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Hilaire Dismisses Opposition CIP Allegations As Baseless Lies

During the Sitting of the House of Assembly on Tuesday, October 22, Castries South MP and Investment Minister Dr. Ernest Hilaire firmly addressed accusations of wrongdoing leveled against the Saint Lucia Labour Party (SLP), particularly by the opposition United Workers Party (UWP), regarding the Citizenship by Investment Program (CIP).

The SLP has faced allegations of manipulating the CIP in ways that undermine the island’s legislative process.

These claims gained momentum after a Gazette published on September 12, 2024, announced the approval of two projects: “Caribbean Galaxy Real Estate Limited – National Infrastructure Improvement Program” and “Bemax LLC – Rock Hall Housing Development Project.” Notably, the start dates for these projects were backdated to January 12, 2024.

The opposition and its supporters raised concerns, questioning whether this move followed standard legislative practices.

They also implied that it was tied to unethical approvals for the sale of Saint Lucian citizenship under the CIP.

Public speculation suggested that these approvals were an attempt to legitimise unlawful actions and that the administration was secretly selling citizenships for the benefit of a select few.

Ahead of the parliamentary session, UWP spokesperson Lenard “Spider” Montoute, during a protest outside the House, stated, “We have no information about how many passports have been sold, how much money has been made, or where the funds have gone.”

Further controversy surrounding the CIP arose after Philippe Martinez and his company, MSR Media, filed a Racketeer-Influenced and Corrupt Organizations (RICO) lawsuit in May 2024 in a U.S. federal court, accusing the CIP programs in both Saint Kitts and Saint Lucia of corruption.

Plaintiffs named in the lawsuit were Leslie Khan, Caribbean Galaxy Real Estate Corp., Caribbean Galaxy Real Estate LTD., Ying Jin, Timothy Harris, Denzil Douglas, Carib Trust LTD., Faron Lawrence, St. Kitts-Nevis-Anguilla National Bank LTD., and Mc Claude Emmanuel.

In a nearly hour-long speech during the parliamentary session, Dr. Hilaire vigorously denied the allegations.

Hilaire said, “Martinez has never invested in Saint Lucia, and has nothing to do with our CIP. He has a grievance with Saint Kitts…”

Former Saint Lucia CIP Unit CEO Mc Claude Emmanuel has also been implicated in the RICO case, but Hilaire defended him, asserting that Emmanuel was caught in the crossfire of Martinez’s legal action: “Martinez claims that Mr. Emmanuel had knowledge of Galaxy’s underselling in Saint Lucia and failed to stop it. All of the defendants are applying to dismiss this RICO case, all of them and the judge has asked for the motions to be jointly filed on the 1 of November 2024.”

Hilaire directly addressed opposition leader Allen Chastanet, who was present, labeling the accusations from the opposition as baseless and emphasised that many of the current CIP procedures were implemented during Chastanet’s administration (2016–2021).

Hilaire further criticized the opposition for its earlier endorsement of the Caribbean Galaxy Real Estate project in 2019, questioning why the UWP now has objections.

He read out loud, a past endorsement from the UWP’s representative for Choiseul, Bradley Felix, who according to Hilaire once stated verbatim, “Caribbean Galaxy Real Estate is a Citizenship by investment client and they were screened through rigorous processes. CIP ensured that the company met all requirements of transparency and had a proven track record of doing ethical business throughout the region and internationally as well.”

Hilaire refuted any allegations suggesting improper dealings with Caribbean Galaxy Real Estate Limited, insisting that the company had been deemed an approved developer by the opposition leader himself.

He also defended the legal professionals involved in processing CIP applications, along with CIP employees and the Prime Minister’s daughter, all of whom have come under scrutiny amid the accusations. “Mr. Speaker, the processes and procedures at the unit are the same as when the UWP was in government. The same!” Hilaire asserted.

The MP further elaborated on the due diligence process for CIP applications, stating that firms from the United States and the United Kingdom are responsible for applicant reviews. “No individual employed by the unit can ever influence the approval granted by these agencies, no one,” said Hilaire.

He also addressed allegations that he was personally profiting from the CIP program: “I have heard the false narrative that we have collected over $1.4 billion and that I have stolen the money, another version is that Galaxy has collected the money and I’m benefitting from it. It is a daily story posted and circulated. None of this is true. If they know how to steal $1.4 billion that’s them, we don’t engage in theft of public funds!”

In response to the accusations, Hilaire presented data from the 2022–2023 CIP report, showing an 85% increase in applications received (from 583 to 1076), a 25% increase in applications granted (from 435 to 534), a $35.58 million or 94% increase in total assets compared to 2022, a 12% growth in revenue from $54.2 million to $60.6 million and 40% increase in staff in the due diligence, verification and accounts departments.

However, he also noted challenges faced by the unit, including delays in the clearance of funds at the banks which affect processing times, limited workspace to accommodate growing personnel and 43% or $10.1 million increase in programme costs driven by a 948% increase in marketing agent commissions. Marketing efforts, he said, had been expanded in the Middle East and West Africa.

Hilaire mentioned that while the report for 2022–2023 had only just been presented due to unforeseen delays incurred by the CIP unit, auditors were working to prepare the 2023–2024 report, which he expects to lay before the House on October 31, 2024.

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4 COMMENTS

  1. It is a hell of a thing that wherever you go there are allegations of fiscal impropriety.
    Wherever you operate there are questions about rule breaking and bending of rules to suit your purposes
    Wherever you go there is a trail of unanswered questions.
    Wherever you go there are responces of I do not know, you have to ask some other third party and the questions about your behaviour are just mischief.
    Why cannot the pertinent question be answered: Where is the people’s money from the sale of thousands of passports? Why cannot these issues be debated in the house instead of by a route that the opposition cannot ask any questions.
    If it waddles, quacks, has feathers it is a duck!

  2. The clown who is administering the CIP program is playing with fire. He doesn’t even know it. Weaknesses in the program can cause a breach in US security. Back dating documents, non transparency and missing deadlines are signs of problems. He thinks that he is free and clear. Here is some bad news for him. He can be indicted by a secret grand jury without him even knowing that he is in hot water. My advice to him, give running the program his full attention. Act like his life depended on it. The Justice Department, US Attorney Office, Southern Division has a storied past. They will not hesitate to carve another notch on their mantle. This eh St. Lucia on the market steps. It is Premier League. Hope duh minister responsible for security is ready to insert a quick replacement, if, or when, the portfolio becomes abruptly vacant.

  3. This man Hilaire must really have the worst luck to always be targeted so unjustly as he claims or he is a tricky, rotten apple. I hope for his sake it’s the former, as one must always pay the pied piper.

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