The unfolding saga of the Citizenship by Investment Program (CIP) in St. Lucia has reached a boiling point, with allegations of corruption, money laundering, and fraud threatening to engulf the government. The Prime Minister’s lack of decisive action, his incredulous claim of ignorance and the Investment Minister’s preposterous evasive tactics have only added fuel to the fire, leaving the nation in a state of crisis.
At the heart of the controversy lies the Caribbean Galaxy, a Chinese investment firm accused of selling St. Lucian passports at discounted rates, with kickbacks allegedly being spread far and wide. The sheer scale of the alleged corruption is staggering, with EC $4 billion of passport sales money being unaccounted for and a development project, the Hotel located at Honeymoon Beach in Canelles, Vieux-Fort, stalled at less than 25% completion.
The Prime Minister’s refusal to comment on the matter, citing its presence before the Federal Courts of the USA in a Racketeer Influenced Corrupt Organizations Act (RICO) case, is an unacceptable abdication of responsibility. The Investment Minister’s implausible excuse that he needs permission from Caribbean Galaxy to account to the people of St. Lucia is a ludicrous attempt to deflect accountability. The government’s duty is to serve the people, not to protect the interests of a foreign firm accused of corruption .
The consequences of this corruption are far-reaching and devastating. If there has been a loss of EC $4 billion this would be truly catastrophic. This is money which could have been invested in critical areas such as education, healthcare, and infrastructure, which are essential for the development of a cash-strapped nation like St. Lucia. Instead, the funds have allegedly been siphoned off, (we assume the worst in the absence of credible accountable and attributable information) leaving the country with a half- completed project and a tarnished reputation and the people embarrassed, bewildered, angry and hopeless.
However, the implications of this scandal extend far beyond St. Lucia’s tiny borders. The sale of passports to individuals with nefarious backgrounds and criminal intentions, facilitated by a highly compromised due diligence process, poses a significant threat to national security in countries like the USA, Canada, United Kingdom and Schengen member states in Europe. These individuals, armed with a legitimate St. Lucian passport, can move freely across borders, potentially engaging in illegal activities, including terrorism, money laundering, and organized crime. The recent arrest and conviction of several Chinese citizens for fraud
and money laundering worth billions of dollars in Singapore and the USA, travelling with CIP passports acquired from our sister OECS countries Citizens by Investment programs is further evidence of the gravity of this situation.
Furthermore, the processing of fraudulent passport sales through the American banking system has serious implications for St. Lucia’s correspondent banking relationships. The USA’s Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) may impose sanctions on St. Lucia, restricting its access to the US financial system and crippling its economy. This could have a ripple effect on the entire region, as St. Lucia’s financial institutions are interconnected with those of other Caribbean nations.
The sale of passports through corrupt means also undermines the integrity of the global financial system, as it allows illicit funds to be laundered and hidden behind a veil of legitimacy. This can lead to a loss of confidence in the international financial system, with far-reaching consequences for global economic stability.
The alleged scandal poses a significant threat to the livelihoods of St. Lucians who frequently travel visa-free to the United Kingdom, Schengen states, and other destinations for medical treatment, employment, and business opportunities. The potential consequences are far-reaching, as thousands of St. Lucian families rely on remittances from loved ones living abroad. The compromising of St. Lucia’s correspondent banking arrangements with US banks will have a devastating impact on these families, as well as the overall well-being of the local economy.
Moreover, St. Lucia’s tourism industry, which is the backbone of the economy, will definitely suffer significantly as the scandal unfolds. The burgeoning online commerce sector, which is heavily reliant on international transactions, will also be severely impacted, further exacerbating the economic fallout.
The Prime Minister, the Minister of Investment and the CIP have abused the trust of the people of St. Lucia and their oath of office to protect the constitution of St. Lucia. By failing to be transparently accountable to the people, by prioritizing personal gain and politics over the national interest, they have brought shame and embarrassment to the nation. This is the biggest scandal to have hit St. Lucia in modern times, and it is a stark reminder of the dangers of corruption and the importance of good governance.