New details from the management contract between Kerzner International and Brookfield Asset Management allegedly state that the four-year management contract calls for Kerzner to meet revenue benchmarks that were last achieved in 2008, before the global recession.
If the revenue standards are not met, it could result in the layoffs of employees to cut costs.
The second year of the contract calls for even higher revenues.
The contract, which has not yet been made public, also gives Kerzner International a two percent cut of the gross revenues for managing the Atlantis Resort and the One&Only Ocean Club on Paradise Island.
Brookfield became the new owners of the properties in November after a debt for equity swap with Kerzner, whose mountain of debt became unsustainable.
At the time of the deal, the Ingraham administration was concerned about the job security of the more than 7,000 employees on Paradise Island. Atlantis is the largest private employer in The Bahamas.
The government allegedly withheld details of the agreement so as not to alarm the public and the employees of the resort properties.
Prime Minister Ingraham and officals at Atlantis Resort have stated publicly that no jobs are threatened as a result of the ownership takeover. But that could change if revenue targets are not met.
Also, Brookfield can terminate the management contract with Kerzner at any time if it brings on a new partner, or if Kerzner does not meet revenue targets.
Both the Progressive Liberal Party (PLP) and the Democratic National Alliance (DNA) have called on the Ingraham administration to make public the management agreement between Kerzner and Brookfield.
