The Saint Lucia House of Parliament held a sitting of its members on Tuesday October 22, 2024. During the sitting, Deputy Prime Minister and Minister for Investment Hon. Dr. Ernest Hilaire set out some key information and figures from the 2022 – 2023 report, in response to requests and allegations by Leader of the Opposition and member for Micoud South, Allen Chastanet.
Investment Act and Reporting Obligations
The Investment Act No. 14 of 2015, section 24-1, mandates that not later than three months after the end of each financial year, the board must submit an annual report on its work to the minister. The Minister for Investment addressed this in Parliament, emphasizing that the report for the 2022-2023 financial year was delayed by one year.
“We should always meet our statutory obligations,” Hilaire stated. He acknowledged that delays were caused by factors beyond the control of the unit but added, “This should not become a routine practice.”
Report Submission and Key Findings
The 2022-2023 report was laid in Parliament, showing significant growth in the Citizenship by Investment Programme (CIP). Key findings included an 85% increase in applications, a 94% rise in total assets, and a 512% growth in revenue. However, challenges included delays in fund clearance at banks and limited workspace for staff. Despite these, the unit ended the year with a surplus of $22.8 million.
Hilaire promised, “We will work hard to ensure future reports are submitted on time.”
RICO Case and Allegations Against CIP
Hilaire also addressed the ongoing RICO case filed by Phillipe Martinez, which names CIP officials, including its CEO, McClaude Emmanuel. He clarified that neither Martinez nor his claims have any direct connection to St. Lucia or its CIP. “Martinez has never invested in St. Lucia,” Hilaire emphasized, dismissing the allegations as baseless.
The Minister for Investment also criticized the opposition’s involvement in what he called a “vicious attack” on the CIP and its officials. “This is a deliberate attempt to discredit a program that brings significant revenue to our country,” he said.
Defense of Due Diligence Process
In response to accusations of illegal activities in the CIP, Hilaire defended the program’s integrity. He noted that the due diligence process in place is rigorous and consistent with practices established by the previous government. He remarked, “The same processes remain, except we have strengthened due diligence by introducing interviews.”
Hilaire also dismissed claims of illegal passport issuances, emphasizing that each applicant’s minimum investment is verified before citizenship is granted. “The suggestion that passports have been illegally granted is completely false,” he stated.
Escrow Arrangements and Developer Funds
The Minister for Investment further clarified the role of escrow accounts in the CIP, stating that the funds in these accounts are held in trust for developers and not the government. He explained that these arrangements were established under the former administration and have not changed.
“These are the same guidelines approved under the leader of the opposition when he was minister,” Hilaire said, criticizing attempts to politicize the issue.
Opposition’s Political Showboating
Hilaire concluded by accusing the opposition of engaging in “political showboating” and spreading misinformation. He noted the opposition leader’s frequent public statements but remarked, “We are still waiting for the so-called evidence he promised to bring.”
The Minister for Investment called for an end to what he described as a politically motivated attack on the CIP and urged the opposition to prioritize the country’s interests over personal or political gain. “This needs to stop,” he said, “and the time will come when it will stop.”
In closure, Hilaire ended with a statement of assurance to the people of Saint Lucia that the island’s CIP is in safe hands.
Source/Photo: House of Parliament (Saint Lucia)
