ISSUE NO.72 December 2002
Merry Christmas and happy New Year from High Commissioner
and Staff
Tourism
needs protection now
In a statement published in the Antigua Sun on 10th December 2002,
Sir Ronald Sanders called for the bolstering of security in the
tourism industry in Antigua and Barbuda
He explained that one of the reasons that Antigua and Barbuda
has continued to maintain a decent level of tourist arrivals despite
the fear of flying that has gripped Americans and affected Europeans,
is that the region is regarded as safe. “We are perceived to be
outside the theatre of military, religious and ethnic conflict.”
However, he said that the threat of terror that has emerged from Osama bin
Laden’s Al Queda and a myriad number of extremist Muslim groups means that
no one is really safe. He cited the recent terrorist attacks in Mombasa, Kenya
and Bali, Indonesia as examples of everywhere being a potential target.
The High Commissioner pointed out that it is significant that both Bali and
Mombasa have substantial Muslim communities that have been enflamed and provoked
into action by the events in the Middle East, the Israeli-Palestinian dispute
and the perception that the US is not even-handed in the Middle East. In light
of these events, Sir Ronald called for vigilence at home.
“Antigua and Barbuda does not have a large Muslim population
as far as we know. Therefore, there should be no groups within
our country who are anxious to act for, or be supportive of, al
Queda or any similar organisation.
“In recent years, while we have witnessed an increase in the
number of people from the Middle East, it is claimed that these
people are Christians not Muslims. Therefore, it is to be assumed
that they are not interested in a holy war with Israel or terrorist
activity against civilians from the US or other western countries.
Nonetheless, one of the ways in which Antigua and Barbuda should
now bolster its security is by screening closely persons from all
parts of the Middle East including Israel, Pakistan and South East
Asia, who seek visas to enter this country.”
In addition, Sir Ronald called for the inclusion of the local community in
all aspects of tourism, pointing to the fact that it is vital for nationals
to have a stake in and benefit from the industry in order to keep it safe.
He said, “In Antigua and Barbuda, a significant part of ensuring
the security and safety of the industry is to ensure that the benefits
of tourism continue to flow to the people.
In this connection, the Government should review the concept
of all- inclusive hotels, which, while employing locals within
the property, exclude other locals such as taxi drivers, restaurant
owners and workers, boutiques and shops from the benefits of their
guests.
A deliberate and conscious decision also has to be made by the
Government to make sure that the tourist dollar is spread wider
amongst the community. Vegetables and fruits should be bought from
local farmers first, fish should be purchased from local fishermen
first, services should be bought from local providers first.
This is the only way that hotels in Antigua and Barbuda, most
of which are foreign-owned, can rely on the vested interested of
locals in safeguarding the industry.”
He also noted that police intelligence should be improved considerably
and security at ports and the airport require urgent overhaul so
that they are not easy targets for terrorist activity.
Sir Ronald warned that “It will take only one incident to wipe Antigua and
Barbuda off the tourist map completely. If we do nothing to bolster security
and to fully involve our community in ensuring such security, we may live to
regret it.”
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CARICOM/Cuba
Summit
Heads of Government from across the Caribbean attended an historic
CARICOM/Cuba Summit on the 7th and 8th December. The Summit marked
30 years of diplomatic relations between CARICOM and Cuba, and
examined the future of integration in the region.
On 8th December 1972, Barbados, Guyana, Jamaica and Trinidad
and Tobago defied the USA and its isolation of Cuba and established
diplomatic relations with Fidel Castro’s government. The other
CARICOM members followed suit once they had gained independence
from Britain. This bold political move by the four Caribbean countries
dramatically changed the international response to Cuba.
During the Summit Prime Minister Lester Bird joined other Heads
of Government in making statements in the Palace of the Revolution
to mark the occasion.
The Prime Minister explained the many ways in which Cuba had played a part
in the region’s development. “Cuba was from the beginning a part of the Caribbean
Festival of Creative Arts which originated with CARICOM countries.
And, Cuban doctors and nurses helped, and still help, to administer to the
health needs of our communities. Thirty nurses and three doctors – one of whom
is a much needed Oncologist, provide outstanding and valuable service to the
Antigua and Barbuda people.”
He added that Antigua and Barbuda wished to establish a strong relationship
between its new hospital and medical training and research facilities in Cuba.
He also pointed out CARICOM’s support of Cuba internationally, “We
in CARICOM took the lead in advancing the claims of Cuba as part
of the Caribbean in the African Caribbean and Pacific Group in
our relation with the European Union. Today Cuba is a full member
of the ACP, and will be, we hope, a prominent player in the evolving
negotiations with Europe for successor economic partnership arrangements.
For us all, Cuba is part of our Caribbean family in a very intimate way.”
The Prime Minister said, “The point I underline here is that we, CARICOM and
Cuba, must continue unswervingly down the path of solidarity that we have already
begun to walk together.“
He recommended that the 8th December should be marked every year
as a Cuba-CARICOM day to recognize the CARICOM/Cuba relationship.
He proposed a Summit meeting of Heads of Government of Cuba and
CARICOM every 3 years, and an “issue-related” Ministerial meeting
every 18 months to advance and deepen the Cuba-CARICOM relationship.
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Antigua
and Barbuda students listed among the best in Cuba
During his visit to Cuba, Prime Minister Lester Bird met a representative
body of the 111 Antigua and Barbuda students who are presently
studying in Cuba.
The 21-member delegation met the Prime Minister at the Hotel
Palco. The discussion centred on their education; employment in
the nation upon graduation; and the possibility of a permanent
representative in Cuba to assist students.
The Prime Minister assured the students that the government will
take all of their queries and suggestions very seriously.
Several students from Antigua and Barbuda have received national
recognition in Cuba for their outstanding academic performance
in the classroom.
Mr. Bird encouraged them to strive for continued excellence in
their studies, reminding them that they have a pivotal role to
play in the process of nation building.
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Level playing field
no longer exists with OECD initiative, says Antiguan diplomat
Sir Ronald Sanders has written to the Secretary
General of the Organisation for Economic Cooperation and Development
(OECD), Donald Johnson, expressing concern that a level playing
field no longer exists among OECD and non-OECD participating states
in its harmful tax competition initiative.
The letter was dispatched to Johnson on 13th December in the light of the recent
statement by the Presidency of the European Union that certain OECD member
countries have been granted until 2011 to implement exchange of information
provisions on tax matters -- seven years more than non-OECD members, who also
make up a Global Forum dealing with tax matters.
Sir Ronald, Antigua’s Lead Negotiator in International Financial
Services issues, believes there is need for further review of the
position by the OECD, which comprises 30 of the world’s richest
countries that have issued a set of criteria for determining whether
or not a country is a “tax haven”.
“You may wish to consider the necessity of convening a special meeting of the
Global Forum early in the New Year to inform all participants of the situation
in regard to the position of certain EU member states and to examine whether
or not a sufficient consensus remains to render the work of the OECD Secretariat
in the Global Forum viable in the months ahead,” he said in the letter.
He said the “Government of Antigua and Barbuda shares the view expressed recently
by the Government of Panama and the Leader of Government Business in the Cayman
Islands that the conditionality of a ‘level playing field’ amongst participating
members of the Global Forum no longer exists”.
Furthermore, “in common with Panama, the Cayman Islands and many other participating
nations engaged in the Global Forum process, the concept of a ‘level playing
field’ was central to the good faith participation of Antigua and Barbuda in
the whole OECD harmful tax exercise, and indeed was a specific, written condition
of our participation,” he said.
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Ridley
Jacobs is third Antiguan to Captain West Indies Team
Ridley Jacobs has been made Captain of the West Indies Cricket
Team. He is the third Antiguan to hold the captaincy and Prime
Minister Lester Bird has congratulated him on his appointment.
In a letter to Mr Jacobs, Mr Bird remarked, “Your doggedness
to succeed is an indication of the great fortitude of the Antiguan
spirit. I am certain that your maturity, coupled with your level
headed combative, naturally aggressive left-hand batting and impressive
glove-work will propel your team to victory.”
Prime Minister Bird also congratulated him for the one-day series win against
Bangladesh.
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Tax Reform and Administration
Commission meets in Antigua and Barbuda
The Tax Reform and Administration Commission
of the Monetary Council of the Eastern Caribbean Currency Union
ECCU, held a meeting in Antigua on the 2nd and 3rd December, 2002.
The Commission, chaired by Sir Alister McIntyre, is mandated to examine the
revenue system in the member countries of the Currency Union and to recommend
new approaches to taxation and its administration.
The discussions focussed on issues relating to the growth prospect of the economies
of the Currency Union, and the appropriate revenue system to support the economy.
The establishment of the Tax Reform and Administration Commission was born
out of the need for countries of the ECCU to tackle the fall out from changes
in international and regional trade regimes which leads to increased liberalisation
and lower tariffs resulting in lower revenues to the countries.
Its main purpose is to respond in a systematic and strategic manner to what
is likely to be a fundamental shift in countries tax bases.
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New
Audio Recording System in Magistrate Court
A new audio recording system is being introduced to the Magistrates’ Court
in St. John’s.
This marks the expansion of a pilot programme in which the audio
recording system was installed in the High Court in 2001, and in
the St. Lucia Magistrates’ Court last May.
The Attorney General, Mrs. Gertel Thom, said that the new recording system
will improve the process involved in the creation and management of the Court
Record. She explained that the system allows Magistrates to focus more closely
on the demeanour of the witnesses, which will help them in assessing credibility.
It will also facilitate playback of evidence and aid in the preparation of
evidence transcripts.
A team is presently in Antigua to train court personnel on the use of the new
audio recording system.
The introduction of the new equipment is part of the OECS Judicial and Legal
Reform Project sponsored by CIDA to improve court efficiency.
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Antigua and Barbuda
to sign OAS Convention Against Corruption
The Cabinet of Antigua and Barbuda has taken a decision that
the government should sign and ratify the Organisation of American
States Convention Against Corruption.
Cabinet advised Attorney General Mrs. Gertel Thom to communicate to the OAS
at its meeting in St. Lucia on 6th December that the government will sign-on
to the twenty-eight articles of the Convention.
The Attorney General explained that Antigua and Barbuda has already incorporated
the articles of the Convention into its Prevention of Corruption Amendment
Act 1994 and Integrity in Public Office Act 2001.
She said that the government is fully committed to ensuring that it is accountable
and that all the necessary procedures are in place to prevent corruption not
only in government but by every person in public life.
Mrs. Thom said that the OAS meeting in St. Lucia is part of a hemispheric initiative
in which the OAS has been at the forefront. The cooperative endeavour to promote
the ratification and implementation of the anti-corruption treaty is a continuation
of the programmes executed by the OAS Secretariat for Legal Affairs.
To date, 28 of the 34 OAS Member States have signed and ratified the Inter-American
Convention on Corruption.
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Government
defends tax collection campaign
The Antigua and Barbuda government has refuted claims that businesses
unsympathetic to the government are being targeted under its tax
collection regime.
In a press statement, Junior Finance Minister Senator Asot Michael
said that in the 2002 Budget the Prime Minister had pointed out
that 330 of the total 491 companies in Antigua and Barbuda do not
pay income tax at all, and that of the 161 companies that do pay
some tax, only 16 of these contribute 80% of total taxes collected.
Senator Michael went on to explain that the Inland Revenue Department
was now trying its best to collect the tax arrears of the delinquent
businesses “who have either not paid any taxes whatever in the
past, or paid very negligible amounts even though they clearly
owed far more”.
In reply to allegations from the Opposition that businesses owned
by individuals not supportive of the government are being targeted,
the Senator indicated that the Inland Revenue had acquired forensic
tax experts who have been significantly involved in assessing the
taxes and “apart from their impressive academic credentials and
wealth of experience, they bring to the assessment exercise a degree
of impartiality and objectivity which is in no way biased or influenced
by our national politics”.
He emphasised his point by revealing that the Prime Minister
had been assessed and was accorded no special privileges. He added
that the companies facing penalties include Kings Casino, Sandals
Resort, CTV cable company, and the Observer Group of Companies.
In addition, he responded to claims that the government does
not have an effective tax collection machinery in place. He said
that while the government remained highly concerned about the level
of delinquency among local businesses, it had strengthened the
tax collection mechanism.
“The increased vigilance and enhanced capacity of the Inland
Revenue Department over the preceding two years have already brought
us very substantial and tangible results. The total collection
from the Corporate Income Tax, which was stagnating around $30-35
million two years ago had increased to $43 million last year, and
during the first 10 months of this year, have already touched $47
million. It is projected to reach $60 million by the end of the
year.”
As such the tax collection campaign is intended to make the tax
system modern, rational and equitable. Senator Michael added that
tax evasion could not be allowed to continue and that “this culture
of non-compliance has to be brought to an end, and the attempt
to mischaracterize the efforts on the Inland Revenue Department
in this regard as draconian, is nothing but a political gambit”.
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Businesses
seek redress in the courts
As government seeks to recover $70 million in unpaid taxes from
businesses in Antigua, some companies are turning to the courts
for redress.
Jolly Roger Antigua Limited, Courts (Antigua and Barbuda) Ltd.,
Kings Casino, Observer Publications and Observer Radio have all
filed injunctions against the Commissioner of Inland Revenue William
Schouten, and Attorney-General, Gertel Thom.
Until the matters are heard the Commissioner of Inland Revenue is restrained
from enforcing a distress warrant or any other form of execution whatsoever
on the assets of the applicant as a result of the non-payment of the withholding
of tax assessments for the years 2000 and 2001.
Commissioner Schouten acknowledged that the companies have filed
injunctions in the court, “It is a part of the process; the taxpayer
has the right to object and appeal. We just have to abide by what
the court says and wait until the matter comes up for hearing.”
However, he said this would not stop the Inland Revenue’s work, “The
process will go on. We will not cease or desist from collecting
outstanding taxes.”
He added that several business places have come forward to settle
their outstanding arrears.
Schouten has indicated that some 60 companies are in arrears
to government with some dating back to the last seven years.
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Electoral
Commission at an impasse
Prime Minister Lester Bird says that he will not interfere in
the impasse that has paralysed the work of the Electoral Commission
by the refusal of two Opposition-appointed members to sit with
its Chairman.
The Electoral Commission comprises five members. As prescribed
under the law, three commissioners were selected by the Government,
(Chairman McClin Matthias, Winston Gomes and Nathaniel James),
and two were selected by the Opposition (deputy-Chairman Bruce
Goodwin and Bishop Ewing Dorsett).
The Commission was appointed to facilitate the electoral process
for the next general election, including the re-registration of
voters. However, the commissioners selected by the Opposition disagree
with the other three commissioners on a number of matters. They
have refused to cooperate or meet with the Chairman until these
matters are resolved.
The Prime Minister pointed out that the Electoral Commission
is an independent body and in order to safeguard its objectivity
neither he, nor his government, would become involved in the dispute.
He said that it was up to the five men to resolve their differences
in the interest of the country. He explained, “This is a matter
for the people of the country, not for Lester Bird nor his government.
The law is clear and pellucid that the Electoral Commission should
be independent of the Government and of any political party not
withstanding the fact that both leaders (of Government and Opposition)
choose the persons”.
While expressing the view that the Antigua Labour Party would
like to see the process of the re-registration of voters expedited,
the Prime Minister stressed “This is a matter they must work out
for themselves”. He added that, “I think the people of this country
have the right to demand that they sit down and come to some understanding. ”
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Voter
re-registration extended to 31st March 2003 due to Commission
impasse
The re-registration period for voters is to be extended until
31st March 2003.
The deadline for the publishing of the voters list was originally
set for December 31, 2002, but the Electoral Commission which is
responsible for the organisation of voter registration, became
dysfunctional when the Opposition appointed members refused to
attend any further meetings of the Commission.
The two Commissioners have advised the Chairman of the Commission
that they do not agree with the other members about the process
by which the Supervisor of Elections is elected.
The Parliamentary Bill to extend the voter registration period
also amends the definition of “elections officer” in order to clear
up the issue of the Supervisor of Elections.
The Bill will be heard in Parliament this month.
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Post office head denies
knowledge of mail tampering
Postmaster General Milton Davis has denied any knowledge of mail
tampering at the General Post Office.
He said he has undertaken internal investigations into such allegations
and has not unearthed any solid evidence.
“We have a system in place to prevent such things as tampering
of mails. We collect mails from the airport, the St. John’s Harbour,
and sub offices. We have two officers – the van driver and another
postal worker – collecting the mail as a safety mechanism,” he
said.
“In addition to that, we have special seals for mail bags that
we send out – these seals are locked away and only given out when
mails are ready to be sent out by the Assistant Post Master Rosemary
Gibbs,” Davis added.
However, he disclosed that the Post Office does, in many instances, receive
tampered mail from overseas.
He said that the Post Office had contacted all the British post
offices to let them know that customers have been complaining about
the conditions in which they are receiving their mail.
To help alleviate this problem, the post office is in close contact
with officials from the Caribbean Postal Union in St. Lucia.
In order to beat the excess flow of mail at this time of the
year the CPU have sent five officers to key US post offices as
part of its Caribbean Christmas plan to facilitate mail getting
on time to the Caribbean.
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Attorney
General refutes Observer Newspaper article on Scotland Yard MBS
investigation DPP says, “Article printed to misinform.”
Attorney General of Antigua and Barbuda Mrs. Gertel Thom has refuted
allegations made in a front page editorial in the Daily Observer
Newspaper of December 10, 2002, captioned “Government Blocks Scotland
Yard From Investigating Ministers’ Bank Accounts.”
The Observer article claims, among other things, that the Scotland Yard Detectives
wanted to investigate the bank accounts of the Ministers who were subjects
of the Medical Benefits Inquiry and the government was apprehensive in lending
assistance.
It also stated that the Director of Public Prosecutions, Mr. Cosbert Cumberbatch,
referred the matter to the Attorney General who in turn referred it to the
Money Laundering Czar, Mr. Wrenford Ferrance in an effort to frustrate the
Scotland Yard Detectives.
The Attorney General said that the statements are completely false, noting
that the only communication she had with the Scotland Yard Detectives was during
a courtesy visit by the detectives to her office during which they expressed
their satisfaction with the arrangements made for the investigations. She said
that she also assured them during the meeting that her offices will be available
to them for information, resources or documents relating to the MBS Inquiry.
Mrs. Thom pointed out that she has had no requests for information on bank
accounts of past or present Ministers of Government from Scotland Yard either
directly from the detectives or through their Antiguan superior, the Commissioner
of Police, Mr. Truehart Smith. The detectives were sworn in as special constables
of the Royal Police Force of Antigua and Barbuda.
It was noted that the Director of Public Prosecutions Mr. Cosbert Cumberbatch
had not requested information in relation to bank accounts of any Minister
of Government.
Mrs. Thom said therefore she could not have referred any matter to the Money
Laundering Czar, Mr. Wrenford Ferrrance.
Following the publication of the Observer Newspaper article, Attorney General
Thom has written to the Commissioner of Police and the Director of Public Prosecutions
reiterating her position that if the Scotland Yard Detectives need information
they must make the request in order for her to approach the US Government under
the two countries Mutual Legal Assistance Treaty. The Observer Newspaper had
alleged that Scotland Yard wanted access to bank account information in the
US.
Director of Public Prosecutions Mr. Cosbert Cumberbatch in commenting
on the article in the Observer Newspaper said that it was printed
to misinform the public.
He added that it is evident that the writer of the article was on a fishing
expedition as he and the Attorney General were fully aware of the procedures
necessary for matters of this nature and would follow them if the need should
arise.
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Humphreys
files suit against commissioners
Former Trade Minister Hilroy Humphreys has filed an application
in the High Court asking for a judicial review of the Medical Benefits
Scheme report.
In his affidavit to the court, he states that the rulings made
by the MBS Commission of Inquiry are incorrect and should be quashed.
Parties to the lawsuit include Chairman of the Commission Sir
Alister McIntyre, Dr. John Anthony Roberts and Oscar Frederick.
In the affidavit Humphreys is calling “for judicial review of the
findings and or recommendations and or conclusions made by the
defendants sitting as a Commission of Inquiry, which was appointed
by his Excellency, the Governor General of Antigua and Barbuda,
acting on the advice of the Cabinet on 9 July, 2001.”
He is also seeking “an administrative order to set aside or quash
the findings, recommendations and or conclusions of the several
matters immediately hereafter complained of in the said report.” Humphreys’ affidavit
is requesting that some of the Commissioners recommendations be
struck from the report. These recommendations include follow up
by the Director of Public Prosecutions to:
- pursue the questions of the land purchase and “the professional
fee to ascertain whether a basis exists for charging Humphreys,
Malcolm Payne, and others with fraud or other appropriate offence.
- further examine of the high costs borne by the MBS for off-loading
containers with supplies for the pharmacy building to determine
whether or not one or more of the people involved in the offloading
operation should be charged with conspiracy to defraud the MBS
or other appropriate offences.
Also troubling to Humphreys is the Commissioners’ finding that
they are “thoroughly convinced that he forged the signatures of
Dave George and Carlton Lewis; that he conspired with the senior
management of MBS to pay benefits to Jennifer Joseph Lewis on very
questionable grounds; and that he converted the proceeds of this
for his own use; that he conspired with contractors including Dave
George and Carlton Lewis to defraud the MBS, without certified
documents regarding the cost of the construction, the procedure
for award, and the verification of completion of the jobs. “
The Commissioners further stated in their report that on all
these grounds, “we consider Humphreys to be patently dishonest
and reckless with the truth, and that he misused and abused his
office of public trust for personal gain, and in that regard, committed
criminal offences. In our view, his conduct is the worst example
of how a public official should behave in office.”
Humphreys wants a declaration that the defendants (Commission
Chairman Sir Alister, and Commission members Dr. Roberts and Frederick)
acted in excess of their jurisdiction and/or in breach of the rules
of natural justice and/or with not sufficient or probative evidence
to have properly arrived at the findings and recommendations made
and or the conclusions arrived at.
The first hearing is listed for 3 February, 2003.
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Government
extends probe of alleged passport racket involving US sniper
suspect
The government has extended by two weeks, its nearly two-month-old
probe into an alleged passport racket in Antigua, involving a United
States sniper suspect.
In making the announcement on Monday, Attorney General Gertel Thom, noted that
the investigation, which was launched on October 28, was due for completion
this week.
However, she said that the government-appointed team had requested more time
to complete its investigation and submit its findings.
The Attorney General ordered the investigation after the discovery that John
Allen Williams, who later changed his surname to Muhammad and is believed to
be behind nearly 20 killings in the United States, was a holder of a valid
Antigua and Barbuda passport.
The team has already concluded, in an interim report released on October 31,
that Muhammad was granted the passport on July 4, 2000 due to negligence on
the part of the Passport Office.
In support of his application, he presented false documents, including a Louisiana
birth certificate purporting to be his and an Antigua and Barbuda birth certificate
of one Eva Ferris as that of his mother.
But the team led by local attorney-at-law John Fuller is yet to come up with
proof that he assisted other persons in acquiring valid passports by fraudulent
means while he was resident in Antigua between 2000-2001. However, a Jamaican
woman, Rona Ascott, is presently out on bail after being charged with fraudulently
obtaining an Antiguan passport with his help .
Authorities in the United States have linked the 41-year-old Muhammad and a
17-year-old Jamaican national, John Lee Malvo, to 19 shootings, including 13
deaths, in Maryland, Virginia, Alabama, Georgia, Louisiana and Washington.
The two were arrested at a rest stop in Maryland in October 24. Both are charged
with capital murder.
Meantime, Malvo’s mother Una James who lived with him in Antigua in 1998, returned
to Jamaica following her deportation from the United States.
James and her son Malvo allegedly immigrated into the United States illegally,
with the help of Mohammad.
Malvo and Muhammad are believed to have met in Antigua.
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Nevis
Street pier opens
The Nevis Street Pier received its first cruise ships on the
19th December.
Two cruise liners – Costa Romantica and Mistral – berthed at
the new pier.
“It means that for the first time we have four ships in the harbour
with an average of 7,000 passengers,” President of the Antigua
and Barbuda Cruise Association Charles Shoul said.
Shoul is optimistic that the operation of both the new pier and
Heritage Quay will be a good sign for tour ship operators.
Shipping Manager at Bryson’s Shipping, Nathan Dundas, described
the event as an “historical one.”
“We have been pushing for cruise ships to be berthed downtown
for some time seeing that the Deepwater Harbour is not of satisfactory
standards to some cruise ships.
One of the points of negotiations with cruise liners has always been the lack
of proper berthing facilities. But this will no longer be an issue. It will
be a great selling tool for us when we can show that we can have four cruise
ships docking at the same time,” Dundas said.
The berthing of the four cruise ships also coincided with the
celebration of Tourism Week.
Government took the decision to construct the Nevis Street Pier
following numerous complaints from shipping lines that St. John’s
Harbour (Deepwater Harbour) was not suitable for cruise ship passengers.
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