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Caravanserai: Govt promised casino licence despite policy ~ Resort expansion within safety regulations ~
by The Daily Herald
Posted: Nov 18, 2005 14:20 UTC
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BEACON HILL - Government “committed” to granting a casino licence to Caravanserai Beach Resort in October 1998 as an incentive for the reconstruction of the resort although it did not have 200 rooms; “a clear exception” to the 1996 casino policy, Resort Managing Director Haresh Manek said in a press statement Thursday.
The Executive Council’s decision to grant a casino licence to G.N. Entertainment N.V. to operate a casino at Caravanserai was annulled by Federal Decree on November 11, 2005.
Lt. Governor Franklyn Richards, making use of his authority as stated in the Islands Regulation ERNA, sent the decision of the Executive Council to Governor of the Netherlands Antilles Frits Goedgedrag on September 14. Goedgedrag signed the decree of annulment on the recommendation of Minister of General Affairs and Prime Minister Etienne Ys.
The decree mentions the 1996 casino policy, the fact that the number of stand-alone casinos has been tied to a maximum of 10 and Caravanserai doesn’t have in excess of 200 rooms. Hotels and resorts with more than 200 rooms meet the requirement to be granted a casino licence.
“We are completely flabbergasted by the way this entire issue (for the casino licence) has been dealt with, with government and the Lt. Governor sparring via the media and a request for annulment of an Executive Council decision via ways that have no transparency,” Manek stated.
An appeal against the initial decision of government in 1998 not to grant a new licence to the resort is still pending. This case should be heard in court soon.
“It is a very peculiar court case because on one hand the Island Government by way of the Executive Council wants to give us the licence, but on the other hand the same Island Government by way of the Lt. Governor does not want to approve the licence.
“It is quite a dilemma for them. The hotel, however, is the victim and I cannot afford to wait longer for their skies to clear so I have decided to go back to court and ask the judge whether the hotel should be able to reopen the casino or not,” Manek said.
Caravanserai respects the rights of authorities to question certain decisions and actions because these are rights that are laid down in the law, Manek said. “However, the law also provides ways to request clarification and, if need be, demand damages for unjust decisions or actions that unjustly go against formal government commitments.”
The whole process of refusing the casino licence, granting it and refusing it again is now being examined by the resort’s lawyers in St. Maarten and the Netherlands. “If there is just cause to file claims against entities and individuals who are responsible for this drama, we will most certainly do so.”
According to media reports, the Executive Council is blamed by the Governor for not weighing the interests of third persons. “Who are these third persons? For sure it’s not the unemployed in St. Maarten waiting for developments that create more jobs. For sure it’s not the St. Maarten people hoping to create a stronger economy or a better tourism product.
“Who are then these third persons whose interest could be more important than growth, jobs and more revenues for the island? It would be very helpful if the Governor could clarify this.”
Dolphin Casino, now in the Sunset Theatres building, was previously located in the resort and was evicted after a long court battle due to non-payment of rent, he added. “It was government that let them take the casino licence for our hotel location to Simpson Bay. I never understood why they did that. When I asked for a new licence to reopen our casino, they told me that the hotel does not have enough rooms.”
Manek stated, “I would like the public to know that there are no dark dealings behind the scenes, as some people seem to think. It is all based on formal and legal government commitments and court rulings.”
Meanwhile, a building permit request for the extension of the resort has been pending for more than six months, he added. “The airport has indicated that the extension may go against international airport safety regulations and recommendations, but a study from the Department of Transportation in Curacao has shown that the extension remains well within any existing requirements. It is unclear to me what the delay is,” he concluded.
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