Instead, fishermen in North Andros were granted a $2.5 million mortgage for 15 boats from a Korean company to further develop the local fishing industry, said Bahamas Agricultural & Industrial Corporation (BAIC) chairman Sidney Stubbs.
The boats are now moored at Morgan’s Bluff, North Andros.
The funds were made available by Neneka Bahamas Ltd., a company owned and operated by Tae Jing Suk, a Korean-born American, to Netsiwill Holding company Ltd., a Bahamian company in Andros.
Mr. Stubbs said that the corporation looked around the region, but found that the “Asian Tigers” had the fastest growing economies.
“BAIC being cognizant of this fact, and looking to stimulate direct investment in this economy and the marriage between Bahamian domestic investors and foreign investors, we have sought over the last year-and-a half to work towards bringing Bahamian companies together with credible foreign companies,” he said.
BAIC has done this previously in the areas of agriculture and business, he advised.
Mr. Jing Suk, a principal of Neneka, who was also present at the press conference, said that granting the mortgage to Netsiwill was an attempt by his company to introduce Korean fishing vessels to this region of the world.
He also revealed that his company has close ties with the community of North Andros and have plans to invest in excess of $20 million in North Andros over the next few months.
He added that this investment would be to build a major modernised fish processing plant, shrimp farm and boat manufacturing company. He predicted that in the next five years that investment could stretch to $100 million.
“We have been working with Mr. Sidney Stubbs and Mr. Godfrey Eneas and Mr. Adrian Sands to structure our business proposals to the government,” he stated.
Mr. Stubbs assured that the arrangement between Netsiwill Holdings and Neneka Bahamas Ltd. was not a fronting operation.
“The Koreans have granted a mortgage to the Bahamian company Netsiwill, the mortgage is consistent with Bahamian law, this is not a fronting operation…Bahamians should not be concerned; all this is, is the furthering of Bahamians in what is considered a multi-billion dollar industry.”
According to Mr. Stubbs, an integral part of the mandate of BAIC includes promoting domestic investment in The Bahamas, which he added, requires thinking outside the box.
“Part and parcel with the promotion of domestic investment is to partner foreign investors with credible Bahamian companies so that we have a marriage where Bahamians who heretofore may not have access to capital to start businesses throughout this country could then have access to capital through the marriage of joint ventures set up between Bahamian and foreign concerns.”
Mr. Stubs revealed that over the last year-and-a- half, his corporation has been approached by numerous Bahamian fishermen who have tried successfully to procure loans for large commercial fishing boats 45 feet and over. “There is no access to them for funding locally,” he said.
He added that those who are lucky enough to get a loan from The Bahamas Development Bank, find themselves waiting long periods before the funds are released, with the wait sometimes stretching longer than the fishing season.
“The corporation during its due diligence process took the time to ensure that this venture upon which we embarked was something that was not outside the confines of Bahamian law,” Mr. Stubbs said.
He noted that through the partnering of Netsiwill Holdings and Neneka Bahamas Limited, BAIC sought to introduce a Bahamian company to a foreign company that had the capital and the expertise to assist them in achieving their objective.
“At BAIC, we have no interest in the operation; we have spent no money putting this arrangement together; all we did is what we have done for other companies in other sectors,” Mr. Stubbs said.
Chief consular for the North Andros district, Alfonso Smith also present at the press conference revealed that Adrosian economy was very dependent on the success of this venture adding that: “The local government in North Andros supports this Bahamian venture 100 percent…There are persons in Andros who for their own selfish reasons do not want this project to succeed. They have their agenda…they will not deter our plans. We accept the Koreans and their Bahamian counterparts 100 per cent.”
Earlin Williams chief operating officer of Netsiwell noted that The Bahamas has been attempting to introduce Bahamian marine products to the Asian markets for some time. He continued that because the Asian market require live products a special technology known, as cryogenics was needed in the Bahamas to facilitate export lobster and other marine products to the Asian market. He continued that Neneka Bahamas was simply assisting his company in this area.
Mr. Williams stressed vigorously that Netsiwill and Neneka were in no way merged and were two separate entities. “Neneka has no control over our company and we have no interest in their company.”
By Martella Matthews, The Nassau Guardian
