NASSAU, BAHAMAS — The recent Baha Mar ruling, which has renewed concerns about the Christie administration’s handling of the dispute between the resort’s original developer and main contractor, underscores the need for an Integrity Commission, according to a governance reformer.
Prime Minister Philip Davis, who served as the Deputy Prime Minister in the Christie administration, has directed Attorney General Ryan Pinder to review the New York Supreme Court’s recent decision which awarded Baha Mar’s developer Sarkis Izmirlian $1.6 billion in damages and interest over his fraud and breach of contract claim against China Construction America (CCA).
Matt Aubry, executive director of the Organization for Responsible Governance, told Eyewitness News: “To ensure our systems and solutions are not created reactively, we must establish proactive systems prepared to handle these kinds of issues before they arise. Allegations will surface occasionally, but if there’s a consistent, independent, and apolitical system in place to address them, it’s clear how they will be investigated and resolved. Knowing this process ahead of time reduces disruption.”
Justice Andrew Borrok determined that CCA, the U.S. arm of China State Construction Engineering Corporation, defrauded BML and breached its investment agreement, directly causing the loss of BML’s $845 million investment. The court found that CCA’s actions led to Baha Mar’s bankruptcy in June 2015, with CCA allegedly providing false completion dates. The judge concluded that Izmirlian’s fraud claim was “established beyond doubt,” citing at least four instances of fraud and six contractual breaches by CCA, awarding $1.6 billion in damages.
The court also found that CCA’s decision to spend $54 million acquiring the British Colonial resort rather than paying Baha Mar subcontractors triggered the liquidity crisis. Further, the court ruled that CCA’s $2.3 million payment to Notarc Management Group, run by Sir Baltron Bethel’s son, Leslie, was intended to “curry favor” and “gain access” to Christie’s senior policy advisor and the Bahamian government.
Aubry noted: “A promised Integrity Commission would be an invaluable tool for handling situations like these. Across the Caribbean, several countries have integrity commissions that receive, review, and rigorously examine allegations. Some of these commissions have the power to prosecute or work closely with law enforcement, offering a clear path for accountability. Such measures allow the public to understand who handles these matters and how they are resolved. When issues remain unaddressed, it undermines public trust, participation, and belief in the fairness of governance. Advocating for freedom of information, campaign finance laws, and integrity commissions ultimately strengthens democracy and builds public confidence in our systems. Many of our institutions work diligently, but we need an objective voice in the process so that those doing the right thing receive recognition, while those who aren’t are held accountable.”
According to a statement from the Office of the Prime Minister, the Government will await the advice of the Attorney General and Ministry of Legal Affairs before making further comments on the ruling in BML Properties Ltd. v. China Construction America, Inc.. Following the ruling, opposition parties have called for an independent investigation into the Christie administration’s handling of the Baha Mar dispute.
On Tuesday, China Construction America and its co-defendants filed an appeal with New York’s Appellate Division. A spokesperson for the defendants stated: “The lower court’s decision is by no means the last word in this matter, and our appeal is the first step towards correcting a ruling that misapplies New York law, misconstrues core facts, and overlooks the tireless work done by CCA Bahamas to complete the Baha Mar Resort.”
The statement continued: “BML Properties caused itself to overborrow, overspend, and overextend. By wrongfully placing the project in bankruptcy without consulting its partners or the Bahamian government, BML harmed not only CCA Bahamas and CSCEC Bahamas but also the Bahamian economy. We look forward to presenting our arguments to the appellate court.”
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