NASSAU, BAHAMAS — Prime Minister Philip Davis has instructed Attorney General Ryan Pinder to review the recent ruling by the Supreme Court of New York in the case of BML Properties Ltd. v. China Construction America, Inc., according to a statement from the Office of the Prime Minister.
“The Prime Minister has stated that the Government will await the advice of the Office of the Attorney General and Legal Affairs before making any further comments or decisions regarding the findings of the ruling,” the statement noted.
A spokesperson for China Construction America responding to the ruling stated: “The court’s decision is deeply flawed under well-settled principles of New York law, and we intend to appeal. The decision ignores indisputable evidence that BML Properties overborrowed, overspent, and overextended itself and then drove the project into a wrongful, secret bankruptcy—without first seeking the contractually required consent of minority investor CSCEC Bahamas—to eliminate its obligations at the expense of other stakeholders, including not only CSCEC Bahamas and construction manager CCA Bahamas, which made tireless efforts to complete the Baha Mar project on time and within budget, but the Bahamian government, subcontractors and workers.”
The Opposition, in a statement yesterday, expressed “deep concern” over the ruling, which awarded $1.6 billion to the Izmirlian family in their case against CCA. The Opposition highlighted allegations of involvement by officials from the former PLP administration.
It said: “In addition to the court ruling in favor of the Izmirlian family for the sum of $1.6 billion, the judgment referenced evidence of troubling allegations about the direct involvement and active support of officials in the then-PLP administration when Prime Minister Davis served as Deputy Leader. Beginning at section 143, the court judgment reveals that CCA paid over $2 million for undefined purposes to a company owned by the son of a senior government official who was deeply involved in the government’s engagement on the Baha Mar project. According to the court, CCA leveraged this commercial relationship to further its efforts to oust the Izmirlian family from Baha Mar.”
The statement continued: “This court document presents a compelling case for an immediate investigation by the Bahamian government into potential illegal payments made by foreign actors to Bahamian officials to influence government policy and decisions. Such allegations tarnish the reputation of The Bahamas as a credible and legitimate place to conduct business. Unfortunately, we have repeatedly witnessed from the Davis administration that its commitment to accountability and justice in public affairs stops short of examining themselves.”
BML Properties Ltd. has been awarded over $1.6 billion against China Construction America in its long-running New York lawsuit concerning the Baha Mar project, prevailing on all claims.
The bench trial, overseen by New York Supreme Court Justice Andrew Borrok, examined whether BML’s $1.5 billion losses resulted from overleveraged debt or construction delays. BML claimed that CCA, the Chinese state-owned construction firm responsible for building Baha Mar, concealed significant delays and intentionally sabotaged the project’s March 2015 opening date to drive BML into liquidation. According to BML, this led to the loss of its $745 million investment, now totaling $1.55 billion with interest.
Sarkis Izmirlian, the original developer of the mega-resort, filed a lawsuit six years ago, alleging “massive fraud” by CCA. He claimed that CCA intentionally engaged in work slowdowns or stoppages, preventing the resort from opening on March 27, 2015, and contributing to BML’s liquidity crisis. The development, placed into receivership, was later sold to Hong Kong conglomerate Chow Tai Fook Enterprises.
Justice Borrok ruled that CCA, the U.S. unit of China State Construction Engineering Corporation, defrauded BML Properties and breached the investment agreement, directly resulting in the loss of BML’s $845 million investment in Baha Mar.
Sarkis Izmirlian, Chair and CEO of BML Properties, said: “I first conceived of Baha Mar more than 20 years ago, only to see it ripped out of my hands at the brink of opening by CCA.” Evidence showed that rather than fulfilling its promise to complete the resort, CCA used the money to buy the British Colonial Hilton in Nassau, cut workers during the critical period, diverted resources to Panama, and conspired with corrupt Bahamian officials to oust BMLP, leading to catastrophic effects on Baha Mar.
The decision described CCA’s promise to meet the March 2015 opening date as “phony” and an “absolute sham and shakedown of Mr. Izmirlian,” who, the court noted, “acted commercially reasonably, honorably, and in the best interest of the Project.” The court found that CCA’s actions caused a liquidity crisis, pushing BMLP out of its $845 million investment and leading to Baha Mar’s bankruptcy in June 2015.
“We are grateful to have finally had our day in the US judicial system,” said Izmirlian. “We intend to proceed with the enforcement of the judgment in an equally thoughtful and prudent manner.”
