There is mounting concern about the stability of the Grand Bahama Port Authority, according to attorney Damian Gomez and Chamber of Commerce President Dr. Doswell Coakley.
Mr. Gomez, who represents Caroline St. George, daughter of Edward St. George, the late Port Authority shareholder, said Tuesday that she will not rest until Hannes Babak is fired as chairman of the Port Authority because she believes that he is unfairly benefiting from the Portﾒs profits.
“We shall in due course be suing him to recover any money which he has received,” the attorney said.
But Mr. Babak was said to be out of town on Tuesday and was not available to answer to the allegations.
Mr. Gomez insisted that the new chairmanﾒs presence threatens the Portﾒs stability. Mr. Babak replaced Julian Francis in June after his resignation from the company, which manages the city of Freeport.
“Iﾒm saying that the Port is under threat from people who ought to know better,” he said.
The latest concern surrounding the Port also has to do with a claim being made by Mr. St. Georgeﾒs ex-wife, Mary (his second wife), who insists that under their divorce agreement, she became entitled to 50 percent of his assets upon his death.
It would make her a substantial shareholder in the Port.
Mr. Gomez explained that in addition to being concerned about Mr. Babak potentially sharing in profits, Ms. St. George (a daughter from Edwardﾒs first marriage) recognizes that while the divorce agreement is authentic, a substantial portion of her assets is co-mingled with that of her late father.
In fact, Mr. Gomez said Mr. St. George used substantial portions of the inheritance Caroline and her sister, Sarah, received from their maternal grandfather to buy his interest in the Port.
According to Mr. Gomez, parties concerned are attempting to reach agreement on the separation of Ms. St. Georgeﾒs assets before the ex-wife is able to benefit in any way.
Meanwhile, Dr. Coakley, the Chamber president, said on Thursday that many licensees are concerned about the matter.
“I donﾒt have any concerns about the private part of the Grand Bahama Port Authority and the squabble,” he said. “My concern is about the overall governance of Freeport and how this would impact doing business in Freeport and the investment climate.”
He pointed to reports that anyone who has signed an agreement with the Port Authority since Mr. St. Georgeﾒs death in late 2004 would find that those agreements may be subject to a legal review.
“I think that that would send shockwaves and concerns to the investment community,” said Dr. Coakley, adding that this situation could hurt Freeportﾒs investment climate.
He said at this time, the Port Authority should make a statement regarding the present state of affairs.
“I certainly feel that the Port Authority being the leader of the business community here owes the wider community some explanation,” Dr. Coakley said.
“Certainly, concerns are all about. Anyone who lives in Freeport or has a business in Freeport would be or ought to be concerned about the public expressions of whatﾒs going on.”
Dr. Coakley said no one could draw a conclusion other than one that says the Port Authority is under threat.
“With this situation as it is, it puts the existing Port as we know it in a very, very [difficult] position regarding what tomorrow brings,” he said.
When he spoke with The Bahama Journal on Tuesday, Mr. Gomez said he was hopeful that an agreement would be reached among the members of the St. George family regarding his estate.
He added, “My client thinks that her father was quite correct in fostering an excellent relationship with the Hutchison Whampoa group.”
But he claimed that certain interests within the Port are attempting to “destroy that relationship.”
“Now, we regard that very seriously because that affects the assets value of my client and we intend in due course to ensure that any disrepair in the relationship between the Port Authority and the Hutchison Whampoa group is restored,” Mr. Gomez said. “That is of vital importance to my client and to the Freeport business community.”
He also said that unlike Mr. St. Georgeﾒs widow, Lady Henrietta, and Sir Jack Hayward (the other major Port shareholders), Caroline, who is also looking out for the interests of her four children, does not intend to be “an absentee landlord”.
By: Candia Dames, The Bahama Journal
