(Joe Grant Cay Development Companies) with respect to the Writ and Statement of Claim issued by Attorney General regarding Joe Grant Cay Project

On 2 July 2010 , we learned that the Attorney General on behalf of TCIG
issued a Writ and the Statement of Claim which includes a claim for the
cancellation of our Development Agreement, Conditional Purchase Lease as
well as the transaction concerning the purchase of 200 acres of 810
acre island Joe Grant Cay on June 2008.
The claim is made against Star Platinum Island Ltd and its eight
subsidiaries involved in the development of Joe Grant Cay called all
together the “Development Companies”. The allegations made in the claim
are similar to the ones raised by Alex Milne, counsel to the Commission
of Inquiry, on the last day of the public hearings in January 2009. They
are unfounded.
It is true that Dr Kinay has the largest shareholding in Joe Grant Cay
Companies. Whatever view might be taken as to the wisdom of his donation
for the Premier’s early election campaign at the beginning of 2007, it
has nothing to do with Joe Grant Cay business. Dr Kinay’s donation was
made by Dellis Cay’s parent company, Turks Development LP, on behalf of
Dellis Cay, an unrelated company to Joe Grant Cay companies, almost 1.5
years before any single transaction took place between the Turks and
Caicos Islands Government and Joe Grant Cay companies.
Furthermore, on the valuation matter, it is of the greatest possible
significance that at the time of the purchase for 200 acres of Joe Grant
Cay in June 2008, the TCI government based its price on an independent
commercial valuation by BCQS, which was different than Mr. Hoza’s
valuation numbers– a process in which our Joe Grant Cay companies played
no role at all.
Since the Commission of Inquiry allegations, we have obtained evidence
from a number of local and internationally acclaimed professional,
licensed appraisers that support the independent commercial valuation by
BCQS of the Turks and Caicos Islands Government has obtained back in
June 2008.
By contrast, the valuation evidence, written by Mr. Hoza, the
Government’s Valuation Officer, said to support a suspicion of the
transaction, lacks coherence, demonstrates a confused approach to the
methodology and incorrect valuation area, being based on poor
comparables and assumptions which bear no relation to the true value of
Joe Grant Cay at that time.
These facts are well documented and we will submit them to the scrutiny
of the Supreme Court. Our companies have maintained and will always
maintain that the Joe Grant Cay transaction of 200 acres approved and
signed off by then Hon. Governor Richard Tauwhare in June 2008, and the
subsequent execution of the Joe Grant Cay Development agreement approved
and signed off by the present Hon. Governor Gordon Wetherell on 7
November 2008, were bona fide transactions in that the island’s value
has been independently assessed by an independent commercial appraiser
BCQS retained directly and independently by the Government of Turks and
Caicos Islands and we have paid that price.
Our Development Agreement was negotiated over almost 2 years with the
Attorney General’s Chambers before the present Governor Hon. Governor
Wetherell executed it On the other hand, It is claimed that 3 of Michael
Misick's Cousins beneficially owned a third of Joe Grant Cay
development as ‘a gift from Dr K?nay to the Premier's cousins and was as
such an act of bribery or corruption’ relying on an undated Declaration
of Trust.
As in all Crown Land transactions in the Turks and Caicos Islands, the
sale of the Crown Land, has been thoroughly investigated by the Attorney
General’s offices, which have conducted deep and lengthy due diligence
on the shareholders of our development companies, including our local
partner Don Gardiner and his company Ocean Development Ltd.
The Attorney General’s office’s thorough due diligence showed no concern
for our local partner Don Gardiner and his company at the time of the
transaction for the sale of the 200 acres Crown Land when Hon. Governor
Tauwhare executed the sale in June 2008, and at the time of the
execution of the development agreement when Hon. Governor Wetherell has
duly exercised his powers to approve and sign off our development
agreement on November 2008 during the investigation of the Commission of
the Inquiry.
Our Director Dr. Cem Kinay states as follows ‘I have never bribed anyone
in Turks and Caicos or elsewhere. Turks Development LP, Dellis Cay’s
parent company has made a political donation at the beginning of 2007,
at early election time. This donation has been disclosed to the
Commission of the Inquiry by the Premier along with other political
donations that he has disclosed that he received at that time. Joe
Grant’s 200 acres transaction has been executed through his Hon.
Governor Tauwhare in June 2008, who has asked the appointment of an
independent commercial appraiser to price the freehold land just before
the proposed day of the transaction. We have paid that price they asked
us to pay. The present Hon. Governor Wetherell on the other hand has
duly executed our Development Agreement in November 2008, after almost 2
years of negotiations. The Attorney General’s office has conducted its
due diligence as in all Crown Land transactions, and has cleared Don
Gardiner, our local partner. It is now claimed that some other people
related to the Premier are our partners. They base their claim on an
undated piece of paper. I have never known, seen, talked to the
ex-Premier’s cousins in my entire life. I hope a fair trial will prove
these.’
Star Platinum Island Ltd.