The trial to determine whether or not the government of Dominica holds 51% of the company which owns the assets of the failed Layou River Project, enters day 2 in the Commercial Court of the BVI on Tuesday with Prime Minister Roosevelt Skerrit returning to the witness stand after a 2 hour roasting so far from defense counsel Paul Chaisty.
At issue is a February 2006 decision by Rich Victory (the owners of Shangri-La International Development Holdings), to transfer 51% of the company’s shares to the Government of Dominica and a November 2006 decision to cancel, abort or revoke the instrument of transfer.
The action to rectify the share register of the Shangri-La was filed by Felix Chen of 40% Shangri-La shareholder Sino Union, following moves in February 2008 by former Dominica Ambassador to Beijing David Hsiu, the master mind of Rich Victory, to wind up the Shangri-La behind the back of Government.
This is a journey to remedy the investment misfortunes of the Layou River project, which started with the Prime Minister and his former Ambassador to China David Hsiu in the same corner. Now, Hsiu’s enemy Felix Chen, the Prime Minister’s former enemy is now the Prime Minister’s friend in court.
Both are hoping that their shared interest in having government established as the legitimate majority owner of the company will be upheld by the court… but the fat lady apparently still has quite a few songs to sing.
Notwithstanding a tough afternoon in the box, the Prime Minister who was allowed to testify first so that he could be excused to facilitate his preparation for this week’s budget presentation, remained upbeat at the end of Monday’s deliberations. The confident mood appears to be driven in part by the feeling that the credibility of the defense witnesses who oppose government’s ownership of the shares will be severely tested on the stand.
Under cross examination the Prime Minister himself has already admitted:
- He committed government to ownership of shares in a private company without legal advice and without the approval of cabinet
- He relied on David Hsiu and Kieron Pinard-Byrne (who now oppose him in this trial) for advice and guidance on all matters relating to the Layou River/Clarke Hall Estate development project
- He has never seen a share certificate documenting government’s majority ownership
- He knew that Felix Chen’s company Sino Union was a shareholder of the Shangri-La in February 2006, but in November 2006, he claimed he did not know until sometime in July 2006, that Sino Union had purchased 40% of Rich Victory’s equity in the Shangri-La
- His Ambassador to Beijing David Hsiu lied to him repeatedly over a period of approximately six months in 2006 by refusing to admit that he had received 20 million US dollars from Felix Chen for a 40% stake in the Shangri-La
- His letter to David Hsiu dated November 04, 2006 was written by Anthony Astaphan
- Since finding out about the David Hsiu plan to wind up the Shangri-La he has not discussed the matter with Felix Chen even though in his read of things government and Sino Union jointly own 91 percent of the company
The Prime Minister is under the gun to be specific about what he knew and when he knew it with respect to the share transfer instrument and the February 2004 agreement granting economic citizenship and other concessions to facilitate the development project at Layou. Skerrit said the majority shareholding to government was agreed as compensation for the failure of Hsiu and company to develop the international high school project as promised. When his cross examination resumes Tuesday morning, the controversial encounters with Hsiu at the Bellagio in Las Vegas and the Dorchester in London (between October 2007 and February 2008) are expected to feature prominently.
At the start of the trial Monday before Justice Bannister, Queens Counsel Reggie Armour, lead attorney for the claimant Sino Union, laid out a compelling case for government’s ownership of the majority shareholding which appeared to open up gaping holes in the affidavit evidence of the defendants.
Armour, a Dominican national, pointed to a number of inconsistencies between 1) documents seen as evidence that an instrument of transfer for the majority shares to government in fact exists and 2) the alleged oral agreements and instructions on which the defendants rely to justify their about turn on the gift.
The Trinidad based QC accused Pinard-Byrne of embarking on a “consistent course of conduct which frustrated his own duty as escrow agent to register the transfer of shares”
In support of Armour’s opening statements, Senior Counsel Anthony Astaphan sought to put the government’s claim to the Shangri-La shares beyond doubt with a full frontal attack on the contradictory postures of share escrow agent Pinard-Byrne, who actively pursued the share transfer before suddenly turning against it.
David Hsiu and Pinard-Byrne are trying to convince the court that the February 12th, 2006 instrument of transfer committing 25,500 shares to the ownership of government was withdrawn on account of agreed conditions that were not met.
Attorney General Francine Baron and Attorney Alick Lawrence are the other members on the Government’s legal team headed by Astaphan.
{ 15 comments… read them below or add one }
It is a shame that our Ambassador has to be bringing our country in such disrepute but Skerrit has refused to fire the man! What a shame!!!!!
It is a shame that people like Trevor Johnson and lennox Linton would be in support of Davis Shui or against Skerrit in this case.
We should be like Americans, When the country is at war every one support the troops. Skerrit is in court to protect our property no matter what we should support him and his legal team and wish them the best of luck in this matter.
I agree with you Castro, we should take on the enemy together for real…..but the Maestro himself admitted he was into that deal alone…never consulted with cabinet on the pertinent issues regarding that deal. Do you agree with the one man is an island move? Well…just a thought.
You mean the PM and Government is fighting to get back the majority of Layou River purchased in 1981 with Dominica passport money when Skerrit was only about eleven years and we seem to be criticising and blamming Skerrit for that.
David Hsui and Grace Tung were ambassadors since 1980 under Freedom Party
Dr. M let us say we win this case, and rightfully we should, it is our passport money after all. Now Chen already invested 20M and has 40% shares…how are we going to proceed with the project? Oh, well I guess Hsiu will have to refund Shangui-la……and the project can continue?…just thinkin…
Castro & Dr. Munro, are you people serious? No one is trying to deny Dominica the majority share holding in this venture, owning the shares would mean that finally we(Dominica)would finally be in a position to control the development which was our in the first place having been funded with the proceeds of the sale of our passports. But have you considered that as things stand now, owning the share may be another albatross around our necks. Who do you think will have to foot the bill if DS is unable to find the man’s money to repay him? My guess is that Dominica will again end up in court as the gentleman tries to get his money and seeing that our AG is ill-equipped to represent us, Mr Tony Astaphan will be called upon to do so at enormous cost to the tax payers of Dominica.
The fact is gentlemen that our prime minister has proven that he is incompetent and arrogant and by his continued failure to inform himself or seek advice on matters about which he is ignorant, brings the good name of Dominica into disrepute. You may continue to defend Skerritt here and in every forum dedicated to Dominicans in your efforts to fool the less educated amongst us but I know that you are ashamed to be called a Dominican when you are in the company of people who ridicule Dominica as a backward nation because of the action of this poor excuse of a PM called Roosevelt Skerritt.
I think this would be a great plus for Dominica if we could get back the layou river hotel given away with our passport money br the Freedom Party.
Skerrit would be doing a good thing so we must give him and his legal team all the support he deserves.
Good luck and God Blessings Mr. Skerrit
I just heard Johnson Boston of the Freedom Party on Matt in the Morning on Q95.
I found his comments really amusing. As if David Hsui arrived in 2004 when Skerrit became PM. Freedom Party sold Layou River hotel to Grace Tung and her Patner David Hsui in 1981. Skerrit was only eleven (11) years then just entering high school. Grace Tung and David Hsui were made Ambassadors by the Freedom Party in 1983 and David Hsui continued as an Ambassador under UWP and Skerrit made him Ambassador to China.
In all of the layou River saga Dominica never had shares in the project. It was only in 2006 Skerrit obtained 51% shares and he is fighting in court to keep those shares. Johnson Boston and others criticising him for that. What a Shame.
It’s obvious that Dr. Munro is ill-informed or uninformed about the Layou River Hotel saga. I suggest he reads the historical facts that Mr. Lennox Linton has posted on this website to begin to educate himself.
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CASTRO,
While you are suggesting that Lennox and Trevor is in support of David Hsui I should remind you of the very close relationship between Roosevelt Skerrit and David Hsui. I am not sure if you are aware of the emails between Hsui and Skerrit when Skerrit referred to him as HIS FRIEND. For your information, Lennox and Trevor DO NOT know David Hsui. He is not our friend.
Lennox Linton has been fighting for years for this Layou River Hotel to be given back to the people of DOminica. In fact, Pinard-Byrne and Lennox are before the Court on a matter related to this Layou River Scandal.
I should also remind you that Lennox Linton interviewed the same Mr. Chen that Skerrit hated when he tried to get the project going or for him to be refunded his US$20M. In fact, it was Lennox who took Chen’s matter to the public. Castro, it is supporters like you who cussed down Lennox for supporting an gentleman who was defrauded by Hsui.
Now that Chen has taken Hsui to court Skerrit could only do the honourable thing and side with him because he was caught once again in this big bobol.
Skerrit left the country and did not even advise the Nation that he was going to ensure that he secures our 51%. THE SAME 51% THAT LENNOX AND TREVOR WOULD LIKE TO SEE BE IN THE HANDS OF THE DOMINICAN PEOPLE!
It does not matter who brought the dog into the kitchen, as much as who gave it the food. Skerrit is the one who embraced and fed the crooks for the last five years despite public outrage and repeated calls over the years for an inquiry into Grace Tung, Hsui and the Layou River Hotel gang on all the Lennox Linton, Angelo Allen and Mat Peltier talk shows and by opposition groups. He defiantly collaborated with Tung in the China/Taiwan diplomatic game and later called Hsui, his brother and friend when he was confronted. He never made a serious move to secure the land even after it was offered to Dominica. The people of Dominica never knew all this was going on as this administration has made secretive dealings a staple. The hidden thing exploded and now Skerrit and his brother and friend are trying to duck their way out of it. But that is the modus operandi of Skerrit or have we forgotten the promised refund in the garbage bin bobol. All he does is concoct a way to get out and hope the people will forget it after awhile.
To Trevor Johnson, Deecee, aand others.
Firstly, it is my constitutional right to support whoever I wish and to use what evere available avenue to to so. I will defend your right vigourously to do the same.
Let us examine the saga of the Layou River Hotel.
1983 to 1995 Freedom Party sold Layou River and Adjoining Clark Hall Estate to Grace Tung And David Hsui. Property was owned by then PM Eugenia Charles. Dominica’s Passport money was used to effect purchase. No work was done on project.
1995 to 2000 Work commenced under UWP government. No investigation, no check and balances put in place. Sale of pass port continued. Large quantities of material, cement steel, lumber etc purchased at Antilles Cement Limited owned by Norris Prevost Minister in UWP Government. David Hsui and Grace Tung continued as ambassadors.
2000 to present, Construction work stopped in 1999 and never resumed. Labour Party under Pierre Charles Stopped sale of passports. Skerrit appoints Hsui ambassador to China.
Most importantly Skerrit attain 51% shares in company which he is now fighting for in a BVI court.
It is clear who has personally benifited from the project.
Shouldn't the question be, who intends to benefit from the project on a larger scale? __Could this be the reason why Hsui was appointed ambassador to China? Seems like the dragon was greedier than the serpent and went straight for the jugular…Let's see how this unfolds…The serpent might just outsmart the dragon! Messing with dragons is something we need to be very careful about. Then again, Dominica was forewarned of the imminent dangers resulting from its government's desperation for attaining to quick economic prowess.
PS Please do not take me wrong, the 51% share was attained for and on behalf of the Government and people of Dominica
Even Parry has doubts about the ownership of 51% shareholding……
“By the way, on the BVI matter, it seems to me why K Pinard-Byne is taking the position he has, and why Dominica is not sure of winning this case, is in the GREEN LINES of text in Michael’s earlier response to Peter/Pedro…”