eco, sports, and cultural tourism.

            The bank added: “Also, more investment is needed in marketing international Business and Financial Services and increasing capacity in agro processing and alternative energy. Efforts must be redoubled to remove barriers to Barbados’ competitiveness, the most damaging of which are inefficiency of Government bureaucracy, insufficient financing for new ventures, and poor work attitudes in the workforce.”

* FORMER PREMIERS IN COURT. Two former premiers of British Overseas Territories, Mckeeva Bush of the Cayman Islands (2009-2012), and Michael Misick of the Turks & Caicos Islands, TCI (2003-2009) are getting closer to facing their day in court.

            On 16 April Brazil’s official gazette published its justice ministry’s decision to refuse an application for political asylum submitted by Misick due to “lack of evidence” that he was facing political persecution back in the TCI. Misick, who has an outstanding Interpol arrest warrant issued to his name, is wanted in the British Overseas Territory on charges of corruption and mismanagement. Misick was originally arrested in Rio de Janeiro on 7 December but was released on bail on 8 February. He was re-arrested on 14 April in São Paulo.

            As for Bush, the latest court documents allege that, inter alia, he made cash withdrawals of up to $50,000 from casinos in the US using a government credit card. Bush faces two charges of misconduct in public office, four charges of breach of trust by a member of the Legislative Assembly, and five charges of theft. Bush’s case is next scheduled to come before the courts on 26 April.

• Oil in The Bahamas

On 13 April, BPC’s chief operating officer, Paul Gucwa, described the chances of discovering oil in The Bahamas as between 25% and 30%. Kenred Dorsett, minister for the environment and housing, said earlier this month that the discovery of oil in commercially exploitable quantities would be “economically transformative”. It is expected that BPC would pay between 12.5% and 25% in royalties to the government on extracted oil.