Hannes Babak, the Grand Bahama Port Authority’s chairman, yesterday said he had “no intention whatsoever” of resigning his position, although pressure on him to do so is increasing.
The Tribune has been told that the Grand Bahama Contractors Association was considering staging a protest outside the Port Authority’s headquarters yesterday over the contract Awarded to Mr Babak’s construction company, H and F Babak Construction, to construct the Associated Grocers warehouse in the Sea/Air Business Centre.
The Tribune could not confirm at press time whether the demonstration had been held, with some sources suggesting that contractors were having second thoughts.
Meanwhile, Mr Babak told The Tribune yesterday he was still in place at the Port Authority and had no intention of resigning, proceeding with his daily schedule and meetings.
Yet criticism of Mr Babak and his appointment is continuing, both from inside the Port Authority’s shareholders and outside among its licensees, and especially from parties with a vested interest in the organisation’s fate.
His appointment earlier this year, to replace former Central Bank governor Julian Francis, appears to have unwittingly ignited the dispute over the estate of the late Edward St George.
Mr St George’s daughter, Caroline, has made clear her hostility towards Mr Babak, saying she will ensure his removal should her claims to the estate succeed.
The Tribune has been informed that Mr Babak’s appointment was chiefly driven by Lady Henrietta St George’s brother, the Earl of Euston, and Port insider Derek Harrington, rather than Lady Henrietta and Sir Jack Hayward.
Some St George family members, including Caroline, are understood to have been unhappy that they were not consulted on Mr Babak’s appointment.
Caroline’s views have been echoed by PLP Senator Philip Galanis, who together with attorney Harvey Tynes and contractor Floyd Farquharson, mounted a $400 million bid to acquire the Port Authority, Port Group Ltd and its related assets earlier this year.
That offer was rebuffed by Sir Jack Hayward, Mr St George’s business partner and 50 per cent shareholder in the Port Authority, although Mr Galanis said he left the door open to further talks.
Mr Galanis previously told The Tribune that Mr Babak should be removed because of perceived conflicts of interest between his Port Authority role and private interests, namely his construction company and Freeport Concrete, the BISX-listed entity in which he holds a 43 per cent stake. Freeport Concrete owns building materials supplier, the Home Centre.
“He doesn’t have any stellar record of achievement in any of his existing businesses. I don’t understand what great strengths and special skills he brings to the job,” Mr Galanis said.
“I have spoken to several investors who claim they have been directed to the Home Centre to purchase tresses and other building materials.”
Mr Babak has described such claims as “total nonsense” in conversations with The Tribune. He said he has recused himself from all involvement with H and F Babak Construction Company, and is no longer involved with Freeport Concrete’s day-to-day operations.
On the Associated Grocers contract, it is understood that the US grocery wholesaler and distributor spoke to H and F Babak Construction Company before Mr Babak was appointed to his current Port Authority role.
Several sources have suggested that the criticism of Mr Babak is really designed to increase pressure on the Port Authority’s shareholders, chiefly Sir Jack and the St George estate, through attacks on its chairman.
Source: The Tribune
