Caribbean Galaxy Real Estate Ltd, a developer participating in the Citizenship by Investment Programme (CIP), is embroiled in controversy due to multiple allegations of illicit business practices.
However, if such is the situation, Investment Minister Dr. Ernest Hilaire stated that the Opposition, which has been disseminating some of those assertions, requires scrutiny.
“If it is that Galaxy was conducting its business illegally and wrongfully allowed to earn over US$ 1 billion that belongs to Saint Lucia then the former government would need to answer a few questions,” Hilaire said at last week’s House of Assembly Sitting.
He observed that Desert Star Holdings Limited – DSH (a management and investment firm with global operations in commercial real estate, hotels, and horse properties) had sought CIP permission (under the previous administration) for a project valued at US$1.8 billion.
“In their proposal, they requested 9160 shares. Now multiply this by US$300k which gives $2.7b. I am told that the CEO at that time was removed from office because she did not recommend approval of the application. The requirement to allow CIP escrow accounts to be held in Saint Lucia was changed by the former administration to accommodate DSH,” the minister stated, adding, that that was placed on the CIP website, and is still there, the announcement and placement of the Alpina Saint Lucia Hotel and Alpina Square as two CIP approved projects.
“Visit the website, scroll to the bottom, and select ‘Get an Investment Project Approved’. The announcement date is visible on the website: January 11, 2021. Does this imply that US$2.7 billion is unaccounted for? Does this imply that the former Minister for the CIP is crooked and embezzled funds?” he asked.
Hilaire said there has been considerable commotion regarding the quantity of shares allocated to Galaxy by the government.
He said that shares are authorised for a CIP project, allowing investors who acquire shares from the developer to seek citizenship.
“In November 2021, I met with Galaxy and informed them that they are required by law to construct the (Canelles Resort). We insisted that the resort must be built. Galaxy agreed that once they finished selling shares for their project in St. Kitts they would move their operations to Saint Lucia to commence the resort. They later indicated that after consultation with AMResorts the scope of the project had increased significantly and, additionally, due to the increased construction costs after Covid-19, they would need to revise the agreed number of shares,” said Hilaire.
The board increased the number of shares to Galaxy, and building on the Resort commenced in early 2023, the minister stated.
“We have noted delays in construction and it has not been at the pace and stage that we require and have met with Galaxy to discuss the delays. We have been assured that construction will be accelerated and the Resort will be complete by May 2026. Delays and costs in construction have affected almost every project in Saint Lucia since COVID-19,” he stated.