THE once-promising vessel of St. Lucia’s governance has lost its rudder, adrift in a sea of corruption and cronyism. The Philip J. Pierre SLP administration has forsaken the principles of transparency, accountability, and the rule of law, abandoning its sacred duty to serve the people.
As Kofi Annan, former United Nations Secretary-General, so eloquently put it, “The art of governance is to make the people happy, and the art of happiness is to make the people prosperous.” However, in St. Lucia, the reality is far from this ideal. The government’s actions, or lack thereof, have raised serious questions about its commitment to honesty, ethical conduct, and the well-being of its citizens.
Effective governance is critical to a nation’s prosperity, but in St. Lucia, it has been replaced by a culture of secrecy and shady deals. Contracts are awarded without transparency, and projects are plagued by inflated costs that defy international standards. The fiscal recklessness of this government has resulted in an unbearable debt burden for taxpayers, which will have far-reaching consequences for generations to come.
Since this SLP administration came into office, a plethora of controversial contracts, projects, and agreements have surfaced, featuring mind-boggling figures and dubious terms that have sparked widespread alarm and consternation. The EC $395 million St. Jude Hospital Project, the Global Ports Holdings Lease Agreement, the EC $300 million Hall of Justice BOLT Agreement, the sale of government lands at Bananes Bay, the National Lottery Authority EC $80 million Loan Guarantee, the Bemax Rock Hall Housing Project and the Department of Housing and Local Government cemetery projects to name a few. For the purpose of this article, I will focus on the Citizenship by Investment Program, a prime example of the current administration’s lack of good governance. This program has been plagued by controversy and questionable decision-making. The Caribbean Galaxy Canelles Hotel Development project is a perfect case in point. In the first contract signed in March 2018, between the UWP administration and the developer, Caribbean Galaxy, the government allocated passports valued at approximately $210 million, leaving Caribbean Galaxy responsible for funding the remaining US $90 million of the project’s estimated total cost of US $300 million. This arrangement made sound business sense, as it was unreasonable to expect a government to fully finance a hotel in which it holds no ownership or equity interest.
However, the situation took a disconcerting turn following the July 2021 general elections with the advent of the SLP administration led by Prime Minister Philip J. Pierre—who also serves as the Minister of Finance—and Minister of Investment with responsibility for the CIP Ernest Hilaire. On December 1, 2022, they altered the terms under a revised contract, increasing the passport allocation to an astonishing total of 6,000, valued at US $1.2 billion. This revision amounts to an inexplicable increase of approximately US $900 million—or 400 percent—over the original agreement. Moreover, the government has taken on the full financial burden of the project, a move that raises even more questions. With only negligible changes made to the project scope, one is compelled to question the reasoning behind such a staggering increase.
Further scrutiny reveals that the construction costs, including labor and materials, have not escalated to the extent suggested by this new valuation, making the rise in passport allocation seem utterly unjustifiable. Who stands to gain from such a dramatic increase in passport allocations?
Among the most apparent beneficiaries are the government-approved law firms tasked with processing citizenship applications. Two local firms dominate this realm, processing more than 90 percent of applications connected to Caribbean Galaxy’s CIP projects. Each application incurs an average processing fee of US $3,000, leading to a jaw-dropping total of approximately US $18 million or EC $48,852,000.00 in fees for processing 6,000 passports.
What compounds the concern is that, despite the entire allocation of 6,000 passports reportedly having been sold since the project’s inception in 2019, construction is languishing at less than 20 percent completion, progressing at a dismally slow pace. This situation is not merely a bureaucratic oversight; it is an affront to the citizens of St. Lucia and a troubling blemish on our country’s international reputation.
The discrepancies between funding, project progression, and accountability demand serious scrutiny. Who benefits from these shady deals? Are government officials, their friends, or family members reaping huge profits while the country suffers?
Despite the benefits being reaped by some individuals or groups from these dubious government arrangements, St. Lucia is facing significant economic and social challenges. In 2023, the country recorded the slowest GDP growth in the Eastern Caribbean Currency Union, leading to the closure of many small and medium-sized businesses. The island also has some of the highest fuel prices in the region, which, combined with a 2.5% Health and Security Levy, has contributed to rising costs of food, goods, and services. Furthermore, the healthcare system is in a state of crisis, with the Medical and Dental Association’s President describing it as the worst it has ever been. The road network is also in disrepair, and crime rates are increasing, with St. Lucia experiencing two consecutive years of record homicides and having one of the highest murder rates globally.
The St. Lucian government’s blatant disregard for transparency, accountability, and the well-being of its citizens is a grim reminder of the devastating consequences of unchecked corruption and cronyism. By prioritizing the interests of a select few over the needs of the many, this administration has recklessly mismanaged the country’s resources, burdened future generations with unsustainable debt, and undermined the very fabric of our nation. It is imperative that we demand investigations into these dealings and bring transparency and accountability to the government’s actions. The people of St. Lucia deserve answers, as what they are witnessing appears to be a profound betrayal of public trust.